Market makers are just like bookies. They will take you money all day long
Yeah, but it is not easy to find them. There is not a broker that will tell you 'I am a market maker' :) But there are some signs to find which brokers are market makers and which- not. One of the most important things is the 'Execution model'. Before starting using any broker, every trader should know what is the execution model of the preferred broker. For example, if the execution model is 'NDD DMA/STP' this means, that the broker don't have Dealing Desk and provides Direct Market Access / Straight Trough Process, therefore such brokers aren't market makers.
TeddyBrendon
会員
7 件の投稿
Jul 29 2018 at 05:42
A good rule of thumb is..
Fixed spreads = Market maker
variable spreads + commission = proper broker
Fixed spreads = Market maker
variable spreads + commission = proper broker
TeddyBrendon posted:
A good rule of thumb is..
Fixed spreads = Market maker
variable spreads + commission = proper broker
Well said and true :) Floating spread + separately charged commission is great sign for the broker, that he doesn't win from the traders loses, just from commissions.
TeddyBrendon posted:
A good rule of thumb is..
Fixed spreads = Market maker
variable spreads + commission = proper broker
then what would you like to say about those brokers who offer both fixed as well as variable spreads.
FrozenIcecream
会員
8 件の投稿
Aug 19 2018 at 14:00
Many brokers offer fixed and variable. But if you go with fixed the broker bets against you but if you go variable then it should be ECN which means you are in the market (and is better IMHO)
Like the others before me said -
Fixed spreads is a sign that that broker is a Market Maker.
Variable spreads = ECN or DMA/STP broker
I'd add just another note - most brokers offer Marked-up spreads (the commission is included in the spread) which makes the spread even bigger.
You should look for brokers that provide Core Spreads (= Market spread) and they will charge commission separately. Which is good because you can clearly see how much is the commission you pay for each trade.
You can read more about those here - https://www.jfdbrokers.com/en/core-vs-marked-up-spreads
Fixed spreads is a sign that that broker is a Market Maker.
Variable spreads = ECN or DMA/STP broker
I'd add just another note - most brokers offer Marked-up spreads (the commission is included in the spread) which makes the spread even bigger.
You should look for brokers that provide Core Spreads (= Market spread) and they will charge commission separately. Which is good because you can clearly see how much is the commission you pay for each trade.
You can read more about those here - https://www.jfdbrokers.com/en/core-vs-marked-up-spreads