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BROKERAGE HOUSE (forex broker)
A forex broker is a company that acts as an intermediate between the buyer and seller of monetary units. The forex broker is basically your go-to guy. The forex broker helps people stay connected for their buying/selling needs and helps prevent fraud or unethical trading practices. When a broker acts as a buyer/seller, they become a principal party (dealer). Forex brokers can come from large commercial financial institutions. These forex brokers are highly regulated because of the legal commitments and regulated governance of financial institutions. The small forex brokerage firms are in greater demand from dealers and traders because they have more intimate contact and lower upfront investment minimums than the large financial institutions.
Since large financial institution forex brokers often require a $500,000 to $1 million dollar trade minimum, most people go with a private or smaller forex brokerage firm. However, it is important to note that forex brokers must be able to have a wide amount of leverage, and so they are usually tied to the larger financial institutions. You want to ensure that any forex broker you choose is registered with regulators. It is very important that you check FCM before signing with a forex broker to ensure that they are registered, and therefore are accountable to behave in a legal and ethical manner. Furthermore, it is recommended that you research the forex broker to ensure they are licensed and examine the amount of time they have been a forex broker. Longevity in the forex broker industry shows that they are stable and reliable. It is highly recommended to find a forex broker that has longevity, stability, and is a member of the FCM. In this manner, you are protecting your investment.
Recommendation:
You are welcome to go out and research different companies, however, I am recommending FXCM.
Founded in 1999, FXCM is one of the largest and most financially strong forex brokers.
Over 100,000 live accounts trade through FXCM’s trading platforms worldwide. The FXCM Group has over $100,000,000. US D in firm capital. Regulated in the United States, Canada, United Kingdom and Hong Kong.
Spreads as low as 1 pip, hedging capabilities, no dealing desk, up to 200:1 leverage and 24 hour online currency trading 5.5 days a week.
Trade on rates provided to FXCM by multiple global banks. Reliable customer service and platform performance.
FXCM offers free demo platform and for all new users they offer excellent platform tutorial, as well as live help (phone and/or online chat).
Platform Video Tour
Open a live account:
Select the following form: NEW CLIENT APPLICATION
Complete and fax this form to FXCM: 1-212-897-7669
FXCM Telephone Number: 1-212-897-7660
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