Forex Brokers

Written by BK Shaw
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If you've never traded in the forex markets before, you should use one of the forex brokers available to you. Many of them will teach you how to trade, so that you can trade independently. An obvious advantage of having a broker is that you can continue your day job without having to worry about what the market's doing every minute. A brokerage firm has somebody watching the markets around the clock.

The forex markets are open around the clock except for a brief shutdown from Friday afternoon until Sunday afternoon. Economic events in Australia might affect the markets in London the next morning, and those events might affect New York. It's a continuous cause and effect scenario. Forex brokers have a handle on the news from around the world, and it's essential to be up to date with economic events around the world.

Reports are a big event for forex brokers. Some brokerage houses place their bets before a big report is due. This can be very profitable or not and big brokerage houses will pay a lot of money to have information 15 minutes before the general public. Somehow there's not enough money that can be spent on information to consistently provide winning trades. Some believe the markets are an efficient way to discover price and therefore impossible to predict.

Choosing Forex Brokers

Make sure your forex brokers are reputable. The spot forex market up until recently was still not regulated by the CFTC. This has paved the way for some unscrupulous companies taking advantage of the loosely governed market place. Do your homework, and make sure the company you're doing business with for forex trading is registered with the National Futures Association.

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