Guide To Forex Brokers

Now that you have an understanding of Forex, although it is only a beginning, you are probably raring to go. However, before you can start trading there is one more thing that you need. It’s an account with a Forex broker.

Here’s a little (recent) history lesson for you.

Back in the 1990’s, trading Forex was not really available to the little man, because the transaction costs were high, and governments kept control of the markets and the exchanges, restricting what they could and could not do.

However, as time passed, the CFTC (Commodities and Futures Trading Commission) decided that it was time to open the markets to a wider audience. A couple of bills were passed, which were the Commodities Futures Modernization Act, and the Commodity Exchange Act, which opened the doors to us little guys.

Even then, 20-odd years ago, most people had access to the internet, and suddenly Forex brokers popped up all over the place. Today, there is a wide choice of Forex brokers, so deciding on the right one for you is no longer as simple as it once was. There are good brokers, and there are bad ones. By that, we don’t just mean ones that are not very good at the job, but ones which set out to cheat you. These are known as bucket shops, and we will talk more about them shortly.

For now, what you need to know is how to set about choosing the right broker for you.