Difference between ECN, Market Maker (classic/CFD), STP brokers video

Just so you know… I bet a lot of you aren’t using ECN. Educate yourselves.
https://www.youtube.com/watch?v=tAz2Qxj53KM

plus 500 broker as a recommended 😀

plus 500 broker as a recommended 😀

Is this a joke? They’re CFD. You are exactly the type of person this video was made for (ignoring the fact they advertise at the end).

On a brief google search they seem to be a complete scam with many complaints and their forexpeacearmy rating is less than 2 stars and lots of complaints. The biggest giveaway to me was CFD with bonus and 0 commission (this is to suck stupid new traders in). They don’t even have a ECN option as far as I can tell. Do yourself a favor and get your money out of there asap.

They have even received numerous warnings and fines from regulators.
http://www.forexpeacearmy.com/public/review/www.plus500.com

http://www.abundancetradinggroup.com/

For US traders who want to trade offshore (very difficult for us to find good brokers outside of CFTC regulations) and any body else, but non-US residents have far more options-

FXChoice –(Belize) Reportedly Trusted — NDD/ECN broker, regulated by International Financial Services Commission  (IFSC) Belize

http://www.forexpeacearmy.com/public/review/www.fxchoice.com
Berndale Capital –(Australia) — ECN/STP broker, regulated by Australian Securities and Investments Commission (ASIC)

No professional affiliation with either one other than I use them. FX Choice I’ve used for about 4 years now. Berndale is quite new to retail but they’re backed by Bank of America Merrill Lynch but are separate from the bank. Both have good spreads, good commissions, and really good execution.

This thread wasn’t intended for suggesting brokers. It was intended to show you why you should ONLY use ECN. I added 2 I trust outside the US as Patrick and Karish suggested some.

I’ve heard that ASIC regulation does not cover any non-Australian residents.  In other words if an ASIC regulated broker goes bust or steals the money, they will only protect Australian citizens, everyone else would get nothing.

I have never heard anything positive about Plus 500 yet in 6 years except tons of Google Ads everywhere.

People underestimate the role of their broker to their success in this business.

When you play with MM broker you have to beat the market + your broker + cost (commissions, spread)

When you play with ECN broker or on regulated exchanges (futures, stocks, option brokers) you have to beat the market and cover the commission only

So there is no point to choose MM broker in my opinion.

I’ve heard that ASIC regulation does not cover any non-Australian residents.  In other words if an ASIC regulated broker goes bust or steals the money, they will only protect Australian citizens, everyone else would get nothing.

I assume this with all brokers outside the US (who serve US clients).