Generally speaking, a Forex broker will help execute currency trades for you in a similar manner to a stockbroker. You will decide which currency pairs you would like to purchase or sell and then conduct the transaction through the broker. Brokers earn money by charging a commission or a fee for their services and/or through the bid/ask spread.
In order not to feel overwhelmed by the number of Forex brokers available on the internet, you will need to do a fair amount of research. We intend to help you establish criteria for your decisions and what you should expect from a broker. Once you pick a broker, you can open an account and start trading!
Is Online Trading for You?
Forex trading is typically not conducted in an off track betting-like venue where you walk up to a cashier and exchange money underneath a plate of bulletproof glass. Instead, the majority of transactions are carried out online through a broker’s trading platform.The question you need to ask yourself is whether you feel comfortable trading currency online. If not, there are brokers who will execute trades for you over the phone (and some, gasp!, in person). However, trading online offers several benefits including 24/7 availability, research tools, real time quotes, and quick execution of trades.
Our advice is geared towards online trading since, well, we’re a Web site, and additionally, because we like the advantages online trading offers. Most of the advice in this article will also help you if you choose to trade using a traditional broker.