Does trading forex that really safe for big equity just in LP ? Because sorry i always see that broker has bad review even good broker IMO ...
Wow i dont know that even in Liquidity Provider we get cheated ,,, So trade with Big Equity considered very riskIn theory, the higher up the food chain you trade, the less chances of an issue.
Consider - even a market maker broker may hedge itself with IPs. In a case like that, the LPs are usually very low end, so they feed up through multiple higher levels LPs. The same can apply to a small ECN broker. It will have one or more LPs, each of which is connected to a higher level LP. Those LPs are plugged into an even bigger LP.
If even one LP in that chain has a misquote or other issue, that can wreck your trading. If even one of those LPs decides you somehow "cheated" some or all of your trades could be nullified.
In the end, the highest possible liquidity provider is a nation's central bank. Unless you are a very BIG bank, you don't get to trade directly with the central bank.
So, the hypothetical best choice is a very large bank that trades directly with the central bank of the nation it is located in. The drawback is that's not going to be a retail account. That level is usually reserved for institutional accounts, which require VERY big minimum balances.
What you need is a retail broker that is either:
A real bank (some Swiss brokers meet this definition and maybe a small handful of others - CHECK the bank licenses or you could get scammed).
connected to a very large bank as its LP. Again, you need to confirm this. I've seen "broker" pages registered a few days early and having zero regulation that claim to have 12 of the world's largest banks as their LPs. You need to confirm the claim is real or you're likely just going to end up getting ripped off by the scammers who post the biggest lies.
so is it okay to trade with regulation of US,UK,EU,Germany, and Australia even i am not the citizen of those place ??The higher up the food chain, the safer you are. The problem is that getting near the top usually requires a BIG account.
Larger and better regulated brokers are also generally safer. The USA has very tight regulations, but limits leverage.
It can also depend on where you live. That broker may talk about UK, Australia, or German regulation, but if you live outside of the UK, EU, or Australia, you may find your account is registered with a "regulator" based i some tiny island nation. Make CERTAIN you know what regulation your account is under before depositing.