Forex Appendix – Forex Definitions: For the purposes of this document, and for an understanding of general industry terms, we have put together a list of terminology definitions: Brokerage = legal entity allowed to open customer accounts and collect customer money. Broker = an employee of the brokerage that is working with a customer. Introducing […]
Algorithmic trading or high-frequency trading is dominating the forex trading market for years now. It is being said that now traders are following robots, and not the other way around. Trading algo’s as they are being called, are computer programs designed to buy or sell when a specific event is happening. There are two types […]
Forex brokers are either market makers or pass trades to liquidity providers. A true brokerage house with no conflict of interests should one that fits in the second category. STP and ECN brokers are fitting in this category. Before discussing the difference between STP (Straight Through Processing) and ECN (Electronic Communication Network), it is important […]
A forex brokerage house can be set up based on how it intends to run the business: being directly involved in the trading process or just an intermediary. For an intermediary, it charges a fee for allowing traders to access the interbank liquidity. On the other hand, if the broker is involved in trading against […]
Trading forex in an overseas account has become popular mostly in the United States as, starting with mid-2010, the Commodity Futures Trading Commission (CFTC) made brokers change the trading conditions offered to their customers. The CFTC is the governing body in the United States when it comes to future contracts and the forex market is […]
Setting up a brokerage business starts from the way the business is organized and this can be done in various ways. A new broker can be an Introducing Broker for a bigger one, or it can be a White or Private Label one. There is a thin line between White Label and Private Label brokers, […]
