Go Back   BabyPips.com Forex Forum > Everything Else > Rate my Broker


Rate my Broker Discuss anything and everything regarding Forex brokers. Need some help finding a broker that's right for you? Then this is the place for you. Also, check our our resources on How to Choose a Forex Broker and Meet the Forex Brokers.

 
 
LinkBack Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #1 (permalink)  
Old 09-29-2009, 05:32 PM
 

Join Date: Sep 2009
Posts: 1
Default ECN brokers vs Market Makers

Hi,

My understanding is that there are two types of brokers – ECN and market makers. What I read about them is that ECN brokers charge commissions and market makers make money by taking positions against your trades and cashing on spreads.

The notion I am getting is that ECN brokers are sort of "safer". Is it true in reality given equal circumstances and the fact that markets are not safe in general?

I would appreciate if traders who dealt with both types of brokers shared their comparative experiences from practical standpoints. In particular, what is real cumulative effect of commissions on profitability? I mean, I understand that if broker charges $4/trade and I make 100 trades I will need to compensate for $400 in commissions. But how does it compare in reality to “losses” due to pip spreads market makers implement?

What ECN brokers would you recommend?

Thank you.
Reply With Quote
 



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

All times are GMT -4. The time now is 03:50 AM.
Content Relevant URLs by vBSEO 3.3.1
"Life unexamined, is not worth living."
Democritus
Feedback Form