- June 2014
- Posted By Ninoslav
- 0 Comments
A lot of forex traders, especially if they’re beginners, don’t think about the type of forex brokers they might use. They see the type of accounts that they offer, and may pay attention to the features they have available. They just don’t know what type of forex broker they might be.
There are different forex brokers for different types of forex practices, since there are several different needs that any given forex broker might have. After all, complete beginners won’t need what experts will require. Just like experts need more than what casual forex traders are fine with using.
The forex broker market’s relatively unregulated nature makes it difficult for beginners to find an appropriate broker at times. It’s not hard, however, for complete beginners to find the right broker, just like it’s not for seasoned traders. In this short article, we’re going to take a look at the types of forex brokers that currently serve the world of forex trading.
Types of forex brokers
The type of forex broker often correlates to what ‘forex trading level’ they represent in the market. In other words, some forex brokers are more suited to seasoned traders than others. To circumvent this, traders should always research their forex broker of choice before committing to an account.
Retail market brokers
These forex brokers are pretty much the most common forex brokers on the web. Due to the amount of retail market brokers on the web, they naturally present a wide range of forex-related services and account levels for eager traders.
Some brokers even have a direct connection to the forex market, while others gain access with the help of a middleman or intermediary. Beginners should have no trouble selecting a retail market broker, as long as they research their options. Seasoned traders, however, might want to graduate to something different.
Institutional market brokers
These brokers often work directly against the forex market, making them better connected to the market than a retail market broker. While many beginner brokers can get by using an institutional market broker, they’re mostly recommended to seasoned traders, as their high minimum deposits and advanced features make them more suitable to that crowd.
These forex brokers essentially eliminate the middleman and deal directly with the forex market. The majority of institutional brokers consist of banks, representing most of the institutions who engage in the forex market. Since these brokers only serve banks associates, beginner forex brokers are typically not recommended to them.