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Forex is a very lucrative market and it is attracting people everyday who are eager to invest their hard earned money and make it big in short span of time.
Due to it's high interest among public, new Forex brokers are appearing in the market continuously.
There are countless number of Forex brokers in the trading world so choosing the right one is absolutely crucial to start your trading journey.
In my previous article, I have already stated the basic steps to choose a broker that would keep your trading safari less dreadful and help you achieve your goals without worrying about external factors. After getting useful comments from knowledgeable community members and gaining experience through research and trying out multiple brokers, I am confident that ECN brokers are way more suitable than Market Markers.
[ NOTE - If you all have missed out my previous article, here is the link < http://www.dukascopy.com/fxcomm/fx-article-contest/?A-Book-And-B-Book&action=read&id=1925#read-article > This would help you all relate to the topic and have insights about brokers world ]

What is an ECN Broker ?

The word ECN is an abbreviation for Electronic Communications Network.
It provides a ma…
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Erialda avatar
Erialda 16 May

Great i was thinking to add to my article how to define a good ECN broker but you my friend explained very well and i have nothing to add , just to wish you good luck in this contest :)) Cheers :))

jezz avatar
jezz 16 May

market maker platforms usually have bugs through which you can see them hunting your loss. but it takes money to be lost to realize that

shanziester avatar

I would have to disagree with you Jezz. You can identify a MM broker easily without throwing your money :P

shanziester avatar

thank you Omela !

shanziester avatar

thanks alifari, carpe and Myidea. cheers !

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Let's face it, you can't start placing trades unless you have a BROKERAGE ACCOUNT.
In today's world we have more than thousands of brokers to choose from? Have you ever wondered is this the right broker for me ? or
how well do I know the broker?
Choosing the right broker is no different than picking the right stocks or placing right trades that would ultimately give you profit and peace of mind at the end of the day.
We all want to win and succeed in life and it would be catastrophic to see our hard earned money sliding out of our pockets due to lack of common sense.
I strongly believe selecting the right broker should be the first step in FOREX TRADING JOURNEY. They are the ones who will be handling your money so why not waste some time in knowing your broker before you start building trading relationship with them.
BASIC THINGS TO CONSIDER : -
1. Regulated Forex brokers are always a safe bet.
2. Get an ECN broker -- There are mainly two types of brokers ECN And Market Markers. ECN brokers offers lowest spread than MM brokers however they do charge commission. I always prefer ECN broker as they usually never trade against clients.
3. Forex Broker with sufficient leverage
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isomorph avatar
isomorph 25 Dec.

an ECN environment.  the trader can go both on the bid or offer. this is different than buying at market (which price is the offer) and selling at market (which price is the bid).

3-spreads are never fixed and can shrink to 0 or widen to infinity.

4-execution at requested price can incur slippage depending on ticket (ie order) size and order can be broken up, ie executed at different price levels if that is where the available liquidity was located; NOTE:  it is not necessary for the system to behave this way;  it seems that all orders are treated as IOC orders by

isomorph avatar
isomorph 25 Dec.

Dukascopy system; but on institutional grade platforms orders can also be executed as FOK, which does not allow partial fills. 

finally, you have to deal with the problem of 'last-look' that most LPs reserve the right to use, meaning that even if you trade on an ECN, your order can be rejected by the LP. check out recent article on what Barclays does on its BARX ECN.  not good if you trade huge volume. but for retail traders and their tiny volume, that should not be an issue.

isomorph avatar
isomorph 25 Dec.

considering all this, i find trading FX on the CME Futures market more and more appealing. leverage is quite too even if ccy choice is poor.  but with a minimum of 500/USD you can get started and 1 broker even offers you a huge choice of platforms: more than 60!!  now that is good.  your counterparty risk is limited by the exchange who clears all your trades. exchange matches your trades against any other market participants. so no market maker BS and you get to see the real volume with a real Level 2 DOM (Depth Of Market) price ladder. 

isomorph avatar
isomorph 25 Dec.

so i am asking myself: what's not to like?

isomorph avatar
isomorph 25 Dec.

i want to conclude with 1 more thing, and that's for the broker, and i hope DC reads this:  re business model profitability of A- vs B-book model.  BE TRANSPARENT about it. if AxiTrader tells its customers that they will be B-booked but if they do well, put on the A-book and even offered the opportunity to manage funds provided by Axi, then DC could do the exact same. at least this way, everyone will be clear and know where they stand. and no more wasting chat support time, and potential client time having to read thru forums and fine print. just say it like it is.

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