Forex Foreign Exchange Brokers: The ones Who Handle The Money
Since the whole idea of becoming involved with the Forex (Foreign Exchange Market) is to earn money many people wonder if they really need to have a forex foreign exchange broker. Since the brokers earn their money by charging their customer's a fee, many people wonder if they would be able to earn more money by handling their own Forex deals.
What A Broker Does
A Forex foreign exchange broker's job is to help their clients navigate the world of Forex. Some brokers simply advice their client's about exchanges, other Forex foreign exchange brokers essentially do all the wheeling and dealing, while the client sits back and watches the money roll in. The client's own Forex experience will play a large role in how active the Forex foreign exchange broker deals with their account.
Types Of Brokers
People who are thinking about hiring a Forex foreign exchange broker need to do their homework before hiring a broker. While the world is full of brokers who have great instincts, access to the latest software, and a spectacular reputation, there are also a few brokers who lurk on the edge of the world, brokers who are more interested in making money for themselves then for their clients. When trying to find a Forex foreign exchange broker it is important to remember that there are several levels to the Forex and that some brokers aren't qualified to trade at the uppermost levels.
A person with little or no experience with the Forex should look for a type of Forex foreign exchange broker that is called a retail market maker. This type of broker is excellent for a novice trader because they offer their clients a wide range of services.
Forex foreign exchange brokers with strong direct connections to the Forex market are called institutional market makers. This type of broker typically deals with trades that require large amounts of money to be handled.
When you are looking for a Forex foreign exchange broker it is important to check and see how closely the broker is connected to the Forex. If the broker your talking to seems to do little more then book Forex trades, they never seem to actually take the necessary steps to see the trade take place, you are probably dealing with a type of Forex broker that is commonly called a bucket shop. In most countries bucket shop Forex brokers are legal, but unless you are person who has a great deal of experience making Forex trades you would be better off looking for a Forex foreign exchange broker with a closer connection to Forex.
Another type of Forex foreign exchange broker you will be better off avoiding are bookmakers. In some circles the bookmakers are called spread betters.
