Traders Disparities between brokers. STP/ECN vs DD/MM

Hi all,

when the question of choosing brokers in this site has come up, we(users) have often said try Oanda Deltastock FXCM hotforex etc.

Normally I’m skeptical of choosing the broker everyone recommends because sometimes the poster is affiliated with the broke but always its not the case.

But majority of brokers recommended by baby-pips master contributors are always market dealers.

And that’s what bothers me because there’s some sort of taboo/stigma that market makers rips their clients, if we newbies to trading know these why are some posters ( master contributors) and some others on baby-pips recommending it ?

Unless they think that having a broker as A market dealer or straight through processing does not matter.

Can we have some logical reasoning and insight to this, especially from those who’ve been traders for a long time.

thanks

Personally, I’d go with one of the larger brokers for reasons of capital reserves, ring fencing of clients funds, transparency and regulation on both sides of the pond. STP/ECN would be my choice but even then read their small print (especially micro accounts). Just to give you a heads up… I’m a full time trader with absolutely no affiliation to any broker.

To add to what RC said, the biggest problem is account size.

The closer you get to the actual IB market, the bigger your account needs to be. You won’t find micro lots available where the commercials trade. A broker may offer both commercial, and retail accounts, but they would be handled very differently.

Since most of the retailers are only willing to stuff a few hundred bucks, if even that much into an account, they are limited to brokers who open accounts of that size. And the ones that allow the small lots are almost always market makers.