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:
- They take advantage of the difference in spreads.
- 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)
- Does not limit customer trading style, scalping like hedging, trap, etc. Why free? because there is no Conflict of Interest among brokers with clients.
- 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.
- 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.
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