Dear Fellow traders,
Can anyone explain to me how do I identify a FX broker from a market maker?
How one can know the difference between them, and know which FX broker will provide the best service?
Is there any list of FX market makers? so everyone can keep away from them?
Forum on trading, automated trading systems and testing trading strategies
Something Interesting in Financial Video January 2014
newdigital, 2014.01.13 13:03
In this Forex broker video we discuss the main differences between ECN, STP and Market Maker brokers. This is especially useful if you are a new Forex trader so watch the full video for a detailed explanation.
newdigital, 2014.01.17 10:21
If you desire true market conditions to trade in then you need to use an ECN broker for your trading. However, there are a lot of market maker Forex brokers that pretend to be ECN brokers so watch the video to see how they can fool new traders.
Broker's ; Are they with "zero-sum game" or "try their best" going to turn the market towards ?
newdigital, 2013.06.03 12:42
I did not understand sorry :) Are you talking about dealing desk brokers (DD) and non-dealing desk (NDD) broker?
But people say that there are no so much differences between them concerning the traders' opinion ... "brokers are not our friends" - this is usual slogan which you can meet everywhere :)
My opinion: if you place stop loss and/or take profit so brokers can do nothing (not "sum zero game"; and not "try their best") ... nothing ... because tp or sl are executed by data, and datafeed is provided by broker, and this datafeed are slightly6 dofferent from one broker to an other one ... so, some traders are making EA or signal for some particular broker.
Example with some talking between traders:
So, it is usual questions ...
As I said - hidden sl/tp is used with complex systems which are based on many indicators and one EA is trading for many pairs taking onto considerationmany timeframes on the same time (MTF EAs). Those kind of EAs are using hidden tp/sl and/or tp/sl which were coded inside the code of the EA. But irrespective off - those EAs are using hard tp/sl just in case of electricity will be switched off and so on (because hidden/coded tp/sl is not executed on the brokers' server; but hard tp/sl is directly executed on the brokers' server even if you will close your Metatrader for example).
Something Interesting in Financial Video August 2013
newdigital, 2013.08.25 15:16
Something Interesting in Financial Video October 2013
newdigital, 2013.10.10 14:44
This video provides an introduction to electronic communications
networks (ECNs), systems that allow buyers and sellers of stocks to
trade directly without an intermediary.
Most forex traders
participate in the forex market with forex brokers. There are mainly two
types of forex brokers: market makers and electronic communications
networks (ECNs). In this article we want to introduce the latter type of
brokers, the ecn forex broker.
What is an ECN forex broker?
ECN forex broker is a financial expert that provides the clients with
direct access to other forex participants in the currency market by
using electronic communications networks (ECNs). Unlike market makers,
which always trade against their clients to make profit, an ECN forex
broker only creates opportunities of trading between forex traders.
How does an ECN forex broker work?
forex brokers provide a medium by passing on the prices for different
market participants such as banks, market makers and other traders in
the market. Then the best bid/ask quotes will be displayed on the
trading platforms based on these prices. ECN forex brokers also serve as
counterparties to forex transactions, but it is a settlement that they
operate on instead of pricing basis. While fixed spreads are offered by
some market makers, spreads of currency pairs can be very different,
determined by the trading activities of the currency pair. In active
trading periods, sometimes you cannot get ECN spread at all, especially
in those very liquid currency pairs such as the majors (EUR/USD,
GBP/USD, USD/JPY, USD/CHF) and some currency crosses.
Pros and cons of the ECN forex broker
The ECN forex broker has both advantages and disadvantages. The pros and cons of the ECN forex broker are as follows.
The pros of the ECN forex broker can be presented in following aspects.
Traders can usually get better bid/ask prices for they are derived from multiple sources.
At certain time traders may trade on prices with no spread or with only very little spread.
Genuine ECN forex broker will pass on the orders to a bank or other
trading participants on the opposite side of the transaction instead of
trading against the traders.
It is very likely that the prices on the ECN forex broker are more volatile.
Traders can take on the role of market traders to other traders on the ECNs since they can offer a price between bid and ask.
The cons of the ECN forex broker can be presented in following aspects.
Many ECN forex brokers do not provide integrated charting or new feeds.
Some trading platforms are not so easy for traders to use or operate.
Since there are variable spreads between the bid and the ask prices, it
may be difficult to calculate stop-loss and breakeven points in pips in
Forex traders are obligated to pay commissions for each transaction.
It is obvious that there are both pros and cons of an ECN forex broker.
Traders have to take many factors into consideration when choosing a
Something Interesting in Financial Video September 2013
newdigital, 2013.09.30 10:54
Learn how to sort through the chaos and confusion on the web to learn
what forex brokers are best for individual currency traders.
newdigital, 2013.09.30 11:06
What forex traders need to consider regarding the regulatory environment of the forex broker they trade with.
newdigital, 2013.09.30 11:07
A look at the technical and value-added features (like news, charts,
ability to trade from the web, etc) that currency traders should
consider when choosing what forex broker they select.
Something Interesting in Financial Video June 2013
newdigital, 2013.06.04 10:35
Forex Broker Types - MM,NDD,STP,ECN
This is small 10 minute education video about the following: the difference between Forex Broker Types - MM,NDD,STP,ECN