Aneka Info

This is a trick question. You see, there are two layers of forex brokers. However, most people enter only see one of the layers.

layer of most people see as market makers (another name for them is "bucketshops"). These brokers advertise heavily. They offer free charting packages. These are the ones you think of when you think forex brokers.

But there is another kind of forex brokers. the ECN (electronic communication networks). These brokers do not advertise as heavily. They are (usually) do not offer design packages. They are kind of hidden.

Why are you ECN brokers is important to know about? Let me explain. A market maker broker (like the ones that advertise heavily) actually trade against you.

Yes, that's right. They "make the market." They take the opposite side of you order. They also know exactly where it stops.

wonderful. . .

Guess what happens next. That's right. They begin sniping your stops. Little by little they drain your account. How do you think they afford all the advertising and free charting packages? Well. . . Now you know.

On the other hand ECN brokers offer a slightly wider (usually about 1 pip) pulse of a small commission (usually around 0.5 pip). The Commission, as they make their money. You can become a market maker. They just match your order with another order. ECN's do not trade against you.

you may scalp, trade news, regardless. They do not care. They allow you to market any way you want. the real future of forex brokers is the ECNs.