Type Non Dealing Desk brokers, ECN Broker, STP Broker and Broker DMA

Broker Forex ECN (Electronic Communication Network)

In the ECN broker type is the user can jump directly and participate in the actual market which come mixed well with the other participants in the market such as the Bank, Government, Institutions and Individuals Trader where they interact simultaneously SELL and BUY without any intervention of the broker or dealer (dealing desk). Usually the only brokerage firm to benefit from commissions or mark-ups of spread. In the ECN broker type used condition is a condition that occurs in the actual market and without artificial. ECN brokers working together sellers and buyers of real (via online, real-time), and not against the broker/dealer to perform its BUY and SELL.

Forex Brokers STP (Straight Through Processing)

This type of broker serves as a bridge connecting with another brokerage firm as its liquidator. Usually the execution order of broker types STP is passed on to the big brokers (large institutions) or to some ECN brokers. But if the order of the STP broker forwarded to the manifold dealing desk broker then the order of the STP broker its target depends on the broker.

Forex Broker DMA (Direct Market Access)

That is a broker that works almost the same way with ECN broker type, but the difference in DMA broker is under contract with a particular liquiditor, and there are some other things that set it apart. Learn more about the DMA Broker and the difference can be seen at : DMABroker.com Often brokers (especially those who are not legal or regulated/unregulated ) called STP with ECN or DMA, but basically a bit different, because STP broker is using the other its liquidator (thrown to the other broker), so that the execution and everything from the type of STP broker is the broker liquiditornya rely on the quality and the quality of the connection path routing. Whereas in type that really ECN broker is not thrown again into another broker, but directly to the big banks (multi inter-bank), the other traders, and the actual market together sellers and buyers directly without the intervention of a broker dealer.

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Disclaimer: Please be more concern if you invest in online forex trading, because in the blink of an investment you can not give any results, understand the risk of any transaction that you run. We here analyzed according to our ability and we are not to blame if the prediction or analysis that we submit inappropriate and contrary to the market that makes you suffer losses.

Ditulis oleh William Perkasa pada tanggal Oct 25, 2013