Fixed spread broker vs ECN Broker

Fixed Spread Retail Brokers-


First the Pluses

Fixed Spreads (except news time)

Guaranteed Stops & Limits (except news times)

Guaranteed fills (excepts news times)

Low initial deposits

Now the Negatives-

Way to much leverage

Many re quotes

Low initial deposits

Encourage traders to over trade

Trade against you

ECN or commission based Brokers

Pluses

Very low spreads during non-news times

small initial deposits

Don't trade against you

No re quotes

Live interbank feeds allowing you to set your own price. Trading between spreads.

Negatives-

Commission can nullify spread savings

No guaranteed fills at anytime

No guaranteed stops or limits at anytime

Gaps in price will murder you.

These are the two main types of brokers. There are hybrids emerging these days. You want to do your due diligence in choosing a broker. If they are based in the USA check them out with NFA @ National Futures Association - NFA is a regulatory service provider for the derivatives markets & ask fellow traders.

Make sure that are have been around for at least 5 years & have a solid track record with the NFA & the CFTC. This is your money, protect it.

source:
http://www.forex-tsd.com/metatrader-brokers/14048-alpari-uk-mbtrading.html