Brokerreview - who are the best forex brokers in the world?
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In forex world, you can choice a broker based on 2 chief types of brokers. They
are dealing Desk and No Dealing Desk. It’s time to discuss them.
Definition of A Dealing Desk Broker?
Forex brokers operating in terms of Dealing Desk brokers can get cash via spreads & giving liquidness to each customer. This is called “the market maker.”
A Dealing Desk broker factually make markets for the customers, it means they can get other sides of client’s trade. Whereas you can consider that no conflicts of interests are provided, it truly is not.
A Market maker will offer a selling & buying quote. It means that they’re filling buying & selling orders of all customers. They seem indifferent to any choices made by a specific trader.
As a market maker can control the values at which each order is filled, it can follow that there is just a little risk to make FIXED spread.
In addition, each client of the dealing desk broker won’t realize the actual interbank market rate. Do not be afraid yet. All competitions among the brokers are so hard that all rates made by the Dealing Desks broker is close to each interbank rate.
Definition of No Dealing Desk Brokers?
As its name mentions, No Dealing Desk brokers don’t pass their customers’ orders in terms of Dealing Desks.
It shows that they don’t get other sides of the customers’ trading because they only tie 2 parties together.
No Dealing Desk brokers are compared as a bridge builder: they will build a construction over an obstructed or environment to attach 2 areas.
No Dealing Desk brokers can charge a slight commission for any trades or only put any markup in terms of growing the spread to some extent.
Definition of ECN Brokers?
A Real ECN forex broker will allow each order of their customers to cooperate with all orders of further members.
The participants can be a bank, a retailed trader, a hedge fund or any other brokers. Naturally, a participant will trade in contrast to each other by giving their greatest bidding & asking prices.
An ECN can also let their customers to understand “Depth of Markets.”
The Depth of Markets will show where buying & selling orders of other trading participants involved. Due to nature of ECN, it’s not hard to blow on a permanent value rise so an ECN broker can regularly get rewarded in terms of a minor COMMISSION.
Hopefully, you can clear up the basis of types of brokers.
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