Which broker is better?

bhagesh.nair

Junior member
26 2
How can you prove that they have different spreads? Why spreads has to differ for different traders? I think broker has no right to adjust spreads according to trading styles simply because asymmetric transaction costs create distortions. Only market can decide if HFT will get higher spreads and its solely because of its high activity.
You must be new
 

bhagesh.nair

Junior member
26 2
And you must be old :D and know everything. Let's use proper arguments, stop showing this kind of arrogant behaviour because it is unproductive.
Sorry, if i came across as arrogant mate.
But your statement in the earlier post really seemed like that of a noob.
You really think spreads are not manipulated by the brokers and liquidity providers?
 

hatemypips

Established member
603 45
Sorry, if i came across as arrogant mate.
But your statement in the earlier post really seemed like that of a noob.
You really think spreads are not manipulated by the brokers and liquidity providers?
Clarify what you mean under manipulation? For liquidity provider spread is a function of supply and demand, they have to deter buyers or sellers from entering into trade somehow when sudden buying or selling imbalance appears and grows quickly. And they do that by widening spread. When they see that interest fades and conditions return to normal they decrease spreads attracting traders. This is the essence of market-making business - offer bid and offer price while making sure they won't find themselves on the wrong side of the market.
 

bhagesh.nair

Junior member
26 2
Clarify what you mean under manipulation? For liquidity provider spread is a function of supply and demand, they have to deter buyers or sellers from entering into trade somehow when sudden buying or selling imbalance appears and grows quickly. And they do that by widening spread. When they see that interest fades and conditions return to normal they decrease spreads attracting traders. This is the essence of market-making business - offer bid and offer price while making sure they won't find themselves on the wrong side of the market.
Well thanks for explaining the essence of the market making business for all the readers.
But in the real world scenario, the number of traders engaged in any trade is insanely high.
And we are specifically talking about retail traders here on this forum, and by manipulation i mean The broker can manipulate trade executions of traders at will with their liquidity providers, depending on their account size using their execution platform.
If you trade with multiple brokers yourself, i am sure you are aware of the trading rates offered by brokers to retail traders.
Some offer marked up spreads + Commissions. Some offer raw spread but charge a commission per million.
 

pezza55

Junior member
23 4
Hi! can u recommend one of these brokers ? what do u think abouut them? thank you
So many brokers and so much choice at the moment it depends what you are looking for in a broker and what you are trading look around before you sign up!
 

MShor1

Newbie
5 1
When choosing a broker always be mindful to choose a true ECN broker as opposed to a 'market maker'.
 

bhagesh.nair

Junior member
26 2
And how can we tell apart fake broker from a genuine one? Do you have any advice or examples on this account?
Every broker is a market maker as long as they have their dealing desk.
However some brokers claim they do not execute trades on the dealing desk and are 100% STP/ECN, but you can never be sure of this.
Try and do some research online, read some reviews, find out about the bodies that regulate the brokers business.
Every broker pretty much offers the same service, for me personally, the most important factor is customer support. Regardless of the execution time or how good the spreads of the broker are, i wouldnt work with the broker if their customer support is shit.
So to sum things up, work with a highly regulated broker that has good reviews online on genuine and unbiased platforms. And see to it that the customer support of the broker is kickass.
 

hatemypips

Established member
603 45
Every broker is a market maker as long as they have their dealing desk.
However some brokers claim they do not execute trades on the dealing desk and are 100% STP/ECN, but you can never be sure of this.
Try and do some research online, read some reviews, find out about the bodies that regulate the brokers business.
Every broker pretty much offers the same service, for me personally, the most important factor is customer support. Regardless of the execution time or how good the spreads of the broker are, i wouldnt work with the broker if their customer support is shit.
So to sum things up, work with a highly regulated broker that has good reviews online on genuine and unbiased platforms. And see to it that the customer support of the broker is kickass.
Reviews don't give you insight into that. There is a way though to know if your broker use LP to execute orders - provide a report of order fills from LP. If broker is A-book they can request it from LP and show to you.
 
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bhagesh.nair

Junior member
26 2
Reviews don't give you insight into that. There is a way though to know if your broker use LP to execute orders - provide a report of order fills from LP. If broker is A-book they can request it from LP and show to you.
Well, i meant as a newbie or a small time trader, reviews of certain brokers always help.
Once you are in the business, you can slowly figure where to put your money and where not to.
 

Nick USGFX

Newbie
5 0
And how can we tell apart fake broker from a genuine one? Do you have any advice or examples on this account?
Best way to avoid running to fake brokers is by checking their licenses(ie, FCA and ASIC), you shouldn't run into any issues if their license is still valid. Feel free to PM me if you would like to know more. :)
 

Nick USGFX

Newbie
5 0
Prudent restrictions placed on their activity will put end to the fraud, but well regulators have to leave to the industry ability to breathe, because I don't want forex brokers to disappear. There are many reliable names and scam cases may complicate offering wide array of trading services. For example ESMA rules capped leverage and honestly I don't like that.
If you pick well-known brokers with proper licenses, your money would most likely be insured by a third party. Since the brokers do not have access to your funds, which is why you need to be mindful when picking brokers. Feel free to PM me if you would like to know more. :)
 
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