Sunday, May 17, 2015

Forex trading Tutorial For Beginners Part 9 Forex Brokers

In my previous articles, I already write about the last part :P lol, but since I am in Good mood, so I think I have to write and giving you guys another tutorials, about how to choose best forex brokers! basically choosing the right brokers are very important! simple because not all broker are good, some bad, but not all broker bad! to be honest with you guys, there's no best broker in the worlds! since nobody perfect so the company also the same, but at least if we choose the best from the bad, we can get better options and safe investment!

first of all you have to know brokers type! there's 3 type of brokerage in forex industry! Market Maker, STP(Straight Through Processing) and ECN (Electronic Communications Networks), basically this all 3 type are good, as long they already regulated by financial authority such as, FINRA or NFA(US), FSA(UK), ASIC(Australia), Bafin(German), FINMA(Swiss), FSA(japan) and so on.

Market Maker!
What is Market maker broker ? well guys, basically market maker are bucket shop! you vs Broker ;)  so if you win then broker lose!  if you loose then broker win :D hehehe!  don't worry guys, not all market maker are bad broker! ;) you see OANDA , they already stay in forex industry for more than 14 years! actually Oanda founded in 1995! so they already old :D, but sometime some forex trader thought, OANDA are ECN brokerage, :D lol! well at least you know now! that OANDA are not ECN.

STP broker type

STP (Straight Through Processing)
STP Broker, basically trade without dealing desk, they have many bank to trade forex , the idea of STP basically to find best price from many different offer from different banks! in a nut shell better than Bucket shop! broker that using STP , as far as I know is FXCM, but if you invest more than 25k usd, I think they will give you ECN type! to be honest not many newbies have ball to put more than 1k, so I think any broker will think twice for trader put 25k in their account ;)(if you know what i mean)

ECN type(Electronic Communications Networks)
Basically if we trade using ECN brokerage! our money will go directly to the real market, it mean your money effecting market movement! but unfortunately, you will need more than 25k if you want to get real ECN, but for some reason broker ECN or STP actually doesn't matter much! though , some trader thought ECN are the best brokerage simple because free from broker cheat! but just like I said before, not all bucket shop are evil, on contrary not ECN are good ;) but what most important for you to consider actually broker license! it could be NFA, FSA, ASIC, FINRA, Bafin and etc.

If broker that you chose already regulated by Financial authority! then your investment will be safe! at least when something happen with your brokers, e.g bankrupt or doing weird stuff something like spike plugin or etc. you can report them to financial authority! of course you'll need evidence or take some screen shoot in your trading MT4, so they can take action as soon as possible! in past this kind of tragedy happen, and broker got sued and have to pay hundred thousands of dollar or their license will get suspend! in a nut shell broker that already regulated usually will not doing any stupid mistakes!

well guys, I hope this article can give you clear understanding about which broker and what type brokers that you should choose! there is no best broker  in the worlds! for some reason, I don't believe that kind of company really exist, but at least if they already regulated by financial authority, the chances are your investment already go to the right place.

another forex tutorial

Ditulis oleh: Forex Trader ForexAbiz Updated at : 9:14 PM

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