These Three Models of Forex Brokers You Need To Know For Sure
Currently, the forex industry has become the industry with the largest turnover of money in the world of money has experienced a very rapid development. No wonder, if many people enter into this business circle. However. All you have to remember is that you must find the right broker before choosing him and join him. The one you can choose is IC Markets.
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If you do not know for sure about the business model that takes place in the forex industry, then you have to know STP, ECN, and market maker. There are the three basic models used by brokers in the forex industry.
About all three you need to know is
This is an acronym for Straight Through Processing. In this model, transaction orders will be thrown into a large bank or large financial industry that acts as a liquidity provider. In model ii, the risk of conflict of interest in the market marker can be eliminated so that the client can trade very comfortably. This forex broker will cite the benefits of spread and commission charge on every trading transaction you make. This type is also considered more profitable than others.
It stands for Electronic Communication Network where a computer system is used to facilitate financial transactions from banks, major financial and financial firms in the world. In this model, you will see the best prices of the buying and sell rates in the world forex market, including very low spreads. This model is likened to a playground for large and reputable financial institutions. Of course, the value of the deposit you need is also very great to play in it.
3. Market marker
Usually, forex brokers who play here will act as opposed to your play. With this system, it is feared will conflict conflicts because if you get a profit, then your broker will pay it and vice versa. That is the reason why this broker is more often detrimental to traders who play in it.