Traders Union analysts have published their own studies on High-Frequency Forex Trading, also known as HFX. The new expert material covers the ranking of the best HFX brokers on the market, as well as basic information about this type of trading. The article also tells how to prepare for HFX and where to start. Experts describe in detail the advantages and disadvantages of algorithmic trading with a large number of orders.
The first place in the rating went to IC Markets broker. But experts approve and recommend using the services of such companies as Exness, Interactive Brokers, RoboForex and Tickmill. During the ranking, the following factors were taken into account:
- The reputation of the broker in general;
- Commissions and trading costs;
- Technical capabilities of the broker;
- Set of tradable assets;
- License and regulation;
- Referral programs and bonuses;
- Educational materials for beginners;
- Activity, loyalty, and competence of user support;
- …and much more.
What is HFX trading?
High-frequency Forex trading (HFX) is a high-speed type of trading in the foreign exchange market with the participation of robots, algorithms, and other software. Therefore, in some sources, you can also find the name “algorithmic trading”. The main role of machines in such trading is to carry out a huge number of transactions in a matter of milliseconds. At the same time, orders are concluded for minimal amounts, the task of high-frequency traders is to take the number of transactions.
Within the concept of high-frequency trading, there is a division into trading strategies, in particular:
- Electronic market maker
- Statistical Arbitrage
- Liquidity detection
- Delay Arbitration
High-frequency trading is distinguished not only by a large number of transactions but also by minimal time intervals. After receiving and analyzing incoming data, traders enter transactions using ultra-powerful computers. Algorithms collect information from thousands of sources, extract keywords and calculate probabilities in less than seconds.
Let’s imagine that an individual and a high-frequency trader received the same information at the same time. While the average trader will study the information and make a decision on it, computers will already process the news at a staggering speed, select a position, process the transaction and close it with a minimum profit. To learn more about HFX trading and decide if it’s worth trying, visit the Traders Union official site.