Account types

Beginner Questions
42

Hey Jusuf_Haz, thanks for sharing your feedback. I think that the trading process itself should be the same everywhere. As for the conditions, it really depends on the broker. Good that you are testing different options.
Yes, usually ECN accounts have commissions, if you are a scalper probably it would be expensive for you. But donā€™t you think that it would be better if you just choose a broker with only one type of account? These mini or cent accounts sound too complicated. I personally prefer to not deal with these multiple types of accounts and conditions as itā€™s too hectic for me and often leads to unexpected costs and confusion. Trading is complex thing and I prefer to have simplicity offered by the broker :slight_smile:
The removal of the NDD accounts is not a good sign for me, it means that this broker is a market maker. My advice is to stay away from these guys.

43

As far as I remember, orders from ECN are transferred to liquidity providers. But itā€™s not always so with NDD.
If I was in the brokerā€™s place, Iā€™d transferred only orders from ECN to the interbank as deposits on cent accounts and minis are not so big to do that transactions which means time and money :smiley: So I can understand such changes.

Wellā€¦ ECN is the best option, yes, but if you are a beginner, better try cent accountsā€¦ And donā€™t worry about small deposits. Brokers rarely cheat beginners, as their 5-10 bucks wonā€™t help them at all :slight_smile:

44

ECN, STP, NDD are just fancy marketing terms. Read your brokerā€™s PDS and your risk lies with them and them alone. How they manage your risk is their business.

1 Like
45

Oh, thaks for advice.
I agree, that cent account is the best for beginner and Iā€™m going to start with it :slight_smile:
I donā€™t regret about NDD account, as I donā€™t really understand its advantages, but I wanted to test it on demo.

And what about Stanard accounts? Are they transfered to the interbank?

46

Thanks for your opinion :slight_smile:
The brokers Iā€™ve chosen donā€™t have too many account types. The more I learn and test different accounts, the more easy and clear it becomes. Itā€™s not as hard as it seems.
I never seen brokers with only one type of account, does it really exist?

Why do you think so? They still have ECN

47

I doubt actually, cause they write that they use a mixed business-model. ECN is for interbank, and others (as it seems to me) is executed inside the company.
Wellā€¦ there are pros and cons for all the options, but itā€™s up to you to choose regarding your strategy, risk management and so on

48

But there is nothing bad if they donā€™t transfer it to Interbank, isnā€™t it? It doesnā€™t affect trading process, am I right?

49

Thereā€™s nothing wrong with it - itā€™s a model used by many brokers.

Here, for example, is a graphical description that FXPro use on their website - itā€™s common practice with retail brokers.

unnamed.png548Ɨ974 168 KB

50

Oh, Iā€™ve got it, thanks. So, itā€™s doesnā€™t really matter if your orders are transfered to interbank or not, the main thing is to choose a fair broker.

51

Yes, exactly that :slight_smile:

52

They say, that ECN accounts are considered best for scalping because of low spreads. With the right leverage you will cover the commission fast and will lock in profits fast. Youā€™ll get more profit in less time.
But scalping is not very easy strategy. I would not recommend it for beginners.

53

As for me, itā€™s one of the most difficult ones, hence I trade medium term :slight_smile: :slight_smile:
Wellā€¦ I would advise to start with a little sum on a cent account, and then youā€™ll decide by yourself whether you want or need to go further and enlarge the sum

54

Well if they still have ECN, thatā€™s great. If you want to try them, make sure to read carefully their Terms&Conditions as I believe they are different for the different account types.
Yes, Iā€™ve seen brokers with only one type of account, itā€™s quite convenient actually, you wonā€™t be confused with different conditions.

55

Thanks. Yes, Iā€™ve already studied the terms and conditions. Traded on demo and just opened a cent account :slight_smile:

56

Thatā€™s great man! Hope you made the right choice! I wish you nice profits!

57

Great to hear that. So far how are things going? Are you satisfied with the conditions and the results? :slight_smile:

58

How long are you going to stay on demo, if itā€™s not a secret.?

59

Iā€™m quite satisfied with the conditions and the service. But trading strategy eeds some improvements :slight_smile:
Iā€™m profitable, but not constantly.
And now I understand what everybody mean, when theyā€™re talking about emotional aspects of live trading.
Anyway, Iā€™m not gooing to give up :wink:

60

I used to trade on demo for about 3 months. And now I just started trading on cent account

61

Hey Jusuf_Haz, thanks for the reply. Glad to hear that itā€™s going well. Of course the strategy always can get better. But this will happen in time, you just need experience. The more experience you gain, the better strategy you will have. Sometimes is hard to control your emotions while trading live but you will get used to this as well. Again, with the experience, being less emotional will become easier. So like you said, do not give up :slight_smile: