It so happened that when confronted with the word "commission" people think that somebody wants to earn on them, it causes a negative reaction. We hasten to take advantage of those who does not use commission, and we think that these companies are more honest and fair. The same thing is happening in the financial sector. Is it really? Are Commissions scary? Are Fair those who provides attractive bonuses, without commissions? Try to understand. Speaking of those who exposes the commission, we mean STP-broker.
Who is STP-Broker? STP-Broker ( straight through processing ) is a type of brokers, which is connected to one or more providers of liquidity. He directs dealings on those transaction provider wich offers the best price. The main income of STP-broker is a payment of commissions that it receives from each client, however, note that in this case the broker is interested in winning of their customers, is committed to fully support them and are interested in long term cooperation. Now we consider a situation in which you offer good leverage, various bonuses and did not charge commission. We are talking primarily about Bucket shop.
What is the company, which can be associated with the concept Bucket shop?Bucket shop is a slang expression in the field of brokerage. We are talking about the fact that in this case the client requests do not go outside of the company, the trader does not get access to liquidity. In this situation, there is no need of "external" deals. In other words, we are talking about a distorted internal "clearing".
In a classic example, if the broker has no counter requests, there is a necessity to implement a deal with an external counterparty, or to be as independently opposite side and take on market risk. After this situation, BS has to be hedged in the foreign market. During the Performing transactions on himself, Bucket shop does not carry out any balancing operations. In fact, he is just beginning to correct the client's balance sheet. In this case, obviously, there is a conflict of interests: the loss of client becomes a profit for the broker and the profit of client becomes a loss. Thus, we speak right: BS earns on your loss and does everything that you were a loser. In this case, we compare Bucket shop with a bookmaker. Such organizations do not receive finance from external sources. Such organizations do not receive finance from external sources. If a person made a bet and won, the bookmaker pays out independently, and their main profits are your losses. Obviously, the clients with such "broker" are on opposite sides of the barricades. In connection with this, there are very common cases when brokers do not pay winnings and deposits. However, Bucket shop has its own clients. Do not they know about the current state of things? Probably they know. Bucket shop can also be useful.
In which case it makes sense to become a client Bucket shop?
Suppose you have a small amount - $ 200 and want to learn the basics of trading in the currency market. Bucket shop allows you to trade with such small amount. You learn how to play, analyze calculations follow exchange rate, gain experience, however, in which case you should be prepared for the loss that will come sooner or later. These are the realities of these companies. Perhaps this is all the pluses of BS.
Why STP-broker is the right choice?
If you have sufficient capital (usually $ 1000), it makes sense to turn to STP - a broker that gives you transparent prices and let you withdraw your money on demand, because the activities of such broker is controlled by the relevant government authorities. This is not true for the BS. FXFINPRO CAPITAL is an STP-broker with a European license (regulated by the Cyprus Commission for Securities and Exchange Commission ('CySEC'), which is directly interested in the success of their clients. We have provided our traders with everything necessary for efficient and profitable trade: lots of training material, various personal services to help its customers, including beginners, a large volume of unique analytical material, round the clock customer support. When you refer to the Bucket shop, this is equivalent to as if you decide to buy fake goods. It is an illusion of trading, which carries certain attractive points, however, this does not cease to be an illusion.
STP-broker is one of the most reliable ways to protect yourself from unforeseen risks and start building your financial way not on sand, but on the solid basis of the fair.
Become part of a large and strong team of professionals FXFINPRO CAPITAL today and start your way to financial freedom.
Remember: you are not so rich to afford to buy cheap things.
We assume there are things over which you need to think about.