The Currency / Foreign Exchange market is the world’s largest and most dynamic market. Nearly $1.8 trillion is traded every day. The word Forex is derived from the words Foreign Exchange.
A Broker is an individual or firm that acts as an intermediary between buyer and seller. Forex brokers are firms that deal in foreign exchange. The foreign exchange market is quite similar to the equity markets, except that typical forex brokers do not charge a commission. However, forex brokers are required to have a license.
Forex brokers earn money from the spread (also called “pip”). The spread is the difference between the prices at which a currency is bought and sold. A pip is the smallest price increment in a currency. For example, in Euro/US Dollar (EUR/USD), a move from 0.9008 to 0.9009 is one pip. In US Dollar/Japanese Yen (USD/JPY), a move from 127.41 to 127.42 is one pip.
Forex brokers can be compared on the basis of the spread they charge. Most forex brokers publish live or delayed prices on their websites so that the investor can compare the spreads. It is, however, necessary to
check if the spread is fixed or variable. Variable spreads appear small and attractive when the market is quiet, but when the market gets busy the forex broker widens the spread, meaning that the investor will gain only if the market is favorable.
Forex brokers are usually tied to large banks or lending institutions. This is because of the huge sums of money traded in the foreign exchange markets. Forex brokers are required to register with the Futures Commission Merchant (FCM), and are regulated by the Commodity Futures Trading Commission (CFTC).
A new trend among forex brokers is the emergence of online forex brokers, who offer trading facilities to “retail traders” using advanced technology. With these facilities, anyone with a computer and an Internet connection can trade in the forex markets.
Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.
Currency Trading For Internet Profits
There is a type of trading that has swept the internet forums,
with a lot of people making fantastic income everyday. It is
called currency trading. There are many different currency
trading programs available and you have...
FOREX ExpertAdvisor Mechanical Trading Systems: What Every Trader Should Know
- "information and ideas about FOREX trading systems"
FOREX ExpertAdvisor Mechanical Trading Systems: What Every
Trader Should Know
Most successful FOREX traders use a handful of diverse trading
Forex Versus Stocks
Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company. When the company does well and makes a...
The Forex Market explained!
The word Forex is an abbreviation for The Foreign Exchange Market. This is the market in which all is bough and sold is money itself, which means that with certain currencies you can buy other kinds of currencies. It is the largest and most liquid...
The Key To Protecting Your Money
Have you ever experienced a major paradigm shift? You know, the
kind where you think you already know something about
But suddenly, you learn something new about that 'something'
that changes your whole perspective and outlook...
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.
** The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM. Further, the Referring Broker and the FCM are not responsible for their availability, content, or delivery of services.