Trading is a fraud or a reality
Recently, brokerage firms have proliferated, luring novice traders with massive offers such as no-deposit bonuses and 100% deposit bonuses. As a result, many inexperienced traders opened accounts with these dubious companies, which later shut down or disappeared from the scene. Consequently, many traders came to believe that most brokerage firms are merely traps designed to make them lose money and fail to profit from the markets.
Their negative experiences were indeed justified because these unregulated firms often manipulate candles, experience frequent price slippage and abnormal movements, and engage in spread manipulation and stop-hunting. These companies do not execute client orders in the real market but rather trade on a disconnected system akin to a demo account. Therefore, losing money benefits them while making a profit harms them.
Thus, traders should use their past experiences as motivation to thoroughly research a brokerage firm before opening an account and depositing funds.
Let's review the types of brokerage firms and their differences:
1. *ECN Brokers*
These firms execute trading orders directly in the interbank market and do not benefit from client losses or profits. They earn commissions for executing trades, known as spreads, which are variable.
2. *Straight Through Processing (STP) Brokers*
Known for high-speed order processing, these firms transmit orders to liquidity providers. However, this can sometimes result in delays and price changes. STP brokers earn their profit by marking up the spreads provided by liquidity providers.
3. *No Dealing Desk (NDD) Brokers*
These brokers offer direct access to the interbank market without using a dealing desk for internal order settlement. They provide more competitive buy and sell prices and earn money through the margin profit.
4. *Market Makers*
Representing the majority of brokerage firms, market makers buy currencies from banks and liquidity providers and sell them to traders. They profit from the difference between bid and ask prices and have fixed spreads.
5. *Direct Market Access (DMA) Brokers*
Similar to NDD brokers, DMA brokers offer direct market execution, allowing clients to see the volume of buy and sell orders. This transparency helps traders decide when to enter or exit trades based on open contract sizes and market conditions.
Therefore, before opening an account, ensure the brokerage firm is transparent. We recommend Exness to all our clients and followers. Exness operates without a Dealing Desk, meaning your trades are not subject to internal settlement or manipulation. When you open an account with Exness, you ensure that your trades are executed promptly at the best market prices with no manipulation, and their platform is reliable, avoiding disruptions during trade execution.
Trade safely with a licensed and trustworthy broker—trade with Exness.
To find and evaluate the best brokerage firms based on client experiences, click here.
We always advise all our customers to open their accounts in Exness from here .
In the next article, wait for us to explain the plans for installing old and current trading companies and predict how they will be in the future to beware of them to know the best current brokerage companies and evaluate them based on customer experience from here .
