ECN or Market Maker Broker

MINTED

Recruit
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I intend to Scalp (as a test bed), but have read that many companies frown on this method, while others don't mind?

Is anyone using a ECN?
If so...which one and why?

I will using MT4?
Is that the correct one?

Alternatives ?
 
Regarding of your trading style you want to trade with an ECN broker. ECN brokers get the liquidity and spreads straight from banks and hence have tighter spreads and better fills. Though they charge commission but you are better off paying commission rather than higher spreads.

Market Makers are usually notorious for manipulating prices in their favor and some also take opposite positions when you trade. Plus the spreads are higher.

In my opinion MBT, Dukascopy and FXCM Active Trader are good brokers. I use all three of them and had no problem.

Regarding MT4, you can use MT4 demo for charting and use any broker to place trades. Unless you want to run an EA then you need a broker with MT4.
Though don't just chose any MT4 demo...read my post Are You Using Right Charts For Forex Trading?
 
so, that means ECN is far better than market makers? :p

If you're using a scalping strategy then using an ecn/ndd/stp broker will be better. The reason is due to how the broker is offsetting trades. A scalping strategy doesn't give the dealer enough time to work the position to lock in the spread.

In general there are 3 ways a dealer working for a market maker will make money. 1) Matching up 2 traders for the same amount at the exact same time. This doesn't occur often. 2) Taking the opposite side of a trader that loses consistently. 3) Offsetting the order at a better price than the trader. So if you buy EUR/USD at 1.5000, the dealer will wait for the market to drop a couple of pips and buy at 1.4998 for example, and make a couple extra pips. This is why market makers don't let you put stops/limits within a certain number of pips and why scalping is discouraged.
 
Oh i see, i'm just a newbie here, that's why I asked that kind of question. :) Thanks for that information.
 
Regarding of your trading style you want to trade with an ECN broker. ECN brokers get the liquidity and spreads straight from banks and hence have tighter spreads and better fills. Though they charge commission but you are better off paying commission rather than higher spreads.

Market Makers are usually notorious for manipulating prices in their favor and some also take opposite positions when you trade. Plus the spreads are higher.

In my opinion MBT, Dukascopy and FXCM Active Trader are good brokers. I use all three of them and had no problem.

Regarding MT4, you can use MT4 demo for charting and use any broker to place trades. Unless you want to run an EA then you need a broker with MT4.
Though don't just chose any MT4 demo...read my post Are You Using Right Charts For Forex Trading?

FXPrimus is the broker that provides STP with no dealing desk and Segregated Fund Account.
I sleep better when I am trading with a broker like this.
 
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ECN fo' sho'

I agree with using an ECN broker for trading. I had been using a spread broker for about a year - it was a trade off for me. The site was simple, robust and had nice charting. As my trading has increased, I've just decided to go ECN and found a broker. I saw it recommended on another site. Just made a small deposit $1k USD. There are some things that I don't LOVE about the site - but will reserve judgement until after I've got a week or two of trading under my belt (and a test withdrawal to see if it is seemless - or a full withdrawal if I despise them). Trading to commence Monday. Good luck to me!
 
FXPrimus is the broker that provides STP with no dealing desk and Segregated Fund Account.
I sleep better when I am trading with a broker like this.

I am pleased to note that Fxprimus is offering ECN Premiere Account as an option to its traders.
 
Hello.
I am a scalper.
It is a large advantage of ECN brokers that they let you scalping.
If you are looking for from this purpose, than i can advise you the Dukascopy Swiss bank ECN broker.
So What is it you should know from them? ohm, well this is a safety broker, have so much member, and line with large banks, moreover have either of the largest asset.
AAnd as i have said they are especially good for scalp trading, little spreads, little commission, and good softwares.
Greetings Lincoln
 
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