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all retail brokers are market makers

  • #1
  • First Post: Feb 13, 2017 4:18am Feb 13, 2017 4:18am
unless you have a stonkload of cash for a deposit anyone offering anything below a standard lot for trading is not sending your order anywhere its filled in house. unless you are a sizeable profitable trader. that is the reality of it. there is no retail ecn stp ndd dma its all just used for advertising. dont believe me i dont care. read the pds for most brokers it will tell you

wendigo
  • #2
  • Feb 13, 2017 4:26am Feb 13, 2017 4:26am
Quoting wendigo
unless you have a stonkload of cash for a deposit anyone offering anything below a standard lot for trading is not sending your order anywhere its filled in house. unless you are a sizeable profitable trader. that is the reality of it. there is no retail ecn stp ndd dma its all just used for advertising. dont believe me i dont care. read the pds for most brokers it will tell you wendigo
In the USA, yes.
Make your losses in demo. Earn your profits live.
  • #3
  • Feb 13, 2017 9:42am Feb 13, 2017 9:42am
So what? The small position retail trader shouldn't worry about how the broker handles his trades.
  • #4
  • Feb 13, 2017 3:01pm Feb 13, 2017 3:01pm
Quoting JensG
So what? The small position retail trader shouldn't worry about how the broker handles his trades.
lol sure
  • #5
  • Feb 15, 2017 1:18pm Feb 15, 2017 1:18pm
The most important thing is making money, isn't it?
  • #6
  • Feb 15, 2017 11:42pm Feb 15, 2017 11:42pm
it applies to all. the pds on there websites will tell you. i would rather use a broker saying they are a market maker instead of lying about it. honesty goes a long way these days

wendigo
  • #7
  • Edited Feb 16, 2017 12:04am Feb 15, 2017 11:47pm | Edited Feb 16, 2017 12:04am
Quoting wendigo
it applies to all. the pds on there websites will tell you. i would rather use a broker saying they are a market maker instead of lying about it. honesty goes a long way these days wendigo
not true, it still comes down to netting. if a broker says they are ecn, they most likely are. BUT they might net orders internally first, before deciding to be a market maker/forward it to house.

steps:

1) brokers will try to match internally

if none

2) match on equinex marketplace/whichever their bridge is connected to

if none

3) PB/POP/MM

this applies for brokers which have no affiliations to other companies or have no parent company. like pepperstone, icmarkets

brokers that have parent companies such as Global Prime, axitrader are more like forwarders
they will usually be the MM to u first, and then forward the book to their PB
ie: u buy 10 EURUSD @1.0000 -> parent company will fill your order -> they have a 10 EURUSD on their book , which they will then offload onto the PB/servers. which still results in netted trade, 0 risk to them.

next type of brokers do it all internally, because they have the volume, capital and customer base to match. Such a broker is dukascopy bank.
  • #8
  • Feb 16, 2017 12:48am Feb 16, 2017 12:48am
what is defination of "market maker" ??

have u think about it?
Made in Malaysia <3
  • #9
  • Feb 16, 2017 1:54am Feb 16, 2017 1:54am
1. etoro is icmarkets parent company. they are not an ecn. section 10 of there fsg

Section 10 – Who do we act for? When transacting financial products on an over-the-counter basis, we act as principal not a broker or agent. We receive your instructions and execute them; we are the party to the other side of the transaction and the party with whom you are entering a contract.

2 if they are netting orders internally first this means they are a market maker. for a broker to be a non mm they have to make commissions from your trade and send your order directly to the ecn/market.

wendigo
  • #10
  • Edited 4:46pm Feb 21, 2017 2:59pm | Edited 4:46pm
LMAX is the only true ECN broker I know.....(downside is they are EXPENSIVE...their swaps are CRAZY high!!)
  • #11
  • Feb 21, 2017 3:24pm Feb 21, 2017 3:24pm
The whole FX market is a market maker or making a market.
There is no centralized exchange.
  • #12
  • Feb 21, 2017 4:59pm Feb 21, 2017 4:59pm
There are only two types of fx brokers out there who have either

1. a conflict of interest
or
2. no conflict of interest

when you trade with them.


More than 95% are type 1. even though they will deny it and claim to be ECN,STP,DMA,NDD blablabla
They are just bucketshops, scam, fake or sh*t brokers and will do anything to rip you off.

Simple as that.
  • #13
  • Edited Feb 22, 2017 4:45am Feb 21, 2017 5:22pm | Edited Feb 22, 2017 4:45am
There is a simple way to be sure broker is ECN: use cTrader! This platform doesn't allow any kind of manipulation like MT4 or MT5 does.

By the other way, I don't think that retail forex market can exist without conflict of interest.

The problem are not the brokers but the LPs, as they are who really lose the money if you win (suposing you're on ECN). But they can scam you even on true ECN, because they can do "Last Look", rejecting your fills. This is not a fair game!

I think the best solution, if you're serious on this, is to go to futures market and trade forex contracts from there. This would be much more fair.
  • #14
  • Feb 22, 2017 2:57am Feb 22, 2017 2:57am
Quoting kepton
I think the best solution, if you're serious on this, is to go to futures market and tade forex contracts from there. This would be much more fair.
Hi kepton,
With which broker would you suggest trading forex futures contracts?
  • #15
  • Feb 22, 2017 4:46am Feb 22, 2017 4:46am
Quoting meyoik
{quote} Hi kepton, With which broker would you suggest trading forex futures contracts?
For example Interactive Brokers, Ninjatrader, Ameritrade.
  • #16
  • Feb 22, 2017 7:10am Feb 22, 2017 7:10am
Quoting kepton
There is a simple way to be sure broker is ECN: use cTrader! This platform doesn't allow any kind of manipulation like MT4 or MT5 does.
There are so many sh*t brokers with cTrader.
I wouldn't touch them with a ten-foot pole.
  • #17
  • Feb 22, 2017 11:57am Feb 22, 2017 11:57am
Quoting kepton
{quote} For example Interactive Brokers, Ninjatrader, Ameritrade.
Thanks kepton!
  • #18
  • Last Post: Feb 23, 2017 6:46am Feb 23, 2017 6:46am
Quoting The-Flipper
{quote} There are so many sh*t brokers with cTrader. I wouldn't touch them with a ten-foot pole.
Indeed, just avoiding certain platforms won’t save you from scam brokers. On the other hand, researching the brokers’ license, spreads, execution quality (including during news), clean history within the regulator can save you from a lot of troubles.
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