Reply to thread

1-3 pip spread I think is quite optimistic for a retail trader to be honest. I suppose it depends on the currency pair you're trading. As far as why funds tend to make more money trading spot than retail traders, I do think the spread is certainly partially to blame, but also hedge fund traders are generally more sophisticated and experienced in trading in the market. They'll have a better idea as to when to stop out, take profit, and when to put on positions and in the first place. They'll also have much more information about market positioning. For example, a big hedge fund can call up a sales desk and ask what orders have been left with major market makers orderbooks - which means they could potentially know at what levels a large amount of a currency could be bought or sold. I don't think it's because they're any better at technical analysis.