What is the difference between a broker and a dealing center?

Some traders open an account with the company they like without even thinking about who the broker or DC is, while others persistently look for a broker-agent, believing that this option is much more reliable.

So what is the difference between a real broker and a dealing center?

Is this difference so significant that it is worth taking it into account when choosing a company that will bring your transactions to the foreign exchange market?

Currently, several types of companies provide their services to Russian traders:

Brokers independently bring transactions to the foreign exchange market; these are mainly large brokerage companies that have access to the interbank foreign exchange market. In fact, there aren't that many of them.

The main advantage of brokers is the speed of execution and usually low spreads; as a rule, they do not promise fabulous bonuses when replenishing accounts.

But the initial deposit here is rarely less than $1,000. Introducing broker - works through a large Broker with direct access to the market, as a result the execution speed is slightly slower, and the likelihood of problems occurring is slightly higher.

Such companies provide large bonuses to attract customers, often compensating for them through an inflated spread. It is introducing brokers that are often called dealing centers of DCs, although this is not entirely true, since Currency Dealing is operations for the sale or purchase of currency on the exchange, and they are carried out by both Brokers and their representatives.

From the characteristics of the companies currently represented on the Forex market, it becomes clear how a real broker differs from a “DC”, so if you are going to trade on a large scale, it is better to choose companies such as AForex , Alpari .