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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 02:26 PM.

  2. #21
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    i prefer fix-cent because it is four digit system and i love four digits system because it gives me actually the target that i want when i trade and put take profits or stop loss but the other system that has 5 digits will not give me the exact target that i want although this system may be profitable and may has lower spread than four digit system but four digit account is more friendly for me than that of 5 digit account

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  3. #22
    Trader martyn's Avatar
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    I think the pro-cent account better because it uses 5 decimal digits. During this time I could not adapt to the chart 4 digits because I use technical analysis not run properly using a 4-digit chart, is usually spread that changes often also be a problem, but if we are trading with a swing, it seems not so problematic for our orders in accordance with the market.

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  4. #23
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    i choose account type, fix-cent, because the spread is fixed 2 pips, i dont want use foating spread, if i open position by news the spread can is 50 pips, its no good idea

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  5. #24
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    In my opinion it depend on how much my capital i can use my account .If i have big capital i can use standerd account and use the less pip 10 cent but if i have very small account i have to use cent account and my pip be one cent to can continue in that hard market .
    This is what the expert call the money management.

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  6. #25
    Trader Nizar's Avatar
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    Quote Originally Posted by alaa_22 View Post
    In my opinion it depend on how much my capital i can use my account .If i have big capital i can use standerd account and use the less pip 10 cent but if i have very small account i have to use cent account and my pip be one cent to can continue in that hard market .
    This is what the expert call the money management.
    i prefer cent accounts because they give me the liberty to trade with as small lot size as i want,sometimes with standard account you are not allowed to use very small lot size and the lowest size you can chose is .1 when one pips equals one dollar which is in my opinion very dangerous unless you have a capital of thousands of dollars of course.

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  7. #26
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    According to my trading history, i have not used the cent account before , i do not like the fact that my money will be reading not real value in dollars. This is a confusion to me when i want to place the lot size in cent account, i mistaken it for the standard lot size that you can find in real forex standard account that i am used to.

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  8. #27
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    Quote Originally Posted by Nizar View Post
    i prefer cent accounts because they give me the liberty to trade with as small lot size as i want,sometimes with standard account you are not allowed to use very small lot size and the lowest size you can chose is .1 when one pips equals one dollar which is in my opinion very dangerous unless you have a capital of thousands of dollars of course.
    i'm agree with your statement i prefer using cent account because i can using my system like headging and etc with a small lot size what you want..because i have fund is small
    and no problem procent using fix spread and dinamic spread because i like it account in the roboforex..

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  9. #28
    Trader Nizar's Avatar
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    Quote Originally Posted by silverlady View Post
    According to my trading history, i have not used the cent account before , i do not like the fact that my money will be reading not real value in dollars. This is a confusion to me when i want to place the lot size in cent account, i mistaken it for the standard lot size that you can find in real forex standard account that i am used to.
    there is no much difference in value between cent and dollar account and you just add you can read youe equity easily just like you do in this forum,your points are measured in cents..cents accounts usually have better trading conditions like better margin call level and stop out level also they have better leverage and low initaila deposit.

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  10. #29
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    Quote Originally Posted by Nizar View Post
    there is no much difference in value between cent and dollar account and you just add you can read youe equity easily just like you do in this forum,your points are measured in cents..cents accounts usually have better trading conditions like better margin call level and stop out level also they have better leverage and low initaila deposit.
    Of course with our capital cents multiplied by 100 of the initial capital fund that makes us be multiplied because our capital is converted into cents. whatever his system makes our resistance becomes high and away the word margin call.
    like condition when i open order your fund multiplied 100of the initial capital..10$x100 become 1000 cent

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  11. #30
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    Quote Originally Posted by HendiSTR View Post
    Of course with our capital cents multiplied by 100 of the initial capital fund that makes us be multiplied because our capital is converted into cents. whatever his system makes our resistance becomes high and away the word margin call.
    like condition when i open order your fund multiplied 100of the initial capital..10$x100 become 1000 cent
    Please let something be clear in the forex, do not let us lose the goodness of our trading to the market trading uncertainty of traders. What i do not know here is that it pays some traders to use 1/100 account than to use the standard account that has equivalent when they are using lot like 0.01. This is barbaric to me.

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