FAP Turbo and Lower Broker Spreads
It seems more brokers, many popular with FAP Turbo, are beginning to lower their spreads and those who have not already done so seem poised to likely follow suit to remain competitive.
This is fantastic news for FAP turbo scalper traders since the scalper mode is sensitive to the spreads. With lower spreads FAP Turbo users are sure to see and even better return on their money.
It seems we’re seeing a return to spread conditions like those just before last Christmas. This shouldn’t be a surprise though since spreads like marketer conditions in general move up an down with a bit of a rhythm.
According to the news release from FAP Turbo today, FXCM had already lowered their spreads at the end of March. Not being an FXCM user I can’t confirm this but will shortly.
Alpari has announced it will eb decreasing spreads on 16 of it’s currency pairs including the ever popular EURGBP and EURCHF which are the darlings of the FAP Turbo scalpers. In fact news has it that the new spread will be 4 for these two pairs instead of the current 5!
IBFX has also announced it’s moving to 5 digit quotes which should help lower their spreads as well.
And lastly FXCBS apparently plans to decrease their spreads as well.
Of course just because a broker is decreasing it’s spread does NOT make them a good broker.
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Lower spreads sounds great!…do you think that tradeview will also lower their spreads, they are not bad at the moment but could be better. Right now I believe that for the eur/gbp and the eur/chf the spreads are 5.7.
I don;t know for sure, but I suspect they will. When the industry moves the industry moves. If it’s only one broker lowering spreads that’s one thing, but when many start the ball is rolling and to stay competitive they usually all follow suit. We’ll have to watch over the next couple weeks and see.
Cheers,
Rob
Hi Rob, Great blog/website! Its exactly what I am looking for. I noticed Alpari-US raised their EurGbp to 6 pips fixed. They also raised EurChf to 5 pips fixed. At the same time, Alpari UK lowered their pip spread on EurGbp to 3 pips fixed. Alpari-US is putting a bind on FapTurbo EurGbp scalper and making it more difficult for FapTurbo. What do you think of this? Thanks for your great blog
Hi David,
Welcome to the site. Glad you like it!
I think the whole idea of brokers targeting FAP Turbo has been blown way out of proportion. A lot of times when someone sees some behavior from a broker they need an explanation so they say it must be FAP Turbo.
The way the whole thing started was one broker was making less money due to the success of FAP Turbo so they decided to not allow FAP Turbo traders. No big deal because they sucked as a broker anyway. But then the FAP Turbo guys saw this as a major opportunity for marketing and actually started marketing around the fact that this broker cut them off “because FAP Turbo too good”. Great marketing pitch for sure!
The problem with that marketing bit was that it’s backfired a bit because sure it makes FAP Turbo sound great but it also scares people and they think that every things that happens is about FAP Turbo now.
Here’s the thing … FAP Turbo does not rule the world of the meta trader 4 platform as much as they’d like everyone to think. Sure, it is the most popular and most successful robot out there. But when you add up all the FAP Turbo users and then add all the NON-FAP Turbo users (but who still use Mete Trader 4) then the FAP Turbo users are still a small percentage.
There are many robots out there and the sum total of all those people as well as the thousands and thousands of traders doing their own custom robot trading (the reason meta trader 4 got popular to start with) all adds up to way more than the FAP Turbo user base.
What’s my point? Most brokers are not going to jack up their spreads on a pair just to target the FAP Turbo people because that would negatively effect all their other traders as well.
If you think certain accounts are targeted with higher spreads because they think you’re a FAP Turbo guy … well that’s wrong. I have accounts at a number of brokers as well I have accounts in my wife’s name (she has a different last name) at a number of brokers her accounts do not trade FAP Turbo. I use her accounts for my own robot development and testing. I have never seen different spreads between these accounts from the same broker.
I know I’ve rambled a bit here but the point of all of this is the FAP Turbo is the grand scheme of things is simply not as big a player in the world as the FAP Turbo would have you believe when you consider all the other people using these brokers. The brokers need to cater to all of the traders and the decent ones with decent reputations do it without targeting anyone because how they trade.
The less scrupulous one might do crap like requote you more often or crap like that, but they’re not likely to jack you around on your spreads.
I know that was long reply but it’s for the benefit of everyone because I think a lot of people seem to ask this same question and I think it needed to be put into perspective.
Lastly, aplari uk has always been a decent broker. Alpari us as well. I suspect all spreads will begin to come down in the next few weeks to a couple months at the latest. Some have already started.
cheers,
Rob
Thanks for your reply. You are right, you explained it very well. Thats what I have thought all along. I just wondered why Alpari-US increased their spread on EURGBP to 6 while Alpari-UK decreased their spread on EURGBP to 3 during evening hours. Probably due to Alpari-US liquidity issues. I have a open mind and like to hear peoples opinions, especially when they are right. I have a live account with Alpari-US using FapTurbo and My Fap Turbo has been performing well. They have good support also. Hopefully, this good performance will continue.
I just started with Fapturbo and have 3 demo accts set up with FXcbs, Forex.com, and TradeViewForex. Any idea how long I should test these before setting up a live acct with one of them. I have already read your piece on FXCBS and have ruled them out.
Hi Albert,
The general idea is to test them until YOU feel comfortable with the performance characteristics of the robot. So only you can answer that, but in my case I like to see 20-30 trades.
Rob