• Trading platform stable, easy to use.
• Price spreads good.
• Stop losses executed fairly and professionally.
• Customer service excellent.
• News links and charts provided free of charge
• Commissions low.

My second experience was Forex-Ice in July 2003. My initial impression was favorable. I had two concerns:

• Price spreads were a little wide.
• Stop losses seemed to be filled prematurely.

My third experience was FXCM in August 2003. My initial impression:

• Trading platform best, most technically advanced.
• Charting and news best.
• Price spreads ok.
• Customer service was excellent.
• Stop losses filled prematurely.

Here is my up to date opinion of each of the above online brokers. If is based strictly upon my own experiences.

HotspotFX
I like dealing with Hotspot. There are two things I would like to see them improve upon. 1) Currently the software does not allow for putting if done stop losses on stop loss entry trades. E.G. Stop loss entry sell with if done stop loss buy. I would like to see their software provide this capability. 2) Prices widen out during volatile and slow times. I would like to see spreads remain more constant.

Forex-Ice
They do a good job and have a nice platform. I would like to see the price spreads in the major currency pairs a little tighter. Stop losses are filled prematurely.


FXCM
They have the best trading platform overall. Trader can enter just about any kind of order with a few key strokes. The new charting software is excellent. The news / global calendar is excellent. Stop losses filled prematurely. Guaranteed stops and limits a big plus on "news trades."

Summary
The online brokers offer a complete trading package backed up by excellent customer service. When all of the expenses of running the operation are considered (and there are many) the online brokers are charging a fair "price" for their service.

Forex-Ice and FXCM fill stop losses prematurely. From what I have heard all the online brokers guaranteeing fills at the rate fill stops "when close". There are two reasons for this. 1) To protect themselves from taking losses. 2) To earn part or all of spread (price difference between bid and offer). Since Forex-Ice and FXCM don't charge commission, the spread is how they generate income.


Workaround For Stops
Don't enter stop loss orders at your real stop loss point. Instead enter a "disaster" stop loss 8-10 pips farther away from your real stop loss. (This protects you against sudden large moves.) When your real stop loss level is reached on your charts enter a market order and exit the trade. This way your decision to exit the trade is based upon unbiased price information. What I do personally is keep up 2 or 3 online brokers and a charting service and make sure my stop loss price level has truly been reached. At times it cost me another point or two and at other times it keeps me from closing a potential winner prematurely.

I want to stress that you must execute your stop loss orders in a timely fashion and not allow a manageable loss to become unmanageable. The backbone of our advisory services is keeping losses small and preserving capital. Trust me on this - If your position went the wrong way by twenty points it's more likely to be wrong by forty points before it gets back to breakeven. Much better to close the loser and begin the search for a winner.

PS: Not on the list above but coming on strong is InterbankFx. They are new in the marketplace and were not trading live earlier so not mentioned above. They have good execution, the spread does not widen appreciably in volatile markets, and the platform has many good features. Charts are good. News service is so-so. Very friendly customer service. We look forward to a good working relationship with them.

Note:

Jimmy Young is a seasoned institutional forex trader having 20 years of experience with different banks. He headed up bank FX dealing rooms. He is FX profitability consultant to major European private bank. He manages funds and also trades personal money. Between 1981 and 2004 he was a foreign exchange trader at following banks: Societe Generale, Julius Baer, Fuji Bank, Indosuez, Erste, Hill Samuel, Manufactures  Hanover, Paribas, European American. www.EurUsdTrader.com