Hey guys! Beauty? Murilo here.
and in today's video I'll tell you what the best Forex brokerage is.
So keep an eye on it because I'm sure you'll like it.
Before I started, I wanted to thank you for being here.
If you subscribe to the channel, if you are not already registered, follow me on the "Instagram", where I talk a little about my day to day and, mainly, about my "copy trading" of "Forex" e.
in the end, as I always say, follow our "copy trading" of "Forex".
If you want to make money 100% automatically following my operations, go there in "copy trading".
There is a "link" in the video description in which I speak the step by step, but calm not go on the video still because today's chat is the best Forex brokerage, and I go Explain the best forex broker and I'll also explain how you choose a Forex broker when you are looking for, so you can understand the business model of these institutions, in short, everything you need to know.
First you need to understand how their business model works.
There are two types of brokerage firms: brokers called "ECNs" or "True ECN", which is a brokerage firm where you operate against liquidity providers, that is, it is a brokerage firm like those we know in the world market, you are operating against others investors, against the providers of liquidity, which we call.
The "Forex" market spins five trillion dollars / day, so it's a financial volume very large, so you're operating there against Citi, against the Bank of America against JP Morgan, against liquidity providers, which we call.
Against investment funds, other traders who are there in the market really.
However, there are other brokerages that are not "ECNs", which are the "Market Makers", that we call.
These brokers have a "Dealing Desk", there are several names in English, sorry, but are the names we have.
What is a "Dealing Desk"? It is a table where your operations are "dammed".
Then you buy a certain amount of EURO / USD.
Instead of buying from another trader, for example Murilo, you buy first That.
This operation she into the brokerage, then you buy, in your system appreciate that you are bought, but this operation inside the brokerage firm, the brokerage firm has a risk management team and such.
She holds this operation and at the end of the day, after a few hours, after a few It depends on the brokerage firm, it's her business, she can not explain it.
to a liquidity provider.
So she sells at the end of the day.
Citi (sorry Citi guys, but I'm quoting because it's an example and I need of a bank to quote), then Citi goes and talks: here, what EUR / USD contracts, I have these and they do the business there and the brokerage gets the spread and then she goes over this her order to Citi for her does not take the risk, of course, she's not as counterpart, it is not operating against you.
Who's on the counter is the "Citi" she bought from you, but she stayed for some with your operation.
What is the risk of this? Obviously the brokerage firm can start to be its counterpart.
You're noticing where I want to go.
There may be a conflict of interest.
The broker can look at it and say, "Wait there, I can win, I can win over of Murilo, why not? " Because she who is.
Think the graph you're seeing.
The Forex market is a decentralized market, there is no stock market.
Each brokerage firm has its agents operating in there: then there are liquidity providers and the "traders" inside.
The broker that's giving the price.
Of course the price is made up of buyers or sellers, but the brokerage house can handle.
I'm not talking she's going to manipulate, I'm just saying she can and it's not something so complicated to do.
So there is a major conflict of interest when you operate with a broker that is "Market Maker", that you are not operating against liquidity providers, against other traders, you are trading against the brokerage firm that will pass along.
There is a great conflict of interest.
But in the end, how can you tell which brokerage is "Market Maker", which is "ECN", which one you are operating directly against the market, how will you know this? First of all: the broker who is "ECN" makes a point of saying.
It makes a point of speaking because every professional trader, every person who knows what is doing either type of brokerage.
I do not want to operate against the brokerage firm.
I do not want her to have a part of my operation, especially if I I'm winner.
In my case, my strategy in "copy trading" is winning, I do not want to be against the broker because she's going to start harming me, it's kind of obvious, I'm going to start making money her.
Of course she can repress and pass on this operation, but often she will be losing, then it starts to get a very complicated situation, especially for whoever wins.
So the "ECN" brokerages make a point of saying this: "Ah, I'm a broker 'ECN' '.
Aside from that, any brokerage has the "chat".
You can open the "chat" and say: "ah, such.
How does your business model work? You are "Market Maker", are "ECN", how is it? " They will answer you.
It's as I told you: Forex brokers are regulated worldwide, so they are obliged to tell you how they really work.
Beauty? So stay calm because the brokerages will tell you how the business model works from them.
The third way you can be sure that you make sure the brokerage firm is a "ECN" brokerage, that you are operating against other traders, against of liquidity, against banks, funds, and against the market in general, is you understand the commissions.
A broker who is "ECN", which operates against the market, it has no fixed spread.
What is the spread? I do not know what the spread will be.
Because? The spread is the difference between buyers and sellers.
What is the spread? Impossible to know, because if you are in the market you do not know how much.
In a moment of volatility if someone is going to buy it or if someone will want it sell, then the spread can go gigantic.
It is clear that this type of brokerage house when it starts to offer this type of system (because is a much more complex system, the "ENC" system that you can have there providers of liquidity in there, is much more complex than a "Market Maker" system, you need of a system in the "Meta Trader 4" much more robust), this type of brokerage has a quantity of very large liquidity providers in there.
You have many people, many traders, a very large financial brokers, then usually the "spread" in EUR / USD, on these assets, GBP / USD are.
It is a slightly lower spread, because there are always people wanting to buy and people want to sell, always have the providers of liquidity, including operating them against themselves.
It is a type of broker where you have the lowest spread, but you have no control on the spread, then this is an indicative factor: "Well, if the brokerage is talking which is a "spread" of at most "3 PIPs", there is something wrong, because it has no way she controls this if these operations are within the market, because there is no way she control how much I want to pay, how much the other wants to pay, you know? So, ECN brokers work only on a commission basis.
They make money with a commission on buying and selling.
You do not have the spread.
It depends on the market.
It depends on the volatility.
It depends, finally, on the market.
There is a brokerage firm, which in my opinion is the best of all so fired, fired.
You can check the reviews under the "Forex Peace Army", including the "Forex Peace Army" I think it's the best site for you to see this kind of review.
I do not have any kind of partnership with them, if you are from "Forex Peace Army", including, if you want to propose a partnership.
I always tell you why I think, really, the best site for you to see reviews, about brokers, finally, about what is happening.
Take a look there.
I'll leave the "link" here for "Forex Peace Army" from this site for "reviews".
It's kind of a giant "claim here", but without intervention, you know? It's kind of a "complain here" anyway, but the guys are also going to do good "reviews" not just bad reviews.
It's kind of a giant "forum" with all brokers, such.
It is very cool.
Then you can take a look there.
I left the brokerage firm that I currently use, I already left the "link", left everything, and I I think so.
If you want, I also left my affiliate link, you can go by that "link".
This is the only brokerage house I use.
It offers "Meta Trader 4", "EC Trader", "Pay Pal", in short, various forms of redemption and, frankly, for now it's the only brokerage house I operate.
I've tested some others, my "copy trading" of "Forex".
I even talk about this brokerage, in the very description of "copy trading" I I speak the brokerage house that I use, because I think it's the best brokerage house.
She never gave me trouble.
I rescued, finally, periodically enough money, so I never had any problems, both in terms of rescue, in terms of operation, cassa "stop", none of that.
I consider the best broker of all, and if you want to know you have the "link" in the video description, I think it's worth you to take a look.
Aside from that, if you want to copy my operations in "copy trading", the profitability was 22% in January 2018.
You can be sure that if you were in a "Market Maker" brokerage your profitability it would be half that.
Because? Because the spread is higher, the "spread" of the "Market Maker" brokerage is higher (you does not have that "spread" super low because you have a giant liquidity), the commission.
Usually does not have a commission, but the "spread" ends up being much more expensive than the commission you pay for brokerage, and in the end the risk is much higher.
As I said: when you have a winning position, when you have a strategy, a "mindset", you have a winning business model within the market, working with a "Market Maker" is to shoot in the foot.
You will have trouble because you will make money, but one hour she will lose money for you and she will start to bother you, so it is not a legal path.
Of course if you are doing "day trade" all this applies.
If you are doing "swing trade", if you are doing "position trade" which are operations with "Market Maker" you may not have big problems, because your operations are much longer, your position is small, you will get some days with the position, then she will have time to move to the table, go through a provider of liquidity and that everything works in a more or less adequate way for the model her business.
For my model that is "day trade" does not roll.
Because? Because I'm sure I'll be earning from the brokerage, so that's why it does not work.
For day traders it is not possible to work with a "Market Maker".
If you are already thinking about longer operations of a few days, a few weeks, a few months, you might find yourself in the "Market Maker" of some alternatives of "Market Maker" brokerages, good service and a good business model for you.
For me and my "copy trading" does not work, but as I say everything depends on how you operate and what your trade style is.
Therefore, in general I always indicate this brokerage house, which is a brokerage house also that I use, and if you want to know more has the "link" in the description.
Hope you like.
I hope you enjoyed this video.
I hope it helps you.
I know it is a very, very tiring process you find the best brokerage, mainly because it's your money.
I, for example, have applications that are sometimes a bit more substantial within the Forex market.
You get scared, you stay, anyway.
It is a regulated brokerage in a first world country, finally.
It's a real estate broker that's worth a look, it operates all over the world, and within the "Forex Peace Army" as you will see is the best "ranking" in terms of, Finally.
Everyone says, "No, man, it's one of the best without a shadow of a doubt.
" Then that's it.
I hope you enjoyed.
I hope it helps you.
See you next time and keep an eye on "copy trading" because I'm sure that you will like it a lot.
Thanks? A big hug.