Hi Folks.
A week or so ago I mentioned in an email I had found a low-cost alternative for trading the US30 and promised to send you the details. This is that long delayed email.
This involves a newer broker that showed up on my radar a few weeks back thanks to Cynthia Macy. She is currently promoting a trading program that works with a broker called Envi FX. I did some poking around and here is what I came up with.
They’ve been around a couple of years, based out of St. Vincent and the Grenadines, and they actively state on their website they do not solicit business from US based customers.
Based on my own experience, however, it appears they DO open trading accounts for US based customers. They just don’t like talking about it.
The reason this email was delayed by a week is one of the traders I work with asked me in advance for the name of the broker and then reached out to me later in the day to tell me he spoke with one of their customer service reps and that they did not accept US based clients. So, I hesitated to send this email until I had a chance to check things out a bit more thoroughly.
So don’t get caught up in the do they/don’t they stuff. If you want to open an account, fill out the paperwork, jump through the hoops and be ready to send in your deposit when they tell you to.
So here is what I like about Envi FX in terms of trading the US30.
They have two tiers of trading.
The first tier is the one we are all familiar with. The standard micro-, mini- and full lot options that require at least $165 or so to open a single micro-lot trade. Add a zero to that to open a single mini-lot trade and two zeroes if you want to open a full lot trade. They do offer 500-1 leverage so there is a chance you can get into a trade on this tier for about half the amount I just stated, but I have not tested that on their platform.
The second tier is the E-MINI tier, which works almost exactly like it does with futures trading. They offer a smaller version of the same product and as a result, it costs a lot less to set up a trade.
How much less, you ask?
Based on my experience last week, it took $1.63 to open a single E-MINI micro-lot trade. It took $16.30 to open a single E-MINI mini-lot trade and $163.00 to open a single E-MINI full lot trade.
Since you are trading a smaller version of the US30, the payouts are smaller as well. A $1 price move on a single E-MINI micro-lot trade would be worth $1. A $1 price move on a single E-MINI mini-lot trade would be worth $10 and a $1 move on a single E-MINI full lot trade would be worth $100 (which is what it would be worth if you were trading a single regular micro-lot, which also runs around $163 to open).
The good news is this allows you to trade the US30 without needing a thousand or two dollars in your account to get started. $100 should be more than enough to get started trading the E-MINI micro-lots.
Additional good news is that the trading volume with Envi FX is around 4x more than that at Hugo’s Way. That means there should be no issue in terms of getting a trade filled at your price.
So, check these guys out. Their website is https://envifx.com and I am not in any way an affiliate or introducing broker here (which means I don’t get paid if you fund a real money account). I’m just always on the lookout for brokers who do business with everyone and who offer competitive pricing.
Jeff
