With so many forex brokers to choose from, it is definitely not an easy task to find the perfect broker forex trading that fits your style and trade preferences. As you may know, that foreign currency – this unregulated market, because it does not traded on the stock exchange, which means that the prices you see and get from one broker may vary compared to the other. Forex brokers fall mainly into one of two classifications –
1) Marketing (MM) and
2) Trade electronic communications network (ECN).
The vast majority of brokers around them & # 39 are the Market Makers (MM). They offer a means for traders to trade with a broker and cons. MM offers a single price / value of the request for a currency pair. they usually offer a fixed spread.
The second group consists brokers electronic communications network (ECN). They offer traders the opportunity to place their own bets / offers. As a result, traders often see some prices on offer / demand, moving not a broker, but comrades and liquidity providers (banks). they usually offer you a choice of quotes.
-Pakazats free software for graphics and news feeds
-Tsany less volatile as compared to brokers ECN
-Often provide a convenient interface and analysis
– They can take a stand against you
– The prices that they offer may be worse than ECN brokers
– They can manipulate prices and cause a stop or prevent you reach the target profit. This is because they can take against you losing position
-High prabudavanne prices usually occurs in the data release hours, otherwise their platform can not afford to place orders with high volatility.
-Balshynya ones discourages scalping, which may have minute. stop loss in place or performance skalpavannya can be very "manual" or difficult.
– You can usually get better prices / application, because they come from a number of different institutions or banks.
-Pampod between applications and requests can reach zero spread or spreads into tiny time liquidity (mostly in the second half of the day, time of DM)
– They will not sell and do not have any positions against you, but give your orders a bank or another client on the other end of the transaction.
– You will be able to offer a price between bid and ask, if the probability of its completion
-If they support the Stop-Limit orders, you can prevent slippage of the news, making sure that your order is either filled at the desired price, or not at all.
-Prices may be more volatile, it would be better for scalping
-Balshynya not offer integrated graphics
– Most do not offer integrated news
Shady Broker orders Exercises:
In these days of repeated orders largely go into the past, but if you find that the broker has used to confront the alternative trading prices, you are advised to find another broker.
Slippage: Slippage – this pricing procedure is used by some brokers to generate additional profit point or two on the transaction. Instead, to provide available funds, the broker increases tariffs on an additional point. If the exercise price is always higher (as is the case with the purchase order) or below (in the case of a sales order) than the one that appears on the screen, find another broker. This is a complex documentation, but if you suspect this is happening, you move your business to another location.
pricing irregularities: there are two instances when you will see a sharp rise in interest rates – the flash screen, which shows a significant, immediate price movement
1) when a broker intentionally raises tariffs to offset the position of the trader or
2) If the supplier of liquidity broker does the same thing. As slip spikes difficult to document, but if you think you've got a sharp increase, think about changing brokers. Do not buy the argument that it was a programming error or malfunction. Spiking – deliberate means by which some unscrupulous brokers and liquidity providers manipulate the market.