forex.wf forex forum binary options trade - Forex - Top 10 Forex Brokers and Trading Platforms to trade online. - Page 2
  • Welcome to forex.wf forex forum binary options trade. Please login or sign up.
 

Top 10 Forex Brokers and Trading Platforms to trade online.

Started by Indonesia, Apr 09, 2020, 09:40 am

Previous topic - Next topic

Indonesia

6. Legality.
All over the world, governments are struggling to deal with issues concerning money laundering. Some of them have even gone ahead to pass very strict anti-money laundering laws. So to be on the safe side, you should always trade with a regulated broker. Most regulated Forex brokers will ask you to provide some of your personal identification documents such as proof of address and photo ID. This might sound tedious to you but it's always safe to be part of a regulated organization that can prove your money is being used in a legal way.
To sum it up, regulated Forex brokers are always the best as well as the safest option to trade with. This is because they are always ahead in terms of legality, security, and safety of your funds. All in all, you can manage your risks better if you opt for a regulated Forex broker.
Understanding True ECN vs STP Broker.
The foreign exchange market, also known as currency market, is a universal decentralized market that provides traders an opportunity to trade currencies. It is a market which incorporates all aspects of buying, selling, and exchanging currencies at the present-day or determined rates.
There are different kinds of Forex brokers that you can choose to trade Forex with. However, though all the brokers in Forex are intended to provide a similar basic solution, the way they operate behind the scenes is different. Different types of brokers have varying techniques of operation, and the specific broker you cooperate with can significantly determine your success rate as a Forex trader. Here are some crucial factors that will enable you determine which broker between a true ECN and STP broker is the best one to trade Forex with:
Understanding True ECN vs STP Broker.


Indonesia

True ECN i.e. Electronic Communications Network brokers operate without their individual dealing desk. These brokers provide an electronic trading platform where professional market makers at monetary organizations such as banks, and other online trading participants including traders can enter bids and offers through their particular systems.
STP i.e. Straight Through Processing brokers are brokers without a dealing desk also. These brokers apply some of the techniques utilized by market makers to provide their particular clients with trading conditions which are more flexible. By STP brokers hiring some of the tactics of market makers, they are able to bypass the limitations connected to trading exclusively within the interbank market.
General Overview of True ECN and STP Brokers.
Use of Scalping Techniques.
True ECN and STP Forex brokers do not care about how much their particular traders make. Therefore, these types of brokers allow traders to utilize scalping techniques to close their respective positions. Note that false ECN and STP brokers cannot allow you to use scalping techniques as a trader since they will be disadvantaged anytime you make small profits.
True ECN and STP brokers are types of Forex brokers without a say when it comes to control on spread provided. These brokers have no control on spread offered since it's the liquidity provider that determines the spread which is to be provided.
Though true ECN and STP brokers can add markups when necessary, they cannot in any way take it further down than the amount provided.
Difference between True ECN and STP Brokers.
On true ECN accounts, as a trader you will be required to pay a fixed commission to open and close trades. The Spreads offered on true ECN accounts are determined by the rates of liquidity providers.
When using STP accounts as a trader, you will not be required to pay any commissions.
Pros of Trading Forex with a True STP Broker.
Cannot Bankrupt Themselves.
True ECN brokers cannot trade against their specific clients to bankrupts themselves.
If you are a Forex trader, trading with a true ECN broker means you are guaranteed of price rates that are similar to those of the interbank market.
Negative Balance Protection.
As a trader utilizing the trading account of a true ECN broker, the broker will be accountable for any dues with liquidity providers should your account read negative as a result of any reason beyond their control.
Cons of Choosing a True ECN Broker.
Dealing with a true ECN broker will require you to pay rollover fees and commission at times.


Indonesia

Pros of Trading Forex with an STP Broker.
Their rates and the interbank prices are same They prov > Cons of Choosing an STP Broker.
Choosing an STP Forex broker means when you enter a trade you'll not be informed what spread to expect.
The Bottom Line.
Most true ECN and STP brokers are linked to several liquidity providers at the same time period. Despite both true ECN and STP brokers having incredible trading solutions which can meet your needs as a trader, their terms of operation vary. Whether you will choose a true ECN or STP broker, the rule of thumb is always ensuring you minimize losses and maximize profits as much as you can when trading Forex. Ensure you compare carefully the terms of service of both a true ECN and STP broker before you choose one to handle your trading needs.
Related Pages of Top Online Forex Trading Brokers.