Forex Credit

Most forex brokers offering accounts to retail traders operate in one of 2 ways. It is unlikely that you’ll be enrolling with a broker who has their own dealing desk. Much more likely, you’ll be having a look at either an ECN broker or a market maker. The spread on the ECN is small, often almost non existent, so brokers using this network will typically either add 2 pips to the real spread or charge commission or charges per deal. You can often improve prices from an ECN broker but take a detailed look at their fee structure and consider what it might mean to you on a typical deal.

ECN brokers are commonly better for scalpers and may even welcome them because they are dealing without delay with a gigantic market. Slippage is not most of a problem either for scalping or at times of foreign exchange stories reports. They are also often well controlled. ECN brokers also tend to offer fewer charts and may have a less user friendly dealing platform because they don’t seem to be especially aiming to attract amateurs.