12:39CAN FOREX BROKER DO NOT DROP CUSTOMER TRANSACTIONS
CAN FOREX BROKER DO NOT DROP CUSTOMER TRANSACTIONS
WHAT IS THE INTERBANK?
They are called liquidity providers because they have enough capital and can process almost any number of applications. Due to this, transactions are processed very quickly and are executed at the price closest to the market, that is, with high liquidity.
WHY SHOULD THE BROKER BREAK THE DEALS ON THE INTERBANK?
Honest brokers trading in the Forex market earn exclusively on spreads and commissions, so they are most interested in having traders traded as much and longer as possible. Therefore, they try to provide them with the best trading conditions.
Do it yourself, almost not realistic. At least because, independently accepting applications of traders, the broker is forced to send the same application to the interbank, wait for an answer from them and then broadcast it to the client. This causes delays in opening transactions and not only. By deducing transactions directly to liquidity providers, the broker avoids all these problems.
Moreover, since there are many participants in the interbank foreign exchange market that offer different prices and process applications at different rates, the trader has a greater choice. Due to what he gets really favorable terms of trade:
The best prices for buying and selling.
HOW TO CHECK THE BROKERS OF THE DEAL TO THE INTERBANK
First, brokers can say that this information is a trade secret. And secondly, they can provide such information if they want, but this does not mean that the deals were actually being withdrawn to the interbank market.
Therefore, it is important to choose reliable brokers, such as AMarkets, who do not hide their liquidity providers and provide the necessary information without problems. Moreover, they have official documents that confirm the broker's cooperation with the specified supplier or liquidity providers and are proof that all traders' deals are actually being withdrawn to the interbank market rather than spinning inside the company.
If the company for any reason can not provide such data, it is possible to try to determine whether the broker issues a transaction to the interbank market by indirect indications.
Regulation of the company
Technology providing quotes
ECN brokers supply their users with quotes and spreads without change. Moreover, they give traders the best quotes for buying and selling from the entire flow of quotes from liquidity providers. For example, the Bid price can be from one bank, and the Ask price from another. As a result, the client has the best prices and the minimum spread.
Quality of execution of applications
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