Access to foreign exchange (forex), the most extensive
market on the planet, is generally through an intermediary known as a
forex broker. Similar to a stock broker, these agents can also provide
advice on forex trading strategies. This advice to clients often extends
to technical analysis and research approaches designed to improve client
forex trading performance.
Financial institutions are generally the most influential in the forex
market through high-volume, large-value forex currency transactions.
Historically, banks enjoyed monopolistic access to the forex markets, but
through the Internet, any forex speculator can also enjoy 24 hour access
to the market via a forex broker.
Secure web connections today allow many forex traders to work from home,
where ready access to news and other technical advice informs decisions on
what forex positions to take. Similar moves are being made by stock
brokers, who are also moving out of banks and other traditional
Your needs in the market will influence your choice of forex broker.
Online forex brokerage firms, known as houses, provide those new to the
forex market with detailed research, advice and simulators to learn how to
use their forex trading tools. The experienced online forex trader is
catered to by other broking houses, with in-depth advice, but less focus
on forex trading instruction based on the assumption that you are familiar
with the forex market. To make an informed choice, it is advisable to
trial several differing online forex broking houses and their trading
tools to find the best fit for your needs.