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ECN/STP VS. MARKET MAKER BROKERAGE MODEL Today I want to discuss common brokers' models in order to help start-up brokers to understand the main advantages and disadvantages of each model and to choose an appropriate way of starting their business. There are three main types to choose from ECN / STP, Market Marker (MM) and a Hybrid model. ECN/STP The concept of ECN means Electronic Communication Network, it is used to show that the broker is connected to the electronic trading system, where competing bids and offers are sent to one pool. Under STP we understand the Straight-Through-Processing model, which is used to show that the broker does not intervene in the execution of the order, therefore, all transactions are executed electronically with the highest speed. Formally, the MM-broker can also be attributed to this group if execution is made by special software, not manually by dealer.

In traders Forex community it is widely accepted to reckon brokers that directly send all orders to one or more liquidity providers among A-book brokers. This term includes two models mentioned above. The main advantage of this model lies in the fact that the broker doesn't bear the risks of client' trading and makes money on trades turnover. Therefore it is advantageous for brokers when clients don't lose their money and trade more. That is why it is a widely accepted opinion among traders that these brokers are more reliable and profitable for them. It's easier for A-bookers to register a company under trusted jurisdiction; STP broker doesn't bare risks from scalping strategies The origin of revenue for B-book brokers is client losses, unlike commissions and markups for A-book;
As a rule, the Market Maker earns more than STP/ECN broker. It's up to you what model to choose, however, you need to understand what target audience you want to attract with this model. This will lead you to a clearer vision of the jurisdiction and model you want to choose, as well as, accompanying risks and costs to be incurred.

Is That really possible to make money Via FOREX?

WHAT NOBODY TELLS YOU AND THEY DON'T WANT YOU TO KNOW.

1º most of the flow of retail brokers with or without regulation have more than 80% of their flow in B book, this they do well either as market makers, or I am sorry STP sending their flow to another prime broker that does for them. In addition, practically all the regulations, Australia, Europe ETc, allow this, obviously.

2º The retail broker is not interested in earning a paltry commission per transaction, the statistic seeing a global manager is that 80% of retail clients lose all their money and the remaining 20% more than half. Only 1% constantly wins. That is the reality that they do not tell you. So why pay access costs to the real market? Has no sense. They are a casino, whether you know it or not.

3º The obvious commission, cost per lot is the least of it. Because there is a truly advanced technology to artificially swipe, just a 0.1 pip slip in and 0.1 pip out is more than triple the commission they charge you.The increase between slides, spread and swaps can be than 10 to 50 times the real conditions, in addition this is dynamic and is algorithmically changed to make it difficult to identify, especially slides. Think that there are no slips if it is a B book environment, for this, softwares called Antiscalpers, etc. are used.

4º Swaps, which can be netted in the real interbank and are also very low. Not only are they not netted on MT4, charging you for hedging positions, it is also usually marked between 5 to 20 times more.

5º high leverage, it is for a retail equal that giving a monkey a machine gun. The retail customer does not understand the risk properly. does not understand that 1 lot is really 100,000 usd in the interbank.

6º THE GREED OF THE RETAIL CLIENT.Who is only interested in systems that earn 50% a month. When financial funds with hundreds of brightest and best paid math and quants, would be very happy to make 20% year. Think that from your knowledge of shit or copying idiots with luck that they only show you a short period, but they do not show the hundreds of times burned accounts. To think that you are more likely than these funds that spend hundreds of millions to have the best technology and best human resources. It is quite stupid.

The results are ridiculous conditions trading, where the posibility of winning are low. Why earn 5% or 10% commissions throughout the life of your account, when the broker can save the costs and dramas of the actual execution, or earn 80% to 90% of your balance?. Do you think it would be profitable for them, that level of advertising, marketing, rebates and customer service, for accounts that will earn a few dollars a month? NOT. The business of retail brokers, is B book and pass balance from your account to his.

How much chance do I have as a private retailer with small accounts of constantly winning, contracting with popular brokers at the base of the retail pyramid? 1 in 1000. The same possibilities that you have to take your 5000 or 10000 and go to a casino every day, in the end you will lose what you win by luck and your capital.
Not understanding this, is what has been happening to you since you are in the world of forex. There are exceptions? Yes, 1 in 1000.

Conclusions:
Do I have a real chance of winning? NOT

Is it possible for your knowledge base and liquidity channels? Yes, 1 in 1000.

How can I have real liquidity conditions? You cannot, only funds, prime brokers and banking channels have them.
Understand at once that FX retail is only a casino with great marketing.

Why do I count all this and share my knowledge after working in the internal part of several brokers and having a trading team with more than 10 years?
We are an NGO? NOT

Because I do not intend to sell anything here, they are only personal verifications and for some institutional client, perhaps part of neither CV.
It annoys me, the hundreds of messages that I receive with silly questions or someone trying to copy them when I neglect them and put them at a cheap price, and accuse me that they are not real, if they are not for you, because you will never have access correct to win, neither with these systems nor with almost none.

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