How to distinguish a broker from the "kitchen"?

"Kitchen" is called a dealing Desk that does not show the transaction on the interbank level, thus all transactions traders remain within the company, leading to a conflict between the broker and its clients. To distinguish a broker from the "kitchen" and a novice trader is very difficult. What points should alert you in the first place:

  1. Company registration in offshore countries (Saint Vincent and the Grenadines, Belize, British virgin Islands, New Zealand, etc.);

  2. The lack of licenses FSA (UK), NFA (USA), CFTC (USA), FINRA (USA), CYSEC (Cyprus), FINMA (Switzerland), MiFID (EU), the Central Bank of Russia, as well as membership NGOs CRFIN, kroufr, NAUFOR and other competent regulators;

  3. The absence of ECN, STP and NDD accounts.

  4. The lack of DTS on the website information on suppliers of liquidity and the underlying business models;

  5. Inflated leverage (1:500);

  6. Low minimum Deposit (no self-respecting broker would not display the deal in the interbank market in the amount of 0.01 lot);

  7. Fixed spreads indicate that the opening of deals carried out inside the company;

  8. The presence of re-quotes also indicates that there is "kitchen".

At first glance, the newcomer is quite difficult to determine that before you – broker or "kitchen". Thus was created an honest rating of Forex brokers, allowing you to study in detail the trading conditions of the company, to read a detailed review broker and to get acquainted with the opinions of real traders.