The forex broker is an essential intermediary for those who want to trade online because it connects the trader with the market. The forex broker allows the trader to access financial markets via dedicated platforms and to exchange financial instruments in real time such as shares, indices, currencies, and commodities. The best trading platforms offered by forex brokers are available for both PCs, iMacs, and smartphones.
For those wishing to make money immediately, investing minimum capital must rely on an experienced forex broker or study to understand how to become a successful trader. You can open a Juno markets account with Juno markets an experienced forex broker platform
What Are They and Types (market maker, STP, ECN)
There are different types of forex brokers:
- The Market Maker: it is a broker that offers real-time quotes to its customers and who acts as a counterpart on each exchange. The advantages of using market makers are that the trader will always have a counterpart to trade their securities and there will never be liquidity problems.
- The ECN (from the Electronic Communication Network) or a financial intermediary in the Forex market that connects directly to the liquidity providers, thus making sure that the customers invest directly on the real market prices of the suppliers. In this case, each trader exchanges his currencies with other traders, and the broker simply provides an intermediary service (he is no longer the counterpart of each exchange). This solution is very ethical and transparent and reflects real market quotation
- STP Broker: which takes its name from Straight through Processing, offers a system that automates the process of clearing and settlement of operations and has existed for a few years. This is a great advantage if you think that originally in the stock market this process was manual and caused delays and problems. In this case, the broker offers a service that is between the ECN and the Market Marker being able to offer the advantages of both types of brokers.
Are Forex Brokers Safe?
The security of the forex broker does not depend so much on the type but on the regulations and certifications. It is important to choose those with good regulations like Juno markets forex regulated by Vanuatu financial services commission (VFSC). It is very important to know before choosing the broker if it offers negative balance protection. Not that the choice must necessarily fall on this feature, especially if it is a fairly skilled trader, but it is important at least to know it before