Types of Forex Brokers

Types of forex brokers, agents can be divided into five categories Forex based on the type of services they provide in addition to the price structure they use. Not your perception on the type of agent who will work with him may mean that your perception of the fact that you are paying for their services more than what you need. Which could affect your profitability. Here's a brief overview of the different types of agents.

Electronic Communications Network Brokers or ECN broker shortcut

Most of the best brokers belong to this category. Displays these traders to their customers the same prices that suffered by banks in their markets through the use of a formula market. This means you can get a price quote and clear by the agent, which reflects what used authentically in the market. These agents are granted authorization for each transaction instead of gaining money from margins that turn into high fees calculated on the merchant. In addition it is possible to ask you to maintain a high balance in your trading account, which can be up to $ 100,000.

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Straight Through Processing Brokers

Displays this agent in the treatment of high speed commands for it conveys your orders directly to providers of liquidity in the forex market banking. This means that there are fewer delays in processing orders and re-quote (When a merchant requests at a particular price and finds that he refused and was replaced by another price). Forex traders make them their money by identifying marginal profit which displays them of before Providers liquidity.

This general category of agents and first category includes (STP) and the second (ECN). And you know the fact that it provides quick access to markets without going through banks dealing office manned by a forex trader who can compensate trades. And earn money through the profit margin or entrust a mandate on the deal.

Market Makers

Also known dealers dealing desk, and they are also one of the best agents in the world of Forex. Not expose market makers quotes directly from the Liquidity Providers, but provide customers with something a bit different and make a money from the profit margin. And inherent in this type of agents, many of the claims that a lot of them acting against the interests of their customers and take advantage of market conditions to make a profit. It is here that uses rolling market makers agents licensed to deal with them by the organizers of the recognized market. It also offers them a low profit margin and a large amount of leverage to ensure that their investigation profits.

Direct Market Access Broker

These agents is similar to non-dealers agents offices above, the main difference is that they offer their customers access to the depths of the book market, which measures the amount of buy and sell orders in which the merchant can determine whether he could enter a deal or exit. It is recommended that these agents for traders who have some experience in Forex trading.

Now, after what I read about the types of intermediaries what Eric can create a demo forex account with an ECN broker and start trading real market environment teaches you more about this market.