Risk warning CFDs are complex instruments. 74–89% of retail investor accounts lose money when trading CFDs.

Module 2 — Brokers, Platforms and Order Execution

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About Course

Module 2 has 30 lessons. Each lesson has four parts: Explanation, Key points, Try it and Sources. Facts come from the SEC (Investor.gov), the UK FCA, FSCS, the CFTC, FINRA, the Financial Ombudsman Service and MetaQuotes’ official MetaTrader 5 help. Where no regulator publishes a rule (for example, on account-type names), the lesson says so and uses a clearly marked hypothetical example.

Level: Beginner · Before this: Module 1 · Required before: opening any demo or live account.

Course Content

Part 1 — Brokers and regulation

  • Lesson 2.1 — What a broker is and how it earns money
  • Lesson 2.2 — Exchange brokers, OTC dealers and CFD providers
  • Lesson 2.3 — Market makers, agency and principal execution
  • Lesson 2.4 — A-book and B-book
  • Lesson 2.5 — Checking that a broker is authorised
  • Lesson 2.6 — Legal entity and jurisdiction
  • Lesson 2.7 — Client-money segregation and compensation schemes
  • Lesson 2.8 — Regulated vs offshore platforms
  • Lesson 2.9 — Comparing spreads, commissions, financing and withdrawals
  • Lesson 2.10 — Account types: Standard, ECN, Raw spread

Part 2 — Orders and execution

Part 3 — Platforms, hands-on

Part 4 — Account administration, security and disputes

Module quiz and sources

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