ECN Broker

The Main Types OF CFD Brokes

Arguably one of the biggest innovations to come from the development of technology in retail onine trading is the widespread growth of DMA, allowing traders of all levels and sizes to make their own trading decisions on the markets first hand

1. STP Broker Straight through Processing model

2. ECN Broker Electronic communications network model

3. DMA Broker Direct market access model

4. MM Broker Market maker model

5. P2P Broker Peer to Peer model

The STP/ECN and DMA Brokerage models are the TRADITIONAL brokerage versions that distribute all your trade flows to the owners of the regular marketplace. The owners of the common market are named the Market Makers.

These Market Makers are the providers who you are basically, trading with.

Hence if you earn, they suffer. In the equal vein, in cases where you almost always collect, it means the provider is losing and vice versa.

The market makers own the privilege to reject your trade flows. this factor is evidently a considerable detail. You can trade with a Company that is operating an STP/ECN/DMA model and still experience your trading winnings terminated or a more painful scenario , your deposit might held back temporarily. This type of unethical practice of a STP broker may happen to be due to their Market Makerturned down your trades at some phase and consequently, whatever profits you generated becomes invalid. The market maker might besides prefer to punish the Broker for granting such streams by holding back your funds. These are some of the realpoints of the traditional CFD brokering models. trading cost can work out being sizable.

, Pdextradings team has made all the necessary research in order to guarantee you safe trading. you can find additional info at