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Is Go Markets An ECN Broker? or Market Market? Review broker?
Is Go Markets An ECN Broker? Or Market Maker? Review Broker
In the world of online trading, choosing the right broker is essential for success, as it can make a significant difference in terms of trading experience, cost-effectiveness, and overall profitability. One broker that has been attracting attention in recent years is Go Markets, an online trading platform that offers services to retail traders worldwide. In this article, we will answer the crucial question: Is Go Markets an ECN broker or a Market Maker? and provide a comprehensive review of this broker, analyzing its features, services, trading conditions, and more.
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Introduction to Go Markets
Go Markets is an established online trading broker, offering various financial instruments including Forex, commodities, indices, and cryptocurrencies. With its headquarters in Australia and regulation by the Australian Securities and Investments Commission (ASIC), Go Markets aims to provide a transparent and secure environment for traders of all experience levels. Whether you're a beginner or a seasoned professional, understanding the type of broker you're dealing with is crucial before committing to trading with them.
The two primary categories of brokers in the forex market are ECN (Electronic Communication Network) brokers and Market Makers. These brokers differ significantly in their business model, trading conditions, and the way they execute orders. Let’s take a closer look at whether Go Markets operates as an ECN broker or a Market Maker, and what that means for traders.
What is an ECN Broker?
An ECN broker is a type of forex broker that uses an electronic network to match buy and sell orders directly from market participants. ECN brokers don’t have a dealing desk and don’t act as intermediaries, meaning they don’t take the other side of their client’s trades. Instead, they provide access to liquidity providers such as banks, hedge funds, and other financial institutions, allowing their clients to trade directly with the market.
The key features of an ECN broker include:
No Dealing Desk: ECN brokers connect traders to a network of liquidity providers without taking the other side of the trade.
Tighter Spreads: As there is no intermediary, spreads in ECN accounts are often tighter, though traders might pay a small commission.
No Conflict of Interest: Since ECN brokers don’t profit from their clients' losses, there is no inherent conflict of interest.
Fast Execution: Orders are filled almost instantly, thanks to the automated nature of the ECN system.
What is a Market Maker?
On the other hand, a Market Maker is a broker that creates its own market for traders to buy and sell from. Market Makers often act as the counterparty to their clients’ trades, meaning when a trader buys a currency, the Market Maker might sell the same currency, and vice versa. While this can lead to wider spreads and higher costs for traders, some market makers may offer certain benefits such as no commissions and fixed spreads.
Key features of Market Makers include:
Dealing Desk: Market Makers use a dealing desk to process trades and may also take the other side of client trades.
Wider Spreads: The broker typically profits from the difference between the bid and ask price (the spread).
Potential Conflict of Interest: Since Market Makers might benefit from clients losing, this could lead to a conflict of interest. However, reputable Market Makers work hard to maintain fairness.
Slower Execution: Execution can be slower as orders may have to go through the broker’s internal systems before being processed.
Is Go Markets an ECN Broker or a Market Maker?
So, what type of broker is Go Markets? After analyzing their trading model and reviewing their business practices, it is clear that Go Markets offers a hybrid model, blending both ECN and Market Maker features. The broker provides traders with direct access to the market via an ECN execution model for certain account types, while also offering Market Maker features with fixed spreads on other accounts.
ECN Account Type
For traders who prefer a true ECN model, Go Markets offers its Go+ Account, which provides direct access to the market through a sophisticated liquidity pool of institutional-grade liquidity providers. The Go+ Account offers competitive spreads with a small commission on trades, making it suitable for active traders who require tight spreads and quick execution.
Tighter Spreads: With the Go+ ECN account, traders enjoy spreads as low as 0.0 pips, which is ideal for scalpers and day traders.
Commission: While spreads are tight, traders are charged a small commission on each trade.
Instant Execution: The ECN model allows for fast order execution, ensuring that trades are filled at the best available price.
Market Maker Account Type
Go Markets also offers the Standard Account, which operates on a Market Maker model. The Standard Account is designed for traders who prefer no commissions and fixed spreads. This account type is ideal for beginners or casual traders who don’t mind slightly wider spreads in exchange for simplicity.
Wider Spreads: The Standard Account typically offers wider spreads compared to the ECN account.
No Commission: Traders don’t pay commission on trades, making it easier to calculate trading costs upfront.
Fixed Spreads: The spreads on the Standard Account are fixed, providing more stability for traders who prefer predictable costs.
Go Markets Trading Conditions
No matter whether you choose an ECN or Market Maker account, Go Markets offers competitive trading conditions for all its clients. Below are some key features and benefits that traders can expect when using Go Markets:
1. Wide Range of Financial Instruments
Go Markets offers a wide array of financial instruments, ensuring that traders have access to a diversified portfolio. This includes:
Forex: The broker offers over 60 currency pairs, including majors, minors, and exotic pairs.
Commodities: Gold, silver, oil, and other commodities are available for trading.
Indices: Traders can access global indices such as the S&P 500, NASDAQ, and more.
Cryptocurrencies: Go Markets provides access to popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
2. Leverage
Go Markets offers leverage of up to 500:1 for Forex trading, which allows traders to control larger positions with a smaller amount of capital. However, leverage can also amplify losses, so it is crucial to use it wisely.
3. Trading Platforms
Go Markets provides access to the world’s most popular trading platforms, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms are user-friendly, feature-rich, and highly customizable, allowing traders to execute trades efficiently and utilize advanced tools like automated trading and expert advisors (EAs).
4. Account Types
Go Markets offers various account types, tailored to meet the needs of different traders. The Go+ Account and Standard Account are the primary options, but there are also Islamic accounts available for traders who require Sharia-compliant trading conditions.
5. Education and Support
Go Markets provides extensive educational resources, including video tutorials, webinars, and market analysis. Their customer support team is available 24/5 and can assist traders with any questions or issues they may encounter.
Advantages of Trading with Go Markets
Regulated Broker: Go Markets is regulated by ASIC, which is one of the most respected financial regulators in the world. This provides traders with a sense of security and trust in the broker’s operations.
Low Spreads and Competitive Commission: For ECN traders, Go Markets offers competitive spreads and low commission fees, making it attractive for active traders.
Wide Range of Instruments: Traders can diversify their portfolios with a broad range of assets, including Forex, commodities, and cryptocurrencies.
Excellent Trading Platforms: Go Markets supports the powerful MT4 and MT5 platforms, which are trusted by millions of traders worldwide.
Educational Resources: The broker offers educational materials and tools to help traders improve their skills and knowledge.
Disadvantages of Go Markets
Higher Spreads on Standard Accounts: Traders who opt for the Standard Account may experience wider spreads, which can increase trading costs.
Commission Fees on ECN Accounts: While the Go+ ECN account offers tight spreads, it comes with commission fees, which may not be suitable for every trader.
Limited Products in Some Regions: Depending on the trader's location, certain products may not be available for trading.
Conclusion: Is Go Markets an ECN Broker or Market Maker?
In conclusion, Go Markets operates as a hybrid broker, offering both ECN and Market Maker account types. The Go+ ECN account provides traders with direct market access, tight spreads, and fast execution, while the Standard Account offers no commission but wider spreads, making it suitable for different types of traders.
Overall, Go Markets is a reliable broker with a strong reputation in the industry. Whether you are an active trader looking for an ECN account or a beginner seeking a Market Maker account, Go Markets offers flexible options that can meet your trading needs. Always remember to carefully consider the pros and cons of each account type before making your decision, and ensure that your chosen broker fits your trading style and preferences.
