Springboard | What TYPE of trading broker should I use?
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What TYPE of trading broker should I use?

Hello traders,

Do you know your ECN from your STP? Your spreadbetting brokers from your direct to market? Choosing a broker, especially for a new trader, can be a daunting task with all the different terminology. However, selecting a broker is a HUGE choice as it can literally make or break your trading success.

In this video I breakdown in simple terms the two predominant types of trading broker. I list the pro’s and con’s of each so that you can make a more informed and confident decision on your trading broker partner. 

Wishing you the greatest success on your trader journey 

Tom
W: http://springboardyourtrading.com/
E: tom@springboardyourtrading.com

2 Comments

  • Matthew paskell

    Hi tom great vids and info.
    I’m new to trading and trying to navigate the minefield of misinformation out there.
    I started with a broker called activ trades on spreadbetting account as based in London. The reason I started with them is they allow small incremental bets .
    The execution seems fine as I’m trading daily charts but my question for you is that they say there model is stp even for spreadbetting account, is this possible or are all spreadbetting accounts market makers.thanks again matt

    Reply
    • Tom

      Hey Matthew,

      Thanks for the note…glad you are enjoying the videos

      The rule is that most spread betting companies are market makers but there are exceptions out there of which Activ Trades could be one of them. I don’t really know much about them but I would just check that your specific account is STP as a some brokers run multiple/both models dependent on the client. They could run both a STP model and a market maker model. Some brokers will start a trader on the marker maker model until said trader starts making money and then they get moved over to STP/Direct to market. Just double check to be sure and if that is to be the case, great.

      As you trade end of day, it wont be too much of an issue. It becomes more of an issue when you use the lower time frames and fast speed of execution & tight spreads become an essential requirement.

      Hope this helps

      Best wishes

      Tom

      Reply

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