What is the Definition of Broker Forex
Forex Broker is strong companies that will assist its customers in trading Forex. For those of you who are classified as beginners in Forex trading, you should before you use the services of one company Forex Broker , you should seek information in advance about the brokerage firm which would you choose later in Forex trading transactions. In general, there are 4 types of Forex brokerage firm which is used by most traders in Forex trading transactions. The four types of Forex Brokers are: Non Dealing Desk (ECN / STP / DMA), Broker Conventional, Hybrid, and Dealing Desk.
possible to Brader Brader long-known forex certainly no stranger to the content of this article ..
Tp lot of questions – questions or statements – statements blind (nonsense) on the types and definitions of Forex Brokers themselves ..
Copas Ane ane article because according to this article is quite good in explaining about the “strong Types of Forex Broker ” and also as a complement to the knowledge of the previous articles ane strong How Choosing a Broker? Compulsory reading for all Trader and strong institutions in various countries Forex Regulator (Important For Traders)
Know strong Type Broker
Before we choose one among several Forex brokers are more scattered in the Online World, I’ll try to give some information about Forex Brokers to anda.Pada generally there are 4 types of Forex Brokers often used by traders in trading or trading ria, ie: Broker Conventional, Non Dealing Desk, Dealing Desk, and Hybrid .
Conventional Broker
Forex can also be done in the way you go to your bank or place of Exchanging Money (Money Changer), to transact Money Physical / Jump, trading as it is also called Traditional or trading trading Conventional (Non-Online), which is certainly a lot of limitations and is not in realtime.
On this page I only discuss and introduce the types of brokers used to trade Forex Online (non-physical), namely:
Non Dealing Desk
That is a broker for which the order is forwarded directly to the market or to another broker. Usually spread in Non Dealing Desk broker types are fickle nature depends on the market.
Non Dealing Desk broker type is suitable for professional traders, because it is very fair, without manipulation and user betting against the real market and not against the broker or broker bandar.Jenis Non Dealing Desk is divided into two, namely strong ECN Broker and
STP Broker .
Here’s an explanation of both the Broker:
strong one. ECN Forex Broker
Dibroker types of ECN is that users can jump directly and participate in a real market in which participated also mingled with other participants in the market such as the Bank, Government, Institutions and Individuals Trader where they interact and Sell Buy at the same time without any intervention from the broker or dealer (dealing desk). Usually the only brokerage firm to benefit from commissions or mark-ups of spread. At ECN broker type used condition is a condition that occurs in the real market and no artificial. ECN Broker working with buyers and sellers bring significantly (via online, real-time), and not against broker / dealers Buy and Sell in doing it.
2. STP Forex Broker
Broker
this type serves as a bridge connecting to another brokerage firm as likuiditornya. Usually the broker’s order execution STP type is passed on to the big brokers (large institutions) or to some ECN brokers. But if the order of the STP broker forwarded to broker a manifold Dealing Desk Brokers STP then the order of these depend on the broker who headed it.
Oftenbrokers (especially unregulated / unregulated) called STP with ECN, but basically somewhat different, because the STP broker is using the other as a liquiditornya (thrown to another broker), so everything from broker execution and STP type is depending on the broker and quality liquiditornya connection path routing. While in the type that really ECN broker is not thrown again into another broker, but directly to some large banks (multi inter-bank) and the actual market that brings buyers and sellers directly without the intervention of a broker dealer or croupier.
strong Dealing Desk Broker
That is a broker that they made a separate market with its own conditions they specify. In this case the user trading against the broker or dealer. Basically dealing desk brokers benefit from the defeat of the user should, therefore, if the user makes profit the broker will be paid from cash on their own broker (not purely derived from actual market). When you trade in kind Dealing Desk broker, make sure you put your funds in Dealing Desk brokers listed (regulated) as a broker and have reputable. Good regulations are: NFA, FSA, ASIC. Dealing desk brokers are often referred to as dealers (dealers). Dealers consists of 2 types:
Dealer Large
Brokers are typically already have a good reputation and legally registered (regulated) as a brokerage firm (Futures Commission Merchant or FCM) as regulated in the NFA, CFTC, FSA, and is not located in a remote or obscure. Just as you are playing in a casino then you should look for such a large casino in Macau or Las Vegas. It aims when you get profit then certainly the broker can pay your winnings and deposit your funds remain safe investment. Because in a regulated broker’s dealing desk there is a regulatory agency (usually local government) which aims to control or ensure that the broker has done its job well and do not cheat the customers.
strong little or Unregulated Broker Dealer (Bucket Shop or broker pavement)
Broker is a broker of this type you should avoid, because they are potentially huge for manipulating your transactions or act fraudulently so you will easily defeat that should not have happened. Generally bucket shop broker is not permitted as it should be, and only licensed as a regular corporation or other (not as brokerage firms) and this is often mislead potential customers who still lay.
strong characteristics Bucket Shop Broker:
He is located in places that are not obvious (offshore countries that are not clear) and unlicensed regulations properly (this is usually done). Besides other features of the bucket shop broker is they are 98% sure let him transfer money to third parties / individuals, or using the voucher, may use Liberty Reserve, registration is easy and impressed haphazardly and without adequate verification, then there is a limit or prohibit a particular trading techniques (such as scalping, martingale, etc.) there is also a bucket shop broker that allows all kinds of trading techniques as in the system is already installed an automated script that can inhibit these techniques (the script usually called Virtual Dealer).
conditions offered bucket shop broker is often beyond the normal condition of the real state of the market, such as the leverage is too high (eg 1:1000), low spreads that make no sense (example: 1 0 pip pip fixed even fixed, whereas in actual market spread is always changing constantly every second), and there are also big bonuses goal is to attract customers to want to put their money (which in the end is to “eat” the croupier cheating).
Beware of brokers who offer these things too bombastic or bonuses that looks very attractive, because the larger the bonus then need to watch more closely, rather than later caught and you will incur a loss that is not comparable with the bonuses offered.
cheating stuff is usually done by diversified broker Bucket Shop, namely:
Requote excessive, slow order execution, if exposed to TP (target profit) but otherwise it is difficult to be executed if exposed to SL (stop loss) it is easy to execute, the server is often down, the manipulation of the price quote, eliminating transaction unilaterally profit the pretext of illegal trading, withdrawals are often detained or can not be done, the statement is not true, and stuff fraud (scam) others. Be careful with statements from the broker buckep shop often provide false and misleading statements about their system, as they claim that they are ECN or STP broker manifold but the fact that they are applying Dealing Desk bookie even worse, it is solely for the purpose to deceive and attract the general public in order to trade in their place, when in fact they are NOT true ECN or STP. Therefore, IT IS VERY IMPORTANT to be regulated as their supervisor is not arbitrary and giving false statements to mislead the public.
Similarly strong
Alert Award and the awards they claim:
(Usually done by illegal brokers & Bucket Shop for attention). Example: as the best broker. The award does not guarantee the broker is safe. And also check from which institutions give ratings company. And search on google about the credibility of the company’s rating. Examples Prime4x a scam forex brokers also previously claimed to be “The Best Broker 2009? even though the rating agencies are institutions that are not credible, and the proof is in fact a scam broker and carried off customers’ money. Be careful also with the rating of the purchased (or the term corruption / bribery), and also be careful with that as if it were an award when it was just a web advertisement broker that writes itself, but is made as if it were an award of the media , but it’s not (never happened in a broker is claiming rewards from CNBC, but after investigation it turns out it’s just advertising articles written yourself). Alert to the tricks of “naughty” and statements / advertisements that are not true of illegal forex broker.
HYBRID BROKER
Broker is a combination of types of brokers ECN / STP with Dealing Desk broker. Hybrid brokers generally have a rule in the throwing order or by the type of account used. For Example: If you are Lot size, or frequency, or below the value of your equity XXX then you executed at the dealer, but if the above is to be executed on the type of STP or ECN. Actually it is difficult to know that the broker is including hybrid type or not. It is just that you can see by trying it from a reputable broker or by the
strong vs. LIVE ACCOUNT DEMO ACCOUNT
In demo accounts are not the same as the actual account usage (live account), so if the conditions in your demo goes well then it does not guarantee that your real account would be the same, especially in that type of bucket shop broker. So to know the right broker then be tested through live account conditions.