exactly so
and some own the so-called “LP” anyway but lie about that to their customers
(which is exactly why FXCM were eventually kicked out of the US - yet another example of how dishonest things get corrected, if the broker’s properly regulated
Do you think that will ever happen?
A broker who does internal market making and holds your trades in-house will always be conflicted of interest because they are betting against you, NFA explicitly allows market making activity.
Market Makers
Also known as B-book brokers, a market maker does not send your orders to a larger liquidity provider. They internalize the risk for all opened positions, meaning they pay for all positive trades from their pockets.
Yes, they make money when you lose, but the most reputable ones never go out of their way to make you lose.
No Dealing Desk / STP
No Dealing Desk (NDD) in forex means that the broker operates an Electronic Communication Network (ECN), Straight Through Processing (STP), or Direct Market Access (DMA) model. Such brokers route your orders through larger liquidity providers.
No Dealing Desk (NDD) brokers are the same as most ECN brokers. The acronym NDD is sometimes used by brokers that do not want to fall short of regulatory requirements by claiming ECN status. The bottom line is that such brokers will send all your orders to a pool of liquidity providers instead of internalizing them.
Keep in mind that many NDD brokers still run a market-maker model where they keep smaller orders in-house but send larger orders directly to the liquidity providers. There is nothing wrong with this business model as it allows the broker to make more money while taking only half the risk.
ECN Brokers
ECN is an acronym for Electronic Communication Network. ECN brokers technically take orders from clients and send them directly to a pool of liquidity providers.
The quoted prices displayed by ECN brokers are some of the best you will find as they come from multiple institutions and market participants
ECN brokers in forex only send your order directly to a liquidity pool. This pool will contain banks, institutions, and other brokers. The brokers do this to get better prices and more favorable spreads. ECN brokers also do not bear any risks on all client positions. So, when you make money, the liquidity providers pay the profits.
Hello . I am a beginner trader. After reading these messages, I compared the prices of EuroUSD and some other currency pairs in Meta5 with Trading View. All currency pairs in Meta5 are several pips higher than Trading View😖Meta5 shows more prices. Am I wrong?
Hi, welcome to the forum.
Yes,
What you’re describing related to the broker, not to the platform.
You’re comparing the prices of different products.
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@wolfmr7 As I pointed out many posts above… An opportunity… Not an issue…
Spend an hour or two watching the ebb and flow of both price feeds… Is Tradingview’s price feed always several pips in front of your MT5 feed??? Is your MT5 price feed always several pips ahead of your Tradingview price feed…
Only concentrate on the currency pairs that gives you the least amount of spread… EURUSD, GPBUSD etc… etc…
If you can see a pattern where one is leading the other… You have stumbled onto a Market Inefficiency… A ready made latency arbitrage trading strategy…
Just pick a time frame where the price variance is most visible and you have one feed (the leading price) showing you the future… And the trailing feed (the lagging price) which you trade in the direction of the leading price… You should be able to make 5 - 7 pips across your timeframe all day long!!!
IF (big IF) it is consistent enough to trade a profit from… Your only worry will be your Broker closing your account because you have have an unbeatable edge… The same edge that they are using to take money from Retail traders on a regular basis…
It’s like the ability to count cards at a Casino… It’s not illegal, it just gets you thrown out of the venue because you’re exploiting their edge…
Starting to understand how the Retail Forex market operates…???
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I believe it’s important to distinguish between a trading terminal and the utilization of margin, as they are distinct concepts. The trading terminal serves as a platform for executing orders, conducting backtesting, and chart analysis. On the other hand, margin requirements are defined by contract specifications and remain independent of the specific platform used to execute the trade associated with that contract.
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To ensure mt4/5 is ALWAYS safe, Use strong, unique passwords for your trading accounts. Enable two-factor authentication (if supported).
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I read somewhere that MT5 are safer than MT4 because it makes your trade invisible to broker, I don’t know how true this is tho. Anyways, MT4 & MT5 are good and safe for trading also in testing strategies.
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