Top Forex Brokers
Forex brokers are agents, individuals or firms, which serve as intermediaries between currency sellers and buyers, putting them together for a fee or commission. As a rule, Forex brokerages are compensated through the difference which occurs between the bid and ask rates of a currency pair.
There are two big types of Forex brokers: Dealing Desks and No Dealing Desks. Dealing Desk firms are commonly known as Market Makers. No Dealing Desk brokergaes in their turn are subdivided in to Straight Through Processing (STP) and Electronic Communication Network + Straight Through Processing (ECN+STP).
Fx brokers, operating through Dealing Desk, actually make up a market and create artificial exchange prices for their customers. However, no conflict of interests arises here, for market makers deliver both sell and buy quotes, which means a trader's decision doesn't matter for them.
No Dealing Desk brokers don't operate via a dealing desk, meaning that they act merely as a link between two parties and in no way take the opposite side of their clients' orders. No Dealing Desk firms can be of two types: STP and STP+ECN.
Forex brokers running an STP system send clients’ orders right to their numerous liquidity providers, which can access the interbank market.
As opposed to them, true ECN brokerages enable interacting of their clients’ orders with the orders sent by other market players, be it banks, retail investors, hedge funds or even other brokers.
One broker type isn’t worse than the other one as it all actually depends much on what trading strategy you stick to. So, it is completely up to a trader which to choose: tighter spreads but a commission for each trade or bigger spreads without any commissions charged.
Anyway, choosing a broker can be quite a task, taking into account how many brokerages pop up here and there in the market today. So, our website can truly be of great help in your quest for best Forex brokers! On our Forex brokers list you will find all top Forex brokers with in-depth reviews on their performance and services, contributed by our visitors – both professional and newbie traders.