You know that there are hundreds of online Forex & CFD brokers in the world, but you may not know that almost all of them are not really just a broker but a Market Maker.

What is the Market Maker?

To simplify the explanation, Market Maker is a company which acts as a Financial Market for its traders in order to make extra profits.

So there are mainly three types of brokers in the world. Let us explain what is the differences between them.

Complete OTC broker(Market Maker)

It is a broker which does not send any of the clients’ orders to the real exchange market, but the broker hedges(covers) all orders.

  • Restrictions on profitable trading methods
  • 100% conflict of interest with traders
  • Profit cancellation is often
  • and not so many positive reviews on the brokers

Half OTC and half STP broker

It is a broker which chooses traders if the broker will hedge(cover) the trades or send the clients’ orders directly to the real exchange market.

Many of the brokers chooses this type of business model.

  • Some restrictions on profitable trading methods
  • There may be conflict of interest
  • Profit cancellation sometimes
  • Gorgeous bonus promotions as they can afford it

Complete STP broker such as Traders Trust

It is a broker which actually acts as a broker only but not a Marker. There are more benefits for traders if the broker is a STP model.

  • No restrictions on its trading platform
  • No conflict of interest
  • No profit cancellation

Why STP broker is recommended?

The main reason of why you should choose STP brokers is “STP broker is the real broker”, as Companies acting as a Market are technically not brokers.

Let us list up the merits of trading with Traders Trust below.

  • No Conflict of Interest

Traders Trust wants you to make profits by tradings because there is no conflict of interest at all. So you can even get rid of the risks of profit cancellations by your brokers when you withdraw.

  • No price manipulation

As Traders Trust is a complete STP broker, this condition gets rid of the possible price manipulations. Have you seen bad ticks or order rejections by your broker? Well you might have chosen a wrong one.

  • High profit rates

The real profit is not depending on the bonuses or the amount of deposit etc, but it depends on the execution quality. Traders Trust has got everything better for traders to generate profits on its trading platform.

OTC/STP brokers

The truth is that there are many “half OTC and STP brokers”, and there is a few 100% STP brokers in the world.

It is because Market Making business is more profitable than STP model.

OTC/STP brokers can make thousands of profits when traders lose their money, on the other hand STP brokers make money only from the markup spread when its traders trade.

One thing you should really need to know is the following difference:

  • OTC brokers make money when traders lose theirs. Bigger the broker is, larger the fund the traders has lost with the brokers.
  • STP brokers make money when traders trade and continue its tradings. Bigger the broker is, larger the trading volume by its traders.

Why trade with a broker who is waiting for you to lose your funds, when there is a broker helping you to earn money by tradings.

 

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