Dealing Practices

A firm's dealing practices and the execution on your trades is one of the most important things to consider when choosing a broker. Just like anything else, all brokers differ when it comes to execution and you need to make sure that the execution and dealing practices of the broker match to your trading style.

Some of the smaller bucketshops will not execute your trades as quickly as the bigger companies. In a market like Forex, fast execution is very important. Since Forex is a fast moving market you need to be sure that your trades are placed when you want them to be, and at the price you're looking for.

With any of the brokers that TradersChoiceFX works with, you'll get great execution. Since we're paid for every trade that you place, it's in our best interest to make sure that your trades are being placed fairly. If you get poor execution, you'll stop trading. And that kind of situation is bad for everyone involved!

There are essentially two types of dealing models; a dealing desk and STP/ECN.

With a dealing desk whenever you place a trade the broker actually takes the other side of the trade. On the other hand, with an STP/ECN broker, your trades are placed right into the open market.

There are positives to both dealing models. One reason some traders like STP brokers is because it allows them to trade anonymously. Since the trades are placed right into the open market, no one will know what trades are yours.

On the other hand though, if something were to go wrong with one of your trades at an STP broker, you may run into issues getting this resolved. Since all the trades are anonymous, the broker may not be able to fix the problem. With a market maker you always know who the counterparty of your trades is. This way if any issues arise, you know exactly who to call.

The bottom line is that all of the brokers that we work with are very well capitalized leaders in the industry. Due to their large size, they've got great liquidity. For you this means fast and fair execution on all of your trades.