Hi dears
There are different types of brokers, i confused which type i should choose?
A-book broker or B- book brokers?
In the long run, all that really matters is under which regulator your account is held.
Don’t be fooled by the “A-book”/“B-book” business, and all the terms like “ECN”, “NDD,” “STP,” “DMA” and others that counterparty brokers use to mislead inexperienced customers.
The party you think of as a “broker” is actually your counterparty. You’re betting against them on the price-movements of their own products, which they control while holding your deposited funds and making up the rules. Don’t let anyone tell you otherwise.
That doesn’t mean you can’t do it profitably. Some people do. But it does mean that you need to use a broker who will open a properly regulated account for you. The proper regulators are FCA(UK), ASIC(Australia), CFTC(USA), or European Union ones.
Inside the EU, Cyprus, Bulgaria and Malta are the three worst-regulated ones.
Be aware that brokers choose where to be regulated. The bad ones aren’t regulated in Vanuatu, the Seychelles, and Caribbean or Pacific islands because that’s where they happen to be registered. They’ve chosen to use those fake regulators so their regulator never takes the customer’s side in a dispute, and they pay them for that facility. So be careful.
Don’t assume, for example, that because a broker is regulated by ASIC in Australia, your account will necessarily be ASIC-regulated. Some will open an account for you that regulated in Vanuatu (that means “unregulated”). You need to check this for yourself before sending them money.
But they’re your counterparty, whether they’re A-book or B-book. If they pass your trades automatically to a “liquidity provider”, they can own that liquidity provider themselves, anyway - and they don’t tell you that (and don’t have to).
1 Like
Thanks soo, but how i can know my account is regulated or no? And would suggest me a good broker?
Before opening the account, just write to the broker, specifying clearly which account-type you want and where you live etc., and ask “by which regulator would this account be regulated?” (I’ve never heard of a broker lying about that. Yet.)
They often have an online “contact us” link.
Which country are you in, @Abdjawid ?
Oanda is a pretty good broker, overall.
I am from the EU and I noticed that Oanda operates multiple websites tailored to different countries, and the offers seem to vary. I find the offers on US website particularly appealing but I got this reply from them:
“Apologies but you would be required to apply for the account tied to Oanda TMS at https://www XXXX as you fall under the EU region.”. 
That makes sense, because they’re more strictly regulated in America than anywhere else. But their reply also makes sense. An EU-regulated account with Oanda should be fine, though.
Hard to do better, especially when you look at their “advanced charting” which is a free-of-charge white-label version of the top package of TradingView.
Anything that avoids MT is a plus, but Oanda’s TV-white-label is a really good plus. 
1 Like