ECN/STP
ECN= Electronic comunication network. Brokers with fees.| BROKER | TYPE | COUNTRY | ||||
|---|---|---|---|---|---|---|
| ECN | Latvia | ||||
| Lmax.com | ECN | UK | ||||
| Fxopen.co.uk | ECN/STP | UK | ||||
| Hotspotfx.com | ECN | UK | ||||
| Currenex.com | ECN | USA | ||||
| Integral.com | ECN | USA | ||||
| FxPro.com | STP/MM | UK | ||||
| IcMarkets.com | ECN/STP/MM | Australia | ||||
| Pepperstone.com | ECN/STP/MM | Australia | ||||
| OctaFX.com |
| Indonesia | ||||
| Swissquote.eu | STP/MM | Switzerland | ||||
| FXDD.com | ECN/MM | USA | ||||
| Saxo Bank | ECN/STP | Denmark |
MARKET MAKER
Market maker= only spread (no commissions).| BROKER | TYPE | CONTRY | |||
|---|---|---|---|---|---|
eToro.com | MM | UK/Cyprus | |||
| Oanda.com | MM | UK/USA | |||
| Forex.com | MM | USA | |||
| Intertrader.com | MM | UK | |||
| FXCM.com | MM | USA | |||
| Exness.com | MM | Cipro | |||
| Thinkmarkets.com | MM | Australia | |||
| Vipromarkets.com | MM | Cipro | |||
| XM.com |
| Cipro | |||
| IG.com | MM | UK | |||
| Activtrades.co.uk | MM | UK | |||
| Hotforex.com | MM/ECN | Cipro | |||
| Tickmill.com | MM/ECN | Latvia | |||
| Titanfx.com | MM |
| |||
Brokers for stocks, futures, CW, Otc and various markets: ETRADE, AMERITRADE, SCOTTRADE, INTERACTIVEBROKERS, MBTRADING, TRADERSTATION.
Beware of scams.
These countries, usually tax free, are located in Central America (Antilles, Virgin Islands) and Central Mediterranean (Malta, Cyprus). If the broker is based in these areas, check that the broker has good references in the various forums, web, etc.
When to choose an ECN broker:
Direct access to the market: orders are passed to the market without the intervention of the broker.
Narrow spreads: the spreads are those of the interbank market, the minimum available on the market, up to 0.1 pips.
Speed: ECN technology allows you to process orders almost instantly.
All types of trading are permitted: as long as there is a counterpart in the market, there is no restriction on the type of trading.
Cons:
Presence of commissions: every time you open and close a position you pay a commission required for each trade.
Unsecured stop loss: a stop loss is an order, so if there is no counterparty willing to pay that price in the market the order can not be executed.
Minimum deposit: a minimum deposit greater than a Market Maker broker.
Spreads can widen a lot: in particular market conditions spreads can also become very large, for example during news.
When to choose a "Market Maker" broker:
No commission. The broker does not charge any commission because it is already incorporated in the spread. If the spread in the interbank market is 0.5 pips, the broker will offer a 1.5 pip spread to make the difference.
Low initial deposit required. Many brokers offer the possibility of trading micro-lots and the possibility of opening accounts with a few euros by exploiting a high financial leverage.
Intuitive platform. The platforms are usually easy to use and have many functions in common.
Stop loss can be guaranteed. Some brokers offer guaranteed stop losses, this is possible because the broker stands as counterpart and the order is executed even if there are no other market orders willing to take the other side of the trade.
Never in negative. The broker will automatically close the open trades in case you do not have enough funds to cover the losses. In other words you will never lose more than you have in your account. This is because your funds have never really been marketed.
Cons:
Scalping not allowed. Brokers have difficulty continuously managing numerous orders that are opened and closed within seconds. That's why scalping with some brokers is discouraged if not even banned.
Execution not always fast. Sometimes platforms slow down in the presence of news.
Not real prices. The prices displayed by the Market Makers are not the original ones on the interbank market, but are created by the broker in reference to them. You money will be not at the market, but on the their bank account!! If you will lose money, they gains these!
When to choose a "Market Maker" broker:
No commission. The broker does not charge any commission because it is already incorporated in the spread. If the spread in the interbank market is 0.5 pips, the broker will offer a 1.5 pip spread to make the difference.
Low initial deposit required. Many brokers offer the possibility of trading micro-lots and the possibility of opening accounts with a few euros by exploiting a high financial leverage.
Intuitive platform. The platforms are usually easy to use and have many functions in common.
Stop loss can be guaranteed. Some brokers offer guaranteed stop losses, this is possible because the broker stands as counterpart and the order is executed even if there are no other market orders willing to take the other side of the trade.
Never in negative. The broker will automatically close the open trades in case you do not have enough funds to cover the losses. In other words you will never lose more than you have in your account. This is because your funds have never really been marketed.
Cons:
Scalping not allowed. Brokers have difficulty continuously managing numerous orders that are opened and closed within seconds. That's why scalping with some brokers is discouraged if not even banned.
Execution not always fast. Sometimes platforms slow down in the presence of news.
Not real prices. The prices displayed by the Market Makers are not the original ones on the interbank market, but are created by the broker in reference to them. You money will be not at the market, but on the their bank account!! If you will lose money, they gains these!
