Since the popularity of forex trading online, many new forex
brokers have sprung up. And they all want a piece of the market since
online currency trading is huge business. As such, we have the veritable
pick of the litter when it comes to selection. But why are currency
brokers so necessary? Forex Brokers perform the role of the middle man
when investing in the forex market. In short, they place our order for
us while charging us a small fee for doing so.
Forex brokers make
their money by charging us something called the spread.Spreads vary
according to the currency pair traded as well as the forex broker that
is placing the order. Some brokers charge low spreads while others
charge standard spreads across the board. Some even charge a commission
on top of the spread. Below is a brief glance at two very popular and
recognized forex brokers on the web today.
Oanda is an extremely
popular forex broker. Even from the start, they offered trading accounts
in different base currencies. Oanda actually started as a company
converting large sums of currencies for large corporations. Oanda is the
creation of Richard Olsen who founded the Olsen Group. Richard Olsen is
responsible for two popular books on forex trading. The "Forex Traders
bill of rights" and "Introduction to High Frequency Trading".
They
have collected a good number of awards over the years including the
2009 World finance forex award. Their have variable spreads that are
competitive. They have a web based trading platform that users can use
from any computer terminal worldwide.
FXCM is the worlds most
popular online forex broker to date. They are famous for having some of
the lowest spreads on the market and have been slowly marketing
themselves in a number of countries. They are a multi-lingual currency
broker with all the key languages covered and it takes as little as $25
to open a micro account with them.
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. Their obvious attraction to the forex trader are their super
low spreads along with the low deposit required for an account. This is
good news as it makes forex trading accessible to most people as well as
increasing competition in the online forex broker arena.
Hopefully,
what this means in the long run are better spreads, more reliable
currency brokers and more traders venturing through the internet to
place their trades.
For further information on Forex Trading,
please click on the highlighted links for a visit to a free investment
information resource. Prema Laga has been trading currencies for years,
as such, her interests tend to focus on investments online or otherwise.
Mutual Funds, Bonds, stock trading are all in her area of expertise.
