What we are going to address in this article is what would be the best FOREX Broker that suits you and your robotEveryday more and more new traders are entering the Foreign Exchange Market. The increase of number of traders brought the increase of automated software programs called FOREX robots and the number of brokers as well. As a beginner choosing the right trading style and the right tool doesn't end your preparation in entering the world of currencies. You also have to choose the type of broker who will work with you. We have four common types of FOREX brokers these are the market operators, market makers, small brokers and kitchens. This article will review these types of brokers so you'll have an idea, which one will suit you best. How will it affect the performance of a FOREX system like Megadroid?
The Market operators are large commercial banks. They are the most reliable because of their stability and strict bank regulations. Only big multinational companies are able to invest in this type of broker because they require very large amount of capital that is in average of $1000000.
Market makers on the other hand are financial companies that work with smaller broker firms. They offer safer and more regulated FOREX trading opportunities to those who have capital of more then $50,000. Due to their size of bill requirement, only a few individual traders can afford such large investment.
The most common brokers of individual traders are the small brokers. The bill size ranges from hundreds to thousands. They collaborate the capital of several clients the work with a dealer or a market maker. The FOREX market trader will discuss with the broker about an input in a new position or an output from an existing position. If the deal goes well the client's gained benefit is the gross profit less the spreads and commission fee. Just remember that these brokers often charge more than what they get from market maker. In case that the trade becomes unsuccessful they still get their commission and a little spread. This is the most common type of broker recommended by the makers of FOREX Megadroid. It allows beginners with low capital to start at a safer phase in trading.
The more reliable and stable a broker company is the more amount of capital is needed for you to invest but these companies won't make you spend bigger spread or commission. If you have a smaller capital you have no option but to deal with small brokers who may charge you bigger spreads. Either way you have to be careful in choosing the right FOREX broker for you. Choose the one that you are comfortable working with. Try checking on their actual services without investing real money through their demo accounts. In this way you will be able to test how their services would go well with your trading style.
There are FOREX currency trading software programs that come with suggested brokers. FOREX Megadroid has lists of brokers that offer low investment and the ones that will work well with the system.
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