An online forex broker provides access to forex markets to individuals who don’t want to trade directly. The broker advises the individuals on forex trading strategies and provides real time quotes and news feeds to forex traders. Several online brokers also provide charts of market movements and market analysis to help their clients take the right decision.
In the past only banks had access to forex markets, but today forex brokers can also provide individuals access to the market. They can trade on behalf of the individuals or provide them access to forex rates, news and other technical information. Such information can help their clients, who may be individual speculators or small forex traders, to take trading positions at any point of the day.
The more seasoned forex brokers have set up online brokerage firms. They provide a range of services extending from the training of beginners to the offering of in-depth advice to the more experienced traders.
Online brokers also set up mini forex accounts for individual speculators and conduct trade for them. The advantage of these accounts is that an individual can start trade with an investment of $250 only. The broker then uses the leveraging power that comes with these accounts to make the trades. The individual need not worry about the finer points of trading, as these are taken care of by the experienced traders who form part of the brokerage firm.
It is not easy to select an online broker from the hundreds of forex brokers who have set up websites offering a range of services. The best is to repose confidence in a broker who has been recommended by a friend. The other option is to look at the services that the brokers provide, and select one whose services meet your requirements best.