Which Type of Forex Trading Broker is for You ?

Before entering the forex (foreign exchange) market, it is wise to be cautious and be knowledgeable at the same time. The industry is a humongous financial market which can be tricky, if you have less or worse, no background. There are several ways to learn about the forex industry without even getting into it such as, attending seminars, face-to-face discussion, watching related forex YouTube videos, and reading articles and reviews. Yet, the best way to go beyond the basics is to actually experience how it is like to be a trader in the forex market.

Everybody who is trying to touch the border of trading has to get a companion— forex brokers. However, choosing one is a difficult task when you do not know what they can and cannot do for you.

 Here are some steps to consider.

One: Choose a type of forex broker

There are many existing forex brokers today, and they are categorized into labels like NDD, DD, ECN, STP, and Hybrid.

It is also referred to as No Dealing Desk (NDD) brokers. This type of forex broker executes transactions while watching and filling orders for their clients and normally asks for commission.

The Dealing Desk brokers or Market Makers provide a two-sided market. It chooses the side in which the market has a greater spread and immediately stops the trade when the target quote is reached to prevent the possibility of losing more than gaining.

Electronic Communications Network (ECN) forex brokers do not have dealing desks. It offers an electronic trading platform where the dealing desk brokers with big clients can enter and trade.

Straight Through Processing (STP) forex brokers are like ECN. They do not have a dealing desk but some of them abide by the trading terms and conditions of the market makers.

Basically, Hybrid brokers are a combination of ECN and STP.  They are the best in-between brokers for trading with the same exact conditions applied with the two while avoiding market-making.

Two: Identify the preferred trading platform

Not all types of forex brokers use the same trading platform. Each trading platform has its own rules and you must be aware of those as a trader. Some popular platforms that are highly-recommended are Currenex, MT5, ActTrader, and more. To see more types of trading platforms, visit https://fxdailyreport.com/forex-trading-platforms/

Three: Evaluate the terms and conditions

Evaluating the conditions for your trading experience must be a top priority. As a trader, your goal is to make the most out of your starting capital and grow bigger. Reviewing the terms and conditions provided both by the broker and the trading platform is the best way to prevent unwanted problems.

Four: Go big!

Now that you are all set and ready to enter the forex market, give your best. Learn through the whole process until you become your own broker.

Indeed, beginning with the basics is the most essential part of going up there! Nobody is born a butterfly, everybody started off chewing leaves as a caterpillar. Make your forex venture the best of the rest!