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Chapter 38, Part I. Some Talk About Brokers. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, May 19, 2012.

  1. Administrator

    Administrator Just Administrator :-)

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    Please use this thread for questions, answers, and comments on this lesson.
     
  2. Aldo Colombo

    Aldo Colombo Corporal

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    I tried to sign up with a couple of supposedly ECN/STP brokers (namely MBT and FXDD) only to find that the risk disclosure states: THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. FXDD IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND THEREFORE ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, FXDD’S INTERESTS MAY BE IN CONFLICT WITH YOURS.
    As I see it this clearly means this is a Dealing Desk, or I am wrong? Maybe they work in ECN/STP mode for larger accounts but not for mini-accounts? Thanks if you can clarify.
     
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Aldo,
    yes, mostly reminds Dealing Desk, This is definitely not ECN, since ECN is a small "private" exchange. Probably it makes sense to find some other brokers, attend our forum page dedicating to that. Military School is mostly educational resource.
     
  4. georgeta

    georgeta Sergeant

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    I hope I am not over-posting on FPA page...

    Mr. Morten,
    There is one thing that I dont understand here. You say Futures market is preferable when choosing a broker. I see that they are not acting like brokers on the Futures Market, instead, they have their own quotes, just like on Spot. At least Saxo Bank. I attached the 1h charts from CME and Saxo and they clearly show different OHLC. I asked the support but they say they show market price.

    Thank you!
     

    Attached Files:

    #4 georgeta, Aug 26, 2012
    Last edited: Aug 26, 2012
  5. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Georgeta,
    I'm not sure that Saxo is a member of CME clearing. They can show you in their own software anything that they want - you have to read brokerage contract and way how they quote futures. Probably you'll find the pitfall there.
    Normal CME broker connects you directly to exchange, but not his own quoting system, since the advantage here is that you trade through exchange server that accumulates all orders of all traders.
    Broker will just get fee from your turnover, but broker does not provide quoting.
    Saxo, probably does something different. May be this is not pure futures but some sort of CFD.
     
  6. amir132

    amir132 Private

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    Can you explain is there any so-called stop loss hunting,the first time I experienced it,I think it maybe just my fault on entering the trade at the wrong time.But it happened several times and I searched about the article on the Internet,and I found out that there are several persons also felt the same thing.And the broker is ECN broker,so they may called themselves ECN broker,but are they?
     

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