Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Related Instruments

GBP/USD, USD/CAD

Similar Threads

True ECN/STP Broker recommendations 187 replies

NDD versus ECN versus STP 22 replies

True ECN STP and Regulated Broker for $500 account? 7 replies

True ECN/STP Broker 7 replies

NDD+STP+ECN and (or) NDD+STP with MT4 - Broker Comparison list 6 replies

Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk

  • #41
  • Mar 1, 2011 9:56pm Mar 1, 2011 9:56pm
Quoting Forexia
Really? You think it's the $20M net cap that made them jump ship? They were making it fine though before they decided to go institutional and I hardly doubt that they would have trouble making that requirement every year. They offered good and, like you said, reputable service. I was thinking it was a profitability issue. They just wanted to make more money and they were't happy with the amount that they were making with us retail traders.
It may not have been the 20M net cap, but the timing of the sale/closure was right in line with the net cap requirement. It was either purely coincidental, or to some degree related. Though true, a firm such as theirs would have have little problem posting it (heck, Advanced Markets posts it, and they had all of 58 total US clients as of Q4..)

The money in retail can be quite good, and they were executing fine (lower rates than MBT). Hard to say if it was a lack of profitability concern. Perhaps FXCM simply gave them a really sweetheart deal looking to bulk up total clients pre-IPO (they took on all of ATC's clients in the process).
  • #42
  • Mar 1, 2011 10:47pm Mar 1, 2011 10:47pm
[quote=Forexia;4439948]Well, you have to develope your own "effective" strategy that is tailored to your trading style, your trading timeframe and objectives. Everybody's different. There is no strategies that's "one size fits all".

thanks for ur effort.
i am doing and will do more and more.
  • #43
  • Mar 1, 2011 11:48pm Mar 1, 2011 11:48pm
Quoting Trader KGB
It may not have been the 20M net cap, but the timing of the sale/closure was right in line with the net cap requirement. It was either purely coincidental, or to some degree related. Though true, a firm such as theirs would have have little problem posting it (heck, Advanced Markets posts it, and they had all of 58 total US clients as of Q4..)

The money in retail can be quite good, and they were executing fine (lower rates than MBT). Hard to say if it...
Yeah the FXCM deal is a plausible reason especially if HotSpot has always been eyeing to step into the "real" interbank market and finally with what FXCM offered them, they are finally climbing into the "Big League" and rubbing shoulders with the big players.

Still sucked for us to lose them thou. That, for sure.
Make your losses in demo. Earn your profits live.
  • #44
  • Edited 5:35am Mar 2, 2011 5:08am | Edited 5:35am
Quote
STP is supposed to mean that your order goes from
you trader X to counter-party Y and the broker is only facilitating a means to place the trade. But this is not so. (at least from my research)
What is happening is this:
Trader X orders buy EUR/USD - Broker places trade sell EUR/USD with market. --- Now, what if the broker thinks this trade may be better taken by them at a slightly better price, say 5 pips away from trader x's entry?

.


I'm slightly mixed on the benefit of broker's doing counter trade.

If the euro interest rate is 1.00%, and the U.S. rate is 0.25%

TraderX would earn interest 0.75% while long eur/usd from broker , and meantime broker has to pay interest 0.75% to it's LP while short eur/usd, so totally broker has to pay 1.5% out .

Cheers
  • #45
  • Mar 3, 2011 3:07am Mar 3, 2011 3:07am
Quoting XTrade
The claim as I know it is as follows:
Trader X opens platform to execute order of Ask(long) one lot EUR/USD (Buy EUR sell USD) this order is then routed to the "ndd" brokers server,
Next, the broker is supposed to instantly create its own order with it's liquidity providers (whoever will fill at best price available) for the counter trade
(Sell EUR buy USD) then claiming that only if the counter trade is executed will your initial trade be acceptedX
it's very odd if brokers do counter trade at it's LP.

say eur/usd 10 vs 13 on broker platform, 11 vs 12 on LP platform

clients long = paid 13 usd
brokers short = earned 11 usd

now market up to 20 vs 23 on broker platform, 21 vs 22 on LP platform

clients close long = earn 20 usd
brokers close short = paid 22 usd

clients earned 7 usd which is paid by brokers too.
brokers paid 11 usd to LP , so totally brokers paid 18 usd
what a business model ??
  • #46
  • Mar 13, 2011 3:05am Mar 13, 2011 3:05am
i guess it might be the MM's B book model , not NDD or STP.
  • #47
  • Last Post: Apr 28, 2022 6:06pm Apr 28, 2022 6:06pm
Could anyone tell the difference b/w Real Account and Live Account?
especially when offered by the same broker terminal?
each day 10%,,,, https://www.forexfactory.com/thread/1371538
0 traders viewing now