DD – Dealing Desk: A dealing desk broker is a market maker. Market makers typically offer fixed spreads and may elect to quote above or below actual market prices at any time. Market makers types of forex trading accounts always the counterparty of the trader, who doesn’t trade directly with the liquidity providers.
With a genuine No Dealing Desk broker, there is no requoting of prices, which means that you can trade during economic announcements without any restrictions. STP – Straight Through Processing: In STP mode, transactions are fully computerised and are immediately processed on the interbank market without any broker intervention. They thereby improve market transparency by providing information to all market participants. ECN brokers usually make their money by charging a commission on the traded volume.
An MTF exchange ensures that buyers and sellers of financial instruments can come together according to non-discretionary rules. An MTF is not a regulated exchange, but it operates under the same rules. MTF rules are transparent and ensure a fair trading system. The broker guarantees price efficiency and the clearing of transactions.
Markets introduces new EU VIP Accounts – spreads from 1 pip! USD: the euro could climb back above 1. The foreign exchange market, also known as the forex market, allows traders to profit from currency movements in real time. 5 trillion dollars are traded every day between various traders and financial institutions. Online forex trading has been available to individual traders since the 1990s. The number of online brokers has risen sharply in recent years and choosing a broker has therefore become increasingly complicated.