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There's a lot of technical jargon that's used when describing forex brokers. Some of what you read or hear about are probably outdated ,inaccurate or even misleading.
forex example you may have read that retail forex brokers come in two types :
1 - Shady
2 - Non - Shady
Okay , seriously now . Let try that again
You may have read that retail forex brokers come in two types :
1 - Dealing Desk (DD) Brokers
2 - No Dealing desk (NDD)
Let's diagram this out
But Wait! That not all!
Two "Types" didn't see, to be enough for the marketing folks from he retail forex industry, so that decided to use more acronyms in an attempt to differentiate forex brokers even further and makes them sound fancy.
Under each type of broker ,new labels were conjured up :
Dealing desk (DD) Brokers : -
1 - ''Market Maker" (MM) broker
No Dealing desk (NDD) Brokers : -
1 - Straight - through processing (STP) brokers
2 - "Electonic Communication Network" and "Straight- Through Processing" (ECN/STP) Brokers
3 - "Direct Market Access" And " Straight - Through processing" (DMA/STP) Brokers
Here's how the retail forex broker "taxonomy" is popularly marketed :
This is not accurate !
But there is poblem (This is not accurate)
Here's how reality actually looks like :
Regardless of how retail forex brokers present themselves on their website or market their services, there's really only one "type" of forex broker for retails traders.
and the most interesting part s that forex brokers are not even brokers !
have you noticed that the word 'broker' is not sed on the websites of many so-called 'forex brokers'?
Why is this ?
Because technically ,there are not really brokers!
There is no such thing as a retail forex "broker"
Calling a forex broker a "broker" is a misnomer, which is defined as a "wrong or inaccurate name or designation'.
if a "fore broker" isn't really a broker, then what is it then ?
While the image early provides a hint, the answer to this question is like the relationship status that some of you all might've displayed on Facebook in the past.....
its complicated
but have no fear Our goal is to help you learn what forex brokers really are and how they operates
