Forex brokers play a great role in the Forex market. They are not only responsible for executing the trading orders of traders and investors, but also provide trading platforms, software, markets’ analysis and other tools to help traders trade on the financial markets.
A broker and a trading platform are usually bind together and cannot exist separately. So when you are looking for a best Forex broker or trading platform, you need to keep in mind that they represent one unit and join those financial companies whose brokerage services and trading platforms are good for you.
A Forex trading platform is responsible for your feeling of comfort when trading and provides you with trading features, instruments and tools needed for your trading in Forex and other financial markets. At the same time a Forex broker is responsible for the security of your funds, reliability, currency rates and other trading conditions.
Very often you can see that one broker offers different trading platforms or the same Forex trading platform is used by different brokers. For example the famous MT4 trading platform is a trading software that is used by hundreds of different Forex brokers. At the same time AvaTrade Forex broker is offering its traders both Metatrader 4 and AvaTrader trading platforms.
eToro for example is an investment network and a Forex broker and it keeps the main brokerage principles. eToro is an ECN Forex broker where you can trade on its own developed trading platforms: eToro Webtrader, Openbook, eToro MobileTrader, etc.
As a matter of fact eToro is one of the most popular Forex brokers with over 4 million traders. The company has developed a huge network of online traders who communicate, exchange ideas and trade together. eToro’s famous CopyTrader tool allows you to copy the trades of the most experienced traders automatically.
Forex Brokers’ Types. Which Brokers You Should Trade With.
If we talk about Forex brokers for displaying prices and execution of orders, you need to distinguish between a market maker, a dealing desk, an STP and an ECN brokers.
The dealing desk and market maker brokers usually make profit out of the loss of the traders. They bid on the fact that most of the traders loose money in Forex trading and take their loss as their own income. The advantage of trading with the dealing desk or a market maker broker is that their spreads are usually relatively lower than the spreads of the STP or ECN brokers, as they don’t see it as a main income and the low spreads help them attract more clients.
But on the other hand the biggest disadvantage of trading with a market maker broker is the security of your funds as this broker is not interested in you making profit in Forex trading. Such broker manipulates the market and may offer its own currency rates that are not necessary to be the real rates of the Forex market.
The STP (Straight Through Processor) and the ECN (Electronic Communication Network) brokers work on a different principle and do not play against the client because such brokers are not involved in the definition of quotations, they only reflect the price of their liquidity providers and earn the spread difference between the buy and sell rates of the currency pairs.
There are a number of Forex brokers and Financial companies operating in Singapore, you can find different types of them using different trading platforms. On our website we recommend only reliable companies that offer the security of your funds and trading orders.
If you are about to start trading Forex it is very important to define your needs and expectations from both a Forex trading platform and a Forex broker. Thus you will be able to find the best combination that will provide you with great trading services and security of your transactions.
Best Singapore Forex Broker Comparison:
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