Direct interbank trading

Hi,

I am a relatively new trader from New Zealand, and the question I have is, is it possible to trade directly on the interbank market? What I mean is, obviously you get different types of brokers, DD, NDD, NDD + ECN, and in my understanding they DD will take the other side of your trades from time to time whereas ECN will connect you with other traders on the ECN network.

So I guess what I’m trying to understand is whether its possible to basically trade directly with the banks and cut out the brokers? Do the major banks have their own trading platforms? And which trading platforms do institutional forex traders such as hedge funds use to trade forex?

Thanks in advance and please excuse the probably incorrect terminology.

Richie

Yes, if you have something on the order of $20 million in trading capital.

With less capital than 20M, you have to be content to trade through an [I]institutional forex broker.[/I]

With [I]much[/I] less capital than 20M, you’re stuck (like the rest of us) trading through a [I]retail forex broker.[/I]

Welcome to this forum, by the way, Richy.

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Thanks Clint. would you say there are many retail forex brokers that you can trust? It seems opinion is divided no matter which broker is in question and this is probably somewhat due to poor trading decisions, but are there many good brokers that will at least allow you to trade on an even playing field? I am currently with Pepperstone.