The forex broker acts as an intermediaries in the currency markets. We require forex brokers to take our orders every time we open a trade. You don’t necessarily have to open trades using a forex broker though. Dealing directly with banks are an option only the richest traders have while floor trading is the other way around brokers.
Most of us nonetheless, don’t have the will and skill necessary for floor trading or the money necessary to facilitate trading with a bank. Banks offer forex brokers rates on currency pairs. The forex brokers then turns a profit by offering their clients these currency pairs at a higher spread. The difference in the spreads are how they ultimately make money. Here is a review on two of the most accepted forex brokers on the internet today.
Oanda is a large and popular forex broker. Back then, they were one of the few that offered various base currencies to smaller traders. They started life as a large currency converting provider for bigger companies that required the service. Oanda is owned by the founder of the Olsen Group, Richard Olsen. He has authored two books on forex trading with one of them being the famous manifesto, the forex traders bill of rights
They’re definitely one of the bigger currency brokers and have won numerous awards ranging from the 2009 World Finance’s Forex Award to the 2008 Euromoney Award For Excellence. Their have variable spreads that are competitive. They utilize a java based trading platform that enables clients to trade anywhere in the world with a java enabled computer and an internet connection.
FXCM (Forex Capital Management) is arguably th most well-known name in the online currency trading market. They offer some of the lowest spreads found anywhere to micro account holders and have been branching out internationally. It costs a mere $25 US to open a FXCM micro account and their website caters to most of the key global languages. Their trading software is named the Trading Station 2 and are testing Metatrader 4 for future use as well. They have a total of 6 base currencies for trading accounts that include the Yen, Pound, Euro and the USD.
Forex Broker along with Oanda are just a quantity of topics that the author specializes on. Prema De Silva has been active in the forex trading market for more than 7 years. Her objective is to share her knowledge on the topic whever she can.
