Broker as a counterparty to your orders - Is it really so bad?

gerryg

Established member
900 6
A good deal of well-known brokers (don't want to reveal their names to stay neutral) act as a counterparty to our orders. As I understand in this case a broker makes the market for us but nevertheless thousands of traders continue to consider them "the safest" and quite apt for our trading needs. But does it really affect our trading odds if we have so substantial broker involvement apart of being a mere mediator ;)

Looking forward to get your opinions guys
Green pips to all
 

billyjean

Active member
120 5
there's lot of broker type out there. the words brokers it self are simply 'middle man" to facilities our need with online trading. I often read brokers choice are the most crucial thing when we need to put profitable trading result. sound true, but even our banks stink on our money, they made profit upon our current account. everybody need to do their own business, and has their own way to make profit.
I keep use several brokerage service at a times, act as my insurance, a diversity among my trading accounts. and when I found there's unproper odd issue with them, simply leave them and found another one. been doing these for years, and which one better mediator is ? found the one who match our current trading method use. when in need to scalp go with better execution rate platform, less transaction fee. at longer trading method better had with good swap offering, and keep an eye with their leverage rule (some brokers shrink their leverage at friday... nice game they play :) ). and the most important is, avoid any companies which having issue with their payment proceess (not paid), these my crucial issue, important factor either I keep with them or not.
 
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alexaherself

Established member
560 149
Broker as a counterparty to your orders - Is it really so bad?
Please excuse my answering a question with a question, but here's one for you, Gerry: do you think it's better, or worse, both in principle and in practice, than your broker not being the counterparty to your orders?

A good deal of well-known brokers (don't want to reveal their names to stay neutral) act as a counterparty to our orders.
You missed out the inverted commas around the word "brokers", I think? Those are not really brokers, are they? They're just pretending to be brokers. I agree that that's very common.

As I understand in this case a broker makes the market for us
This is a contradiction in terms, perhaps? A "broker", in this context, is perhaps someone who isn't a market-maker, by definition? That's my interpretation of the word, anyway.

thousands of traders continue to consider them "the safest"
Again, I think you missed something out, here. I would have said "Thousands of traders continue to consider them safe enough (or "hope that they're safe enough"), among the limited range of those they're able and willing to use".
 
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gerryg

Established member
900 6
Please excuse my answering a question with a question, but here's one for you, Gerry: do you think it's better, or worse, both in principle and in practice, than your broker not being the counterparty to your orders?



You missed out the inverted commas around the word "brokers", I think? Those are not really brokers, are they? They're just pretending to be brokers. I agree that that's very common


This is a contradiction in terms, perhaps? A "broker", in this context, is perhaps someone who isn't a market-maker, by definition? That's my interpretation of the word, anyway.


Again, I think you missed something out, here. I would have said "Thousands of traders continue to consider them safe enough (or "hope that they're safe enough"), among the limited range of those they're able and willing to use".

Sorry seems you are too idealistic about FX broker:rolleyes:
Guess, the concepts of "true broker" model and low-cost&low-margin interbank market access for average Joe are.. poles apart. Don't you think so?
 

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