Dear all trader,
SOme trader from my place using this broker

http://www.fxclearing.biz/

Here I attached the screenshot below..



They really give only 1 pip spread for major pairs
Any comment for this broker?
Any trader from Canada knows about this?

Thanks before.

Attached Images

1-pip-broker.jpg (208.7 KB, 1142 views)

This was on the home page of the broker.

IMPORTAN ! Please Read :
# Scalping:
Scalping is strongly discouraged.
Scalping positions are defined as those with a lifespan of less than 3 minutes, close position less than 3pips, and used 50% margin.

I like brokers who clearly state their trading policy, like this broker, with respect to scalping.

Their scalping policy is more generous than others. For example, with Crown Forex, any trade under 8 pips is considered scalping, regardless of how long the trade lasts.

Other trading terms I like:
Execution: Automatic. All entry and stop orders are honored regardless of market situation.
# Deposit Currencies: USD, CAD, JPY, GBP, CHF.
PayPal deposits are available with conversion to CAD.
# Spread: 1 pip on EUR/USD, USD/JPY, GBP/USD, and USD/CHF(Mini Accounts)
# Leverage: 500:1 (0.20%)

Personnaly I wouldn't go for a broker (whoever it is) with 1 pip spread on the cable and 0 commissions.
The interbank spread on the cable can be bigger than 1 pip (check with an ECN), then if they would pass actual orders they will loose money in such cases.

Of course they don't pass your trades and they take the counterpart but anyway they have to make money. So if they don't make money from the spread they have to make it from somewhere else.
For me it seems that for them to stay alive the MUST have a large number of customers loosing their money.
I know that the stats are here to confirm that (but the stats maybe different with 1 pip spread only) but anyway they have to insure somehow that people are loosing.
Or did I miss something?

Scalping is not easy to pull off profitably in the long run for vast majority of the people.

Only a very small number of people can do this, but the ones who are skillfull can make a load of money if the broker allows this to those few who are successfull and it would eat it into their bottom line.

1 Pip spread is a ploy to get customers in this very competetive forex market. If you are a good trader, a difference of a few pips will not have a significant effect on the perfomance of your trading in the long run.

Thanks for all your comment, gentlemen.

Just being straight forward,
Is this broker reliable? is this not a scam?
Is this broker really registered to Canada Goverment?

Suppose this is a new broker which is promoting itself by giving 1 pip spread, later on they will increase their spread. Who knows?

But I will put my money and give it a try to FxClearing, so I need more comment and mostly from any trader who is in Canada after seeing their address.

Very good questions.
Safety of funds is the most important factor that should determine the broker you choose. Second most important thing is the execution of trades.

Spread comes a distant third compared to Safety of funds and exection of trades.

You should contact them and ask for the registration number with the government and agencies in Canada and verify with the government. I will try to do that as I live in the same province in Canada the broker is located.

I contacted the so-called broker through yahoo chat link that was on their website. The person said that they are registered with Ministry of Consumer and Business Services in 2006, in Ottawa, Canada. When I asked for the registration number the person did not respond to me.

All brokerages are regulated by IDA. http://www.ida.ca/Membership/MembList_en.asp

All brokerages are insured by CIPF. http://www.cipf.ca/c_find_active.asp

This broker is not listed with them.

Therefore, I would be very cautious.

I just downloaded their platform and I don't see 1 pip spreads anywhere. Here are the spreads I do see:

EURUSD 2
GBPUSD 3
USDJPY 2
USDCHF 3
AUDUSD 4
EURAUD 8
EURCHF 4
EURGBP 5
EURJPY 5
GBPCHF 9
GBPJPY 9
USDCAD 4
NZDUSD 5
EURCAD 8
CHFJPY 7
AUDCAD 7
AUDJPY 7
AUDNZD 8
CADJPY 7

So the spreads don't seem out of line with other brokers. Velocity4x, which I use as my live broker, seems to have as good of spreads and better. No real reason to go with this broker unless you just like them.

Very thanks for you Raj, for this useful information..

I will gather more information also..

Also, you always PAY interest on mini accounts. That can add up!