A Guide to Forex Brokers: what Market Maker, STP and ECN brokers really are

Hey, Thanks for this helpful explanation on the types of brokers. But have you any recommendation of a type of broker for a retail trader ? Is a STP broker correct ? I believe definitely not a Market Maker. Thanks for your help

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Hi … Are you still searching for a good broker to become introducing broker ? If you are, please contact me back, I have a good one for you. Im their IB too and they are just perfect !!

Since the post you’ve quoted is dated August 2010, I guess he’ll have found one by now. :smiley:

Cheers,
P.


There are no secrets to success. It is the result of preparation, hard work, and learning from failure.
(Colin Powell)

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haha OMG !! Did not notice that …Gosh !! haha

I have a brokerage opening Pellucid FX (launch mid december)

I would like to have someone test my feeds with a fast scalping EA… ANYONE!?

It is a proper STP. When you make money it is yours…

But I need to fund out my liquidity provider is conducive to these types of robots. PM me, you can open an account or I can test the robot in the account myself if you like.

Thanks.

Damon

I am a beginner, your advice will be very helpful for me to choose a good forex broker

i am unable to PM u…which LP do you use?

ECNs are out of reach of most retail traders…choose STPs…

I am using Leverate, but looking at adding to that network if they are not good enough for ultra fast EAs. They do say they are though.

What regulation will your brokerage be operating under??Security of client funds?

MT4 itself is not fast enough for real scalping EAs… At first I was looking for a broker offering a free VPS (such as Exness) but now I realize im still more successful with simple manual trading ahaha ; )

Pellucid FX has chosen to stay unregulated, if it regulates it ties the hands of it’s traders (Including my own trading strategies) by being regulated in one jurisdiction we violate other jurisdictional laws. Regulation has nothing to do with safety of funds nor safety and security of a brokerage.

I want to bring to your attention that the biggest and most criminal forex operations that have been discovered have been under the heaviest regulations, a criminal by nature breaks laws and regulations, hence creating laws to stop criminals always loses, the only people who are chained by those laws and regulations are you and I, the criminal will find his way around them.

Pellucid FX clients accounts of any account size are FACTUALLY segregated (many brokers claim this but do not actually do it, ask them to prove it, Actual segregation usually occurs at 50k deposits and up -not so with us). This is proven with a Lawyers letter to each client acknowledging the segregation. I am looking into insurance of clients funds at this moment, this should not be done within the bank, a third party should insure the funds for proper insurance purposes.

Pellucid FX is quite transparent (Hence the word “Pellucid”) It display’s it’s company formation and registration data on it’s website, it also includes direct contact to it’s Lawyer firm. Forex Angels has done an KYC investigation me and found me personally to be clean, these findings are also on the website. Our intention is to have open communication and actual transparency so the client can do his proper due diligence. SO much so in that Clients will have a direct E-mail to me in case something does not run as smooth as it should. Or if they just want to say hi :slight_smile:

Just one more thing; To get bank accounts at all these days, let alone for an unregulated forex brokerage is extremely difficult, the banks not only check out the organizations but also anyone connected to it. Pellucid has an account at a Grade A Bank (Highest Moody’s grade), This is extremely tough to do, if Pellucid FX even remotely smelled like a bucket shop, or if we had even a relative that had a criminal history we would not have gotten an account.

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Pellucid FX has a very fast webtrading platform on top of MT4 but it does not support EAs, I am looking for a faster platform that still suports EAs, I have only one other than MT5 and I am negotiating.

Hi all,i saw a video to youtube(named brockers shoking truth) that says that ECN is better to trade than everything else ,cuz everything else passes from a dealing desk…Well i am new to this but is my dream to succeed,so correct me if i am wrong.Also a question.What is better to use when u have a small capital to start with like from 25 EUR - 200 EUR.Cuz i read that “ECN � route to the actual market, requires big accounts, plenty of re-quotes”…Also best program to train my self for free? I am from europe. Thank you vm :slight_smile:

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ECN and STP brokers are not much different in both cases market access is ensured with reasonable deposits, however I prefer to with STP as there are less requotes than on ECN platform. Spreads are roughly the same, however I found my STP broker Hotforex better in execution on commodity CFDs rather than on ECN platforms I tested. I know it depends on LP’s so it’s impossible to know this essential details without testing:), even demo won’t give you measurable data on that matter.

Hi everyone am new in the block i will be grateful if someone can mentor me to be a good trader

Found this a very insightful read.

Many thanks Micheal

If the customer service of any broker show such disrespect to any clientele, they are not worthy of you man; so either find another broker that shows a tone of respect to it’s clients that are sincere and honest or you could still stay with them and continue to milk them as long as long as your always winning that’s fine man, serves this scrupulous un-sincere brokers right, just make sure you would be able to withdraw all your winnings later on. lol

nothing cuz you guys are amazing

I am trading for 3 years now and I have never met such an issue before