Anyone know of any good fx brokers that would allow us to trade currency pairs. I was looking for FX brokers that would let me trade more than one currency pair in a single order. e.g. USD - > EUR -> CAD -> USD. Eventually, I was going to close all my positions in USD. However, brokers said that they cannot allow that. If, for example, I buy EUR/USD, the only to close that position would be to trade sell back EUR/USD.I don't know why is that? It doesn't make sense as with FX, we should be able to trade in any pairs of our choice.

I am not quit sure what you are asking, you are obviouly talking about spot trading but are you looking for a spread or a cross ?You can do basket options but they are a group of currencies vs another group so don't think thats what you are aftrer

BornToBeTrader, As I understand you are a retail rather than institutional trader.A typical retail FX broker doesn't actually offer cash currency trades. They actually offer 1- or 2-day forwards. Let's see how it works. If you bought EUR.USD on the interbank market (or as an institutional client of a bank) you'd actually be buying cash EUR paying in USD with a settlement in 2 business days. With a retail broker you'd be buying a 2-day forward with immediate settlement. In effect it is the same trade except you actually never hold EUR. If you sell the same amount of EUR on the same day, you'll just unwind the forward and the profit or loss will be immediately credited to your account from which you most likely can withdraw it straight away without waiting for the settlement etc. This is quite convenient as when you unwind the trade you immediately realise profit or loss in USD, not in the quote currency of the pair. In addition, it hides from you a few technicalities. For example EUR.USD and EUR.CAD have 2-day settlement while USD.CAD has 1-day settlement. So, if you do trades USD - > EUR -> CAD -> USD with cash currnecies you will actually have to borrow CAD overnight for 1 day in order to deliver it in 1 day because you'll receive CAD from EUR->CAD in 2 days.The disadvantages are:1) If you don't day-trade and/or don't close all positions overnight, you will have to roll the forward contract which will ususally be substantially more expensive than just holding cash currency position. Say, if you bought EUR (USD -> EUR) with some brokers the cost of rolling the forward will work out in such a way as if you paid 12% interest on your short USD position and got paid no interest on the long EUR position. It may seem that 1- or 2-day interest is not that large but it will accumulate to a substantial value if you hold postions overnight most of the time.2) If you traded USD - > EUR -> CAD -> USD, you'll actually hold 3 forward contracts each incuring cost of leaving it overnight (rolling). Moreover, although you know you just have a relatively small balance in USD, your broker will demand a separate margin on each of the 3 contracts.3) If you traded USD - > EUR -> CAD you'll have to unwind 2 forwards and bear transaction cost on both rather than a much smaller cost on trading USD.CAD4) The full cycle USD - > EUR -> CAD -> USD of conversion is actually impossible to implement because forward sizes must be sufficently rounded (to, perhaps, 10,000 of the base currency). So, to finish the transaction you won't be able to trade the exact amount of CAD you obtain from USD - > EUR -> CAD.As for particular broker, check if Interactive Brokers and HotSpotFX satisfy your requirements. Also read broker reviews on forexbastards.com

Many forex brokers are bucket shops like Saxo Bank. They are MarketMarkers against you.Their algorithms price currency pairs individually, and as above mentioned Saxo Bank they will also quote individual prices against you. Hence it is impossible to make an order for several pairs with atomicity.Why are you looking to do this in one go? Triangular arbitrage or what ?/Peter

I've traded with Oanda, and I'd recommend them. They offer very low spreads and the rollover interest is reasonable (the bid/ask interest spread on major currencies like the USD, EUR, JPY is generally less than 1%). They are also well capitalized. They claim not to trade against their clients, but it is a hard thing to prove. One big problem, they charge an arm and a leg for access to their API unless you trade in significant volume. So if you want to program trade, you need a significant account and a fair amount of turnover.

you can try saxobank.com 2> cmsforex.com 3> gft 4> abnmarketindex.com best regards all are reliable brokers