There are two main categories of brokers…


Summary of the lecture:

  • Dealing Desk Brokers vs. No Dealing Desk Brokers
  • Dealing Desk Brokers
    • Market makers
    • Make money from spreads
    • Can take the other side of clients trades
    • Can be stop-hunted by the broker
  • No Dealing Desk Broker
    • Middlemen to liquidity provider
    • STP
    • ECN
  • Use a regulated broker

The Infographic used in this lecture:

The next lecture is on:  Reviewing Brokers and U.S. Traders


Categories: Lecture

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