"Interested in Forex? Need to choose between the hundreds of Forex brokers out there? Have no fear! The Definitive Guide to Forex Brokers is here to present you with the most comprehensive overview of what Forex brokers are about and what they can do for you."
Since online Forex trading first broke out in the early 2000’s there has been a steady rise in the number of Forex brokers out there offering their services to a constantly growing number of traders.
With so many brokers out there, we’ve noticed that it has become increasingly hard to distinguish among them and to determine which one provides the best solution to specific trader needs, so we’ve decided to create The Definitive Guide to Forex Brokers to help make the picture a little clearer.
With each chapter of this guide we will introduce you to a set of criteria by which you can judge whether a Forex broker is right for you or not, and hopefully enable you to make a more informed choice.
But before we get to that, let’s start from the basics…
What is a Forex broker?
Forex brokers are your entryway into the currency markets.
On the most basic level, a Forex broker provides you with a trading account which you can use to speculate on global currency movements. That is what all Forex brokers have in common; after that there are a thousand ways in which brokers can differ from each other.
From their selection of currencies, to their fees structure, to even the basic way in which they place your orders to sell and buy currencies, Forex brokers come in all shapes and sizes.
It is our mission in writing this guide to provide you with the tools to understand these differences and make the best choice of Forex broker for you.
Why do I need a Forex broker?
And that’s where the Forex Broker comes in. You might think that you can easily arrange this type of deal by yourself. But consider the fact that in order to make any kind of profit on a Forex transaction, you have to exchange thousands, tens of thousands and even hundreds of thousands of currency units.
That complicates things a little, doesn’t it?
Now to that, add the fact that the Foreign Exchange market sees over $4 trillion worth of currency change hands every day. It would be impossible for any individual trader to find a buyer/seller at the best price among all that noise.
And that’s where the Forex Broker comes in.
Not only do Forex brokers arrange the trade, but they can also leverage your trade so you don’t have to put all your savings into one Forex investment, and do it for a much smaller fee than, for example, a bank.