billie-on-air wrote:The user understands that the business model of the SWFX Swiss Forex Marketplace consists in ensuring best execution
This is excellent! But in this provision Dukascopy fails to tell you whether it (i) ensures best execution on the ECN market (many players, including banks and hedge funds and John Smiths like you or it (ii) only ensures best execution within Dukascopy...
billie-on-air wrote:Dukascopy is counterparty of each trade and counter trade.
In this provision Dukascopy informs you that it will ensure all your trades will be made between you and Dukascopy or Dukascopy's clients, NOT between you and hedge funds / banks and other brokers' clients. Therefore your execution prices will not be best. Can Dukascopy offer the best prices in the world 100% of the time? - I rather doubt it.
billie-on-air wrote:In some circumstances,Dukascopy may not hedge entirely or may not hedge at all certain trades.
This is contradictory to previous' being counterparty (market maker) to all your trades. What it means is that in some cases Dukascopy may be ECN.
billie-on-air wrote:Any course for concern regarding that statement. Sounds to me like how most bucketshops operate if i understood that statementment well.
Based on the information you provided I conclude that you were offered a hybrid full market maker quasi-ECN agreement to sign between you and the broker. The broker decides at its will whether you will be executed via ECN or you will be playing a market maker's video game.
If I were a broker who offers such agreements to its clients I would:
1. execute profitable clients via ECN (I wouldn't take the risk of betting against such clients);
2. execute non-profitable clients with myself (I would be happy to bet against losers).
Hope this helps.