Most
forex traders use a broker to handle their transactions. What exactly is a
broker? Strictly speaking, forex broker competition is an individual or a
company that buys and sells orders according the investor's decisions. Forex
Brokers competition earns money by charging a commission or a fee for their
services.
A
FOREX broker competition needs to be associated with a large financial
institution such as a bank in order to provide the funds necessary for margin
trading. In the United States forex broker competitive should be registered as
a Futures Commission Merchant (FCM) with the Commodity Futures Trading
Commission (CFTC) as protection against fraud and abusive trade practices.
Before
trading FOREX you need to set up an account with a FOREX broker. You may feel
overwhelmed by the number of forex broker's competition who offers their
services online. Deciding on a broker requires a little bit of research on your
part, but the time spent will give you insight into the services that are
available and fees charged by various brokers.
Customer
satisfaction and safety are just part of the story. You want to find forex
broker competition who executes orders quickly and with minimum slippage. All
online brokers should offer automatic execution and have clear policies
regarding slippage. They should be able to tell you how much slippage can be
expected in both normal and fast-moving markets.
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