Forex broker without commission.
Is there really a Forex broker that does not charge any commission? This is one of the most asked questions by many new Forex traders. Actually, there are brokers that do not charge any commission and yet some others that charge some commissions but provide other services for the traders. Hence, finding a broker who charges nothing but provides all the necessary services is quite difficult. In this article, I would like to discuss whether a Forex broker without any commission can actually help you in Forex trading.
Before I go into the details, let me give you a brief explanation of what Forex broker means. A Forex broker helps facilitate your trading activities in Forex trading market by providing you various Forex services such as trading signals, tips and news. However, it is important to understand that if a Forex broker provides you any of these services then he or she receives a commission from any one who trades with the broker.
Now let us focus on the service that a Forex broker is supposed to provide to its clients. Most of the brokers provide Forex trading signals from time to time but some of them also provide you information on various stocks, indexes, commodities etc. which can be useful for Forex trading. It is not compulsory to have these other services offered by the broker. However, it is always good to have such information available, especially when you do not have time to monitor the Forex market constantly yourself.
Another service that a Forex broker may offer is giving out signals or placing trades on your behalf. This may take the form of automated trading that gives you signals on how to trade currencies and place trades accordingly. Many people prefer this type of trading because they do not have the time to keep monitoring the Forex market and make decisions on their own. Thus, they save on the commission that they would have paid the broker if they had placed the trades themselves.
Moreover, some Forex brokers allow you to do some pre-trading work for them. This may be anything from taking a demo account and carrying out trades on it to taking a tour around various financial institutions. They may also provide this service at no extra cost. You should however understand the terms and conditions set out by such brokers before taking any action on placing trades with them. For instance, some brokers may not permit you to conduct more than one Forex trade at any given time.
It is also important to find out whether the Forex broker has any restrictions on you taking trades in foreign currencies. Some of the brokers for example prohibit Forex traders working with new accounts. It is important therefore to find out in advance whether you can start off with a demo account before proceeding to foreign currency trading. Moreover, you should find out from the broker whether you need to deposit funds before you start off.
Forex brokers that charge you with high commission rates often have less than favorable track records. You therefore need to do your research and find out about the track record of the Forex broker in terms of generating profit and loss. While the Forex market is an open market, trades are usually executed in pairs. The currencies of different countries are traded. It is therefore important that you know which currency pairs the particular Forex broker deals in.
If you intend to take part in Forex market trading and if you do not have time to carry out Forex research and analysis yourself, then you should use a Forex broker without commission. In addition, such brokers are always available for your trading needs and they do not place any type of stop-loss order on your behalf. The brokers are even able to provide online quotes for you which makes things even simpler.