View Full Version : Five Types of Forex Brokers

08-06-2012, 03:07 PM
There are several types of Forex dealers with online access. They range from the perfectly legitimate brokerage firms to illegal betting houses. Each trader will have to choose their type of dealer carefully to select the right type of dealer – many share similar qualities and access to the Forex market, but their policies and procedures differ quite dramatically.

Beginning traders need to be especially vigilant about the type of dealer they select. Remember, the Forex market remains loosely regulated and this allows for a wide range of trading services that may not be suitable for many traders, particularly beginning traders.

Each type of broker represents a different level in the Forex market. Some levels are very high and have direct access to the Forex market while others are very distant and have very little connection to the Forex market. Yet most of these types of broker are legal in most countries and are used by different types of traders.
Bucket Shops

This type of broker has virtually no connection to the real-world Forex market. Bucket shops depend largely on using currency futures and options. These types of brokers will essentially “book” or take the opposite position of a trade made by a retail trader. However, they will not actually execute them on any exchange. Basically, the bucket shop is betting against the trader. Since the legality of bucket shops is questionable, this type of broker should be avoided by beginning traders.
Book makers

11-15-2015, 03:29 PM
Well, i think that a particular trading strategy requires a spesific broker or account. For example, I like scalping most of all. Therefore I should find a broker with a good ECN account: with low spreads, quick execution time, and an opportunity to trade with any deposit. There are some brokers on the market that satisfy my requirments and my current on, FreshForex is among them. By the way, it was recognized as the best ECN broker by KROUFR.

Robert Edwards
11-20-2015, 07:21 PM
Frankly speaking who cares how many types are there, I mean as long as we have got good broker, I will not worry about else too much. I trade with Nova FX broker, it is a regulated and well reputed brokerage house with having great facilities that includes 133% bonus on deposit, it really boost our capital big time while there is also 24/5 support service present to help us all the time, so this is indeed the best broker to work with.

Martin Kent
01-02-2016, 08:08 PM
I don’t really know for all these type of brokers, but I know thing, I need company that supports me in every way I work, I am a scalper, I need broker with free hand. I get exactly that with OctaFX, as they give me opportunity to use any technique for trading which includes scalping, hedging, news trading or even EA system, so that really gives me freedom to work in whatever way I wish without any trouble at all.

02-07-2016, 10:30 AM
As for me, the worst broker on forex market is scammers. But they usually hide it, they cheats their clients like Instaforex broker.

05-03-2016, 02:37 PM
My broker Hotforex is true A-book broker which sends order to the interbank market. I see that in tight spreads, speedy execution and withdrawals of consistent profit without any hassle.

Umar Khalifa
05-05-2016, 09:24 AM
From my first day of trading I have been using Trade12 which is a regulated trading broker that offers a wide range of trading technologies and service. Their ECN business model allows to their clients to take advantages of transparent real time pricing. from this ECN trading platform, I got 50% initial bonus that I can sue for all time devoid of any restrictions including lowest trading spreads.

Golden Sark
09-29-2017, 08:44 PM
We the traders have to choose regulated trading brokers which guarantee their clients funds. Actually, only regulated trading brokers make sure security of funds at any deposits with a wide range of trading technologies. And they don’t restrict any kinds of trading techniques at all.