BROKER Currently there are different types of brokers that you can use to enter the global market, especially the Forex market.

A broker or broker-dealer is a third-party merchant that acts as a qualifying commission for its clients.

Depending on how clients place orders, there are currently two types of brokers: dealer desk brokers and non-dealer brokers.

Sales desk brokers are people with «money tables» and in this group we find only one type, market maker or market maker broker.

Marketer Brokers are called marketers because they do not operate in the market, but in the broker’s own trading desk.

Market maker brokers

are responsible for creating a market for their clients, which means that all trades related to financial instruments can be done by finding a partner from the client group or through a broker I have worked with. If he cannot find another offer that suits him, the client’s partner.

These brokers profit from their clients’ spreads, losses or lost profits.

Traded desk brokers do not have a «cash desk,» in other words, they act in the market because they have the flip side of dealing with a desk broker.

ECN Broker. ECN or Electronic Communications Network Brokers, which stands for «Electronic Communications Network», are brokers that communicate directly with traders and competitors in the interbank market.

In other words, the ECN operates as a base linking traders with participants in the interbank foreign exchange market, so it does not set an amount or sale price as a trader does, as it receives all quotes only from the interbank market.

ECN brokers make

a profit by dividing the exchange rate difference between purchases and sales or by charging a fixed commission for opening and closing their stores.

STP Broker. STP brokers are brokers that act as intermediaries between our activities and liquidity service providers.

Unlike ECNs, STP does not connect the market as a whole.

The profit earned by these brokers is due to the spread, so they are not interested in trading against their clients.

In addition to the types of brokers mentioned above, there is another broker that is very popular and they are hybrid brokers.

Hybrid brokers act as marketers because they offer trading accounts, while others deal with desk brokers because they trade at liquidity-providing institutions.

In summary, we know the types of brokers available to differentiate them and determine which one best suits our investment needs.

When hiring a broker, keep in mind that to avoid fraud or information theft, they must be regulated by one or more regulatory agencies such as the FCA, CySEC, CNMV, NFA or other recognized authorities.




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