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Best Broker for a Newbie

Bohdan73 (Bohdan73)
Dec 12 2016 at 13:52
51 posts
FxMasterGuru posted:
I am running the same EA with IC Markets ('TrueECN) and with a new DMA/STP FCA regulated London based broker and the difference is significant using the same exact EA with the same exact parameters...

Just a couple of days ago ICM quoted a 7 pips spread on CADCHF on my ''TrueECN'' account, while my new FCA regulated pure STP/DMA broker quoted 2.5 pips at the same time... It makes one wonder how ''TRUE'' ICM's ''TrueECN'' is...??!

Probably it is not a secret that it is a 'B-booked' pseudo-ECN ''THING''...

Really, ''no shit''...


I am wondering how actually 'ECN' is related to 'DMA/STP' if there is anything in common at all. From what you write, I understand that True ECN does not necessarily mean DMA/STP so it could be confusing for the new traders with all these terms.

Trade with determination!
togr (togr)
Dec 12 2016 at 15:22
4862 posts
Bohdan73 posted:
mlawson71 posted:
The German regulator BaFin are also considering similar measures as the FCA's. They announced their intentions to “limit the marketing, distribution and sale of financial contracts for difference (CFDs) with an additional payments obligation” to retail clients. (https://www.forexbrokerz.com/news/germany-bafin-to-ban-margin-trading-cfds)
 
This means that in theory margin trading could be altogether banned in Germany, as, according to BaFin, the risk of losses for the retail clients are “incalculable”. In its statement the regulator explains that if the difference to be paid by the retail client exceeds the capital they have invested, they must pay the difference amount from their other assets.


Thanks for the article. Let's see what will be further decided after 20th of January 2017. Not sure if these restrictions will apply to all brokers in Germany.


Drahy Karle, Bohdnae :)

Which broker is the one better than IcMarkets?

FxMasterGuru (FxMasterGuru)
Dec 12 2016 at 15:23
1607 posts
@Bohdan73

In practice they are the same (i.e. ECN, STP, DMA) using different technologies.

The issue I brought up is that some brokers advertise themselves as providing ''ECN'' accounts - which are actually not real ECN accounts - only their spreads resemble (or not) to real ECN accounts.

In practice they ''B-book'' their clients, so the trades NEVER see the REAL ECN market, instead, the broker takes the other side of the trades ''in-house'' acting as a Casino. There is nothing wrong with that UNTIL THE POINT, when they start manipulating the spreads and other aspects of trade executions using a sophisticated parasite software, called ''VIRTUAL DEALER PLUG-IN''...

Getting back to the previous example: Why would ICM's TrueECN CADCHF spread be 7 pips while at another broker the CADCHF ECN spread - at the same moment - was only 2.5 pips... I let you answer this puzzle...

Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
mlawson71
Dec 16 2016 at 11:31
1487 posts
Three of the leading UK forex brokers – CMC Markets, IG Group, and Gain Capital’s City Index, are forming a contract for difference (CFD) providers association as a response to the recent announcement of the UK Financial Conduct Authority (FCA) that it intends to alter the regulation of forex trading service providers. (https://smnweekly.com/2016/12/08/cmc-markets-ig-group-city-index-are-forming-uk-cfd-association-on-back-of-fca-forex-limitations/) The new rules are proposals at this point and the regulator is seeking market participants’ feedback. The newly-formed CFD association will facilitate brokers in communicating their concerns and worries.

Do you think they'd be able to change something?

Bohdan73 (Bohdan73)
Dec 18 2016 at 08:00
51 posts
FxMasterGuru posted:
@Bohdan73

In practice they are the same (i.e. ECN, STP, DMA) using different technologies.

The issue I brought up is that some brokers advertise themselves as providing ''ECN'' accounts - which are actually not real ECN accounts - only their spreads resemble (or not) to real ECN accounts.

In practice they ''B-book'' their clients, so the trades NEVER see the REAL ECN market, instead, the broker takes the other side of the trades ''in-house'' acting as a Casino. There is nothing wrong with that UNTIL THE POINT, when they start manipulating the spreads and other aspects of trade executions using a sophisticated parasite software, called ''VIRTUAL DEALER PLUG-IN''...

Getting back to the previous example: Why would ICM's TrueECN CADCHF spread be 7 pips while at another broker the CADCHF ECN spread - at the same moment - was only 2.5 pips... I let you answer this puzzle...


Thank you for the detailed answer. Yes makes sense. From what I read in Investopedia, I have the impression that the ECNs are anonymous networks. Maybe this fact is used by the b-book broker to still hold the trades in-house but keep referring to an ECN type of execution... Not, sure, just thinking loud.

@togr Not sure why you ask me this question 😄 I don't have experience with ICMarkets.

Trade with determination!
Cohibafx
Dec 18 2016 at 08:21
1 posts
TickMill

carl54
Dec 19 2016 at 14:49
4 posts
The good Forex broker always makes sure security of funds, low transaction cost, easy withdrawal system, free demo trading, larges bonuses, lowest trading spreads, minimum margin requirement and much more real trading facilities that are very supportive to lead a flexible trading life with certainly.

MC85
Dec 19 2016 at 15:05
48 posts
mlawson71 posted:
Three of the leading UK forex brokers – CMC Markets, IG Group, and Gain Capital’s City Index, are forming a contract for difference (CFD) providers association as a response to the recent announcement of the UK Financial Conduct Authority (FCA) that it intends to alter the regulation of forex trading service providers. (https://smnweekly.com/2016/12/08/cmc-markets-ig-group-city-index-are-forming-uk-cfd-association-on-back-of-fca-forex-limitations/) The new rules are proposals at this point and the regulator is seeking market participants’ feedback. The newly-formed CFD association will facilitate brokers in communicating their concerns and worries.

Do you think they'd be able to change something?


They will make some more noise but I don't think much will be changed.

HenritteC
Dec 22 2016 at 07:31
18 posts
TheLastBear posted:
There is no such thing as best broker for a newbie, true. A good broker is good for all. I disagree that the best brokers do not offer bonuses. There are plenty of good brokers who do offer bonuses and have loyalty programs. It also depends on what you consider the best broker. Most use the MT4 or MT5 platform. Spreads are one thing you can judge them by. I judge by customer service and security of my funds. Execution of trades is also part of it.


I must agree with this one, and I believe it would always depend on you what would be the best broker that would fit you.

togr (togr)
Dec 22 2016 at 09:32
4862 posts
skyjack777 posted:
Hi All,
       Have just been to the reviews on Brokers. I'll ask the question here. For someone in Australia, with a micro account between $250 to $500 dealing with .01 lots, is there any Brokers that come to mine. Thanks Bruce

@skyjack777
the answer is simple. With such small capital go for cent account.

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