I spent a few years as Chief analyst and trader in a brokerage. I can safely tell you there is no such thing as a true ECN in this retail brokering market. It is one big B book. First and foremost what is called ECN is simply an order aggregation system that allows me to decide what prime broker to send your order to. Unless you are trading a million, in which case poor or great trader you are a risk to my B book, other than that I have no need to pass you on. You will go on my B book. This has nothing to do with leverage ratio, spreads or anything else. There is no incentive for me to send your order to anyone in fact if I do it is out of necessity to protect me.

You guys may not know this but Brokers come under attack all the time from more advanced retail traders trying to quote stuff them and slow down the server to in effect get ahead of the prices. There are all kinds of things going on so the main concern I would have as a broker is my risk. So honestly STP, ECN it is all bullshit. On an ECN you get to pay me a commission plus spread, so in order to get you to perform this vile act of wasting your money, I give you a made up story and you believe it so you open one. Does it help your trading? Not really, you just keep losing money.

At theTraders Clubwe focus on beating the broker through optimized trader behaviour rather than focus on the non-existent differences like STP, etc. If I keep hitting the broker on his B book he gets tired and starts to monitor my trading style, if it gets really bad for him, he will route my orders to a bigger prime broker who wont mind paying me out as he has bigger fish to fry. Over a certain amount of capital, you will be sent to an institutional FX department that is likely going to hedge your every trade in the market to avoid carrying the loss, it is at this point you know you are a big dog. Think North of a million for that to happen. If you just happen to have big capital and no experience, you will get referred to a money manager or managed in house for a fee. Make no mistake the business is sophisticated enough that there is no way the little guy gets anything without proving something first. Dont waste your time… Go with the big brokers they wont fuck up and dont mind you taking them for a few hundred dollars. The smaller ones are likely to start messing with your trades and break all kind of regulatory rules. They are unreliable and as STP they have a handler so likely have very little liability, in other words no skin in the game. They are the worst kind of broker to be pegged to. This is the reality, it is hard to hear but it is true.

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Are stocks and commodities brokers ECNs or market makers?

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What would you advise as the first trading platform (broker), for a young trader?

What are the trading platforms used by professional brokers?

What do you prefer trading as, Market Maker or ECN?

Which trading broker prop trading firm should I use?

What trading platform does a broker provide to the users?

What are the top STP/ECN forex brokers in Europe?

How do you identify a true ECN/STP forex broker directly at the MT4 trading platform?

How can I identify a true ECN broker trading platiform?

What is difference between ECN and non-ECN trading platform?

Are stocks and commodities brokers ECNs or market makers?

Which brokers have good customized trading platform?