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...
Ignored
The forex industry is a scam, I mean, the forex industry where the broker does just forex as business, why?
A market maker earn 100/200 times more of an ECN broker.
Why? All you knows why, they cheats, if they don't cheat they are an ECN without commissions, so a bankrupt company.
Now a lot of them want to show to be offering an ECN excution, and you need to test it and comment about this in the next weeks, months and years.
Now, assuming that they are a true ECNs, not cheating, they are bankrupt! Because at that point they are just doing a business to earn a commission, small, fixed, no cheats..., that is the same are doing since dozen of years stocks brokers and futures brokers! the difference is that the forex is almost all concentrated in 5 cross/pairs, while futures, options, stocks are hundred millions of instruments and millions times more volumes in terms of transactions than 5 pairs of currencies...
So, as they become ECNs, there will be 100 times less margin that already send them in bankrupt, and then if start competitions "I do 30% usd per million, now 20, now 10, now 5 etc etc" they are bankrupt mathematically!, or.. again the new ECNs cheats... and we will have ECNs excutions on the real market but again with cheats because they still have the licenses as market makers!
so, to be ECN means to shut down the market maker business and the forex only websites/businesses, and to eliminate market maker licenses that are something at the border of legality and decence in this financial world.
Would be nice, and the unique way to stop the SCAMS in the forex is this natural, slow.. progress that will cancel forever market makers, ok can remain some stil alive but with the class actions to fx firms and regulators I think a day however this scam will be stopped!
