Traders Union Experts published their new HFX trading reviews. Experts have identified the top 5 brokers providing this service.
Traders Union Analysts Told Which Brokers Are Best Suited For HFX Trading
High-frequency Forex trading, known as HFX, is a rather aggressive trading strategy. It is mainly used not by individual traders, but by hedge funds and specialized investment funds. The human factor is almost not involved in this type of trade.
All trading tasks are performed by complex algorithms. A huge number of Forex transactions are made in a matter of milliseconds.
The main features of HFX trading
High-frequency trading has the following characteristics:
- This strategy requires very powerful computers.
- The physical location of the computers next to the data centers of the trading system. This option reduces delays when placing orders on the market.
- Opening and closing orders within a trading session.
- Opening orders with a minimum potential profit, but in a huge amount. Thousands of orders are entered into the market in milliseconds.
HFX traders achieve profit by capitalizing on short-term price movements and exploiting opportunities not available through individual trading. The computer analyzes the data points and makes lightning-fast decisions based on market trends.
In addition, the computer identifies and uses liquidity gaps in such a way that profit is maximized and risk is minimized.
It is also interesting that HFX trading directly affects the market where it is used, thereby ensuring its liquidity. The disadvantages of trading practice include its cost and possible inaccuracy. The fact is that most algorithmic strategies rely on historical data.
And this does not at all guarantee that the conclusions made by the algorithm will accurately reflect future market conditions. In addition, this type of trading requires in-depth knowledge of programming.
What brokers have been chosen by the Traders Union?
Traders union article talks about other advantages and disadvantages of this type of trading. Experts advise paying attention to such brokers as IC Markets, Exness, Interactive Brokers.
RoboForex and Tickmill also have proven themselves well in the field of HFX. Each of these brokers has advanced technical capabilities and favorable trading conditions.
But even the most reliable broker does not eliminate the risks associated with Forex trading. Therefore, traders should apply their trading strategies carefully until they start to bring a stable result.