Forex Broker : What Function Do Forex Brokers Have?
Posted by Prema De Silva | Filed under Finance
The middle man function in forex trading is assumed by forex brokers. Without them, we cannot place our orders. However, there are other options around forex brokers. Dealing directly with banks are an alternative only the richest traders have while floor trading is the other way around brokers.
Alas, most of us lack the fortitude or the money essential for floor trading or placing orders through the bank directly. Forex brokers get their own currency rates from the bank. Forex brokers then offer us higher spreads and this is how they make money. The profit is made through the spread. Below is a concise glance at two very accepted and well-known forex brokers on the web today.
Very accepted, Oanda is one of the largest players in the online currency trading scene. Back then, they were one of the few that offered different base currencies to smaller traders. Oanda actually started as a company converting large sums of currencies for large corporations. It is the brainchild of Richard Olsen of the Olsen Group. He has penned two popular books that deal with the currency markets, Introduction to high frequency trading and the forex traders bill of rights
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. Oanda uses a java based trading software that clients can log into from any computer as long as it has an internet connection.
FXCM is the worlds most popular online forex broker to date. They have been aggressively expanding globally and have the lowest spreads among the top online brokers. Their services are offered in most chief languages (Chinese, Arabic, French etc) and opening a FXCM Micro account costs just $25. Their trading software is named the Trading Station 2 and are testing Metatrader 4 for future use as well. They have a total of 6 base currencies for trading accounts that include the Yen, Pound, Euro and the USD.
Forex Broker in addition to Oanda are just a few topics that the author specializes on. Prema De Silva has been active in the forex trading markets for longer than 7 years. Her objective is to share her knowledge on the topic whever she can.
Tags: Finance, forex, forex broker, forex trading, fxcm, oanda
