No Dealing Desk Brokers
Non-Dealing Desk broker is the opposite of the prior one, Dealing Desk. This type of broker helps traders connected to the interbank market. However, the spread at NDD broker can't be fixed spread as DD, because they need to adjust it according to the price movement. Otherwise, they will ask their clients to pay off the commission per lot.
STP Broker (Straight Through Processing)
STP broker sends an order to their liquidity provider which has interbank market access. This kind of broker uses variable spread or floating spread for traders.
ECN Broker (Electronic Communication Network)
ECN broker helps their client to be straight connected to the ECN market's participants, including banks, hedge funds, brokers, even traders. ECN's clients are also possible to see the DOM (Depth of Market) from other participants. However, this broker usually asks their clients to pay off a large amount of deposit and commission.
Additional FAQ
How could a good forex broker affect your profitability?
Forex Trading with a trusted broker is a key factor in securing your profit. Fair forex brokers will transmit your requested market order without any intervention, which means no re-quote or fake slippage. In turn, this fair forex trading condition will make each pip (profit) gain more transparent and consistent.
Continue Reading at How to Earn Consistent Profit from Forex Trading
Is it legal using overseas brokers in Nigeria?
As mentioned above, Nigeria has a poorly regulated financial market. There's no prohibition to trade with overseas forex brokers as there's no locally-regulated forex broker either. Therefore, you can legally trade with any overseas forex broker.
Most Nigerian forex traders are registered with European or MENA-based online brokerage companies.
Continue Reading at Forex Trading Facts in Nigeria
What criteria should a real broker possess in Nigeria?
Generally, there are five major factors to consider when choosing a broker and they are:
- Level of regulation: You need to know if the broker is subject to the regulations of the Central Bank of Nigeria and if they operate accordingly. A lack of regulation should be a red flag and set off alarm bells in your mind.
- Trading platform: How does the trading platform look? Is there a registration number on the website that can be verified? Is a demo account available where you can test strategies and other account features?
- Currency pairs being offered: What kind of currency pairs does the broker have on offer? Is it just the minor pairs or exotic pairs that have low liquidity? Are major pairs that have high liquidity and are more profitable available?
- Account features: how are charges and commissions deducted and what are the percentages? What kind of leverage and margin accounts are offered? And what are the terms of deposit and withdrawal?
- Customer service: Is the customer service reliable? Can they provide succinct answers to your inquiries?
Continue Reading at Identifying Fake Forex Brokers in Nigeria
There are four things we could check to recognize broker scams:
- Sensasional ads: They tend to promise a big number, sometimes unrealistic.
- Unproven regulations: Check out whether they are regulated and whether their regulations are legit.
- Untraceable contact: Find out if they have a legit communication line or real address.
- Bad reviews: Look at what people say about them.
Continue Reading at 4 Signs to Recognize Forex Broker Scams
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