Tuesday, April 16, 2013

Advantages of STP Broker Trading Vs Market Maker Brokers - Introduction

Introduction to the Articles:


This series of articles is to help forex traders understand how to avoid having a bad experience with a forex broker. Firstly, a forex broker does not intentionally set out to punish you or your specific trading strategy, however, the fact is that many forex brokers are limited to the type of trading strategy they can accept and handle comfortably.

There is not a broker in the world that can accept every trading strategy, and as such, any broker that does is simply not being transparent. Many traders have found out the hard way.

How to choose the right forex broker?

There are many aspects of choosing the best Forex broker for you and this decision is probably the most important decision of all.
Every broker is good, honest and reliable, until the point that they realise that clients are operating a profitable trading strategy, EA or scalping robot. This is where the real issues start for clients trading with MARKET MAKERS.
Once you've reached this stage, there several manipulations employed by market makers to look out for such as, strange trading behavior  a change in execution quality and possibly re-quotes. At this point, if you are an experienced trader, you will ask yourself “do I actually trust this broker to pay my profits?”
Let’s share a secret, these brokers are ones that trade against you and make money when you operate a losing trading strategy!

Coming up - How does a forex trader identify a market making broker?

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