‘NO SPREAD’ Forex Broker?

An ECN Broker With No Spreads? I know, it sounds too good to be true. But I recently came across a banner on a website touting that FX CLUB has no spreads on their currency pairs. So, I decided to investigate and see if this was truly the case and if there was a catch (like IForex.com’s Protected Account isn’t really protected). FXClub also claims to charge comission, however, gives instant refunds on non profitable trades, i.e., if you don’t make money, they don’t make money. A noble thought indeed, but how far do they go? Actually alot further, including NO SWAPS, and just .4 per $1000 traded in commission (they need to eat too). At any rate, I’ll be trying out the free demo starting Sunday night and get back to you all on how it goes Here’s some more info on FX CLUB. The array of accounts they offer seem to be quite introductory, DEMO, SILVER minimum $10 deposit, GOLD minimum $100 deposit plus $100 bonus, and platinum starting at $500 deposit. Deposits are accepted by Credit Card, Bank Transfer, Paypal, and check. I personally like the fact that this Forex Broker Accepts Paypal because it is the simplest way to transfer money, especially since I get paid with it quite often.

Some other amazing features of FxClub include:

Zero-spreads
No Swaps
No Re-quotes
Pay just $4 for every $10,000 round lot
Get instant commission refunds on non-profitable trades!!! If you don’t make money, they don’t make money.

It remains to be seen if FX Club is a true ECN broker, because there is always a spread, and brokers are always incumbant upon paying commission for each trade you make. I’d love to hear everyone’s thoughts or experiences with FX Club so we can get to the bottom of whether or not they offer ZERO SPREADS and are truly an ECN Forex Broker.

DOWNLOAD THE FX CLUB PLATFORM

——————————– ADDENDUM March 12, 2009
So I’ve been able to test this broker out quite thoroughly in the past few months and I must say I am pretty impressed. The platform takes some getting used to, but luckily you can demo trade with Fx Club until you are completely content and comfortable with the system. My only complaint at first was the fact it took a long time to enter a trade on my main machine, but then I switched to a different computer and the executions were instant. Very strange, but I chalked that up to a personal hardware issue, not an issue with Fx Club. I’ve seen a few people express concerns about the $40/10,000 commission fee. After a few trades and seeing this number being deducted from my trades was a little alarming, but when you factor in you are paying nothing for spreads, and that $40 is returned to you on losing trades, I think this evens itself out in our favor believe it or not. Moreover, since swaps are non existant, you can hold positions overnight and not have to pay (or be paid) swap fees. I believe a commenter alluded to the fact maybe this is how they make some of their money back, but that works both ways in forex, so it’s hard to tell unless you are behind the scenes at Forex Club.

In conclusion, I will be giving Forex Club a shot with a few hundred extra dollars I have left over from my last Forex broker. I’d love to hear what others think about their experiences with Forex Club, and if you haven’t tried them out yet, DOWNLOAD THE FX CLUB PLATFORM HERE.