A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies. Forex is an abbreviation of foreign exchange. Transactions in the forex market are always between a pair of two different currencies. Another name of forex broker is retail forex broker or a currency trading broker. The forex broker is an international market and work 24 hour. Most foreign exchange transactions are between pairs of the currencies of the 10 nations that make up the G10. The nations and their currencies include the U.S. dollar (USD), the Euro (EUR), the pound sterling (GBP), the Japanese yen (JPY), the Australian dollar (AUD), the New Zealand dollar (NZD), the Canadian dollar (CAD), and the Swiss franc (CHF). Most forex brokers give permission to customers to trade in other currencies.
How to open a forex account?
Opening a forex account in the modern technology is quite easy and it can be done online. Before trading, a customer has to deposit some amount of money in the new account as a collateral. A collateral means you have to put some amount in the account for security purposes. A forex Brokers also provide leverages to
customers so they can trade larger amounts than they have on deposit. It depends on the country from where the trader is trading,that leverage can be 30-400 times the amount available in the trading account. More leverage makes forex trading very risky and most traders lose money.
Ranking of Best forex broker 2021
The best forex broker ranking list is given below:
IG – Best forex broker overall, most trusted
Saxo Bank – Best for research
CMC Markets – Best web platform, most currency pairs
Interactive Brokers- Great for professionals and institutions
TD Ameritrade FX – Excellent trading platform, US only
City Index – Great all-round offering
XTB – Best customer service, great platform
FOREX.com – Great all-round offering
eToro – Best copy trading platform
In spite of these 9 forex brokers, there are 18 other brokers are also working. Names are Swiss quote, FXCM, AvaTrade, XM Group, FP Markets, Plus500, Pepper stone, IC Markets, Tickhill, OANDA, FoxPro, Vantage, Moneta Markets, HYCM, eight cap, VT Markets, Black Bull Markets, and Octa FX. Now discuss one of them.
Oanda
It is a trusted global brand, oanda provides forex and CFD traders a limited offering of FX pairs and CFDs but stands out for its reputation and quality market research
Name of some trading that is best for beginners
TD Ameritrade – Best overall for beginners
Fidelity – Excellent research and education
Robinhood – Easy to use but no tools
E*TRADE – Best web-based platform
Merrill Edge – Great research tools
Forex broker is quite similar to banks. The existence of Forex brokers makes it easier for you to connect with the banks buying and selling currencies. They have a certain principle that they have to follow and certain processes that are required. I hope this information is very useful to you. Before you take step in forex broker market, read this article.