Forex Broker Review

Forex Broker Review

Due to the exciting and high income environment of the foreign exchange market, legions of professional, private, experienced and novice traders are participating in Forex broker scam  forex trading today. The forex market is the biggest market in the world, and the potential for income is limitless. People who know their way around forex trading and are using the right tools to enhance their trading system are likely to be part of the lucky segment of traders who take a big chunk of the $3 million US dollars that are made on the forex market daily.

With this huge amount at stake, other enterprising individuals have entered into the fray. Experienced in forex trading, these people offer their services to speculators to assist them in making the most optimal decisions in the foreign exchange market. These pros are known as forex brokers, and they can be found in great numbers on the Internet where a majority of trading takes place today.

A forex broker can either be a single individual or a company that does the trading for a speculator on the forex market. They hold the trader’s money for them and either buy or sell depending on the trader’s decisions. While forex brokers do not charge commissions for placing buy and sell orders, they get paid based on the spread of a trade. A spread is determined by the difference in amount of a trader’s buying price of a certain currency, and the seller’s asking price for the same. Spreads are defined in terms of pips, or the smallest movements of the currency traded on the market, such as 10 pips, which is equivalent to 0.1%. The higher the spread, the bigger the broker’s fee for a trade is.

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