How to Start Trading with a Forex Broker

The foreign exchange market is by necessity a global and 24-hour market. The clients of a forex broker include retail currency traders who use these platforms for speculation on the direction of currencies. Their clients also include large financial services firms that trade on behalf of investment banks and other customers. Any individual forex broker…

Forex brokers are compensated two ways. The first is through the bid-ask spread of a currency pair. For example, when the Euro-U.S. Dollar pair is priced as 1.20010 bid and 1.20022 ask, the spread between these two prices is .00012, known as 1.2 pips. When a retail client opens a position at the ask price…

The industry is regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).1 Anyone considering opening a forex account can research the available brokers through the NFA website or through Investopedia’s broker reviews.

An introducing broker, or IB, is a company or individual that introduces its clients to a forex or CFD broker. They provide their clients with trading education and support, as well as access to the financial markets. Bringing in new clients to trade with a broker may sound similar to affiliates but IBs provide further services…

Opening a forex trading account these days is quite simple and can be done online. Before trading, the forex broker will require a customer to deposit money into the new account as collateral. Brokers also provide leverage to customers so they can trade larger amounts than they have on deposit. Depending on the country the trader is…

A Forex trading broker is organized as either a dealing desk (also called market makers) or a non-dealing desk. In the first case, the Forex broker literally creates a market by mirroring the quotation from the interbank market and deals the prices to its clients. In the second case, the Foreign exchange broker routes its clients orders…