In international business or forex usually required a forex broker. For this reason, many forex brokers are growing and helping many people. One of the forex brokers that can be selected is IC Markets. Choosing the right broker is one of the important preparations before you do the transaction.
In general, there are two types of forex brokers that exist, namely type Dealing Desk brokers or Market Maker and Non-Dealing Desk (ECN and STP). Here, it will be discussed more fully the two types.
– Dealing Desk Broker (Market Maker)
This type of broker is where they create their own market with market maker rules. In this case, the opponent of the trader is fixed. Some people think this type of broker is very easy to potential conflict of interest. This is because it assumes customer loss is a profit for the broker. However, this is not entirely true.
This type of broker usually runs its operations in accordance with the rules of operation that has been established by the regulator and activity actively monitored by the regulatory body. Each country usually also has different organizing rules.
– Non-Dealing Desk Broker
This type of broker is usually a broker who only served to forward orders directly to the market, financial institutions or banks. This type of broker is usually divided into three,
1. Electronic Communication Network
Here, customers can be seen and participate directly. This type of broker does not use MetaTrader as a trading platform.
2. Direct Market Access (DMA)
How it works from this type of broker is almost the same as the type of ECN brokers, the difference is, this kind of broker contracted with a certain liquidator and use the system of transactions with Best Rate base.
3. Straight Through Processing (STP)
This type of broker serves as a liaison with liquidity providers who have access to the interbank market.
If you already know all the types, then you just need to choose the most appropriate for you in accordance with the needs you have.