Acknowledging the elephant in the room (your thoughts)
TLDR; Until we get fully regulated exchange style trading, retail fx will always be the "wild west" and believe me the sharks will eat you alive no mercy. So I've been thinking about this for a while now and it kind of worries me. I'm a successful live trader but the "very long term" worries me. What if this and that. I don't want to quit my job and then find out one day that I can't live off of this anymore... I trade with Darwinex at the moment and they are fucking amazing but even then I'm still worried that my relationship even with them might not last very long if I keep winning consistently. As I'm sure you are all already aware, currency trading is performed over the counter. Meaning there is no exchange where all parties can trade with equal terms. And that creates an inherent conflict of interest. This means that it's not in your broker's best interest for you to win consistently. With stock trading, on the other hand, you are trading on a centralised and fully regulated exchange and your broker will pretty much NEVER work against you because the more you trade, the more commission you pay. In the world of fx, prices are different everywhere! In the world of centralised exchanges, everybody gets the same price! This is a reality we all have to face. With fx, sure you have spread and commission but there's always a counter party. And that'll either be:
Another trader (if there's enough people on the other side)
You broker (direct loss)
A liquidity provider (the bank pays the broker who pays you)
So even if your broker has best model possible, which is working with an LP (NDD/DMA/STP/ECN), the LP might decide one day "hey ban that trader or we stop doing business with you". So my questions are: A. Let's be brutally honest with ourselves. Is RETAIL Forex trading really viable in the long term? B. Do you agree with me that we need something like an international exchange facility that is fully regulated? C. Do you think this is going to happen anytime soon? The only company that I've come across to implement something even remotely similar to this idea (I'm not promoting them just saying) is LMAX Exchange with their multilateral trading facility model which proves fair trading conditions for ALL traders regardless of account size or lot sizes. They really offer full transparency. But that's just the first step. It's not quite the right solution, in my opinion. Has anybody come across anything better out there? I've read a few articles about the "FX Global Code" and rebuilding trust and bla bla bla but nothing for us poor retail traders.
Help me to choose a broker -- Oanda, FXCM, forex.com, FXDD
Hi all, I posted this thread on a Forex forum, I re-post it here hoping to get more advice. I live in China, and I'm a newbie to Forex trading. I plan to deposit 5,000 USD to experiment Forex trading after I get used to the demo account. After I'm OK with 5K USD, I may invest not less than 10K. I'm struggling to choose a broker, here are my criteria, 1, Allow hedging. I'm 100% wanting this. Indeed I'm not going to hedge the same amount of money at the same time to earn quick money (which is often used in big news event). What I want to do is, I have a long term position which will be there for several weeks, then I do some short term positions (intraday or several days). That's possible that I have two positions in two directions at the same time. 2, Money safety. During my Googling, I found that some brokers close a trader's account just because he/she earns too much money. 3, 100:1 leverage. 50:1 is not too bad but 100:1 gives me more flexibility. 4, Prefer to NDD (ECN or STP), but DD and MM is acceptable if money safety is guaranteed. 5, Regulates with NFA or FCA. 6, Support depositing using credit card. This is cheapest way for me, at least cheaper than wire transfer. 7, Easy to open an account. I prefer to open an account via internet only so I don't need post a lot of certifications to the broker. The other points except 1 are tolerant, but I really want point 1 and I think it will be important to me. Now comes to the brokers I've done some research on. I've checked a little with Oanda, FXCM, forex.com, and FXDD. Oanda, the most money safety one. 50 leverage. However, it doesn't allow hedging. All other brokers in my list are not as same money safety as Oanda. FXCM, the one that's really annoying me is the margin. Why margin for a lot of EURUSD is $750? That's really weird and is not connected to the real price. Can any one explain to me? Forex.com, as big as FXCM, but in the event that ECB put down the interest to 0.25% at Nov.7 this year, a lot of Chinese traders get network error and lost money. That scared me. FXDD, not as old as Oanda, and not as big as FXCM and Forex.com, and registered in Malta... So, what's your advice of a proper broker for me? The one not on my list is OK too. Thanks EDIT: another disadvantage of Oanda is that they have 6 candles a week, but it's a trivial problem since I can use other broker's MT4 for technical analysis.
Some may consider that a Forex Broker that acts as an ECN/STP is only the middle man or the agent between its clients and the market and as such, there is no any conflict of interest between the Broker and its clients. - The direct market access allows clients who trade in an ECN/STP account to receive tighter spreads than they used to but in return they are forced to pay a commission fee to ... STP brokers promise to offer a highly transparent trading environment that is free of conflict of interest with its clients. Choosing the best STP Forex broker is crucial for a profitable and ... Forex brokers in the market mainly offer two types of trading accounts: STP and ECN. Aside from the differences in spread and commission, the two account types also process client orders in different modes through different platforms. This article will introduce to you the differences between STP and ECN trading platforms. STP Forex Brokers. Straight Through Processing or STP Brokers are sending traders’ orders directly to the market without dealing desk intervention (or NDD) means straight to the liquidity providers the market is consistent of and the ones particular broker cooperating with.. Typically, the broker has many liquidity providers that are either banks or larger brokers generating its own bid and ... Forex Brokers - see a list of trusted financial market brokers - Market Makers, ECN, STP, NDD, MTF and more. Forex brokerages have different ways to execute a trade in the market and therefore can be divided into two main categories, depending on their execution model: Dealing Desk (Market Makers), and No Dealing Desk (NDD).The latter group, NDD brokers, can be either STP or ECN. Wie gut die Qualität eines STP-Brokers ist, hängt - fernab der üblichen Vergleichskriterien - vor allem davon ab, welchen Umfang dessen Liquiditätspools haben. Bei STP-Brokern ist der Liquiditätspool also ein durchaus wichtiges Vergleichskriterium. ECN- und STP-Broker im Vergleich: Darauf sollten Sie achten. Auch bei ECN- und STP-Brokern gibt es typische Vergleichspunkte, auf die Sie beim ... I did some research on possible STP and ECN forex brokers and compiled them into an excel file. You can find the file in the attachment if you are on the hunt for a new broker with STP/ECN MT4. For a broker to enter my list, they need to have MT4 with STP and/or ECN functionality. Safety and transparency: ECN brokers, thanks to their own STP and NDD nature, cannot manipulate the market. They are almost completely uninvolved other than facilitating the network. This means they are a very safe, and transparent way to trade. Minimum Deposit: The minimum deposit can be a little higher. This means you are usually looking at a $200 or more minimum deposit though there are ... What is an NDD Forex broker? With this type of broker, there is no dealing desk, and this particular group of brokers includes ECN Forex brokers, STP brokers and also those which are a combination of the two. When this type of broker accepts an order it is passed directly to liquidity providers for immediate execution, rather than passing it through a dealing desk first. An NDD broker ...
Como Elegir El Mejor Broker Forex Top 4!!! ECN STP y DMA / Josue Mamani Tito
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