In the article “GKFX: Traders will Hold a Test-Driving of GKFX ECN” the “Market Leader” has informed about an unprecedented decision of a famous broker company to hold an open public testing of its services. For Russia, where Forex market is not regulated, this has become a kind of an exploded bomb – on the one hand, “access” to the holy of holies of the broker company given to independent traders indirectly highlights the contrast between serious companies and “kitchens”. On the other hand, such step to a great extent defines future development of Forex market in Russia: transparency and publicity of the broker’s actions become the drive of competition, where only the strongest win.
Testing a Broker – Who is the “Inspector”?
It is clear that testing of the company’s real accounts, as well as functioning of the unique system GKFX ECN (for more details “GKFX ECN – Breakthrough at Financial Markets”), would have never been entrusted to biased people or those, who don’t have enough experience of professional market work. Therefore, the team of traders from Masterforex-V Academy, the best European project on studying trading at Forex market, has been invited as independent professional experts.
Such choice, as stated by GKFX’s Director General Dmitry Rannev, has been made on purpose, for thousands of Academy’s graduates possess unique knowledge and technologies of effective work at the market; all of them, with no exception, work rather effectively, thus regularly gaining high profit.
Moreover, another fact speaks in favour of Masterforex-V Academy traders; namely, they preserve maximal objectivity in their work, thus providing their own independent views on financial market processes. At the same time psychological maintenance, as well as the skill not to adjust themselves to the market, but to adjust market to themselves, makes their transactions highly efficient. Academy’s traders are perfectly aware of Forex market technologies and, consequently, the brokers suggesting them.
Dmitry Rannev has also admitted that the main purpose of “Test-Driving of Real Accounts” Program was testing GKFX trading accounts for quality of order fulfillment, speed and efficiency of handling applications, productive work with various trading strategies, positive and negative slipping, work of market depth, etc. As far as we can see, the tasks of the participants were giant and very serious. Therefore, there has been a special selection procedure, as a result of which the best traders of the Academy were testing GKFX’s services for one month.
Correspondent of the “Market Leader” has met participants of “Test-Driving of Real Accounts” Program of GKFX company, who have agreed to give a shotgun interview. The interview presents the results of testing, analysis of efficiency of broker’s services, as well as participants’ impressions from the project.
Masterforex-V Academy Traders: Broker’s Services Available to Everyone
“Market Leader”: Good Day! Please, tell us, how long have you been trading at Forex market?
Andronaki Valeriu Ilyich (Valeriu): I have been trading at Forex market since the beginning of this year. However, I have been aware of it since, when I became interested in financial literature.
Nikolai Iosifovich (Mester): Hello! The first time I tried myself at Forex market was over 5 years ago.
Svetlana Vadimovna (mswetlana): I paid attention to Forex market 10 years ago, but at that time I refused the idea of trading there. If it had not been for Masterforex-V project, which I partake in since 2010, I would have not dealt with trading till now.
“Market Leader”: Why have you decided to test the services of GKFX broker company?
Andronaki Valeriu Ilyich (Valeriu):I have decided to test GKFX’s services because of two reasons:
1) to get acquainted with the broker “in person”;
2) until that moment I cannot recall a situation when a broker itself asked to check its services with REAL money.
Nikolai Iosifovich (Mester): Because of ECN accounts. My first acquaintance with them was, to put it mildly, not the best one. The main drawback of these accounts is slipping, which cancel such benefits of ECN accounts as absence of requites, no limits on setting delayed orders close to price level, and real volumes from ECN trading platform. I wanted to check how this correlation has changed within time.
Svetlana Vadimovna (mswetlana):For me, this is a new company, which positions itself as a real broker that provides direct access to financial markets. It was interesting to try out the opportunity.
“Market Leader”: What were the conditions of “Test-Driving of Real Accounts” Program of GKFX company?
Andronaki Valeriu Ilyich (Valeriu): Total open orders were supposed not to exceed 5% of the total sum; one had to submit a detailed report on the quality of used services of GKFX.
Nikolai Iosifovich (Mester): Traders are banned from opening orders, the risk of one of which is higher than 5% or the total of which is higher than 40%;
- while testing one needs to make a detailed report on the quality of broker’s services and detailed description of all situations;
- traders have agreed to give an interview to the “Market Leader” as soon as the test was over.
Svetlana Vadimovna (mswetlana): Absence of minimal sum of the deposit, minimal order is 0.01 lot, the number of orders is not limited, credit leveraging is 1:100, and platform МТ4.
“Market Leader”: Please, say what type of trading account have you opened in the company, and why have you decided on this particular one?
Andronaki Valeriu Ilyich (Valeriu): I have opened ECN.MT4, having chosen this type of account due to the fact that I had not enough means to open another one. Besides, it included an 0.01 lot, which, in my opinion, is most reasonable in the sphere.
Nikolai Iosifovich (Mester): ECN account. I have already explained why. I will only add that it was interesting for me to check the correlation between pluses and minuses of ECN accounts specifically in GKFX company on its exclusive system – GKFX ECN.
Svetlana Vadimovna (mswetlana): I have opened an ECN account, for GKFX does not interfere in trading process, and the company’s clients may receive performance at prices higher than claimed in the order.
“Market Leader”: What do you think about the broker’s exclusive technology – GKFX ECN system?
Andronaki Valeriu Ilyich (Valeriu): In my opinion, GKFX ЕСN system is a new horizon in the sphere of trading services with delivery of quotations directly from their source; broker’s openness before a trader is also a great advantage.
Nikolai Iosifovich (Mester): For myself, high speed of handling orders was an advantage. The ability of “market depth” to have limiting order placed within a spread, in other words, in maximal proximity to the market, was a pleasant surprise.
Svetlana Vadimovna (mswetlana): It is felt right away that the system handles new data at high speed.
“Market Leader”: How quickly were your orders fulfilled by the system?
Andronaki Valeriu Ilyich (Valeriu): Instant fulfillment − it’s a scalper’s dream!
Nikolai Iosifovich (Mester): The speed of fulfillment was excellent.
Svetlana Vadimovna (mswetlana): This system provides instant fulfillment оf orders.
“Market Leader”: What was the quality of take-profit and stop-loss transactions?
Andronaki Valeriu Ilyich (Valeriu): There is a small but insignificant slipping towards price development, which I consider to be a normal market condition.
Nikolai Iosifovich (Mester): For the whole time of testing I have addressed the support service only once on the issue of take-profit activation. There has also been one unclear case of stop-loss activation. However, the latter problem was resolved after a second more careful study of GKFX’s trading transactions regulations. It appeared that stop-losses and stop-orders rarely thought, but may have positive slipping. According to Trading Transactions Regulations, buy-stop order (buying by the price NOT LOWER than stated in the terminal) is REPLACED by market-order (buy at market) when entering the market. And market-orders, in their turn, are characterized by positive and negative slipping alike.
Svetlana Vadimovna (mswetlana): High, but slippings happened.
“Market Leader”: And what can you say about positive and negative slipping, how are your positions charged?
Andronaki Valeriu Ilyich (Valeriu): It is worth mentioning that those traders, who claim to have no slipping and the order fulfilled clearly at the set price, are slightly cunning, for they simply do not show this. I have noticed that for GKFX company, if there is, for example, a buy- stop at the price development downwards, the system fulfills it at best possible price for you; this is mentioned in comments to the order.
Nikolai Iosifovich (Mester): As for me, there had rather been none of them, neither negative, nor positive. However, I clearly understand that this is impossible for ECN accounts. At the same time, it is very positive that in comments to every transaction GKFX company clearly shows the size of slipping at entering or quitting a transaction. This shows that the company is ready to have an open discussion with its clients about reasons of their appearance. As a result, there are fewer questions and misunderstandings.
Svetlana Vadimovna (mswetlana): Positive slippings please, whereas negative ones not so much, although the latter are not many. At high market volatility my slippings have amounted to 2.5-4.5 points. If a beginner is not ready to slipping, he should not open a position at high market volatility. However, it should be kept in mind that one may have high earning in such market condition.
“Market Leader”: How useful and handy Market Depth GKFX.Level2. is for analysis of market depth?
Andronaki Valeriu Ilyich (Valeriu): I have not used Market Depth, for, in my opinion, it does not work at Forex market.
Nikolai Iosifovich (Mester): Unlike offers, where Market Depth first appeared (Level II), this tool is absolutely unhandy and useless for high-liquidity forex.
Svetlana Vadimovna (mswetlana): Market depth shows all set orders, which may be used for setting delayed orders within it. Analysis of market depth makes it possible to see what other market participants think when being at a certain price level, as well as their mood.
“Market Leader”: By the way, GKFX constantly modernizes its market depth by adding new options and functions. How would you assess their efficiency in trade?
Andronaki Valeriu Ilyich (Valeriu): Volumes work at exchange, but not at Forex.
Nikolai Iosifovich (Mester): And this is an absolutely correct strategy if the company wants to leave it in its arsenal. However, the achieved goal is unlikely to pay for the invested means. If to consider market depth as a universal script or advisor bearing useful options and functions, then its modernization may increase trading efficiency. For example, a very useful function, which I have already mentioned, – setting a limiting order within a spread. Other benefits include: seeing right away current volume of spread (one does not have to calculate it), calculating average price for a chosen volume, and the option of simultaneous closure of all open positions or all positions that use a certain tool. However, generally speaking, these functions may be realized by other scripts.
Svetlana Vadimovna (mswetlana): I may say that for working with every new tool of market analysis, one, first of all, needs to get used to it and clearly understand what its data show. In general, learning to clearly understand the depicted data is most difficult for almost anything. If this task is solved, then working with any tool for analysis, including market depth, will bring full satisfaction, and its efficiency will consequently be very high. And on the contrary, if one does not understand what the tool shows, any made decision will result in low efficiency.
“Market Leader”: What trading strategies have you applied while testing GKFX trading accounts?
Andronaki Valeriu Ilyich (Valeriu): While working with GKFX I have applied Masterforex-V TS, which I have learnt in the Academy.
Nikolai Iosifovich (Mester): Wave marking and fibo levels for defining objective points, which are constituents of Masterforex-V TS, as well as technical tools of this trading strategy, early stop.
Svetlana Vadimovna (mswetlana): I use Masterforex-V trading system as the main strategy, and I also apply AO-Zotic in trade.
“Market Leader”: Have you used trading robots or advisors?
Andronaki Valeriu Ilyich (Valeriu): I have never used them, neither on a demo account, nor, all the more, in real trade. Trading robots and advisors inappropriate at the market, where price is controlled by fear and greed – robots will not understand it!
Nikolai Iosifovich (Mester): No.
Svetlana Vadimovna (mswetlana): No, I haven’t.
“Market Leader”: Have you applied methods of scalping in testing? If so, what is GKFX ECN “behaviour” at high-frequency trade?
Andronaki Valeriu Ilyich (Valeriu): Yes, I have, on several occasions when too often I entered the market with the expectation to get some trend, but was not successful to do so!
Nikolai Iosifovich (Mester): No, I haven’t, this is not my tactics.
Svetlana Vadimovna (mswetlana): I apply scalping, and the system “behaves” perfectly. I mean that the orders are fulfilled instantly and clearly.
“Market Leader”: What is the real volume of spreads and commission fees in GKFX ECN?
Andronaki Valeriu Ilyich (Valeriu): Towards rising, which is not very pleasing in combination with frequent slipping.
Nikolai Iosifovich (Mester): Rather competitive with spreads suggested by brokers from the upper league of Masterforex-V Academy rating.
Svetlana Vadimovna (mswetlana): I had from 0 to 0.5 points in my trade with consideration negative and positive slipping.
“Market Leader”: Have you revealed any technical problems in the course of testing or has GKFX ECN system worked trouble-free?
Nikolai Iosifovich (Mester): Unfortunately, I cannot say that GKFX ECN system has worked trouble-free. There has been a failure of take-profit due to the fault of liquidity provider. I would also like to draw the attention of GKFX company to the speed of work at MetaTrader 4 trading platform. I have noticed that the more financial tools or indexes and scripts are added into one profile, the slower is work of МТ4, there appear short-term program hang-ups. In order to solve the situation I had to split financial tools and place them in different profiles, switching between the profiles was unhandy.
Svetlana Vadimovna (mswetlana): At the beginning of testing the broker adjusted the market depth; I have not noticed any other technical problems.
“Market Leader”: In your opinion, what are the main advantages and disadvantages (if there are such) of GKFX ECN technology?
Andronaki Valeriu Ilyich (Valeriu): The main advantages of GKFX technology are small spread and the company’s openness to traders. The only minuses that I see are partial slipping and higher commission fees for transactions.
Nikolai Iosifovich (Mester):Pluses:
− high speed of order fulfillment;
− total absence of limits for setting delayed orders, duration and volume of profit by every transaction;
− clarity of order fulfillment − online daily depiction on the company’s web-site of Forex quotations with floating spreads, which shows highest and lowest points, as well as daily average; in comments to every transaction the company clearly shows the size of slipping at entering or quitting a transaction, which shows that the company is ready to have an open discussion with its clients about reasons of their appearance.
There is only one minus – negative slipping, which are specifically unpleasing at stop-losses. However, this is a drawback of ECN technology itself, but not of GKFX ECN system.
Svetlana Vadimovna (mswetlana): I think that the main positive moment is the fact that the broker does not gain any benefit from interfering into the trading process. On the contrary, it is interested in profitable work of a trader. There are also no limitations on trading strategies, no matter whether it is scalping or another strategy.
“Market Leader”: Have you used broker’s analytics when making certain decisions? If so, how effective was its work “in team” with other technologies of the company?
Andronaki Valeriu Ilyich (Valeriu): Brokers’ analytics, particularly that of GKFX, is not something that I use, just like any other recommendations, for a trader pays for everything with his own money.
Nikolai Iosifovich (Mester): I haven’t used it. I am a technologist, and from all news issues I recognize only the most important ones, which may have strong impact on the market. I have certainly paid attention to TC.TechnicalAnalysis indicator, but I had to delete it, as MetaTrader 4 terminal became slower.
Svetlana Vadimovna (mswetlana): I always pay attention to brokers’ analytical overviews, and GKFX is no exception, but I make decision in the light of my own vision of the market, in other words, with consideration of market situation analysis by MF TS.
“Market Leader”: What about input and output of money means?
Andronaki Valeriu Ilyich (Valeriu): Everything happened without particular effort or trouble: once I had to transfer money – I did it! I open a terminal, and the money is already there! I have not dealt with output yet, but I do not think there will be any trouble with it.
Nikolai Iosifovich (Mester): I don’t know. The input has been effected not by myself, and I have not yet output the gained profit.
Svetlana Vadimovna (mswetlana): The outcome of trading is yet too small to be output, so I have not tried to.
“Market Leader”: How much has your starting deposit increased by the end of testing?
Nikolai Iosifovich (Mester): By 17.4%.
Svetlana Vadimovna (mswetlana): By not a very impressive percentage, only by 5.9%.
“Market Leader”: What financial tools have you used in trading?
Andronaki Valeriu Ilyich (Valeriu): Only USD/JPY and AUD/USD.
Nikolai Iosifovich (Mester):EUR/JPY, USD/JPY, GBP/JPY, CHF/JPY, EUR/USD, and GBP/USD.
Svetlana Vadimovna (mswetlana): EUR/USD and USD/JPY.
“Market Leader”: In your opinion, are the broker’s services available only to professional traders or can they be equally effectively used by beginners at financial markets?
Andronaki Valeriu Ilyich (Valeriu): In my opinion, GKFX services are available not only to professional traders, but also to the wide segment of the population.
Nikolai Iosifovich (Mester): GKFX services are available to everyone.
Svetlana Vadimovna (mswetlana): I think that work with GKFX broker will serve any trader: a professional and a beginner. Beginners just need to remember that high risk is an integral part of financial market trade, and responsibility for opening a position lies, first of all, on the trader himself.
“Market Leader”: And finally, according to the results of test-driving of GKFX company’s services, what recommendations would you give on their use?
Andronaki Valeriu Ilyich (Valeriu): I would like to address the management of GKFX company with a request: if you charge a commission fee for a transaction, please solve the issue with slipping of set orders. You may increase the spread and leave the commission fee, but without partial slipping.
Nikolai Iosifovich (Mester): After the held test-driving of GKFX services I can truly recommended this broker, although at the beginning I used to have a skeptical attitude to its services (because of ECN accounts). I have been tempted by the company’s persistence in promoting this product at the market, innovation of GKFX ECN technology, and desire to make traders’ hard work easier.
Svetlana Vadimovna (mswetlana): Yes, according to the results of testing I can recommend this broker, which instantly fulfills orders, provides qualified support to its clients, and constantly moder4nizes the quality of provided services.
Dmitry Rannev’s Comments:
For many years the companies working by kitchen scheme have accustomed traders to order fulfillment without slipping, but these days have almost passed. Nowadays it is hard to find a company, which guarantees the price of stop-orders fulfillment, for this is not a market mechanism. If a company works by market rules, with full introduction of all transactions to the market, it cannot guarantee the price of fulfillment, as it cannot influence the price. And if the company does not introduce transactions into the market, there arises a conflict of interests between a company and a trader, when trader’s profit is the company’s loss. One cannot earn much and for a long time in such company.
We are striving to provide traders with an opportunity to control slippings, but within the framework of market methods. Thus, we have recently launched an innovative service on individual trading settings, which, for example, makes it possible not to use stop-orders at gaps, set market limits, etc. These days we have developed an unprecedented service, which gives our clients an opportunity to set stop-limit orders at MT4 platform, which limit slipping, thus being pleasant to news traders.
We constantly work on adding new services and improving their quality. Our nearest plans are connected with launching PAMM accounts and much more.
