20131006

Bro - Kers?

If we stick to the definition, the brokers are corporations that act as intermediaries between buyers and sellers by a fee , which may be fixed or variable through spreads. Those where only accessible through a bank or broker-dealer, but in recent years thanks to the Internet they've appeared a new tipe called electronic brokers, a revolution to open the exchange market to common people.
 

The so called electronic brokers operate solely via the Internet with a much lower commission than a traditional bank or normal broker-dealer. Thus you can invest in any market you want from your home in a very competitive world. 



Those brokers are grouped into two main categories: Market Makers and ECN (Electronic Communications Network)
  • The brokers "Market Maker" are characterized by making themselves counterpart to our operations. They make a profit from the difference in the buying and selling price . A difference is called the spread and is supposed to be fixed at all times. This kind of brokers usually offer attractive trading platforms with many tools , real-time charts , and shows the economic news, and they usually require less capital to open an account.Otherwise they have the disadvantage of giving consideration to all its customers may incur losses for the difference between buying and selling prices .  
  • The ECN brokers make available to its customers the best prices for buying and selling offered by all market participants to which they are connected. They also benefit from the spread, but unlike them can not incur losses from operations conducted by their clients because they simply do not give consideration and do not participate in the market. Therefore have no real incentive to operate against his customers.