loading...
Question resolved! You can't answer the question
 

Answers

0

Votes

Thumbs up Thumbs down

Market makers are here to provide liquidity, so most of the times they will end up taking the other side of your trade meaning if go long their on the short side and vice-versa. ECn brokers say they pass your trades on to the interbank market and not take the other side of your trade but you'll never know unless your behind their deal desk. As to which one is better, the answer is none. It doesnt matter wich you use because whether you trade with a market maker or ecn broker, someone is going to take the other side of your trade regardless. One more thing, trading in the real interbank market requires lots of capital$$$. Trust me, after twenty years experience I know!!! GOOD LUCK

by
hanan
hanan
1 year ago

0

Votes

Thumbs up Thumbs down

A dealing desk functions as a “middle man” that handles investors’ orders to buy and sell currencies. It passes on prices from different market participants. On the other hand, a non-dealing desk or a market maker is like a “wholesaler” that buys and sells currencies for a profit. A market maker is willing to transact securities / currencies at the stated bid and ask prices.

A dealing desk, as mentioned, is an intermediary that transacts on the client’s behalf. Hence, it does not take the other side of one’s trades. Rather, it searches and matches opposite orders that best suit both the buyers and the sellers. On the flip side, a market maker takes the other side of one’s trades. It will sell to you for a profit if you wish to buy a particular currency. Conversely, it will buy from you at a lower price if you wish to sell a currency.

by
Harold
Harold
1 year ago

0

Votes

Thumbs up Thumbs down

This question has been asked many times, but is very important.

You can go here for other answers from other members. i cut and pasted my answer here as well

The best definition I’ve seen (to date) on the internet is actually an excerpt from Wikipedia
(http://en.wikipedia.org/wiki/ Foreign_exchange_market).

“There are two main types of retail FX brokers offering the opportunity for speculative currency trading: brokers and dealers or market makers. Brokers serve as an agent of the customer in the broader FX market, by seeking the best price in the market for a retail order and dealing on behalf of the retail customer. They charge a commission or mark-up in addition to the price obtained in the market. Dealers or market makers, by contrast, typically act as principal in the transaction versus the retail customer, and quote a price they are willing to deal at—the customer has the choice whether or not to trade at that price.”

Electronic Communication Network (ECN) = Seeks best available price with-in the wholesale market. Charges commissions for the best price “seeking”.

Market Maker (MM) = Takes positions against you by virtue of creating a pseudo market climate.

Conclusion – If Market Makers were poker casinos……you’re paying the casino to hold your account, paying again to enter a bet, betting your money in a “pool” where they take a “rake” and have employees sitting at the table taking bets against you.

Tell me why you’re not using an ECN!!!!!???

by
Tyce
Tyce
1 year ago