open discussion with EFX Group president, Mr. Jon Floyd

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fatdog1
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Postby fatdog1 » Thu Jul 06, 2006 6:10 pm

Mr. Floyd,

Does Tony Chatman still work for EFX?

Thanks,
FD1

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Postby jon.floyd » Thu Jul 06, 2006 8:06 pm

fatdog1,
Tony used to be affiliated with our Chicago branch but we have now closed all the branch offices and are strictly an internet based firm. I would certainly be happy to help with anything.
Thanks,
Jon Floyd

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Postby geff » Fri Jul 07, 2006 1:01 am

Aside from the multiple account solution, can you carry simultaneous long and short positions on the same pair?

What is the minumum deposit per account?

Thanks, Jeff

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Postby geff » Fri Jul 07, 2006 1:06 am

How close to the market price can you place a limit order? Can you place it in between the bid and ask? - Jeff

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Postby jon.floyd » Fri Jul 07, 2006 1:22 pm

geff wrote:Aside from the multiple account solution, can you carry simultaneous long and short positions on the same pair?

What is the minumum deposit per account?

Thanks, Jeff


Geff,
You can not carry simultaneous long and short positions on the same pair in the same account.
The minimum deposit is $400.
Thanks,
Jon Floyd
Last edited by jon.floyd on Fri Jul 07, 2006 1:41 pm, edited 1 time in total.

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Postby jon.floyd » Fri Jul 07, 2006 1:40 pm

geff wrote:How close to the market price can you place a limit order? Can you place it in between the bid and ask? - Jeff


Geff,
You can place a limit order within 1/10th of a pip on our platform. We also offer pip for pip trailing stops. In addition you can place bids and offers between the spread. Currently in demo you can preview and test our new Active ECN which allows our clients to bid and offer between the spread at increments as low as 1/10th of a pip. The ECN allows our clients the ability to match orders directly with other clients thus avoiding the banks all together. This allows the client to act as a market maker or play on the same playing field that the banks play on. It is not necessary to have to buy on the offer or sell on the bid with the banks; the ECN allows for price improvement and narrowing of the spreads. This will be a functional feature very soon on the live platform and is available on the demo now.
The best way to see what I am talking about is to open the demo acct and place bids and offers between the spread in increments as low as 1/10th of a pip. Thats why we have 6 decimal spots on our quotes. Your fills should have price improvement on them. This feature will be incredible when our live client base is putting in hundreds of orders between the bank spreads in the major pairs. If anyone would like to know more please contact us at 480-212-1112 or 877-212-1112 and we will give you a demo.
Thanks,
Jon Floyd

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Postby geff » Fri Jul 07, 2006 3:47 pm

The flexibility on the limit orders is great - I haven't seen that with other brokers.

But simultaneous long/short (hedged) positions are available with IFX Commerce and CMS. Is there a reason your platform chose not to offer that?

Thanks, Jeff

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Postby michal.kreslik » Wed Jul 12, 2006 12:09 pm

Mr. Floyd,

thank you for your answers.

I've tried fractional price orders and they really work great. Good job!

The only EFX Group imperfection is that it doesn't offer the lowest trade costs available (correct me if I'm wrong).

The most often observed EURUSD spread in EFX by me is 1 point. During the non-liquid times it goes up to 3 or 4 points. The problem is EFX doesn't publish its spread history so no one can tell what is the average spread value, really. If it was 1 point, then it would be great. But I think the average value is actually higher.

The costs add up with the commissions. The introductory $7 commission goes down to $5 if one trades enough contracts per month, but even with the $5 commission, the cost is never lower than that of Oanda:



This way, given the best possible scenario ($5 commission, 1 pip spread), the cost of trading one contract in our above example with EFX ($22.7935) is between Oanda ($15 - the lowest) and the average broker ($30). The trouble arises when the spread goes to 2 pips - then the cost including the commission goes up to $32.7935 with EFX, which is a higher value than an average cost with mediocre broker. I've noticed that the spread goes to 2 pips quite often, though it rests at 1 pip most of the time.

My question is: do you offer some competitive plan with fixed costs say at 1.8 points in EURUSD?

I'm a leveraged scalper and one basis point is quite a large value for me. Certainly it's a big difference for me whether I give up 46% of my 5 points trade with EFX (22.7935 / 50) or 30% with Oanda (15 / 50).

Michal
Last edited by michal.kreslik on Wed Jul 12, 2006 5:21 pm, edited 1 time in total.

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Postby jon.floyd » Wed Jul 12, 2006 5:06 pm

Michal,

I am glad you like the fractional orders, I feel people will reallly benefit from trading at sub-1 pip increments. This will offer the end user incredible savings and no longer will clients have to be trading from an extreme deficit the moment they enter a trade

In regards to the pricing issue Oanda does have very competitive rates but I think we offer a substantially better overall package. Our spreads in the relevant trading hours are 1 pip in not only the Eur, but the GBP, JPY, and the CHF. Our spread does fluctuate because our multiple liquidity providors do adjust priicing similar to an equities market. We offer a true market with multiple destination options as opposed to an artificial market and spread like many FCM's.

Additionally we are going to be offering ECN access that will allow trading between the spread. Now potentially you can trade with 1/10th spread, not 1.5 pips or higher. Can you bid and offer between the spread on Oanda or do you have to buy the offer and sell on the bid? The potential dollar savings for you could be substantial. The idea of not having to not trade at the bid or ask in the future has signifigant relevance and implications to how trading will be done.

Its not just about cost though, at least thats how we look at it. Sure there are examples where at certain times others may be cheaper but we have greater technology, more order types, multiple liquidity providors, no deal desk add outstanding customer support. Remember there is no such thing as commission free trading if the FCM is operating a deal desk or acting as a counter party to your trades.

Thanks,
Jon Floyd

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Postby TheRumpledOne » Wed Jul 12, 2006 5:24 pm

Michal:

You are comparing apples to oranges!

The fact is with EFX you pay about .64 per lot per trade on the euro right now.

Round trip, that makes $1.28.

If you enter at 1.2700 and exit at 1.2703 you make 3 pips.

Your net after commission is $1.72!!

THE SPREAD HAS NOTHING TO DO WITH IT AT ALL!!

If you are using a broker with an artificial spread, you pay $3 round trip.

The spread at EFX is the real spread of the market place and it is NOT a factor in your cost at all.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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