ALL regulated forex brokers possess what’s known as a “market maker license”. Whether the broker is regulated by ASIC, FCA or the NFA, it’s the same. They have the OPTION to fill the trades internally (B-Book) or pass them through to the market (A-Book). As a client, you’ll likely never know which book Estimated Reading Time: 5 mins What is the A Book and B Book that forex brokers use? The B-book forex brokers routinely use their in-house dealing desks to fulfil such orders, usually by taking a counterparty position to the trades of these clients. In some instances, such brokers typically use what is known as a dark pool to mask the true identities of where the orders are being fulfilled
A-book and B-book Types of Forex Brokers - What's the Difference?
Written by Nick McDonald. Let me explain in simple English. Almost every broker in the world is a mixture of A-Book and B-Book. Imagine you want to buy some USDJPY, your broker places the order with the bank, b book forex broker list, the bank then digs into their vault and fills your order. This A-Book transaction is what most people understand as the role of a traditional broker.
A transaction facilitator. Not a supplier. Think of a real estate broker or a stock broker. They source the deal, b book forex broker list in return, earn a commission. Forget the bank. When placing a trade on the brokers B-Book, they fill your trade internally.
They take the risk with their own company capital. So when you win, b book forex broker list, they lose.
And vice versa. I know I know… I was as shocked as you when I first learned how the inner workings of the brokerage industry operate.
They have the OPTION to fill the trades internally B-Book or pass them through to the market A-Book. In my experience, big accounts are placed on A-Book due to the risk to the broker. If you put the morality aside of brokers pretending to be white knights who hunt down the best liquidity in the world to deliver you spreads of 0. Click here to view a list of trustworthy brokers where we trade our own funds. Do you have any experience managing risk within a broker? Please share your inside tips and experiences for the benefit of our community.
Continue reading — Do forex brokers hunt your stop loss? Try Live Forex Trading Room now for just 7 days free and gain access to:. Learn more. Daily Live StreamsForex Signals and much more! B book forex broker list Forex Forum Log In. The difference between A-book and B-book brokers. B-Book on the other hand! How can you test? Does it matter? You have our assurance that your identity will remain anonymous.
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Forex Broker Types Explained - A-Book vs B-Book
, time: 3:10A-Book and B-Book
This system used by "Dealing Desk" Market Maker brokers is known as "B booking". "No Dealing Desk" ECN/STP brokers send all of their clients' trades to the real market or to liquidity providers. They therefore use the "A booking" system. However, many forex brokers use a hybrid model which uses a B Book for clients who lose money and an A Book for the profitable clients B-Book/Dealing Desk/Market Maker: when a broker does not pass the trade orders it receives from its clients onto a liquidity provider. In this case, the broker makes money as the client loses money and loses money as the client makes money ALL regulated forex brokers possess what’s known as a “market maker license”. Whether the broker is regulated by ASIC, FCA or the NFA, it’s the same. They have the OPTION to fill the trades internally (B-Book) or pass them through to the market (A-Book). As a client, you’ll likely never know which book Estimated Reading Time: 5 mins
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