Low slippage brokers – Higher Profits Forex market is considered to be the largest financial market in the world with an average turnover of $5.3 trillion. The word “slippage” is the most common word in the entire forex market. I came across many forex traders and found that they are more concerned of slippage. Forex slippage is something that cannot be avoided by us. But yes you can definitely look out for a broker who less no slippage or very less slippage. If you start trading with a decent broker, you can of course control the damage of the slippage and live with the same. It’s very important to ask your broker about the execution time. Always remember traders are concerned about slippage only when they exit their trades during the volatile market. There are many forex brokers who have their servers hosted near the liquidity providers. These types of brokers ensure no slippage or vey minimum slippage. Can you imagine you how slippage can eat up all your profits or increase your loses. Let’s assume you want to open a short position of 1 standard lot on GBPUSD. The Bid price is 1.3620. You pressed the button to place the order and the execution price is at 1.3610 or 10 pips below your request. This means that you just lost 100 $. And if you multiply $100 with minimum two trades per day then you will end up making a loss of $ 200 per day. So that means on an average you will end up making a loss of nearly $6000 per month just because of slippage. Always remember trade with those brokers who can give you the best bid and the ask price. Brokers with advanced technology and systems. In case of ECNSTP brokers the orders are send directly to liquidity providers and they provides real Quotes and prices. If you want to continue with the broker with whom you are trading to avoid slippage just don’t trade at the time of high volatile market. But then yes at the same time you are missing an excellent opportunity of earning profits. Because you never know when the markets can go in your favour can you can book your profits.
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