Silly Question? How Broker Gets Benefits/Profits?
ECN brokers get profit from your trade commissions, they don't care if you win or lose.
Other brokers get profit from your losses. And they lose money if you win.
In reality, most ECN brokers are cheating, and are working like normal brokers plus charge commission. They profit from commission, and from your losses. Also, more that 90% of trades only lose, and this is reason why being a broker is quite profitable.
Basically, brokers are your enemies, and they do everything for you to lose (high spread, slippages, etc). Its like a casino, where money and luck are everywhere, but in the end only winner is casino itself. If someone in casino starts to constantly win - he will be prohibited to enter there again. Same is with a lot of brokers - they will refuse to pay profits, and will block profitable accounts.
ECN brokers get profit from your trade commissions, they don't care if you win or lose.
Other brokers get profit from your losses. And they lose money if you win.
In reality, most ECN brokers are cheating, and are working like normal brokers plus charge commission. They profit from commission, and from your losses. Also, more that 90% of trades only lose, and this is reason why being a broker is quite profitable.
Basically, brokers are your enemies, and they do everything for you to lose (high spread, slippages, etc). Its like a casino, where money and luck are everywhere, but in the end only winner is casino itself. If someone in casino starts to constantly win - he will be prohibited to enter there again. Same is with a lot of brokers - they will refuse to pay profits, and will block profitable accounts.
I totally agree.
Do you know a (technical) way to recognize true ECN (or STP) brokers ?
Do you know a (technical) way to recognize true ECN (or STP) brokers ?
No, I don't think its technically easy to recognize it.
I have some guess though. Normal (dealing desk) brokers in most cases use some special software to alter tick flow to client, its done to bluff scalper advisors and force them to make mistakes and lose money. True ECN broker will not spend his money on such software and plugins, as they will never get their investment back, this type of things pays off only when broker wins from client losses. False ECN ones will definitely do it too.
I had couple of advisors which were working only on ECN brokers, and were horribly losing on a dealing desk ones. Spread and slippage were not an issue, problem was that they really did mistakes and wrong trades for no reason on dealing desk brokers.
Maybe some neural network can be trained to analyze tick flow from ecn and deadling desk brokers, it should be possible to detect false-ecn ones. That's probably only way.
No, I don't think its technically easy to recognize it.
I have some guess though. Normal (dealing desk) brokers in most cases use some special software to alter tick flow to client, its done to bluff scalper advisors and force them to make mistakes and lose money. True ECN broker will not spend his money on such software and plugins, as they will never get their investment back, this type of things pays off only when broker wins from client losses. False ECN ones will definitely do it too.
I had couple of advisors which were working only on ECN brokers, and were horribly losing on a dealing desk ones. Spread and slippage were not an issue, problem was that they really did mistakes and wrong trades for no reason on dealing desk brokers.
Maybe some neural network can be trained to analyze tick flow from ecn and deadling desk brokers, it should be possible to detect false-ecn ones. That's probably only way.
ECN brokers get profit from your trade commissions, they don't care if you win or lose.
Other brokers get profit from your losses. And they lose money if you win.
In reality, most ECN brokers are cheating, and are working like normal brokers plus charge commission. They profit from commission, and from your losses. Also, more that 90% of trades only lose, and this is reason why being a broker is quite profitable.
Basically, brokers are your enemies, and they do everything for you to lose (high spread, slippages, etc). Its like a casino, where money and luck are everywhere, but in the end only winner is casino itself. If someone in casino starts to constantly win - he will be prohibited to enter there again. Same is with a lot of brokers - they will refuse to pay profits, and will block profitable accounts.
No, I don't think its technically easy to recognize it.
I have some guess though. Normal (dealing desk) brokers in most cases use some special software to alter tick flow to client, its done to bluff scalper advisors and force them to make mistakes and lose money. True ECN broker will not spend his money on such software and plugins, as they will never get their investment back, this type of things pays off only when broker wins from client losses. False ECN ones will definitely do it too.
I had couple of advisors which were working only on ECN brokers, and were horribly losing on a dealing desk ones. Spread and slippage were not an issue, problem was that they really did mistakes and wrong trades for no reason on dealing desk brokers.
Maybe some neural network can be trained to analyze tick flow from ecn and deadling desk brokers, it should be possible to detect false-ecn ones. That's probably only way.
This is what i expected to know.
Thank you Dr.Trader
How to get to know true ECN Brokers?
If you want to know about a broker ECN or not ,
If a broker don't set Maximum Deposit Limit (a big fact that broker is ECN , NON ECN have limits because they know trader will win)
ECN broker don't set Stop Out Level tight (Because its not broker business how much you loosing)
ECN Broker don't puts limits on STOP LOSS and Freeze levels ETC
With ECN Broker STOP LOSS have no guarantee as broker have no control on it Trade will stop at available price.
In Hedge ECN brokers gives you more freedom with no margin limits
In short a ECN Broker after taking trading fee they have no business with your profit and loss and they don't put limits on you they gives you freedom because when you will gain more broker will gain more.
Else these facts there no other way to check broker is ECN OR NOT, The only way is you have grant and access to their computers and see inside their function.
Best
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
This silly queston i have for long time not answered myself.
Broker gets benefit/profit when traders looses trades or win the trades?