Are All Forex Brokers Created Equal?
This is a trick question. You see, there are two layers of forex brokers. However, most people entering only see one of the layers. The layer most people see are the market makers (another name for them is “bucketshops”). These brokers advertise heavily. They offer free charting packages. These are the ones you think of when you think forex brokers. But there is another kind of forex broker. The are the ECN (electronic communication networks). These brokers don’t advertise as heavily. They (usually) don’t offer charting packages. They are sort of hidden. Why are these ECN brokers important to know about? Let me explain. Market maker brokers (like the ones that advertise heavily) actually trade against you. Yes, that’s right. They “make the market.” They take the opposite side of you order. They also know exactly where your stops are. Wonderful . . . Guess what happens next. That’s right. They start sniping your stops. Little by little they drain your account. How did you think they aff
