Forex Broker

A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread ? or the difference between the trader's bid for a currency, and the seller's asking price for that currency. Usually this spread is less than 0.1% or ten pips. (Pips are the smallest movement a currency can make on the Forex. Pips are commonly called referred to as points.) The lower the spread, the less a trader pays a Forex broker for a trade.

The Forex market is global and does not have one central regulatory agency like the Security Exchange Commission. Each country is responsible for the actions of trades in it's own country. A Forex broker in America must register with the Commodities Futures Trading Commission (CFTC). While traders are not regulated, Forex brokers are. A Forex broker must be registered as a Futures Commercial Merchant (FCM) before that Forex broker is allowed to accept a deposit for an account from a trader. Once registered, a Forex broker is given an identification number so that a trader can check the status of a Forex broker before hiring that Forex broker. There are such people known as introducing brokers who may solicit traders for a registered Forex broker, but the introducing broker cannot accept a deposit for a trader's account. It is a good idea for any trader hiring a Forex broker to check the status of the Forex broker with the authorities.

Kevin Anderson is the owner and opperator of http://www.forextradingcenter.info a site developed to give users the most updated information, articles, and news related to the Forex Market.

In The News:


Best Syndication

Technical Analysis: Looking for Trends in Currency Trading
Forex Hound, NY - 12 hours ago
Currency trading is risky. Because of its volatility, it is important to remember that currency trading is very risky. Indeed, forex trading is considered ...
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Forex Trading Signals Well-Positioned for Gains in the New Year Daily FX
Research and Markets: The FX Bootcamp Guide to Strategic and ... Business Wire (press release)
BigNews.biz (press release) - The Options Insiderall 29 news articles

Calif man arrested in alleged fraud scheme
BusinessWeek - 5 hours ago
Federal prosecutors say two principals of a foreign-currency trading firm have been arrested on charges they operated a Ponzi-like scheme that cost ...
Feds arrest 2 Winnetka futures dealers on fraud charges Chicago Tribune
2 charged in alleged $15M fraud scheme United Press International
Suburban men arrested for business fraud Crain's Chicago Business
CBS2 Chicago - CBS 2all 69 news articles

RTE.ie

Dollar rebounds after sharp fall on dismal job data
Reuters - 42 minutes ago
... in the dollar had been exaggerated in a market with few active participants such as hedge funds which typically provide liquidity to currency trading. ...
Euro Falls to Three-Week Low on Speculation ECB Will Cut Rates Bloomberg
Dollar May Fall Second Day Versus Yen on Job Cuts, Stock Drop Bloomberg
Dollar Falls From Three-Week High After Report Shows Job Cuts Bloomberg
Bloomberg - Bloombergall 1,033 news articles

China Daily

Alcoa Cost Cuts Weigh Futures
Wall Street Journal - 14 hours ago
In currency trading, the euro recovered some of Tuesday's losses, with the shared currency hovering around $1.36. Oil futures, meanwhile, cooled a bit after ...
Employment Woes Imperil Stocks’ Nascent Rally Barron's Blogs
DJ US Stocks Slide; Intel, Alcoa, Oil Bode Ill For Economy Onet.pl
US stock futures drop after Alcoa production cut MarketWatch
Onet.plall 1,135 news articles

Teen prefers currency trading over Myspace and is making money ...
WHAS 11.com (subscription), KY - Jan 6, 2009
But her favorite website isn't facebook or MySpace, its online currency trading. She discovered the Forex website after her father suggested she look into ...

Currencies Trading All Over the Map
Washington Post, United States - 17 minutes ago
"Honestly, we just don't know how to analyze these currency markets properly right now," confessed David Bloom, head of currency markets for HSBC in London. ...

Colombia Reports

Colombian Peso Drops on Recession Concern; Chilean Peso Steady
Bloomberg - 5 hours ago
Venezuela’s bolivar was unchanged at 5.55 per dollar in unregulated trading, traders said. Venezuela pegs the currency at an official exchange rate of 2.15 ...
Chile Will Tap Savings, Sell Bonds to Spur Growth Bloomberg
all 14 news articles

Euro crosses $1.37 in European trading
The Associated Press - 12 hours ago
The 16-nation currency rose as high as $1.3739 before drifting back to $1.3724, 2 cents more than the $1.3523 it bought late Tuesday in New York trading. ...

Aussie, Kiwi Gain in Currency Trading
Forex Hound, NY - Jan 2, 2009
The Aussie and the kiwi are seeing improvement in currency trading on the FX market as things change in the global economy. There is hope that interest rate ...

2 men indicted in currency scam that bilked 700
The Associated Press - Jan 6, 2009
Young and Willard marketed Global One, which wasn't a licensed broker, as a company that provided educational opportunities on trading techniques in the ...
Two accused of bilking investors charged with fraud Las Vegas Sun
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currency trading - Google News


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