1. Market makers (sometimes they called as Dealing Desk) continued. We will not discuss here the possible hedging tools that a market maker has to control overall direction and power of clients’ positions. We just say that market makers can partially transfer clients’ positions, say, “higher” – to larger market maker or bank, if his own financial power and risk limit does not let him to be a counterparty of all trades. Even in this case, it transfers not every single position, but the pool of average position of all clients and only in a part that he can’t absorb by himself. Since this kind of broker control quotes and give you its own ones – it easily can get you a fixed spread. So, when people tell that market maker trades against you – this is only partially true, because this “against you” trading appears just because it take counter position, that he has to do – that is just how this kitchen works, since he places quotes and you take it. Second, he gives both buy as sell quote so he is ready to take any of yours decisions – so there is no obvious conflict of interests. Many of his positions becomes flat since they equilibrated by counter positions of other clients. As a result, a market maker has some net long or short position and work with it. This “broker” maybe could have some interest that you lose your money, but it has to hold some balance to not skew quotes too much. Otherwise, it will lose many clients. The drawbacks this type of brokers become the advantages of other types. As a result, we can say that this kind of “broker” (in fact dealer) will give you fix spreads, not quite natural quotes (precisely speaking he can skew them too much, will be the counterparty to your trades), orders execution could be on a discretionary basis.