Hi Syd360, nice posts..
Could you please point out some of the benefits of trading through an ECN as opposed to a market maker for other readers of this thread, your previous posts failed to outline any apart from cost. Cost is really only applicable to high frequency traders/scalpers. The benefits of a good ECN for a scalper are great but not relevant to this thread.
Fact is, an ECN price feed is still a market made feed. Aggregating prices from several banks and providing a BID/OFFER is making a price. In most cases a market maker broker does the exact same thing, the difference and the cause of much debate is who takes the order once processed.
On most retail ECNs there will be limited liquidity providers, traders will be susceptible to the prices quoted by the banks on offer. Banks can provide ECN brokers with tight spreads and good liquidity in return for flow, they may also provide them with a rebate.. Most retail brokers do not generate the flow to support several liquidity providers... This means the ECN can be subject to behaviour and price spikes outside what other brokers are offering. Characteristics often associated with a market maker broker..
Brokers do not have to manipulate prices in order to make retail clients lose, they do it by themselves.
With regards to the MT4 bridge, I appreciate the time it must have taken for you to write an in depth blog on the MT4 bridge 5 years ago. Given your obvious level of knowledge in this area, I'm surprised you treated my comments with such cynicism. You're obviously aware of the plug and play options available for MT4 retail brokers nowadays, Integral being one of them. Since this is what I currently use along with Power trader (same feed), I feel I can vouch for the platforms stability in an ECN environment rather than blow hot air based on an article that was written 5 years ago.
Could you please point out some of the benefits of trading through an ECN as opposed to a market maker for other readers of this thread, your previous posts failed to outline any apart from cost. Cost is really only applicable to high frequency traders/scalpers. The benefits of a good ECN for a scalper are great but not relevant to this thread.
Fact is, an ECN price feed is still a market made feed. Aggregating prices from several banks and providing a BID/OFFER is making a price. In most cases a market maker broker does the exact same thing, the difference and the cause of much debate is who takes the order once processed.
On most retail ECNs there will be limited liquidity providers, traders will be susceptible to the prices quoted by the banks on offer. Banks can provide ECN brokers with tight spreads and good liquidity in return for flow, they may also provide them with a rebate.. Most retail brokers do not generate the flow to support several liquidity providers... This means the ECN can be subject to behaviour and price spikes outside what other brokers are offering. Characteristics often associated with a market maker broker..
Brokers do not have to manipulate prices in order to make retail clients lose, they do it by themselves.
With regards to the MT4 bridge, I appreciate the time it must have taken for you to write an in depth blog on the MT4 bridge 5 years ago. Given your obvious level of knowledge in this area, I'm surprised you treated my comments with such cynicism. You're obviously aware of the plug and play options available for MT4 retail brokers nowadays, Integral being one of them. Since this is what I currently use along with Power trader (same feed), I feel I can vouch for the platforms stability in an ECN environment rather than blow hot air based on an article that was written 5 years ago.