Aren't ECN Brokers just fronts for bucketshops? | Forex Factory

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Aren't ECN Brokers just fronts for bucketshops?

  • #1
  • First Post: May 10, 2009 9:06pm May 10, 2009 9:06pm
I was wondering about this. The liquidity providers for ECN brokers (eg, mb trading, FXCM active trader, etc) ... they're just market makers / bucketshops themselves, right? How can we just trust the level 2 data coming from the liquidity providers?

I know with FXCM Active Trader, you can't post trades inside the spread for other customers .. only the 'liquidity providers' are allowed to be market makers. How exactly is that ECN?

Is that the same with MB Trading? What kind of guarantees can we get that MB Trading / FXCM aren't forwarding our trailing stops and acct info to their liquidity providers?
  • #2
  • May 11, 2009 3:53am May 11, 2009 3:53am
ATC and MB Trading will allow you to place orders inside the spread (in fact they encourage it) so that you can reduce the spread on the higher spread currencies. (PFG might too - I haven't demoed them yet.)

#1 - http://MBTrading.com (ECN - MT4 in BETA - Navigator Platform ready now!)
#2 - http://atcbrokers.com (ECN)
#3 - http://www.whcmarket.ru (ECN in Russia - Broco Investor Platform)
#4 - http://www.pfgbest.com/ (Untested but a ECN)
#5 - http://www.fxdd.com (ONLY the MTxtreme ECN Platform - Not best choice but waaaay better than IBFX, FXCM, etc..)

Don't even THINK about the other shops. They're not worth the headache.
  • #3
  • May 11, 2009 4:08am May 11, 2009 4:08am
Fulltime247,
In All Broker thread you tell Broco is Russian but Broco is a Mauritius based broker, not European or Usa regulated.

Lubo.
If I know how, I tell You!! Few but Good!!
  • #4
  • May 11, 2009 4:21am May 11, 2009 4:21am
There website says "Best online broker of Russia and CIS 2008"

http://www.whcmarket.ru/about-us/news/36.htm

Water House Capital (WHC) — the company of "Broco" Group — has been awarded as the best online broker of Russia and CIS.

The results of voting which had been conducted from 2008 January 30 to November 1 were announced at the solemn ceremony held within the framework of MOSCOW FOREX EXPO exhibition.

While presenting his speech at graduation ceremony chief executive of "Broco" Group Ruslan Smirnov thanked all Customers of Company for their support ant trust and expressed the confidence that this is not the last award by "Broco".
  • #5
  • May 11, 2009 5:15am May 11, 2009 5:15am
I think is better if u read the structure http://www.brocompany.com/about-us/structure/and the regulations http://www.brocompany.com/about-us/licences/

Lubo.

P.s. I hope you do this also for the other broker, before posting.
If I know how, I tell You!! Few but Good!!
  • #6
  • May 11, 2009 8:08am May 11, 2009 8:08am
Quoting LuboLabo
Fulltime247,
In All Broker thread you tell Broco is Russian but Broco is a Mauritius based broker, not European or Usa regulated.

Lubo.
Mauritius has a regulator too. It's still offshore but at least it's better than Seychelles or something which pretty much has no regulation. BroCo are Russians btw
  • #7
  • May 11, 2009 10:44am May 11, 2009 10:44am
Quoting oakmonster
Mauritius has a regulator too. It's still offshore but at least it's better than Seychelles or something which pretty much has no regulation. BroCo are Russians btw
Ja, you are right!!

Keep this way!
If I know how, I tell You!! Few but Good!!
  • #8
  • May 11, 2009 11:40am May 11, 2009 11:40am
I called pfgbest, they do not do customer to customer matching of orders.
  • #9
  • May 11, 2009 11:52am May 11, 2009 11:52am
with regards to fxdd:

English Support: we are not an ECN broker
Me: what about mtextreme?
English Support: MTXtreme is an ECN type product
English Support: but it is not a true ECN
Me: ahh, no customer to customer matching of orders?
English Support: MTXtreme has STP (Straight Through Processing)
Me: no customer to customer though
Me: right?
English Support: no customer to customer
  • #10
  • May 11, 2009 12:05pm May 11, 2009 12:05pm
atcbrokers doesn't do customer to customer either. just called them. they're just a front for fxcm, though, as well.
  • #11
  • May 11, 2009 12:35pm May 11, 2009 12:35pm
Don't forget excellent Interactive Brokers.
  • #12
  • May 11, 2009 2:02pm May 11, 2009 2:02pm
CMS FX has an ECN MT4 with multiple liquidity providers. They allow you to trade in the spread.

FYI
  • #13
  • May 11, 2009 3:54pm May 11, 2009 3:54pm
Yea, not to many do customer to customer. ATC used to when they were with Hotspot (you could actually load Hotspot and see the counterparty) - once they switched to FXCM you lost that ability but the spreads got BETTER!! and the order responsiveness stayed the same. (it really seems like they're using a clean data feed even if its from FXCM) - I was usure about PFG but thanx for checking them out. Also the FXDD MXtreme is not a true ECN but the orders are filled INSTANTLY!! - never a prob geting in or out, they just have the worst conditions (4 digit and $15 per 100K!!)

Also can anyone verify that CMS is a ECN (with inside spread trading?) - http://cmsfxpro.com/trading-software...php?pgsrc=TSMT
  • #14
  • May 11, 2009 4:06pm May 11, 2009 4:06pm
Interactive Broker's seems to do customer to customer matching. $20 per mio as well. Not bad..
  • #15
  • May 12, 2009 5:14pm May 12, 2009 5:14pm
Quoting Fulltime247
Yea, not to many do customer to customer. ATC used to when they were with Hotspot (you could actually load Hotspot and see the counterparty) - once they switched to FXCM you lost that ability but the spreads got BETTER!! and the order responsiveness stayed the same. (it really seems like they're using a clean data feed even if its from FXCM) - I was usure about PFG but thanx for checking them out. Also the FXDD MXtreme is not a true ECN but the orders are filled INSTANTLY!! - never a prob geting in or out, they just have the worst conditions (4...
no, I don't think CMSfxpro are an ECN. just an STP NDD like IBFX. they don't charge commissions. i asked why not, the guy wrote back and told that the customers like being charged in the spread rather than being charged a commission. I deleted that platform quick!

I'm starting to like PFGbest. have a free EA I'm testing on 28 pairs they offer and we'll see how the next month goes. mt4 is only 1000.00 min. their currenex, however, is 50k min deposit. I'm with Broco now on the investor4 platform. spreads are OK and wire transfers take 72 hrs to the us but I like PFG's spreads right now. even the AUDNZD spread on PFG is 10! it's hard to get it under 15!
  • #16
  • May 12, 2009 8:01pm May 12, 2009 8:01pm
testing CMS demo FXTradeport (cx) right now. They are charging me $20 per mill, so far spreads are amazing, eurusd spread is .5 to 2 on average i would say its around 1 to 1.2 So far execution is exellent. I'll be curious to see how it is on live.
  • #17
  • May 19, 2009 10:07am May 19, 2009 10:07am
Quoting neshuti
testing CMS demo FXTradeport (cx) right now. They are charging me $20 per mill, so far spreads are amazing, eurusd spread is .5 to 2 on average i would say its around 1 to 1.2 So far execution is exellent. I'll be curious to see how it is on live.
CMSFX institutional offering out of Boston is a pure ECN solution. The per million clearing fee varies with volume traded. The more active you are, the lower the per million fee.
  • #18
  • Oct 2, 2009 6:01pm Oct 2, 2009 6:01pm
Quoting LuboLabo
Fulltime247,
In All Broker thread you tell Broco is Russian but Broco is a Mauritius based broker, not European or Usa regulated.

Lubo.
i thought they are based in cyprus?
  • #19
  • Oct 3, 2009 4:49pm Oct 3, 2009 4:49pm
Yes there are big brokers who claim to be an "real" ECN.

The fact is many banks reject or give them worse quotes cause of scalpers.
Their clients get filtered and manipulated data and often have to pay expensive commissions.

If you compare spreads and liquidity you will see the black sheep - even here in this forum.
  • #20
  • Oct 6, 2009 9:13am Oct 6, 2009 9:13am
what does it means by placing an orders inside the spread?
mind to elaborate?
Thanks in advance
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