Forward test using same EA, same amount of capital (USD 5000), same lot (0.01 lots), same start time, and leverage also almost the same (VantageFX and GoMarkets 1:500 while Pepperstone 1:400). GoMarkets and VantageFX only offers an account that uses a spread and did not offer an account that uses a mix of commissions and spreads (ECN account). While Pepperstone is a broker that offers 2 different types of accounts that is the standard account that uses a spread and ECN account.
The difference of these accounts on the availability of the commission as shown in the figure below:
Seen in the picture above that the VantageFX commission value is 0 and on Pepperstone commission contained.
Generally brokers that offer ECN account is to simply create the illusion as if the spread is low. In fact, the spread is still high but seems to be low because the spread split into two components, commission and spread.
This fact is merely an illusion deliberately created by the broker. The results of forward test on the various brokerage using Blessing EA prove it. Although is used is a demo account but on STP / ECN broker usually between demo and live accounts just the same, there is no difference whatsoever. While on market maker broker usually demo account is likely to be conditioned much better than a live account.
Let us together look forward test the Blessing EA below:
The results above show the highest profit is on VantageFX that is equal to 7.22%. While the lowest occurred on GoMarkets broker is only as much as 5.86%. But Total Pips value showed the highest is on Raw Pepperstone Account where this account is ECN account that uses a mixture of spreads and commissions.
Total Pips obtained on Raw Pepperstone Account is 1914, in merely VantageFX 1688, and the lowest in GoMarkets that is equal to 1303.
Well, certainly the question that arises is why the value of Total Pips VantageFX only 1688 but it has a larger total profits of 5361 (7.22%)?
Total Pips Pepperstone Raw 1914 or 226 pips higher than VantageFX, but oddly enough it has a smaller total profit of 5320 (6.4%). Different Profit 41 (0.82%) is smaller than VantageFX. From this can be concluded that the spread split into 2 components, commission and spread, may cause an illusion as if profit value is very high when just looking only at the Total Pips. When in fact, are even lower due to Total Pips is merely an illusion.
To be more detailed, 4 forward test account is compared below:
Seen that the Daily or Monthly % profit on VantageFX much higher when compared to other brokers. Expentancy statistical value is also higher.
So it can be concluded that using a broker VantageFX far more profitable than using GoMarkets and Pepperstone due to a spread that is used by VantageFX smaller than other brokers. This article is not to promote VantageFX. This article is purely brokers test to show which ones are most profitable. The selection is up to individual taste.
Using a forward test results that has been running for a week to make conclusions it's still too early. We'll see together how the results next week.
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