guys,
let's get real. if you want the best spreads and the best EXECUTION, then go w/ an ECN (dukascopy, hotspotfx, efx group are the few i heard of).
ECN spreads are better b/c their profit model is different from MMs (market makers). 1 way the MMs make $ is through the spread and by manipulating that spread (to their advantage of course). not to mention running your stops.
and if you hear a/b sth like no-dealing-desk (NDD), while it sounds great, unfortunately the spread is still controlled carefully by the MM. meaning: the MM can make whatever price they want... and you still trade w/i the MM's market where the MM becomes the counterpart in your trade. the MM then aggregates all customer orders and puts them out on the interbank market under the MM's name.
so basically, if your broker doesn't offer you 100% total transparency and true STP (straight-through-processing), you are basically betting/hoping they will be honest w/ you and not take advantage of all the knowledge they have a/b your positions. do you really think MMs are so ethical that they will not be tempted?
yeah, right.
|