Dealer in ECN mode. Because ECN traders will not manually modify the spread, nor will they manually modify the data to trigger a stop loss. Their platform is transparent transmission, which directly passes the transaction to rival customers or big banks above 12 (customers and banks are like water in a big pool). These banks provide market liquidity, so there is no upper limit for trading. Their major currency pairs are usually 1 spread or no spread, and sometimes the spread is negative. In addition, they allow setting price limits between spreads as low as110. For example, if the British pound quoted against the US dollar1.951517, the price limit can be set to 1.95 1650. How many traders are allowed to set the price limit like this? Market makers and traders will generally ask you to set a price limit in addition to your bid/ask for 4: 00 to 5: 00. Their income comes from commission, otherwise they will go out of business in a few days.
MM (market maker system) companies have no commission, but what do they live on? Shit, have some! In other words, their price difference is fixed, but their quotation is given by them, not the real price in the international foreign exchange market at that time.
If when customers make big money, because customers deal with them directly, then customers will lose money, then they may go bankrupt, and once they go bankrupt, their funds will not be guaranteed. Ruifu is such an example.
It is precisely because of this that it is not easy to close a list that is beneficial to customers, or even if there is a loss, someone will intervene, and scalping is not allowed, because if customers use the platform to see the difference for profit, it will inevitably lead to the loss of market makers.
Although their spreads are fixed, generally speaking, in order to prevent risks, the spreads will be relatively large. Market-making companies will lose money if the spread is small. And when the data is released, the price difference will be very large.
And what does ECN live on? Through entrustment, they do not participate in the customer's transactions themselves, but directly take the customer's orders to the international market for transactions. They only charge distribution fee and service fee. So it doesn't matter to customers whether they earn or lose. What they do is to provide a trading platform for customers. So no matter what order the customer has, as long as someone in the international market is willing to take it at that time, the deal will be made immediately, and there will be no human intervention. They will also do extra-short-term jobs at will.
Although their spreads are not fixed, a person familiar with the market will understand. When the market is active, the spread is very small, or even negative. However, when the market transaction is light, because people are not interested in trading, the bid-ask ratio may be very different. But this is the real market price. It can be said that ECN companies don't care about spreads at all, and their role is only to pass on market prices.