Before we choose one among several Forex brokers are more scattered in the Online World, I’ll try to give some information to your Forex Broker.
In general, there are 4 types of Forex Brokers often used by traders in trading or trading ria, namely: Conventional Broker, Non Dealing Desk, Dealing Desk, and Hybrid.
Conventional Broker
Forex can also be done in the way you go to your bank or place of Exchanging Money (Money Changer), to transact Money Physical / Jump, trading as it is also called Traditional or trading trading Conventional (Non-Online), which is certainly a lot of limitations and is not in realtime.
On this page I only discuss and introduce the types of brokers used to trade Forex Online (non-physical), namely:
Non Dealing Desk
That is a broker for which the order is forwarded directly to the market or to another brokers. Usually spread in Non Dealing Desk broker types are fickle nature depends on the market.
Non Dealing Desk broker type is suitable for professional traders, because it is very fair, without manipulation and user betting against the real market and not against the brokesr or dealers.
Non Dealing Desk broker type is divided into two, namely ECN Broker and a STP Broker.
Here’s an explanation of both the broker:
1. ECN
Broker types of ECN is that users can jump directly and participate in a real market in which participated also mingled with other participants in the market such as the Bank, Government, Institutions and Individuals Trader where they interact with each other simultaneously buy and sell without any intervention of the broker or dealer (dealing desk). Usually the only brokerage firm to benefit from commissions or mark-ups of spread. At ECN broker type used condition is a condition that occurs in the real market and no artificial. ECN Brokers working with buyers and sellers bring significantly (via online, real-time), and not against broker / dealers Buy and Sell in doing it.
2. STP
Broker type serves as a bridge connecting to another brokerage firm as likuiditornya. Usually the broker’s order execution STP type is passed on to the big brokers (large institutions) or to some ECN brokers. But if the order of the STP broker forwarded to broker a manifold Dealing Desk Brokers STP then the order of these depend on the broker who headed it.
Often the brokers (especially unregulated / unregulated) called STP with ECN, but basically somewhat different, because the STP broker is using the other as a liquiditornya (thrown to another broker), so that the broker’s execution and everything is dependent on the type STP broker liquiditornya and quality of the connection path routing. While in the type that really ECN broker is not thrown again into another broker, but directly to some large banks (multi inter-bank) and the actual market that brings buyers and sellers directly without the intervention of a broker dealer or croupier.
Dealing Desk Brokers
That is a broker that they made a separate market with its own conditions they specify. In this case the user trading against the brokers or dealesr. Basically dealing desk brokers benefit from the defeat of the user should, therefore, if the user makes profit the broker will be paid from cash on their own broker (not purely derived from actual market). When you trade in kind Dealing Desk brokers, make sure you put your funds in Dealing Desk brokers listed (regulated) as a broker and have reputable. Good regulations are: NFA, FSA, ASIC. Dealing desk brokers are often referred to as dealers (dealers).