Hello, i was reading about ‘market makers’ and ‘ECN brokers’ and had few questions. Is there still market maker brokers and is there anybody who are trading with them? Is there any big name Market makers or they all bancrupted long time ago? How do you reckon in % how many retail forex traders trade with ECN brokers and how many with market makers?
Thank You for ur time!
most brokers today are market makers. There are very few true ecn brokers
There are loads of market makers about, their just not blatant about it. Oanda is one of them, just ask the broker before you setup an account with them if they are, by law they have to you know (only if you ask). Market makers have variable spreads which can be manipulated to make you a loss (within a 20 pip range), they always offer you nice incentives and low deposit fees at the start, but after awhile, they are designed to take your money!
ECN brokers are the way to go in my opinion.
Hope this helps.
No Dealing Desk (NDD) forex brokers provide access to the interbank market without passing orders trough the dealing desk. No dealing desk brokers work with their market liquidity providers, primarily banks to get better competitive bid and ask prices.
With true No Dealing Desk brokers there are no re-quotes on orders and no order confirmation. This, in particular, allows traders to trade during news time with no restrictions on trading.
An NDD broker can either charge a commission for trading or choose to increase the spread and make trading commission free.
No Dealing Desk brokers are either STP or ECN+STP.
STP (Straight Through Processing) forex brokers send orders directly from clients to the liquidity providers. The more there are banks and liquidity in the system, the better the fills for the clients.
The fact that traders have access to the true market and can execute trades immediately without dealer intervention is what makes the platform STP.
ECN (Electronic Communications Network) forex brokers additionally allow client orders to interact with other clients’ orders. ECN Forex broker provides a marketplace where all its participants (banks, market makers and individual traders) trade against each other by sending competing bids and offers into the system.
Participants interact inside the system and get the best offers for their trades available at that time. All trading orders are matched between counter parties in real time. Often a small fee is applied.
Sometimes STP brokers are discussed as if they were ECN brokers. To be a true ECN, a broker must let clients show their own order size in the system and allow other clients to hit those orders. With ECN broker traders can see where the liquidity is and execute trades.
Among the main reason why traders look for NDD brokers is transparency, better and faster fills and anonymity.
Transparency means that a trader enters a true market instead of the market being artificially created for him.
Better fills are a result of the direct and competitive market bids and offers.
Anonymity means that there is no Dealing Desk watching who has come to the market and is asking for an order to be filled, instead client orders are executed automatically, immediately through the market network and totally anonymously.
So forexninja which brooker are u using , and is there ECN brokers that we(simple ppl) can trade?
Here are a list of ecn brokers:
ECN brokers list | ECN/STP Forex brokers
You can also use the cyber search button over there to look with a detailed filter.
Thanks for the info guys, I wasn’t 100% sure about this either. Bucks, that link is getting bookmarked 