AthenaFx

About Forex Brokers

Type (source goforex.net)

MM (Market Maker)

A market maker operates a dealing desk and provides pricing, liquidity and execution for a particular currency pair. A market maker takes the opposite side of your trade and has the option of either holding that position or partially or fully offsetting it with other dealers, managing their aggregate exposure to the market. A market maker earns their commission from the spread between the bid and offer price.

ECN (Electronic Communications Network)

A Forex ECN broker does not make markets or operate a dealing desk but instead provides a marketplace where multiple market makers, banks and traders can enter competing bids and offers into their platform either inside or outside the spread, allowing traders to trade against each other and with multiple counterparties. A trader might open a trade with liquidity provider "A" and close it with liquidity provider "B", or have the trade executed against the bid or offer of another trader. Participants of the ECN send in competing bids and offers into the platform and the best bid and offer is displayed to the trader with the combined available volume displayed at each price. A forex ECN may use a combination of internal order matching and external order routing to third-party liquidity providers for trade execution. An ECN charges a fee for each transaction.

NDD (no-dealing desk)

A no-dealing desk broker does not make markets or operate a dealing desk but instead uses external liquidity providers to provide pricing and liquidity for its clients. The liquidity providers send in competing bids and offers into the platform, and the broker displays the best bid and offer to the trader. A no dealing desk broker may increase the spread instead of charging a commission to its clients.

Regulation (source forex-regulation.com)

• The NFA - the National Futures Association. The NFA is a self-regulatory organization for the US futures industry. Its purpose is to safeguard market integrity and protect investors by implementing forex regulations. Membership in NFA is mandatory for any futures or forex broker operating in the US .It is an independent regulatory body with no ties to any specific marketplace. 
• The CFTC - the Commodity Futures Trading Committee. Created by congress, the Commodity Futures Trading Commission (CFTC) was formed in 1974 as an independent agency with the mandate to issue forex regulations for financial markets in the United States. The CFTC's forex regulations assure the economic utility of the markets by encouraging their competitiveness and efficiency, and protecting market participants against and abusive forex trading practices.
• The FSA - The Financial Services Authority. This is a UK based independent body, given statutory powers by the Financial Services and Markets Act 2000. The FSA regulates the financial services industry in the UK, which is made possible by the FSA's regulation making, investigatory and enforcement powers. The FSA is obliged to have regard to the Principles of Good Regulation.
• Various National Authorities - each country has its own national body for regulating its financial service industry. These are the bodies that decide on forex regulations, you must therefore make sure that your forex broker is licensed in the country from which they operate. This ensures that they are obliged to operate in accordance to that country's forex trading regulations. 

About Stock Brokerage

by Joshua Kennon

If you open decide to open an account with a traditional brokerage firm, you will work one-on-one with a personal stock broker. He or she will offer investment ideas, prepare reports about your portfolio, give you a run-down of how well your investments are doing, and generally be available with a single phone call or email to buy or sell stocks, bonds, mutual funds,  or other investments for your account. In exchange for this one-on-one service and guidance, you will be charged a significantly higher commission

Discount brokers, on the other hand, are geared toward the do-it-yourself investor. Generally, they will not offer investment advice. They will simply execute orders once you've decided to buy or sell an investment. Instead of working with the same stock broker, you will do most of your trading online, or if you decide to call in your order, with the first available broker. Recently, discount firms have been offering research that is on par with those offered at the traditional brokerage firms.