The choice of a Newbie can get complicated when they want to learn the difference of MM/STP/ECN and Hybrid model brokers. I have a very simple suggestion for them that is, choose your account under an FCA broker. And stay focused to your trades rather than broker itself. Just choose an experienced and profitable trader from MyFxBook if you not confident enough to trade yourself. In that case, you should make sure that your broker has MyFxBook auto trade function e.g. Tickmill. Happy trading, invest more time into your trades rather than wasting time on other things.
When it comes to a newbie picking a new broker I always recommend that they do extensive research into the brokers they are choosing from. Go through their websites, see what they claim for themselves, then double check it with regulators and reviewers. Make sure that the information you have received from the brokers is accurate and that they are licensed and regulated companies. Also, I strongly recommend to pick a broker licensed by a big, respected regulator like the British FCA or the French AMF and the like. I wouldn’t put my trust in a broker licensed in an offshore zone somewhere, because using offshore brokers carries some inherent risks. (https://www.forexbrokerz.com/news/risks-trading-offshore-forex-broker)
90% brokers have licensed in offshore - CySEC, most important is choose STP or ECN Broker. Alpari also have FCA and 2015 bankrupt, later 2016 IronFX and other brokers. I think that most important is broker's honesty and not license.
danas76 posted: 90% brokers have licensed in offshore - CySEC, most important is choose STP or ECN Broker. Alpari also have FCA and 2015 bankrupt, later 2016 IronFX and other brokers. I think that most important is broker's honesty and not license.
This is correct. The regulation itself may help you if you have ongoing case with your broker related with execution or funding or anything else. They will contact with you broker also, will request the information and will prepare their own standing, but they cannot protect your funds against broker bankruptcy. This is a task for ICF.
CySEC has given BuzzTrade three-month term from the date of termination of license (renounced in November, 2016) to settle all its obligations arising from the investment services provided, but the company has not yet informed the regulator that it has done that.
Without checking, you could end up becoming a client of a company like that.
FxMasterGuru posted: Under any circumstances I suggest picking an FCA regulated (and automatically FSCS-insured broker) after being robbed by a NZ-''regulated'' (what a joke) broker who took off with $500k+ ''segregated'' client funds in total... Once he had taken all the client funds, the NZ authorities had ''deregulated'' the broker, so they did not have to deal with the mess it had left behind... How ''smart'' it was... Anyway, the same thing can happen with ANY off-shore broker or any broker in general with no capital insurance...
Also choose a broker which is PURE ECN/STP/DMA, i.e. which will not attach virtual dealer plug-in parasite software to your MT4 crippling it to death.
Luckily I have found one just recently which fulfills both requirements and performs much-much better with the same EA than ICM or Pepperstone. I cannot post its name here, but if interested, please PM me for further details.
how will I know if a broker attached virtual dealer plug-in parasite software?
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...
Hi.. can you tell me what 'until the point'', term means, and why there is nothing wrong with it if the broker is manipulating the spreads?
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