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  1. #1
    Super Moderator RoboForex Trader's Avatar
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    What type of account to choose?

    Beginner traders often have questions about types of accounts – what type to choose, with fixed or dynamic spread? Roboforex company has 2 types of cents accounts: fix-cent (with fixed spread) and pro-cent (with dynamic spread). Know more about it on the company’s website: http://www.roboforex.com/trade-condi...account-types/

    Fix-Cent

    Features: Fixed spread, 4 digits after decimal point, «Instant Execution» mode.

    Instant Execution allows to execute orders immediately. This type of execution allows to trade with fixed prices what means that order will be either executed by indicated prices or rejected (trader will get requote). This type of order is useful for traders who need certain prices for execution and don’t want to have «slippages» while execution. Disadvantage of this type of order: trader will be unable to enter his position in case of aggressive price action – he/she will get requotes in most trades. That’s why this type of account has 4 digits after decimal point (to avoid numerous requotes). Such accounts are convenient for beginner traders. But you should remember that if there are no requotes – there is no instant execution.

    Pro-Cent

    Features: Dynamic spread, 5 digits after decimal point, «Market Execution» mode.

    Market execution mode allows trader to have nearest best prices for his trade. Order will automatically match with best price for the given moment. This type of execution is used also on futures and stocks exchanges and other marketplaces. Traders, who traded before on «Instant Execution» will note that execution time will increase with «Market Execution» more and quotes will change much more rapidly (because of additional digit after decimal point). 10 pips on «Pro-cent» wil be equal to 1 pip in «Fix-Cent» account. 5 digits are better for automatic execution when trader uses robots.
    Now, when we know differences among «Pro-Cent» and «Fix-Cent» accounts, let’s see some documentation: http://www.roboforex.com/trading-accounts/documents/

    For now, we can see release of trading conditions from August 13, 2013.

    Let’s go to «General provisions», I advice to pay some attention to point 6.6

    6.6. For accounts Fix-Cent, Fix-Standard and Fix-ECN spread specified in the contract specifications, is a fixed, but can be increased from 22:00 to 06:00 server time.
    Also, points 7.5 and 7.6

    7.5 In process of Instant Execution of Client’s order, the price quoted in the order is compared with the current price. In case the current price differs from the price quoted in the order, a new price will be proposed with comment “Requote”. In case Client does not accept the new price within 3 seconds, it will be considered that the transaction is cancelled.
    7.6 In case of Market Execution, execution of Client’s order will be made at the current price at the moment of order execution.
    Points 12.1.1 and 12.3.1.

    12.1.1. Stop Out value makes 10 % for Fix-Cent and Pro-Cent accounts on Metatrader 4 and Metatrader 5 platforms.
    12.3.1. Margin Call value makes 40% for Fix-Cent and Pro-Cent accounts on MetaTrader 4 and Metatrader 5
    Point 6.6 allows to increase spread. It means that we are dealing with conditionally fixed spread. Point 7.5 guarantees certain price for a trader in a period no more than 3 seconds. Point 7.6 indicates that orders are executed by market price, therefore some slippage may occur. Points 12.1.1 and 12.3.1 indicate that Stop Out and Margin Call levels are equal for both types of accounts.
    Now, when you know those nuances from trading conditions, let’s see how these conditions are realized in actual trading process. To accomplish this goal, we will go to historical tick charts of EURUSD since 30.09.2013 till 4.10.2013 (GMT+3) for the whole week.

    Fix-Cent

    Spread was as stable as 2 pips without any changes. Probably, this week was pretty quiet and there were no significant news or drivers for the market.

    Pro-Cent

    Let’s dig deep into details and make small research.
    Before we start, I will remind once again that 2-pips spread on Fix-Cent means 20-pips spread on Pro-Cent.
    I’ve divided one day on two sessions: Day session (6:00 – 22:00) and Night session (22:00 – 6:00), timezone is GMT + 3. Picture 1 shows lowest, average and highest values of spread.


    Picture 1. Spread value distribution on Pro-cent accounts.

    If we look at highest values, we may think that Pro-Cent accounts have wider spread, than Fix-Cent accounts, but it isn’t so. Ticks with spread more than 20 pips are less than other ticks (with spread lower than 20 pips). Let’s go through some cases.

    Case № 1

    Monday night we have seen the highest spread for the period, highest value is 92 pips. It’s worth mentioning that highest spread occurred before 1:15 (Night session), then values were no less than 20 pips. We can see it on Picture 2.

    Pic. 2. Spread value on Pro-Cent accounts

    [свернуть]


    Case № 2

    During news announcements, in some cases, spread is widening and achieves highest levels for the day. Let’s take one situation from 1.09.2013. There was economic data release. As we see, at 17:00 (terminal time) during USD ISD Manufactirung and USD ISM Prices Paid release, we have seen increased spread. Picture 3 shows spread values between 16:59 and 17:00:01 (highest values), then spread was decreased and 10 seconds after it decreases to 20 pips.

    Pic. 3. Spread value on Pro-Cent accounts

    [свернуть]


    The rest of the time period spread was lower than 20 pips. We can see it clearly on Picture 4, that shows value of spread of the whole day.

    Pic. 4. Spread value on Pro-Cent accounts during news announcement release

    [свернуть]


    Now, when you’ve gone through all nuances, we can make some conclusions.

    Fix-Cent accounts are more suitable for traders, who trade during high volatile market conditions (during news announcements for example) because spread there is fixed. But also, their orders can be rejected due to slippage (they will get requotes). Also, this type of accounts will be suitable for those who trades during the opening and the closing of the week (wide spreads occur during those periods). Fix-Cents accounts have wider spread than Pro-Cent. That’s why those trades who avoid news announcements and scalpers should better trade using Pro-cent accounts despite possible slippage. But be aware of news announcements time!

    I thinks, that analysis in this thread will help beginner trader make choice due to personal trading style.

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    Last edited by RoboForex Trader; 11-04-2013 at 03:26 PM.

  2. #11
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    i have two account under this broker one is pro -cent and another one is fix - cent but i am trading with fix - cent because spread is stable but on the pro - cent account spread is unstable.

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  3. #12
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    Quote Originally Posted by cowek ireng View Post
    cozard007, Another case with me, however I would choose the fixed-cent, the reason being that I only have a small capital so that I made cent account ​​, other than that I chose because I think the fix to spread will not change so suitable for me in setting the use of EA
    Choosing the right account type all depends on the availability of capital willing to invest,for me I would say thay if you have bellow 100$ cent account would be advisable,while if you have 100-500 $ standard account would be ideal and for those who has above 500$ ecn accounts is your category,so weather your a newbie or experienced trader account type doesn't really add value what matters is that you have that right skill to male gains on available funds.

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  4. #13
    Trader Azis Muslim's Avatar
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    I only have 1 trading account, it is fix-cent because this account is the most suitable type for me. I like to trade using cent account and micro lot to train my consistency in earning profit without overtrade and open a lot of positions at the same time. And also, I like to trade in volatile market after high impact news announcements. I will enter the market after or before the price move faster.

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  5. #14
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    Pro-cent account. It allows our Clients to conduct transactions under the Pro conditions without any risk of losing large amounts of money. The Pro-Cent Account is a cent one, but it has all the features and advantages of the Pro-Standart account

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  6. #15
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    trade using fixed or pro cent cent in my opinion easier to use pro cent because many traders are using procent as easy to calculate as compared to fix procent cent therefore widely used by traders who have little capital to leverage its small size making it easy to use size used in the open position

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  7. #16
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    ECN account is good for this broker, and a trader need to carefully choosing that account, because there have so many things to be depend on here, that's why before start trade a forex trader need to taken a better decision for make trade as perfectly in forex.

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  8. #17
    Trader Azis Muslim's Avatar
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    Quote Originally Posted by fxrobo View Post
    ECN account is good for this broker, and a trader need to carefully choosing that account, because there have so many things to be depend on here, that's why before start trade a forex trader need to taken a better decision for make trade as perfectly in forex.
    Better choose between those two type of account because they're in cent and make our capital bigger. For example, if we invest $500 and we choose fixed cent account, our money in the trading account will become 50.000 cent. I don't know any information that related to ECN account because I never open any ECN trading account in RoboForex.

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  9. #18
    Trader Nizar's Avatar
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    as a beginner i like to chose the type of account which will allow me to trade with my small capital and also allow me to use the smallest lot size possible,for money management reasons sometimes i need my pip to equal only one cent and with roboforex that is possible with a cent account,this way i can deposit only 50-100$ and still be able to trade safely.

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    Bend your view to the charts, not the charts to your view

  10. #19
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    with existing specifications, unfotunately far better choose pro cnet with reason is much more profitable and could use a lot more strategy and not trade hit by some of the constraints that exist in the fix cent, and there are still many things that could strengthen to elect pro cent, certainly will not be loaded due to limitations of my knowledge all.

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  11. #20
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    Quote Originally Posted by xoxon View Post
    with existing specifications, unfotunately far better choose pro cnet with reason is much more profitable and could use a lot more strategy and not trade hit by some of the constraints that exist in the fix cent, and there are still many things that could strengthen to elect pro cent, certainly will not be loaded due to limitations of my knowledge all.
    As for me i think both of them has their own strength after all. If you want to trade the pro account then you can withdraw bigger money later actually and the fix account has their own advantages after all. Because when the market suddenly jump then the gap will be very big after all but that won't affect the fix account after all.

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