Hey peeps, I'm working with a buddy who's searching for a broker, and I gave him a little guie but dint want to help him to much cause I guess the time he take to search that he will learn more than me only suggesting to him... EITHER-WAY he received this email in response to another email, is what I am wondering is exactly what he is saying all true? He is attempting to convince my friends there is a dealing desk better and that everyone is a MM. . Its quit humorous! what do you guys think?

Well here is the down and dirty...

Only remember, when firms tell you they are not a market maker or they don't have any dealing desk... ask them the way they place you trade then. Because if they don't have a dealing desk, they're using somebody's to make your transaction... it is just not theirs... that is a massive disadvantage for you.

An ECN places together buyers and sellers. This begs the question who is providing the liquidity? Specualting actually takes out the money from the market. The money is the benefit in this market. People who supply the liquidity are firms like Mercedes Benz that has a contract because of Japan and varies Euros into Yen. An ECN actually takes out the largest advantage to the forex market... Liquidity.

Furthermore, (recall the Bear-Sterns fiasco) Interactive Broker determined that it was going to close down that Friday rather than allow any of it is traders trade. No explanation, no warning, only sorry you can not trade. I really don't know about you... but that sucks!

So far as a dealing desk... They must get a dealing desk in order to make a trade. The largest banks in the world have dealing desks. It's a must for this market to exist. And there's absolutely no way any consumer is going to trade with a bank. That's not going to occur.

Forget your computer going down. Imagine if you don't receive a fill on a few of your orders, or if it blows through a stop or restrict... What do you intend on doing? Without a dealing desk it is not possible to get that resolved.

Additionally, as far as trading with other traders. We have a function on the dealbook called ITX (top left corner of dealbook) that allows you to trade with other traders. The problem with the ITX and interactive broker is the spread isn't any better than just placing a transaction through GFT and that you do pay a comission. (the majority of the time you are paying more... I know from experience)

I only believe you would be making a mistake not trading using GFT... but that's my opinion.