Trade - Trade.com

[Morlugamand]

No, introducing broker is a different thing. It normally stands for an intermediary between broker and the final customer. IB in this sense takes care of all the interactions with the individual trader, but leaves executions and whatever else happens on a trading floor to the real broker. Speaking of Tradecom cooperation with IB, IBN stand for Interactive brokers, which is one of the most famous brokers in the world dealing with all types of markets throughout the world.

If I’ve got it correct, one broker uses the other broker’s service, which does not make much sense. Does it? And what do you mean by all the markets? If I’m not mistaken, regular Trade.com accounts allow trading commodities, stocks, forex and even crypt. What else do they need?

 

[Spellweaver]

LOL, no IB in this case only is a provider of their IB trading platform, which is one of the very few applications that allow choosing the market where you wanna send your order to. Markets are not limited to commodities stocks and crypt. These can be, let’s say Indian stocks, Chinese stocks, over-the-counter market, etc.

 

[Morlugamand]

Thanks, man, that explains something about what Trade com is offering. I’m afraid to ask now what over the counter market means. I’ll leave the question for later

 

[Landa]

Hey, Hope someone can help me, I've read that Trade.com offers DMA - what's the difference between standard trading and DMA?

 

[Hulas]

Also got info about that with e-mail, but to open-DMA account you need to create a sepparate account that starts at $5,000, extremely high, especially comparing with Standard acc that starts at $100.

 

[Morlugamand]

Hey, Hope someone can help me, I've read that Trade.com offers DMA - what's the difference between standard trading and DMA?

I was also asking that and googling a lot, but didn't get a clear answer. Trade.com, I think, should work more over friendliness of the website. It's beatuful and well-designed, but the info is divided on many pages.

 

[Spellweaver]

The difference is easy to understand. I will explain what's the difference.
Standard Trade.com account uses ECN execution. It's as you may know, direct execution on market, brokerage is just intermediary. DMA is the same - brokerage gives you direct market access? So why choose DMA?
The thing is, that ECN-execution is excution by liquidity pools. The brokerage uses gathered liquidity pool, gathered by liquidity provider to its traders. ECN execution. as you know, sometimes faces with re-quotes, when another side, abandones the order or execute it just partially. Also, ECN brokers have no agreements with each of liquidity providers, the more providers, the higher comissions or spreads.
DMA is a kind of direct market execution, however, the brokerage has an agreement with each liquidity provider directly, the brokerage that offers DMA quotes and execution offers its traders the pure quotes, provided by each liquidity provider, the spread for DMA account consists of liquidity provider-spread and mark-up, a profit for brokerage. Of course, DMA is harder to develop and offer, as it requires signing agreemets with different liquidity providers, so brokers usually set min deposit starting at $10,00-$20,000. Hulas says that Trade.com has extremly high min depo for DMA accs, I can't agree, compared to other brokers, that's even lower.

 

[Landa]

The difference is easy to understand. I will explain what's the difference.
Standard Trade.com account uses ECN execution. It's as you may know, direct execution on market, brokerage is just intermediary. DMA is the same - brokerage gives you direct market access? So why choose DMA?
The thing is, that ECN-execution is excution by liquidity pools. The brokerage uses gathered liquidity pool, gathered by liquidity provider to its traders. ECN execution. as you know, sometimes faces with re-quotes, when another side, abandones the order or execute it just partially. Also, ECN brokers have no agreements with each of liquidity providers, the more providers, the higher comissions or spreads.
DMA is a kind of direct market execution, however, the brokerage has an agreement with each liquidity provider directly, the brokerage that offers DMA quotes and execution offers its traders the pure quotes, provided by each liquidity provider, the spread for DMA account consists of liquidity provider-spread and mark-up, a profit for brokerage. Of course, DMA is harder to develop and offer, as it requires signing agreemets with different liquidity providers, so brokers usually set min deposit starting at $10,00-$20,000. Hulas says that Trade.com has extremly high min depo for DMA accs, I can't agree, compared to other brokers, that's even lower.

Thank you so much, detailed explanation. Hope Trade.com will add sth like that on their web-site, to help people better understand

 

[2iquelo]

I’m currently testing the demo account of this broker. Tried working in a webTrader, yet, it doesn’t seem to be very convenient. Perhaps the reason is that I’m used to a regular MT4 platform. Not that placing the orders is impossible or totally inconvenient, but I’d prefer having a full access to PC-version of the platform. Does tradecom grand such an access for demo accounts?

 

[Morlugamand]

I don’t know a single broker that wouldn’t do that. Just make sure you download the verified version of MT and simply enter the given credentials. That’s how it works everywhere.