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Additionally, the regulatory requirements vary between countries. Therefore, it makes sense to choose a forex broker from a country where the authorities strictly monitor regulatory compliance. In addition, you must also make sure that the on-shore as well as off-shore operations of the broker are regulated. Countries where dedicated regulatory authorities are available are the USA, the UK, Australia, Japan, the Eurozone and Switzerland.

Look for Brokers That Are Well Capitalized. It pays to identify and work with a well-capitalized forex broker. This is because it ensures a lot of security for your funds. To understand the details about the capitalization status of a forex broker, you can visit the website of the regulatory authority of that country. Only MetaTrader forex brokers who are well-capitalized will be able to establish good credit relationships with liquidity providers and make available competitive pricing to their clients.

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These brokers offer fixed or dynamic spreads and charge a fee for the services provided by them. In turn, the market makers often provide some compensation if the broker routes transactions through their dealing desk. 2 Market Makers Dealers. The operation of a market maker is by means of a dealing desk. This is the method employed by most banks and financial institutions.

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