Forex Brokerages

Choosing the best forex brokerages from the dozens available is hard. However, choosing the most suitable one is easier to do when taking into account the special features of the bigger banks versus the approach of the small brokerages.
For larger corporations, high net-worth individuals, mutual funds, and other parties with potentially larger accounts, the banks and larger investment firms provide customer dealers within their dealing room environment. Also, some larger customers may have direct lines to the banks interbank dealers for quotes. In fact, the bigger account size you have and the closer you can get to getting the quotes from the interbank dealers, the tighter spreads and better rates you will likely get.
Customers with forex accounts at one of the larger financial institutions have several advantages in their dealing. For one, they (usually) get full and immediate access to the bank or brokerage currency research material.
Furthermore, the larger banks and institutions have technical analysis specialists in their research teams. Their material is top-notch education on that particular trading style. Also, it’s comparatively easy to change brokerages. In fact, if you’re in a really good position, you may get calls from bank representatives competing for your forex account.

Here are exemplary providers for larger accounts:

• Goldman Sachs
• Chase
• Deutsche Bank
• CIBC
• HSBC
• Barclays

Just a decade ago, the situation for investors looking to invest small amounts in the forex markets was tight: there were no brokerages taking small accounts. However, nowadays there are brokerages willing to open forex accounts for very small initial investments. The invention of mini forex accounts has partially made these accounts possible. However, these companies also usually cater to bigger clients, but without the same volume capacity that banks dealing in the interbank market have. Also, because the mini forex accounts are fractional to one lot in the interbank market, the brokerage acts as a marketmaker to mini account customers while hedging exposure in the actual forex market.

When you choose from the forex brokerages for smaller accounts, compare also the additional services available with the trading platform. Some companies include real-time forex charting, FX news feed, and other convenient services in the package.
Here are exemplary providers for smaller accounts:

• FXCM
• GAIN Capital
• Saxo Bank
• GCI Financial
• IG Foreign Exchange
• Deal4Free

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