Most of us retail forex investors trade with companies like Oanda or FXDD or whomever, and these companies trade against us as opposed to counterparty trading. It is said that when they take your opposing trade, they themselves hedge to protect against loss (at least on large trades anyway) and make the spread as a commission. This makes them more like a market maker than a broker. So a few thoughts spring to mind regarding this situation which I thought someone with more experience might elucidate. 1. If they are passing trades on to a counterparty, why would either they themselves or a counterparty take a position opposing a directional move triggered by a news event knowing that it is at the very least a short term loss if not worse? 2. If they take the opposite side of your position and then go out and hedge it 100% presumably nearly instantaneously, why not just be a counterparty broker and not trade against their clients at all? Does it take a lot of time to have their own orders filled? 3. Who are they hedging with? Do these brokers trade with banks directly on the interbank?