FOREX (FOReign EXchange) is an over-the-counter foreign exchange market where virtual trade in world currencies is conducted. Dealing centers, or forex brokers, are intermediaries between buyers and sellers in the Forex market, which provide players with access to quotes, trading software, and leverage. There is a contract between the broker and the trader – usually in the form of a public offer, regulating their rights and obligations. Brokers earn receiving a percentage of transactions conducted through them. Forex brokers offer trading not only forex instruments, but also for precious metals, energy carriers, CFDs for stock indices and shares of the world’s largest companies. For example, FXGTrade has more than 100 different assets.

Forex brokers rating

A simple answer to the question, which forex broker is better, does not exist, but there are certain criteria that will help to make a choice. At the first stage it makes sense to get acquainted with the ratings of Forex brokers, which are regularly compiled by the largest analytical agencies. In addition, there are so-called user ratings, which are formed by voting (and they usually consist of large brokers like Alpari, 24Option or FXGTrade). For today it is possible to familiarize with a huge quantity of various ratings, we will consider the most known of them.

Ratings give some idea of ​​the leaders of the Forex market, but experienced traders know that when choosing you need to focus on some specific criteria that can be assessed only when working with a particular broker. Here are the main of these criteria.

Reliability and security

An important characteristic of the reliability of a forex broker is the duration of its operation in the market, financial performance, availability of reliable liquidity providers, terms of withdrawal and storage of client’s money. In particular, clients’ funds must be kept in reliable banks separately from the company’s funds. As we can see, the professional ratings of stock market brokers give a very limited idea of ​​forex brokers, because many global dealing centers are not in the jurisdiction, but nevertheless provide favorable conditions and quality service for trading Forex instruments.

Reputation

The reputation of forex brokers is built primarily on the feedback of real users. To assess this criterion, the aforementioned user ratings can be useful.

Quality of work

As a rule, forex brokers offer one of two transaction processing technologies: Instant Execution or Market Execution. Instant Execution – this is the conduct of a transaction for a specified price. If the price has changed during the processing of the request, the transaction will not be executed. Market Execution is the execution of transactions at a price at the moment of execution. This technology of automatic transmission of requests and quotations refers to the NDD (Non Dealing Desk) system and ensures the rapid processing of requests, so that the difference between the given and the actual price was not noticeable. NDD guarantees a minimum of “slippage” and lightning fast execution. Choose a broker that allows you to work on both transaction processing technologies: Instant Execution and Market Execution.

As for largest companies working with your assets, you can choose by looking at the trading conditions because all of them are mostly reliable – FXG Trade, or STForex, or Alpari, or InstaForex.

3 thoughts to “How Forex brokers work

  • HAMILTON

    I opened an account at FXG Trade on the advice of a friend. He used to work with them for a couple of months and was generally satisfied with the exception of certain moments and employees. I have no problems with support unlike him, although sometimes you can’t reach them from the first time. Well, spreads for the yen are good, the broker increases them rarely and they are never too high. My verdict is that you can trade because there is some space to grow. My score is four with a plus.

    Reply
  • Angelo

    Good afternoon. I absolutely agree with this article! but I also saw on the Internet critical articles about the FXGtrade so I want to supplement the article with my experience with FXG trade there is a small number of people claiming that FXG trade is a scam, I do not understand these people. I can assume that they just had a bad experience with the FXGtrade although judging by what they write it can be assumed that the same story they would have with absolutely any other broker. they are firmly convinced that forex in general is all this scammers. now regarding my experience with the FXGtrade having experience with other brokers, I already favorably singled out the “name” for the third month, I did not see any pains of sympathetic communication on the phone with the employees anywhere. very positive communication and willingness to help on any issue. secondly, the financial turn-over. open and close the transaction is a pleasure, all this is thanks to a very convenient program in this. Well, the last, the withdrawal of money. he is basically nothing less difficult to withdraw money there is no problem.

    Reply
  • AVELINE

    I opened an account at FXGTrade on January 1. There were no serious problems during this time; I’ve encountered only minor issues. Well, of course, the terminal disconnected a couple of times. Frankly, it made me angry but everything was restored in a couple of minutes so I did not lose much. It works almost without requotes, although I trade quite small transactions and each item actually matters. Withdrawal is also generally normal. Although it’s not instant because applications are processed manually. But money comes to your wallet in an hour.

    Reply

Leave a comment

Your email address will not be published. Required fields are marked *