Important Information for New Traders Picking their FX Broker

Discussion in 'Educational Resources' started by Unit001, Jun 9, 2009.

  1. Unit001


    For those who don't know. FX brokers like FXCM DBFX FX360 etc are brokers who take other side of your trade,
    they make sure you are not a long term winner.
    Ask your broker who exactly is counter party to your trade, ask your broker if they are an ECN broker.

    FXCM will try to trick you they will say that counterparty is not them but some other company
    (that company is their own but under different name)

    Rule of thumb is your broker needs to have 10 or more banks provide the competing price, such brokers are ACM and IB, there are more you just have to ask.
    Like many of you I am a victim of bucketshops like FXCM and GCI etc. I am trying to save you quite a bit of headache with this post.
    Gentlemen we are talking here about lot of headache, not little bit :)
  2. Jason Rogers

    Jason Rogers ET Sponsor

    Hi Unit001,

    FX360 is a forex news website, not a broker.

    Additionally, any broker regulated in the US by the NFA has to list their dealing/execution practices in bold capital letters in their trading agreement. You can read through each brokers trading agreement to determine what type of execution they are using.