New Forex Article Explaining What An Online Forex Broker Is Has Been Posted By 1-Forex.com
25 April 2006
Considering the need of good information about online Forex brokers by the forex traders community around the world, the website www.1-forex.com has released an article with a general description of what makes a good broker and what characteristics to consider when looking for the perfect broker for your use.
Before you go online and start trading in the FOREX markets you will need to set up an account with what is known as a Forex Broker. Once you start your search for the perfect broker, you may feel overwhelmed by the number of them who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you a much better idea of the services that are available and the fees charged by various of these brokers.
Strictly speaking, a forex broker is an individual or a company that buys and sells the orders placed by the trader according to his decisions. The way brokers earn money is by charging a commission or a fee for their services.
For example; all serious brokers need to be associated with a large financial institution such as a bank in order to provide the amount of funds necessary for margin trading. In the United States a broker must be registered as a Futures Commission Merchant (FCM) and also with the Commodity Futures Trading Commission (CFTC). These credentials will ensure you have peace of mind, knowing that you have protection against any case of fraud and abusive trade practices.
What you'll always want will be to find a broker who executes orders quickly and with minimum slippage. All reputable online brokers will offer automatic execution of orders and will let you know their policies regarding slippage. A good broker should also be able to tell you how much slippage can be expected in both normal and volatile markets.
These and more important characteristics of an online forex broker are what you will find in the new article published by 1-Forex.com in their FX trading article section.
Source: theopenpress
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