In my quest to understand brokers from what i have read so far there are two general distinctions. Dealing desk and Non dealing desk. Since the majority of brokers are still NDD and Onada is a popular broker lets say my first live account is with Onada.
I open my account, fund it and see a good opportunity so i place my first trade. Lets say i purchased 1lot of EUR/USD at 1.3700. So if i bought 100,000 of Euros that means somone out there took the other end of the trade and purchased 137000 of dollars. So Onada dealing desk must have took the other side of the trade since they are not actually finding me real people to trade with like a ECN broker right?
If this is true than i am always trading against Onada and i will be successfull only if Onada is unsuccessful. Also this means Onada is not making money from the spread alone but from winning trades since the failure rate is so high among new retail fx traders.
The only other option i see is that Onada would try to match your order with someone else's for them to take the other side if it is possible. So maybe you are sometimes trading against Onada and sometimes against another trader depending on what is available?
I open my account, fund it and see a good opportunity so i place my first trade. Lets say i purchased 1lot of EUR/USD at 1.3700. So if i bought 100,000 of Euros that means somone out there took the other end of the trade and purchased 137000 of dollars. So Onada dealing desk must have took the other side of the trade since they are not actually finding me real people to trade with like a ECN broker right?
If this is true than i am always trading against Onada and i will be successfull only if Onada is unsuccessful. Also this means Onada is not making money from the spread alone but from winning trades since the failure rate is so high among new retail fx traders.
The only other option i see is that Onada would try to match your order with someone else's for them to take the other side if it is possible. So maybe you are sometimes trading against Onada and sometimes against another trader depending on what is available?