HERE IS A LIST OF BROKERS THAT MATCH YOUR TRADES WITH LIQUIDITY PROVIDERS
Best A-Book Forex Brokers - List
In forex trading, there are many types of forex brokers, depending on the execution model they adopt. However, broadly these brokers can be categorised into two main groups. These include A-book brokers and B-Book brokers. A-Book brokers are the kind of forex brokers that do not match the orders of traders. Instead, they simply pass on the orders of traders to liquidity providers. In this case, we can view them as simply providing the link between traders and liquidity providers. There are various types of A-Book brokers which include ECN, STP, and DMA brokers.
In this best A book forex brokers review, we will list some of the best brokers with A book execution. But first, let’s understand the difference between A book brokers and B book brokers.
Distinguishing A-Book Brokers from B-Book Brokers
Understanding A-Book brokers is crucial as it will allow us to understand why they are so coveted. A-Book brokers act as the link between traders and underlying liquidity providers. These brokers usually generate revenue through markups on spreads or commissions. In contrast, B-Book brokers assume the opposing side in an investor's trade, serving as the liquidity provider. These traders make money when a trader loses a position, leading to a potential conflict of interest. Since A-Book brokers avoid such conflicts, they position themselves as advantageous for traders. Now, let's look into some additional benefits offered by A-book brokers.
Pros and Cons of A-Book Brokers
Advantages
- Conflict-free - A-Book brokers avoid conflicts of interest, as they do not gain from traders' losses. They merely act as the link between traders and liquidity providers.
- Competitive spreads - Many A-Book brokers offer low spreads, especially those with fixed commissions and no spread markups.
- Deep liquidity - A-Book brokers typically collaborate with reliable liquidity providers. This ensures deeper liquidity in the market.
- Transparency - A-Book brokers provide a more transparent trading environment.
Disadvantages
- High commissions - Some A-Book brokers may charge high commissions, potentially increasing trading costs.
- Risk avoidance - A-Book brokers act as intermediaries, avoiding market risk.
Best A-Book Forex Brokers
FBS
FBS is a well-known international Forex and CFDs broker that accepts traders from 150 countries. The broker offers the all-inclusive Standard Account, packed with everything traders need for seamless trading, from competitive low spreads and superior execution speeds to convenient deposit and withdrawal options.
This account features an STP execution model and low spreads that start from as low as 0.7 pips for major currency pairs. The STP execution model is what makes FBS an A-Book forex broker.
This A-Book broker allows investors to trade a variety of market products. These include forex currency pairs, stocks, cryptocurrencies, indices, metals, and energies. Further, traders can benefit from high leverage and a user-friendly trading environment. The broker supports both MetaTrader 4 and MetaTrader 5 platforms, offering a familiar interface for traders. It also provides traders with its FBS Trader platform.
You can deposit and withdraw your money via local banks & global methods. In total, they offer 200+ payment methods which differ depending on the country of your residence. The broker provides instant automated withdrawals. With 95% of orders executed within 0.4 seconds, FBS is one of the fastest execution brokers in the market.
It's important to note that the regulatory oversight for FBS comes from the FSCA in South Africa, the FSC in Belize, the CySEC in Cyprus, and the ASIC in Australia.
Pepperstone
Pepperstone is a forex and CFDs broker that offers ECN services to traders worldwide including traders in Nigeria. Its ECN execution makes it one of the best A-Book brokers in Nigeria. The broker sources liquidity from liquidity providers using an electronic communication network. It then passes the underlying prices straight to clients without using a dealing desk. The broker promises no hidden markups, no requotes, and little to no latency.
On another positive note, this broker has regulations from the CMA in Kenya. On top of that, it has regulations from some notable institutions including the FCA in the UK, the ASIC in Australia, and the BaFin in Germany, among others. It is always a safer bet to invest using a broker that has regulations from multiple organizations.
In terms of market products, this A-Book broker avails over 1,200 different CFDs to traders. These include CFDs on forex, indices, shares, cryptocurrencies, currency indices, ETFs, and commodities. Such diversity is always a positive feature on a broker site. Additionally, there are four different trading platforms to choose from. These include MetaTrader 4, MetaTrader 5, cTrader, and TradingView.
The spreads offered by this broker are reasonably low and depend on the account a trader uses. The standard account has spreads from as low as 1.0 pips for major currency pairs with no commission expected. In contrast, the raw account has spreads from 0.0 pips plus a commission of $3.5 per side per lot when using MT4, MT5, and TradingView. The commission is $3 per side per lot when using cTrader.
FP Markets
FP Markets offers traders access to over 10,000 different market instruments to invest in. These include forex currency pairs plus CFDs on shares commodities. Metals, cryptocurrencies, ETFs, indices, and bonds. The trading platforms available include MetaTrader 4, MetaTrader 5, cTrader, and Iress.
Notably, this broker offers two types of A-Book execution which include ECN execution and DMA execution. The ECN execution ensures that the broker streams prices directly from its liquidity providers. Interestingly, the DMA execution model is only available on the Iress trading platform. This execution model also gives traders price feeds directly from the underlying market with no markups. FP Markets offers traders deep liquidity, price transparency, tight spreads, and ultra-fast execution in both of these execution models.
Regarding spreads, this broker has some of the lowest spreads in the market today. The standard account of the broker has spreads as low as 1.0 pips for major currency pairs with no commission. On the other hand, the raw account has spreads from 0.0 pips plus a commission of $3 per side per lot.
The regulation of a broker is crucial to look at. It helps traders determine the credibility of a broker. Luckily, FP Markets has regulations from the FSCA in South Africa, the ASIC in Australia, and the CySEC in Cyprus.
Admiral Markets
Trading Forex and CFDs entail risk.
Your capital is at risk.
Admiral Markets is an A-Book broker that uses the Straight Through Process execution model. In this model, the broker simply passes all client orders to its liquidity providers. The liquidity providers include hedge funds, large banks, and investors who can match the opposite side of a trade. Admiral Markets does not use a dealing desk to match the orders of traders.
Notably, Admiral Markets allows traders to greatly diversify their portfolios. The broker gives traders access to various global markets including forex, commodities, stocks, ETFs, indices, and bonds. There are three main trading platforms available to use. These include MetaTrader 4, MetaTrader 5, and Admirals Mobile App.
There are five main accounts on this broker site which come with different spread structures. The Trade.MT4 and the Trade.MT5 accounts both have spreads as low as 0.5 pips for major currency pairs. The other three accounts have spreads that start from 0.0 pips and commissions between $1.8 to $3 per lot depending on the account.
Finally, the regulatory status of this company is in good standing. The broker is under the regulation of the FSCA in South Africa, the CMA in Kenya, the FCA, and the CySEC.
Vantage Markets
Trading Forex and CFDs entail risk.
Your capital is at risk.
Vantage Markets is an A-Book broker as it uses both ECN and STP in order processing. There are four main accounts available to traders. The Pro ECN and the Raw ECN account only feature ECN order execution. In comparison, the Cent account features both ECN and STP processing. Finally, the STP account features both ECN and STP processing.
The spreads that traders enjoy in the market depend on the account that a broker chooses to use. The Standard STP account features spreads as low as 1.0 pips for major currencies with no commission required. The Raw ECN account has spreads from 0.0 pips plus a commission of $3 per side per lot. In comparison, the Pro ECN account has zero spreads with a commission that starts from $1.5 per side per lot and upwards.
On another note, this broker provides traders with a deep collection of market products. Investors can trade CFDs on forex, indices, commodities, precious metals, ETFs, energies, shares, and bonds. The trading platforms that traders have access to include MetaTrader 4, MetaTrader 5, ProTrader, and WebTrader.
Finally, let’s look at the regulations of this broker. Well, Vantage Markets is under the supervision and regulation of the FSCA, the CySEC, the ASIC, and the CIMA.
A-Book brokers have clear advantages that make them stand out, especially in transparency. These brokers pass prices straight from liquidity providers to traders. They do not take the opposite side of a trade. As such, they foster ethical practices and market neutrality. Even so, it is crucial to pick the right A-Book broker to match your trading needs. We listed some of the best A-Book forex brokers in the market for Nigerian traders. We picked these specific brokers as they are regulated, have reasonably low fees, a deep collection of market instruments, and advanced trading platforms.
Ultimately, the choice of the best A-Book broker comes down to an individual trader’s preference and choice. As such, each trader should thoroughly research the brokers available before committing their money to one of them.