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Different Kinds Of Forex Brokers One Needs To Know

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The forex brokers play an important role in the foreign exchange markets executing the buying and selling of the currencies. There are several forex markets like Juno Market forex etc., and hence one needs to be careful while choosing one. There are Market reviews available on the internet to make the people aware. Similarly, the forex brokers must also be selected wisely as they are the ones who are dealing with your money. There exist two main kinds of Forex brokers; Dealing Desk brokers and the non-dealing desk brokers.

The dealing desk brokers are also called dealers and the market makers. They gain money through spread, the difference between the ask price and the bid price. In this way, they give liquidity to their customers. These brokers are legally responsible to display their best possible price to their customers by the national and international regulatory authorities. There may be a difference in the prices that these brokers offer and the real prices of the market. There may also be a difference in the risk management policies that these dealing desk brokers have.

On the other hand, the non-dealing desk brokers do not take the other side of their customer’s trade in order to minimize the risk. Their mere duty is to connect the investor’s platform with the interbank market. These brokers charge less commissions or may slightly widen the spread, or do both. The non-dealing desk brokers can be Electronic Communication Broker (ECN), Straight Through Processing Broker (STP), or a mixture of both STP and ECN. Direct Juno Market reviews access is offered by the ECN with the help of automated systems in order to enable their clients’ orders to communicate with the orders of the other participants in the forex market. An STP broker functions as a mixture of a Market Maker and the ECN broker. Like the Market Makers, they give liquidity to the clients and does not allow the communication of the orders in the exchange market, while as ECN broker, they place the orders of the clients into the exchange market, and create their revenue by accumulating the spread with the price that is received from the Market Makers.