Forex Broker Guide
  1. Forex Broker Guide: Introduction
  2. Forex Broker Guide: Broker Basics
  3. Forex Broker Guide: Platforms And Account Details
  4. Forex Broker Guide: Broker Support
  5. Forex Broker Guide: Advanced Features
  6. Forex Broker Guide: Conclusion

Forex Broker Guide: Introduction

As of January 2012, foreign exchange market accounts for more than $4 trillion in average traded daily value, making it the largest financial market in the world. No central marketplace exists for the forex market; rather, traders must conduct their trading activities through forex brokers. An increasing number of forex brokers are available, and traders should take the time to research, evaluate and compare options to find the broker that best fits their needs. This guide will explore the various important considerations when choosing a broker in today's competitive forex marketplace. (In this article we'll look at five considerations when choosing a forex broker. For more, see 5 Tips For Selecting A Forex Broker.)

Forex 101
What is Forex? Forex, often abbreviated FX, is the market where currencies are traded. It is the largest, most liquid financial market in the world, and trades 24 hours a day, five and a half days per week.
What are currency pairs? All forex trades involve the simultaneous buying of one currency and selling of another. In the popular currency pair EUR/USD (euro/U.S. Dollar), for example, the first currency (EUR) is called the base currency; the second (USD) is called the quote currency. When a trader buys a currency pair, he or she buys the base currency and sells the quote currency.
What are the major currency pairs? Four forex pairs are the most heavily traded in the forex market. They are called the majors and include Euro/U.S. dollar (EUR/USD); U.S. dollar/Japanese yen (USD/JPY); U.S. dollar/Swiss franc (USD/CHF); and the British pound/U.S. dollar (GBP/USD). The majors trade under the greatest volume and liquidity.
Why do forex traders need brokers? A forex broker acts as an intermediary between the two parties involved in a forex transaction: the buyer and the seller. While it is possible to buy or sell currencies directly through banks and other institutions, brokers offer services that typically benefit traders such as charting platforms, analysis tools, and access to leverage.


Forex Broker Guide: Broker Basics

  1. Forex Broker Guide: Introduction
  2. Forex Broker Guide: Broker Basics
  3. Forex Broker Guide: Platforms And Account Details
  4. Forex Broker Guide: Broker Support
  5. Forex Broker Guide: Advanced Features
  6. Forex Broker Guide: Conclusion
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RELATED FAQS
  1. What should I look for when choosing a forex trading platform?

    A trading platform is a piece of software that acts as a conduit for information between a trader and a broker. A trading ... Read Answer >>
  2. I'm new to this. Can I sell or buy stock by myself?

    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy ... Read Answer >>
  3. There are so many stockbrokers out there. How do I go about choosing the best one ...

    If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give ... Read Answer >>
  4. How does margin trading in the forex market work?

    When an investor uses a margin account, he or she is essentially borrowing to increase the possible return on investment. ... Read Answer >>
  5. In the forex market, how is the closing price of a currency pair determined?

    The foreign exchange market, or forex, is the market in which the currencies of the world are traded by governments, banks, ... Read Answer >>
  6. What types of accounts are available for forex trading?

    There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex ... Read Answer >>

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