As we have already seen from our analysis of the various parties involved in the forex world, this is further complicated when we begin to look at forex brokers in more detail, and it is at this stage that we start to think about our $orex demoount, and from there, which $orex tradingtform we should consider to use with our forex trading strategy. Each of these decisions will have an impact on our success or failure, and far too many traders, spend insufficient time considering these important issues, before rushing off to open their forex demo account, with a broker or dealer who may or may not be appropriate. Many forex traders simply open an account because the forex charts are provided free of charge, the spreads quoted look reasonable, and possibly because the broker in question has a ‘special offer’ running, which may include a ‘deposit’ to get you started. Open your account based on these criteria, and you are taking completely the wrong approach, and risking all your trading capital to boot. Firstly, you have no idea who you are trading against, and the problems this is likely to cause, second, the broker may not allow you to trade in the way you would like ( this is more common than you think), and finally your trading capital may be at risk if the broker is one of the increasingly popular offshore brokers, who are springing up as a result of the proposed changes in the reduced leverage forex brokers will be able to offer in the future.

If we go back to our analysis of the $orex marketticipants, the principle group available to us as small speculators, is that of the market maker, who essentially “makes a market” for us using the interbank forex rates in the liquidity pool created by the central banks who control the market, and using one of the professional data feeds we discussed earlier. Now at this point, things become a little more complicated as we have to break the market makers up into several different types of broker, and I propose to look at each of these in turn, as they are all different. So let’s start by looking at the various types of dealers and brokers available, and the pros and cons of each so that we can make an informed decision to find the best forex brokers available.