As we know a lot of companies say that they execute orders of their customers at liquidity providers, but it is really difficult to verify these words.
There are no unmistakable facts how to check whether the company really outputs orders at contractors, but there are a lot of circumstantial criteria’s about this matter.
For example not so long ago GKFX ECN had a schedule conflict in the MT4 settings at the moment of time transfer. MT4 time automatically changed on winter time, and ECN stayed at summer time. As a result MT4 started at 00-00 Monday, and ECN started at 23-00 on Sunday. All the orders were in the ECN and as soon as the first quotes from the contractors appeared in the ECN (23-00 on Sunday), some of the orders were executed, instead of all the quotes started to appear in the MT4 only at 00-00 Monday.
GKFX ECN didn’t have any quotes in the ECN and instead of that executed orders by the market prices. GKFX ECN operates based completely on a brokerage model. And this case proves it on 100%.
Also there are some other ways how to check whether your company is a true broker:
- If there are points in the company’s regulation statements that it can disable customer’s trades which are lower than some fixed time or it has any limits on the profit of the trade – it means that the company doesn’t execute customers’ orders on the liquidity providers and has conflict of interest with its clients.
- If the company has freeze levels – it is also one of the reasons, that it has a conflict of interest with its clients.
- At companies which work on a brokerage model spikes appear very rear. And even if they appear orders are just activated by these spikes and are not executed by the prices of spikes and are executed by the normal market prices. Also there can be a situation when the orders are not executed at all and the customers get rejects. If the company executes orders by the spike prices – it means that it has a conflict of interest with its clients.
- Look after the quality of orders execution. If the execution gets worse when you’re trading becomes profitable it means that a company has a conflict of interest with its clients and personally with you.
- If limit orders don’t have a positive slippage (especially at the market opening), it could mean that a company doesn’t hedge its customers’ orders at the contractors and has a conflict of interest with its clients.
- If the time of orders execution at the normal market is higher than 2 seconds, it could also mean, that company has a conflict of interest with its clients.
- If the company can’t show you the list of its contractors it could mean, that this company doesn’t have them at all, but has a conflict of interest with its clients and personally with you.
GKFX ECN operates based completely on a brokerage model. That means that all client orders are processed in the wider market. As such, there is absolutely no conflict of interest between the company and its clients. The company has an interest in seeing its clients be successful and does everything possible to facilitate their success.
Given that its income comes from trading volumes, the company benefits from profitable traders who are able to generate high trading volumes.
Be attentive and trade at the real market Companies like GKFX ECN!