Forex Broker – What Are Currenc Brokers?
Dec 2, 2009 currency trading
The middle man function in forex trading is assumed by forex brokers. We need forex brokers to take our orders every time we open a trade. You don’t necessarily have to open trades by the use of a forex broker though. Dealing directly with banks are an alternative only the richest traders have while floor trading is the other way around brokers.
Alas, most of us aren’t Billionaires and lack the ability and resilience necessary for the rigors of floor trading. Forex brokers get their own currency rates from the bank. Forex brokers then offer us higher spreads and this is how they make money. The difference in the spreads are how they ultimately make money. Here are two of the top online forex brokers.
Oanda is a large and popular forex broker. They were one of the few major brokers that offered accounts in different base accounts from the start. Oanda actually started as a company converting large sums of currencies for large corporations. Oanda is owned by the founder of the Olsen Group, Richard Olsen. He has penned two popular books that deal with the currency markets, Introduction to high frequency trading and the forex traders bill of rights
They have collected a good number of awards over the years including the 2009 World finance forex award. They have spreads that are decently low overall. Oanda uses a java based trading software that clients can log into from any computer as long as it has 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. The FXCM trading station II is their platform of choice but they are looking at offering metatrader 4 in the future due to its popularity. They have a total of 6 base currencies for trading accounts that include the Yen, Pound, Euro and the USD.
Fxcm along with Easy Forex are just some subjects that this author specializes on. Prema De Silva has been active in the currency trading markets for the better part of 7 years. Her purpose is to share her knowledge on the subject matter whever she can.
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Tags: currency trading, forex, forex broker, forex trading, fxcm, Oanda
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