Whether you are a big investor or a retail forex trader everyone in this category who connects to the currency trading market do so through a forex brokerage firm.
If you get bigger in investment assets you'll move closer to market participants like big investment banks, hedge funds, large financial houses who initially had full grasp of the market. The big market players take up around 75% of the forex market capitalization. While the remaining 25% are retail investors like you and me and small investment firms. We also have banks who are themselves brokers.
For those who are interested in earning huge income in this business, you have to start by signing up with a forex brokerage firm. We have quite a number out there, especially those with a presence online, thus this requires that you consider your choices before settling down with one. There are various kinds of forex broker firms, as they include market makers, ECNs, and retail investors.
In most cases we discover that individuals who are interested in getting into the currency trading business do so via small brokers. They do so because of the relatively minimal investment requirement and the flexibility that comes with it. Trading with a small broker entails a huge risk control and this is very appealing to most traders who can hardly invest $50,000 or more with market makers or ECNs.
Selecting the right forex brokerage firm can improve earnings, yet this process is a dynamic one that hinges on any of the following indices mentioned below:
- It is a regulated or an unregulated forex brokerage firm.
- The amount of cash you are willing to invest.
- Tax implications for accounts held in the U.S., U.K., Switzerland, or tax havens regions like Cyprus, British Virgin Island, Hong Kong, etc.
- Does the forex broker firm address your individual needs as an investor?
- New trading rules in the United States, like the lowering of leverages to a benchmark 50:1 on all forex broker firms in the United States. This is having a toll on clients at this time.
Other Things You Should Know
On a strange note, some forex brokerage firms are solely concerned about minimizing tax expenses and they achieve this by opening up business within countries that are termed tax havens. The United Kingdom and Switzerland are very popular choices with well established regulatory bodies for the currency exchange market.
We have other tax haven locations in the Caribbean like Bahamas, British Virgin Island, Cyprus, Anguilla, Bermuda, Barbados, etc. Some forex broker firms are setting up offices in Hong Kong and Singapore due to their increasing awesome regulatory reputation and tax advantage.
Finally, it is important to meet with the broker which can be arranged via chats with the support desk or a visit to the office. This is the best way of gauging whether or not you can work with them. If the forex brokerage firm listens to you and suggests ways of making your trading experience with them pleasurable, then it's an awesome deal.
Most forex brokerages would allow trade automation, you should check to see if this is possible. Once this is ascertained then you'll definitely see high investment returns by incorporating forex robots on forexexpertonline.com to your forex brokerage firm.