There are many types of Forex brokers who offer online trading
services. Some offer legitimate services while others are illegal and
deceptive. Some are regulated by official regulation bodies while others
can do pretty much whatever they want. Most traders don’t take the time
to understand the difference between them in order to choose the best
Forex brokers, and can therefore be fooled into making unwise choices
regarding their trades and investments.
Different brokers may seem to offer the same services but they can have different policies and methods of operation, which can have a great effect on anyone who chooses to trade with them. Before you start trading, take the time to learn about the types of Forex brokers and decide which is right for you. Different types of Forex brokers have different levels of access to the market. Some are directly connected to the market (banks) while others have a less direct connection to the market. Having an indirect connection to the market does not mean that the services offered by a broker are less legitimate or trustworthy.
If you are new to Forex trading take special consideration when choosing a Forex broker as many dishonest brokers try to fool beginners who do not know the difference between an honest, regulated broker and an illegitimate one.
1. Institutional Brokerage
2. Institutional Market Maker
3. Retail Market Maker
4. Book Maker Broker
5. Bucket Shop Broker
Different brokers may seem to offer the same services but they can have different policies and methods of operation, which can have a great effect on anyone who chooses to trade with them. Before you start trading, take the time to learn about the types of Forex brokers and decide which is right for you. Different types of Forex brokers have different levels of access to the market. Some are directly connected to the market (banks) while others have a less direct connection to the market. Having an indirect connection to the market does not mean that the services offered by a broker are less legitimate or trustworthy.
If you are new to Forex trading take special consideration when choosing a Forex broker as many dishonest brokers try to fool beginners who do not know the difference between an honest, regulated broker and an illegitimate one.
1. Institutional Brokerage
2. Institutional Market Maker
3. Retail Market Maker
4. Book Maker Broker
5. Bucket Shop Broker