Spread is the basis of forex transactions. Spread is measured in 'pips. It is the difference between prices at which currency can be bought or sold. Pip refers to the smallest amount of currency increase.
You can compare forex brokers based on the spread they charge. Most dealers release live or delayed pricing on their sites. Be aware, however, that you need to check to see if the spread is fixed or variable. Variable spreads are smaller when the market is calm, but when the market is more volatile, forex brokers can increase the spread.
The result of this scenario is that a trader has lower transaction costs in less volatile market conditions. If you are looking for forex trading platforms in South Africa then visit https://www.globex360.co.za
Due to the large amount of money involved in trading the forex markets, most forex brokers are associated with large banks or lending institutions. Brokers must be registered with 'Futures Commission Merchant'. Forex brokers are regulated by the "Commodity Futures Trading Commission".
The latest development is online forex brokers that provide trading facilities to traders by using sophisticated technology. These features allow anyone with a PC and an internet connection to trade the Forex market.
Commission Fees: Most forex brokers do not charge commissions. Their income comes from their activities as currency dealers and they earn from buying, selling, interest on deposits, converting and holding currencies, and rollover fees.
Many people are attracted by the fact that forex brokers do not charge commissions. Forex brokers make their money from spreads. For example, the broker will sell at 1.1990 but sell at 1.1985. The .0005 difference is where the forex broker makes a profit.
Final Words: Be sure to do your homework and watch your company. Just because forex brokers are synchronized does not mean that they are the same. Make sure the company has reserves to survive a market crash so that you can withdraw your money if necessary. If a broker falters when asked about their qualifications, their reserves, and any transaction costs involved, look elsewhere.