Read how Brokers do business!

Hello Traders,

Boston Technologies has issued a report for people interested in opening their own foreign exchange brokerage firm. I have read it and found it also interesting for me as a retail trader, so I would like to share it with you. It includes information about regulation, technology and how brokers can do business with us, the traders.

The most interesting quote from the report:


So, what they are saying is: If you own a dealing desk brokerage firm, trade against the new traders, who will most likely lose, but deal with the experienced traders through STP.

Dealing desks have always the option to direct the customer order to the liquidity providers, so if they want to keep the experienced traders, they will do it for them and earn money from the spread only.

While they still trade actively against the unexperienced traders, which trading account usually don't last longer than 2-3 months.

Enjoy reading the report.

This is some pretty interesting stuff...thanks a lot!

nothing new

Well, I'm sure there are also a lot of newbie traders who are visiting Forex Factory, so it's new for them.

if this is there research then they don't need to be trading

Well Boston Technologies have always been busy with tricky stuff. Have you read about the Virtual Dealer plugin? Google it, it's gonna knock your socks off mate.

Sorry if this is old hat but anyone tried the 4xTrader? They have a tool to monitor broker VD plug in activity on your account. 4xTrader sentinel.

I'm nothig to do with them by the way.

Anyway it looks interesting.