Foreign exchange or forex is one of the most running industries in the currency market. Trading the currency is the oldest method of business, but the forex industry is new in the market. It was launched in 1995, and in just a small time it has earned 1 trillion USD in just 20 years. From that time since now, forex market has expanded speedily. Today, the earning of forex market per day is 5 trillion USD. This size is more or equal to the New York stock exchange market in 30 days.
The goal of Forex was to become a leader in global market to provide news portals on financial positions, to deliver updated news of financial markets and forex and also to provide better analysis and guidelines to the newbies and other expert traders. There are a number of forex brokers. So, let’s find out which one is the best option?
Well, there is not a general guideline which is needed to be followed when searching the best forex broker reviews on Forex because every buyer has different choices that are based on the strategies of trading, methods of funding, leverages, trade terminals, minimum amount to be deposited, type of account, and territory. To get the best broker use a strategy named DYOR which is abbreviated for do your own research. Search on google about the reputation and regulation of the broker and proper licensing of your chosen broker.
Now let’s find out the difference between brokers market makers and ECN. What they actually are what they are responsible to do;
BROKER, MARKET MAKER AND ECN
- Brokers are the main element of entire trading procedure. They are responsible to forward the information from customers to market makers. After sending the instructions, data is being collected by them and profile is updated of the retail traders. They charge commission fees, each time they do trade.
- Forex dealers or market makers are experienced in creating the trade rates. They work on behalf of brokers and perform trade instructions. Sometimes, banks, FX markets, hedge funds, and 3rd party agencies also work on behalf of market makers.
- No trade is executed by ECN. Besides, they work as a bridge between market makers, STP and third-party traders. They are responsible to deliver actual prices of volumes and also provides liquidity services to them. Then, the prices are spread by ECN so that all the retail traders are the entire network which is involved in trading can overview the rates.
Many people say, forex is the most hazardous and boring trading industry in the trade market. But according to the research it is said that failure and boredom is caused because of choosing the wrong brokers for trading. Otherwise, FX is the highly captivating trading industry for people who are business minded. So, to overcome this problem it is suggested to read the guidelines and reviews of forex brokers thoroughly mentioned on the site to ensure risk free forex trading.
