Know Your Broker Dealer (Dealing Desk) And Non Dealer (Non Dealing Desk/NDD)

What does a Dealer? This means that they are in a position against your trading, if You lose then they will earn income. You lose $ 1000 then the Dealer will get income $ 1000. This is how the broker Dealer.

Broker Dealer = Dealing Desk

Dealing Desk = Dealer = Bucket Shop

Broker Dealer this will generally limit the trading style of clients, and also coupled with the large number of ' favourable Trading Terms ' of their own. This occurs because the Conflict of Interest between a broker and the client is very high. It also opens up the chance of occurrence of cheating-cheating without your knowledge, such as by way of execution orders slowed, the server is often down, blank, requote the prices, not motion (freeze), stop loss hunting, prohibited use of this technique that, price manipulation, and others so that you easily lose/loss

So in order to keep people interested, then they usually performed with diverse dangle and the facilities are fantastic, as can leverage up to 1:500 to 1:1000, even interest-free, super small and sometimes spreads fixed (not appropriate market), many bonuses, could mutual transfer with 3rd party 3, and other things that aims to appeal to people as soon as possible mensetor money in them.

Actually be-able trading through a broker Dealer. But it should be large so that powerful search pays you if win + a SHOULD BE regulated so as not to cheat too sorely against you (so that it can still be controlled within the limits of reasonableness)

A Non-Broker Dealer = Non Dealling Desk/NDD

The traits and characteristics of Non-broker Dealling Desk/NDD:

1. They take advantage of the difference in spreads.
2. They continued the order (buy/sell) from the client to the liquidity provider to its partners broker (could be a big bank or even other big brokers)
3. Does not limit customer trading style, scalping like hedging, trap, etc. Why free? because there is no Conflict of Interest among brokers with clients.
4. Because of the price, the NDD is available in client Yes it is without any anomaly or the intervention of a broker. As a result the price/no spread might be fixed (spread certainly changed-the Fox suit market/variable). Usually the moments leading up to the news can spreads melar-melar. But there is also a bright side, i.e., the price will be more transparent and for what it is.
5. Generally the leverage provided it is not too high. All must be in accordance with what is on the market.

As for the non dealing desk brokers there are 2 types: STP and ECN.

ECN Types

Broker ECN type is actually participating in the market as well as the big banks that serves as a liquiditor, or bring together sellers and buyers among their user (not dibandarin).

Types Of STP

Broker STP (Straight Through Processing) is a brokerage order thrown to another broker, usually thrown into the ECN (but if the throw to a Dealing Desk broker Yes cilaka also:))

Good broker ECN type or STP is not going against your trading, and they even prefer you win or a lot of trade (lots of frequency/scalper), because that means profits for them.

Broker Hybrid

There is 1 more, namely the type of broker Hybrid. This is a combination of a dealing desk ECN/STP and. Usually this type of broker will membandari to order a spare change or a small (micro, mini), but for a large lot order will then be processed with STP or ECN.

Conclusion

Know your broker which of course included in the easy-easy is difficult, given the process behind the scenes fully we cannot see. Many brokers who ngakunya ECN/STP whereas is not. Jelilah in observing the bids and notice of regulation of the broker.

How To Determine The Winning Broker: Low Spreads Or Fast Execution?

Determine the winning brokers surely can not be considered one eye. The success of a trader in maintaining consistent profit depends on performance and transparency of the trading platform of their respective brokers. Well, from the many features and options available, there are two essential factors that we have to note, that spreads as the cost of trading and execution speed when we open or close a position.

Most of the traders are generally dropped options on low spreads, because clearly the cost of trading should be as small as possible so that profits can be earned him profusely. But did you know, if not all brokers with low spreads really transparently inform its clients an extra burden that may be incurred when air-trading?

Beware Of Unexpected Additional Loads.

The leading broker will give the waiter on his client in compliance with bid-bid written on pages subskripsi, either the actual value of which low spreads or accuracy of fast execution. Ideally, all the costs and burdens of trading will be shown by their platform each time the client transmits a request (order buy or sell).

However, in practice, there are a number of factors in which the additional burden will be borne by the client at the time the market in conditions of high volatility is not normal or with limited liquidity. Among other factors is slippage and wider spread (floating spread).

Floating spread and Slippage can occur even though you have selected the winning broker. It will happen especially when the market is experiencing a surge in the price suddenly because market participants react quickly to economic news releases. For example when NFP news releases or GDP, balance between the number of the position of buyers and sellers will soon be transformed into a leaning to one side only.

Slippage

Slippage on the condition the market may overload the client is greater than the number of reference spread. For example, in the following cases:

A trader open buy orders on the pair EURUSD with a price request 1.13050. But due to the condition of the market is experiencing a surge in prices, eventually executed (filled order) at 1.13053. Whereas the time brokers offers low spreads of 0.1 pip. It is clear that the slippage of 0.5 pip has exceeded spread written.

A total of 0.4 pips from the examples above probably feels minor and paltry. However, if you use more than one lot and leverage over the margin of 1% (1:100), value realization of 0.4 pips will be quite undermining your deposit.

Requote will generally be offered brokers when slippage occurs. Depending on the type of your brokerage platform, could have slippage even quite profitable if the price of executed better than the price request.

Floating Spread

The basic concept of the floating spread is a spread value in the above-mentioned volume depends on the position of the seller against buyer. The more skew the dominance of one of the parties then would increasingly wide (large) also spread value.

The leading brokers may offer fixed spread where the value pegged to the value of the low spreads. But it could have been the benchmark of yesteryear could compromise because market conditions were not balanced as an example when market conditions have a major impact news release above.

Well, feature low spreads offered the leading broker You in fact are the lowest spread value at normal market conditions. Generally traders be tempted to open new positions when the market is trending strongly in condition (where one party dominates the direction prices). Remember the potential spread widened nor should you estimate if you do not want to lose a deposit slowly.

How Accurate Is Your Broker Fast Executions?

The accuracy depends on the type of fast execution platform that offered the winning broker. You should first know what a difference Dealing Desk platform and Non-Dealing Desk.

Dealing Desk

Do not be surprised if the bold Dealing Desk platform offers fast execution without requote (fumble his price of request). That is because the dealing desk-keep the Groove position and volume of trading clients exclusively. In other words, you as the client is actually against your own broker as a provider of liquidity.

So, Yes, it's up to Your dealing desk brokers want to adopt set how accurate fast execution on certain trading times or not.

Non-Dealing Desk

How accurate fast execution of platform NDD indeed diverse, obviously because each platform NDD access interbank trading route as a provider of liquidity. The volume of trading at the interbank network is very dense and allow the occurrence of slippage.

The accuracy of fast execution platform NDD, you should test it first. For example, when slippage occurs, consider how far miss the marked price and whether it is better or worse than the price request.

Important (Beware Of Traders)

The bottom line from the above discussion of measuring contrast on how transparent the pre-eminent broker additional burden to inform Your clients in addition to the basic features like low spreads and fast execution.

Estimate return how much actual cost which you will responsibility plus the value of the lowest of low spreads. In addition it also tests the accuracy of a quick execution of your platform, whether suitable or away from the initial offer of broker.

Remember also that the cost of risk will be increasingly magnified in volatile conditions in the market (due to the release of important economic news, etc.). At moments like that, liquidity providers will probably widen the spreads or offer price when requote misses, so potentially adds to the load of client trading.