Types of brokers

Broker is of several types. Three types of broker are conventional including ECN, STP and Market maker are available in retail market place. I am using an ECN broker which stands for Electronic Communication Network, really is the way of the future for the Foreign Exchange Markets. ECN can best be described as a bridge linking smaller market participants with its liquidity providers through a Forex ECN Broker. Trade12 is a regulated ECN broker with whom I have high security of funding, smart bridge technology and low trading spread.

Brokers acts as the mediate between the forex trader and market. However; this entity is trying to work as an intermediary so that its customers getting the common platform to engage in profitable trading always. And for the versatile customer needs various sorts of brokers are here. Such as as a scalper: I am working as a micro trader and scalper. For this reason; I have selected a non dealing desk broker AAFX since it is providing me lowest zero spread; 1:2000 high leverage; re-quote and slippage free timely trade executions and it charges no commissions.

There are literally two types of broker in this market. One is dealing desk broker and another is no dealing desk broker. Dealing desk broker usually known as market maker. They make money from spread and sometimes they take trades against their trader. I trade with no dealing desk as they are more secure to trade with. My broker’s name is AAFX. It has both STP and ECN account.