Hey,
Has anybody / successfully haggled their broker for lower prices?
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Hey,
Has anybody / successfully haggled their broker for lower prices?
What do you mean prices? spreads? deposit prices? Either way its not worth the stress if they alter it because they alter it for everybody not gunna happen
regards damien
You pump enough money to an account they will provide you a preferred status and reduced spreads, and of course spread rebates. Mini accounts need not apply...Originally Posted by ;
You are going to want volume to cut a deal but reduced commissions and rebates are something that you can negotiate. Why do you ask, have you got something in your mind?
Na, I thought I saw somebody talking about it.
Only traders with a background of trading professionally possess the power. This isn't something that you're ready for yet.
Volume based pricing can be found at some brokers... Dukas for example has a fantastic method of falling prices as your up your volume.
As for actually negotiating with brokers that don't already have a discount system built in their price model... do you think they will waste time with little accounts that will most likely blow up in the future?
Haggling over commissions or spreads is not exactly like haggling at a market. From the non-western entire world, haggling is pretty common if not expected... but brokers aren't retailers, so it isn't as straightforward as pushing them to cut in their markup on the trade cost.
For example... Brokers actually have a metric to assess the cost of getting a new client. That's correct, before you fund your account you place the broker in the red by a bit. This comes from a couple of things, but the two major ones are: The adminiive expense of setting up your account and the advertising and promotion expense of having you to contemplate them in the first place.
So if you are a small sized account using a very low life expectancy, then they have milk you for all they can until you float out so they could recover what they invested in obtaining you in the first place, let alone create a couple bucks from the trade atop of this.
This is why the introducing broker plans have become so popular recently... rather than paying up front for advertisements, they allow the IB do the advertisement job for them and only pay the IB when the client generates revenue for the business.
So is the sphere of retail FX brokers...
In case you aren't a little account through (6 figures), push adequate volume (500Mil a month), and you're not going to float out in a year because you're actually professional about trading (consistent volume with no major drawdowns)... THEN you've got a lot more leverage within the broker to haggle on price... the broker will see you can be a revenue source for them into the future and would do a lot to help keep you. However, most folks reading these boards aren't in this class (sorry to say. .) And if you were, you would probably already know how to utilize brokers on the prices.
A good benchmark for commission prices by volume and account balance would be Dukas' pricing arrangement:
http://www.dukascopy.com/swiss/engli...ission-policy/
If you exchange with a broker that only quotes spreads and can be no-commission then you are going to have to do your own analysis of your entire cost of trading based on spread comparisons. Some brokers have tiered accounts with higher balances becoming cheaper spreads... other people you are going to have to speak with directly (but be ready to offer evidence of your volume and transaction background before they commit to anything.)
Finally, if you want to forget about all this and proceed with a broker who treats 6-7 figure accounts the exact same way as a $50 account, check out Oanda. . Their spreads are the exact same for everyone without any exceptions and are frequently rather tight (through non-news times.)
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