Trading foreign currency and also the stock market is really exciting. There is no way that you will realize that you are winning or losing. Though it is like gambling, it is actually not. There are some reasons why people are winning and losing constantly. One of them is because they choose wrong ECN brokers UK. It is essential to keep the bad brokers away from your list if you want to get profit. Moreover, stay away from a broker with market maker functions. Such broker only wants to see you lose, and it is not ideal to work with. Many people are falling into their trap though, and be sure you are not following them.
ECN Brokers UK With Its Characteristics
There are some important things to note when it comes to ECN. First of all, it is all about the bonus. ECN is actually a system where broker basically cannot reap up profit by themselves. They are already paid with a fixed amount of money. Thus, they basically cannot do anything in trade. With that being said, they do not want to share any bonuses unless they want to lose some profits as well. Therefore, it is extremely rare if not impossible to find ECN brokers UK giving bonuses without any burden to participants.
Moving to another aspect, we have variable spread instead of fixed. Any ECN broker offering fixed spread is obviously lying, but people are buying still. Indeed, it is problematic, but it is what happens in the real world. Therefore, be sure you understand the characteristics of ECN brokers UK before registering with them. Lastly, to avoid any bad things from happening to you, you need to make sure that the brokerage firm that you are working in is legit. You should see the name in the newspaper or annual financial report for that information.