Formax is what is known as an ECN (Electronic Communications Network) broker. An ECN broker matches your trade with somebody else that is seeking the same trade on the open market. As the name suggests, this is done on a central electronic database.
There are some benefits to using an ECN broker over other types of broker. The most obvious is that our clients all receive market execution meaning you get the current best market price on each trade. In addition, an ECN broker makes money based on the volume of trades our traders place and therefore we have an interest in your trading success. After all, we want you to keep coming back.
By way of comparison, a market-maker (or dealing desk) broker does not place your trade on the open market. Instead, they keep your trade in-house meaning they create the price you pay for a currency and squeeze it to their advantage by betting against you. In this sense, a market-maker broker only makes its money if your trade loses and thus, they like inexperienced traders. This clearly raises a question around conflict of interest.
You get the best price that the market is offering at that moment in time.
Unlike a market-maker, an ECN broker does not depend on its clients trades to fail in order to profit.
Receive the actual market spread rather than a (typically less competitive) fixed spread created by other brokers.
Your trading status is anonymous so there is no bias to the rate you receive based on your trading experience.
Get started in no time with a simple four-step process for live trading access.
Practice risk free trades with a comprehensive demo account up and running in minutes.
Risk Warning:CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Formax do not provide investment advice relating to investments or potential transactions in investments and our products may not be suitable for all investors. Formax is permitted to provide factual market information and information about transaction procedures. Any subsequent decision to enter into any transactions with Formax must be yours. Please ensure that you fully understand the risks involved and seek independent advice if necessary.
Legal:Formax Prime Capital (UK) Limited (08891879) is authorised and registered by the Financial Conduct Authority with Firm Registration Number; 624225 and has its principal place of business at Suite 627, 107 Cheapside, London, EC2V 6DN. Copyright © 2017 Formax Prime Capital (UK) Limited. All rights reserved. is owned and operated by Formax Prime Capital (UK) Ltd.