ECN. Used most by professional traders. Difficult platform for beginners
Minimum deposit $10000 (or $3,000 if under 25yo) * Well diversified -Oanda
Market maker. Second largest retail FX brokerage in the US. Easy platform for beginners.
No minimum deposit
Not well diversified, but well capitalized -Gain Capital (whitelabel forex.com) *Market Maker *Fair spreads *Minimum deposit $250 *Well diversified -FXCM Inc
ECN. Largest retail FX brokerage in the US
Minimum deposit $2000
Not well diversified. CAUTION: FXCM nearly went bankrupt in Jan-2015 due to a lack of diversification and low capitalisation. As a result FXCM LLC was bailed out with a large loan which may prove difficult to pay back. Be warned that their business may not be sustainable in the long term. -MBTrading
ECN. Mid-sized retail FX brokerage
Minimum deposit $400
International Only- -LMAX (whitelabel DarwinEx) *DMA broker based in the UK. Note that as a DMA broker LMAX eliminates the ability for LPs to last-look transactions. This may result in reduced liquidity during volatile times as liquidity providers would be likely not to risk posting liquidity to LMAX's pool. *Tight spreads *Minimum deposit $10,000 *Fairly well diversified -Dukascopy *ECN based in Switzerland, but available elsewhere depending on local regulations. *Tight spreads *Minimum deposit $100 *Fairly well diversified -IC Markets *ECN based in Australia *Fair spreads on standard account, tight spreads on professional accounts. *Minimum deposit $200 *Fairly well diversified -Pepperstone *ECN broker based in Australia. *Fair spreads on standard account, tight spreads on professional accounts. *Minimum deposit $200 *Not well diversified Software / Apps: Desktop/mobile
Apps are typically broker dependent. Some brokers have their own proprietary software, while others lease common software like Metatrader or NinjaTrader. Some software has a large development community for indicators and EAs.
Terminology/Acronyms: www.forexlive.com/ForexJargon - Common terms and acronyms FAQ: I need to exchange money, how do I do it? This isn’t what this sub is for. Your best bet is using your bank or an online exchange service. Be prepared to pay a hefty fee. I have money in one currency and need to exchange it into another sometime in the future, should I wait? Don’t ask us this. We speculate intraday in FX and shouldn’t be relied on to tell you what’s best for you. Exchange the money when you need it. I have an FX account, should I start trading demo or live? This is highly debatable. You should definitely demo trade until you have mastered how to use the trading platform on desktop and mobile. After that it’s up to you. Many think that the psychology of trading live vs demo trading is massively different. So it may pay to learn to trade live. Just be warned that most FX traders lose almost their entire first account so start with a low affordable balance. What’s money management? Money management is a form of risk management and is arguably the most important aspect of your trading when it comes to long term survival. You should always enter trades with a stop loss - the distance of the stop allows you to calculate how large of a percent of your account balance will be lost if your trade stops out. You can run a monte carlo simulation to figure out the risk of having a number of trades go against you in a row to drain your account. The general rule is that you should only risk losing 1-4% of your account per trade entered. More on this here: www.investopedia.com/articles/forex/06/fxmoneymgmt.asp www.swing-trade-stocks.com/money-management.html What about automated trading? Retail FX traders have been known to program “Expert Advisors” (EAs) to automate trading. It’s generally advisable to stay away from that until you’re very experienced. Never buy an EA from a developer because the vast majority of them are scams. What indicators are best? That’s up to you to test and find out. Many in this forum dislike oscillating indicators since they fail to capture the essence of what moves price. With experience you will discover what works best for you. In my experience indicators that are most popular with professional traders are those that provide trading “levels” such as pivot points, fibonacci, moving averages, trendlines, etc. What timeframe should I trade? Price action can vary in different timeframes. In longer term timeframes the price action and fundamentals are much more clear. Unfortunately it would take a very long time to figure out whether or not what you’re doing is successful on longer timeframes. In shorter timeframes you can often tell very quickly if what you’re doing is profitable. Unfortunately there’s a lot more “noise” on these levels which can prove deceptive for those trying to learn. Therefore the best bet is to use a multi-timeframe analysis, working from top-down to come up with trades. Should I trade using fundamental analysis (FA) of technical analysis (TA)? This is a long standing argument in these forums and elsewhere. I’ll settle it here - you should have an understanding of both. Yes there are traders who blindly ignore one of the other but a truly well rounded trader should understand and implement both into the analysis. The market is driven in the longer term through FA. But TA is necessary to give traders a place to enter and exit trades from a psychological risk/reward standpoint. I’ve heard trading Binary Options is an easy way to make money? The general advice is to stay away from binaries. The structure of binary options is so that when you lose the broker wins. This incentive has created a very scammy industry where there are few legitimate binary options brokers. In addition in order to be profitable in binaries you have to win 55-65% of the time. That’s a much higher premium over spot FX. Am I actually exchanging currencies? Yes and no. Your broker handles spot FX is currency pairs. Although they make an exchange at the settlement date they treat your position in your account as a virtual currency pair. Think of it like a contract where you can only buy or sell it as a pair. In this sense you are always long one currency while short another. You are merely speculating that one currency will appreciate or depreciate vs another. Why didn't my order fill? Even if price appears to cross over a line on your chart it does not guarantee a fill. Different charting platforms chart different prices - some chart the bid price, some the ask price and some the midpoint price. To fill a limit order price needs to cross your limit's price plus the spread at the time that it is crossing. If it does not equal or exceed the spread then it will not fill. Be wary that in general spreads are not fixed. So what may fill at one time may not at another.
One of the most intriguing issues in online Forex trading is what is a market maker, STP and ECN and what are the differences and similarities between them and what the benefits for traders are. First of all you can start by reading a more extensive overview of the aforementioned: Part1 and Part2. An Electronic Communication Network (ECN) broker is a financial intermediary in the Forex market that connects directly to liquidity providers, which takes a customer’s order, often smaller market participants and… First you must know the different between Ecn , Stp and market makers.you must know that scam brokers never stop cheating. Since most traders look for ECN/STP brokers to open an account with, many scam brokerages that were used to be market maker, call themselves ECN/STP now, just based on some small changes they have made in their systems. They are not true ECN/STP brokers. This is what you ... This has caused many of the market maker brokers to pretend to be ECN/STP, whereas they are market makers, behind the scene. How can you verify this before you open a live account with a broker? Before I answer this question, please let me give you a short explanation about market maker and ECN/STP systems. As I mentioned, there are detailed articles on this topic on LuckScout that you can ... Market-makers "make" or set the prices on their systems based on what they think is best for themselves as the counter-party. This is because every time you sell, they must buy, and when you buy, they must sell to you. This is why they can give you a fixed spread since they are setting both the bid and the ask price. Many of them will then try to "hedge" or "cover" your order by passing it on ... ECN vs Market Makers Rookie Talk. Home; Forums; Trades; News ECN Forex Brokers; Countries › Middle East Forex Brokers ... ECN vs DMA vs STP vs Market Maker. What is the difference between ECN, DMA, STP and MM? MM STP DMA ECN; Full name: Market Maker: Straight Through Processing: Direct Market Access: Electronic Communication Network: Broker structure: DD: STP + NDD : DMA + STP + NDD: ECN + DMA + STP + NDD: Dealing model: Dealing Desk: No Dealing Desk ... In general, ECN forex brokers will also offer a DMA service to their clients. Although some STP forex brokers will offer a DMA service to their customers, that is not always the case. Market Maker Forex Broker Model. A forex broker that acts as a market marker typically operates a dealing desk or DD and makes their money by quoting a bid/ask spread to clients. Such market makers operate with ... Market Makers are Casino Dealers, ECN's are like the NASDAQ trading floor. The trading floor for STOCKs has TEN times more deception in it than ANY retail broker could ever have. Retail brokers cheating people should be the easiest and first obstacles to overcome, first. Now i see why STOCKs, with as many as they have, they don't offer demo accounts, because you might catch on to the "real ... Forum on trading, automated trading systems and testing trading strategies. Press review . Sergey Golubev, 2013.07.01 07:19. Just next educational article about ECN and so on - Market Makers Vs. Electronic Communications Networks ===== The foreign exchange market (forex or FX) is an unregulated global market in which trading does not occur on an exchange and does not have a physical address of ...
http://www.learncurrencytradingonline.com In this tutorial we look at finding the best ECN Forex brokers for beginners or anyone who is looking to set up a t... David Cooney, MahiFX CEO, explains how trading with a market maker benefits forex traders. Find the right Forex broker here - http://www.capexforextrading.com/forex-brokers Explore our Forex brokers video tutorials here - http://www.capexforextradi... Pros And Cons Of Market Maker And True Ecn Broker Best Forex Broker For Trading Hindi-Urdu Video Registration Link Forex Brokers : https://goo.gl/JRFCZe ... Having a great forex broker is an important element in your trading success. I go over the actual truth about forex brokers, and tell you exactly what ECN and Market Maker Brokers are. They ...