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RE: The Benefits of Ethical Business and Going Above and Beyond For Your Clients
Thanks mate, yeah very nearly an Oxymoron.
A true ECN broker has zero conflict of interest, but there are also A LOT of pretenders. They are also easy to spot though: a true ECN broker's average EURUSD transaction cost will never be more than .8 pips or so including commission. The ECN pretenders are all about 40%-50% more expensive.
But I'm assuming that someone interacting with an ECM broker for the first time doesn't have a good idea what commission rate is reasonable, or it is hidden amongst all the other fees, back end loaded, etc? Or do the brokers explain the higher commission by saying they are better, and the customer will make so much more money with them, the higher rate won't matter? Just curious the ways the game is played in that market. Maybe a follow-up blog?