After what happened to CHF, some brokers are going bust while others are somehow magically untouched. I have posted a link to a website which has compiled the news releases related to their health level below:
http://www.forexcrunch.com/snbomb-re...forex-brokers/
So from my analysis, those who survived are definately market makers, because when their clients got margin called, the broker themselves end up being the winner as it's all performed in their own backyard market. While for cases like Alpari, they have the "Pro" accounts (the true ECN ones) and the normal accounts (the market maker ones). So I'm speculating that Alpari ended up in the red because their "Pro" accounts had too much losses, so big, that winnings from their market making accounts could not cover up their losses that have to be paid up to their liquidity providers.
In the same breath, I'm tempted to conclude that brokers like ICMarkets who claim they're a true ECN broker, actually is just another market maker.
I might be wrong, so any thoughts from the experts here?
http://www.forexcrunch.com/snbomb-re...forex-brokers/
So from my analysis, those who survived are definately market makers, because when their clients got margin called, the broker themselves end up being the winner as it's all performed in their own backyard market. While for cases like Alpari, they have the "Pro" accounts (the true ECN ones) and the normal accounts (the market maker ones). So I'm speculating that Alpari ended up in the red because their "Pro" accounts had too much losses, so big, that winnings from their market making accounts could not cover up their losses that have to be paid up to their liquidity providers.
In the same breath, I'm tempted to conclude that brokers like ICMarkets who claim they're a true ECN broker, actually is just another market maker.
I might be wrong, so any thoughts from the experts here?
Detach yourself from the value of money - Mr. Pip