Choosing Forex Broker
A forex broker refers to a legal entity which acts as link between the traders in the forex market. The best online forex brokers are provided with market prices of various currency pairs by enormous banks like Bank of America, Citi and Goldman Sachs. These large banks act like liquidity providers for the brokers, but do not accept retail clients, so in order to trade forex, you need a forex broker.
To choose the best forex broker, it is good to know the various types of brokers in the market. There are four types of forex brokers: Market Makers (DD), Straight Through Processing (STP) brokers, No Dealing Desk (NDD) brokers and the Electronic Communications Network (ECN) brokers.
When choosing a forex broker, you should be aware of a few factors: fist and foremost, these are the spreads and slippage, which make up your transaction costs. Another thing to look for is regulation and transparency of operations, and last but not least – professional and reliable customer support.