Which is the best broker for news trading?

[shanmugapradeep]

Hello,

I trade during high-impact news events like CPI, NFP, PPI, and others with ICMarkets. Everything is working fine and I’m making profits.

ICMarkets allows trade execution even 1 second before the news release, which is great. However, during news time, the market becomes extremely volatile and sometimes creates large price gaps. Because of this, I occasionally end up with a negative balance. Unfortunately, ICMarkets does not offer negative balance protection for clients outside Australia.

Can anyone suggest a good forex broker for news trading that allows fast execution (1 second before news) and provides negative balance protection?

[pink_hat_trader]

@shanmugapradeep

I occasionally end up with a negative balance.

Yes, you will. Almost everyone does, if they try to trade the news using CFD’s, for good reasons which possibly you may not quite have thought through, if you’ll forgive my saying so.

The truth is that retail CFD trading and news trading don’t comfortably or safely go together at all.

Your trades aren’t in a market, they’re just bets against your own “broker”. If you could actually do it profitably (though almost nobody does in the long run) how long would the broker let you take their money for? whatever they say, they can’t realistically offset or “ECN” or “STP” your positions to an LP, with news trading, simply because then THEY would effectively be the party trading without the stop-loss instead of you!!

The following few posts, between them, will tell you what you really need to know on this very simple subject. I’m tempted to say “Ignore them at your peril!”

News and its Effect

Nope. I don’t believe any retail trader does, in the long run. Not at all. People say they do (on Youtube, etc.) but it turns out that their income’s really from marketing on Youtube etc., not from trading. As so often! Read every sentence of Ryan’s post just above, David - it tells you what you need to know! Regulators and big prop-firms always say that retail traders trying to trade the news is the commonest cause of account-loss. It’s basically trading without a stop-loss…

News trading yes?

all of them - they make a fortune from customers doing it, so they understandably encourage it no - i avoid it, i don’t trade for about 5 minutes before it and usually 10-30 minutes after it (depending on whether it has much effect on the markets) there are quite often spikes in both directions, all in a few seconds, which can take out your stop-loss in one direction, then hit another trade and take out that one’s stop-loss, too - it’s fraught with danger, however you do it, it seems to me l…

What are the most volatile news stories to trade?

To trade? Many counterparty brokers who win when you lose really LOVE their customers to do this, and strongly encourage it. Does that actually tell you what you need to know? None is the best answer. Unless you’re a very experienced expert at this (who wouldn’t be asking) you should avoid trading the news. It’s essentially trading without a stop-loss, because it’s the one time that a broker may not be able to honour your stop-loss. More retail traders’ accounts are probably los…

Trading The News

Yes, it’s easy, online, to see that tiny minority, because they typically post about it in forums, on websites and on Youtube, usually with some promotional motivation (often concealed). What’s much more difficult to see is the great majority who’ve made heavy losses, because they typically keep quiet. The main point here is that there are often spikes in both directions, so it’s easy to get the overall direction right and still lose money (sometimes much more than envisaged, because “news” i…

Should You REALLY Trade the News?

[SchmaltzHerring]

The best (least bad) one would be a futures broker. Any one. They’re all on your side rather than against you.

The next-best (theoretically good) one would be any top-regulated forex broker that will give you both guaranteed stop-losses and guaranteed fixed spreads.

You absolutely do need both.

Guaranteed stop-losses, because otherwise you’re effectively trading without one, just when it matters, as mentioned above and in every serious thread where it’s discussed.

And guaranteed fixed spreads, because otherwise they just widen the spread to whatever they feel like, to prevent you from winning.

You do have to pay extra (on the spreads) for both those things, obviously, but there’s no other way to do it safely in the long term.

Not only is negative balance protection not the answer, but I really advise you to look instead for some other trick or short-cut, not news trading. The chances of news trading working out for you in the long run aren’t just close to zero: they are zero. To be slightly blunt (sorry!), it’s kind of concerning that someone who’s been here for years is even asking about this. Apologies for being the bearer of bad news, @shanmugapradeep , but this plan honestly isn’t the solution to your trading problems. Sorry.