fx trading, page-11

  1. 447 Posts.
    I won't go into specific platforms but probably I can separate the "camps" for you so you can decide what suits you best. There are generally two types of "platforms" you can choose from - ECN and market maker platforms.

    ECN just means that the trades are executed between traders i.e. could be you and me (for simplicity).

    Market makers act as a counterparty to your trade. They give you the spread that THEY are willing to provide (which is usually based on the liquidity of the FX pair and the volatility of the market i.e. sensitivity to news).

    The obvious risk on market maker platforms is that they could easily bump up the spreads making the trading situation less beneficial for you.

    ECN risk would be more of you missing out on a trade simply because there was no supply at the price you were hoping to jump in at. Very rare in such liquid markets like FX but it is still nonetheless possible.

    So what should lead your decision? 1. How do you trade? 2. How often do you plan to trade?

    I personally have both ECN (Anyone that uses Metatrader is preferable) and Market Maker (this one I use GFT simply because their system is the most beautiful one), one for system/algorithmic trading and another for me to action my on trades (just because I find that more exciting and to test my automated systems).

    Just another thing to be aware of... the more complex the system is (I would rank GFT to be quite complex), you need to have a very good internet connection that is not choppy. This CAN interfere with your platform.

    Alright.. as usual, I am long-winded... hope it helps to some extent.


 
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