Different types of online Forex brokers

1. Different types of online Forex brokers Forex as we all know is an online marketplace that has no physical location and can be called an over the counter market marketplace where the trading of currencies between different traders takes place.

2. This makes online Forex trading a place for infinite profits and is thus become the most famous method of trading. Though however becoming rich in the Forex market is not as easy as it may seem and requires a lot of effort and determination to become successful in this market. The trading of currencies usually takes place through the use of a broker who plays a key role in the trades. If the broker suits your needs then you’ll be able to make profits in the long run and if it doesn’t suit your needs then it would soon become a horrible experience for you in the Forex market. Though many Forex brokers nowadays also offer stock trading products as well which makes them a complete package for trading in both markets. Of course, choosing a legit broker is important but at the same time knowing about the different types of brokers in the market is also important. All online Forex trading brokers in the world can be mainly divided into two types:- • Dealing Desk:- Also known as a market maker is a type of broker that that takes becomes the counter [party of its client’s trades. It sets the bid and ask prices and waits for a trader to take advantage of its said terms. In most cases dealing desk brokers, they tend to keep trades safely within their liquidity pools and as a result, do not require external liquidity providers. It is a very profitable business for the broker as they can control the bid and ask prices they offer to the traders. Thus taking advantage of spreads between the bids and asks prices.

3. While some may agree with the fact that they take advantage of the traders, others still appreciate their fixed spreads. • No Dealing Desk (NDD):- NDD brokers can also include STP, ECN or STP + ECN brokers. As the name implies, they are the opposite of a dealing desk, as their clients’ orders are passed directly to liquidity providers for execution without any intervention from a dealer. The NDD broker offers low variable spreads and fast execution speed. NDD brokers earn their profits from a small markup on the spread or may charge commissions. • Straight through Processing (STP):- STP brokers are no-dealing desks and pass their client’s orders immediately to their liquidity providers on the inter bank market. These liquidity providers/third parties act as the counterpart to the client’s trade. STP brokers offer low variable spreads and are very less likely to have re-quotes during news releases. They even provide fast execution speed. • Electronic Communication Network (ECN):-ECN brokers have straight-through-processing execution. They pass their clients’ orders to the inter bank market for execution but, in addition, they allow their clients to be the counter party to a transaction. ECN brokers usually have a trading system, where all the orders from banks, market makers and individual traders are shown transparently and made to compete against each other. It’s the most transparent

4. system in the market for delivering the price quotes. The spreads are variable and very low. You must now have a better understanding of how Forex brokers work and how they execute each of your trades. It’s also useful to know that many Forex brokers nowadays allow their clients to choose how they want their trades to be executed by opening a specific type of account. Some of the worldwide known ECN brokers are:- 1.Xtreamforex:- Xtreamforex is one of the fastest-growing ECN brokers in the world that offers its clients with its highly satisfactory services. Many of its world-class services include:- Ultra-Fast Order Execution 24/5 Excellent Customer Support Deep Pool Liquidity Forex Education & Market Analysis Negative balance protection Access to multiple markets like equity, cryptocurrency, Forex and many more Access to MT4 and MT5 platforms They have carved their reputation as a leader in online trading by providing a reliable and user-oriented trading environment built on the most advanced platforms. Xtreamforex is committed to providing the best trading services for all its clients both retail as well as institutional irrespective of the size of their investments or trading experience.

5. 2.Forex.com:- Forex.com is a Forex broker that also offers other asset classes. It includes CFDs on stocks, commodities, and indices. This means that you will be able to access reasonably competitive fees, spreads, and commissions with 90+ Forex pairs on offer so that you will have access to a full selection of majors, minors, and exotics. 3. Pepperstone:- Pepperstone Markets is a popular online trading platform that offers both STP and ECN accounts. You will have access to popular trading platforms like MT4, MT5, C trader, and Zulu Trade. Negative balance protection is offered by the broker and you can engage in both scalping and hedging without concern. Depending on which broker you use you can potentially gain access to many different trading positions and rates in the online Forex trading arena. Selecting the right platform that provides multiple asset classes like stocks trading products is also important if you want to become a profitable trader, and this is where the best ECN brokers like Xtreamforex can help you.