Brokers Do Take Opposite Trades!

http://articles.mql4.com/163 - point 1.5

Be careful when you say brokers with ECN feeds are any different than regular OTC, in most cases it is just the feed that changes... Although there are a couple brokers that are fully implementing it (DOM bla)

Despite what is written i'm pretty sure they send some order on the market except if they have incredible fund available. It is too much of a risk to accept a 10Lots order without being 100% certain that the trade will be a loser. And 100% certain does not exist on Forex.

Besides, just look at some stats at onyx-trade and mt4stats.com, there are plenty real ones that make money... It's a good exercise to look at this kind of material, trying to find out which brokers successfull traders play at.

Sorry guys, maybe I am going to show my lack of knowledge here........

IMHO, who cares who is the counterparty to your trade. All that matters is quality of trade execution. The Market maker/broker has no need to trade against you....its a big market and they can trade anywhere. What they do is hedge trades against each other. They have a big computer that processes all the trades and manages the risk. If they can't hedge within their client base, I think they farm it out to their liquidity providers. This computer obviously is optimised to maximise their protection and if this means delaying your order, or catching your stoploss at maximum slippage, then so be it.

Ultimately this manifests itself in the form of slippage, requotes and slow execution. In this respect, I monitor my trade logs after each trade session and determine if there is a problem. I have taken the trouble to ensure that my latency to my broker is absolutely minimal. If my broker has to re-quote me 30ms after they have sent me a quote then the problem is with them, not me. They are not trading against me, they just have limitations within their system.

Some brokers are better than others. The bigger and better the liquidity providers and client base, the easier for their system to manage their hedging/exposure and this again translates into better trade execution.

If it bothers you why not go for M6x micro futs trading on an exchange?

Y on Gods Earth would anyone trade with Alpari US if they state they can steal your money any time they want?(BTW almost all Brokers that arn't ECNs say this too) . If traders would just bail on Brokers like that-they would die and go away? I dont trust any USA broker in Forex anyway. I believe that(according to most posts I have read here) Alpari US is one of the better ones. THATS SCARY!

All that might be true but why does my platform freeze for long periods(FXCM)-why do my charts throw an occasional 300 pip "mystery spike"(IBFX) - It really seems(sometimes) that they are manipulating your price feed. My present Broker(in Cypress of all places) hasnt yet displayed ANY of this "manipulation". USA is not Trader friendly. And is fast becoming the worst place to invest on Earth. God save my account!

Why is it that forum traders feel the need to speculate on there account sizes and how good they are. I mean honestly what new trader opens an account with 25K. What % do you risk on your trades at that stage.

There are pros and cons on both sides of the fence and even ECN arent perfect. I trade through 2 brokers and havent had a single problem in 4 years, but I dont house my entire bankroll with them either. You only need to keep enough there to cover your margin, the rest put in a bank or plant it in the ground and water it. If your stupid enough to house your bank roll when your margin only calls at the best of times for 20% of that then hey good luck. Brokers dont pay you interest or dividends to have your money with them so why bother?

If you that uncertain then trade an account with an ECN provider and a bucket shop with mirrored trades, you would soon find out whether your urban legends are true