Firstly, let’s explore the different types of Forex brokers, which are structured in two different forms: A-Book Broker; B-Book Broker; A-Book broker sends all your transactions directly to the interbank market. This type of broker doesn’t care whether you make or lose money. He will get the commission by charging a small fee per trade or transaction, and sometimes by increasing the spread from the ALL regulated forex brokers possess what’s known as a “market maker license”. Whether the broker is regulated by ASIC, FCA or the NFA, it’s the same. They have the OPTION to fill the trades internally (B-Book) or pass them through to the market (A-Book). As a client, you’ll likely never know which book This system used by "Dealing Desk" Market Maker brokers is known as "B booking". "No Dealing Desk" ECN/STP brokers send all of their clients' trades to the real market or to liquidity providers. They therefore use the "A booking" system. However, many forex brokers use a hybrid model which uses a B Book for clients who lose money and an A Book for the profitable clients
A-Book and B-Book
FX Trading Platforms. Compare Forex Brokers. Start a Forex Broker. Our Company. You are here: Home A-Book and B-Book One of the most important aspects of trading, for both traders and brokers alike, is how trade orders are handled, b book forex broker list.
When a trader places a trade order in his trading platform, where does the trade order go? Simply put, if you make money on the trade, your broker will lose money, and vice versa. Your broker making money while you lose money is clearly a conflict of interest. In this situation, your broker has incentive to make you lose money. This is bad for several reasons. First, they b book forex broker list give you bad advice by encouraging you to use excessive leverage in the hopes that your account will receive a margin b book forex broker list. Second, they may manipulate the conditions of which your trade order is executed.
In this case, your broker has incentive to try to help you to make money. Thus, the more trades you execute, and the larger those trade orders are, the more money your broker makes. So the ideal situation for your broker is for your account to grow in size, as what typically happens is that the size of your trade orders will increase as your account balance increases.
So the broker has incentive for their traders to lose money, but to a much smaller degree than a situation where the broker is strictly running a B-Book.
Forex Broker Types Explained A Book vs B Book
, time: 2:40How to know if your broker is trading against you - Brokers - 9 July - Traders' Blogs
rows · 12Trader. A-book. $. $. 7Bforex. A-book. ₦. ₦ rows · RAW Spread Forex Brokers LIVE SPREAD Comparison for Brokers LIVE VOLUME This system used by "Dealing Desk" Market Maker brokers is known as "B booking". "No Dealing Desk" ECN/STP brokers send all of their clients' trades to the real market or to liquidity providers. They therefore use the "A booking" system. However, many forex brokers use a hybrid model which uses a B Book for clients who lose money and an A Book for the profitable clients
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