CFD FOREX BROKERS

To trade you will need to deposit your money with a broker (as Eaconomy does not raise capital, they simply provide you with education and technology).

You can also utilise a system called prop firms, where you do not have to risk your own capital, but can access (large) funds from a third party under certain conditions.

On this page I will briefly explain what a broker is, how to learn to identify a good broker and how to create your account with a regulated broker.

1. What is a Broker

2. CFD Forex brokers

3. Types of brokers

4. Criteria to choose a broker

5. Demo account when trading forex

6. Brokers I use and how to create your account

1. What is a broker?

A broker is a private financial institution that acts as an intermediary between buyers and sellers in the financial markets.

In the context of forex trading, a broker allows traders to access the foreign exchange market, providing them with a platform for trading and additional services such as market analysis and risk management tools.

A good broker should offer transparency, efficiency and trust.

To identify a good broker, it is crucial to examine its regulation, reputation and services offered, as well as its operating costs and customer support.

2. CFD Forex Brokers

The foreign exchange market (forex) is not regulated globally, but is regulated independently by each country, and there are many territories where it is not regulated.

It is important to operate with brokers that are regulated by reliable organizations, as they offer greater security for your investment.

3. Types of brokers

1. Market Maker:

This type of broker acts as a counterparty in the trader's operations. Market Makers set their own buying and selling prices, which allows them to offer a stable and predictable trading environment. It is advisable not to choose this type of broker.

2. ECN (Electronic Communication Network):

ECN brokers connect traders directly to a network of market participants such as banks, institutions and other traders. They offer variable spreads and charge a fixed commission per transaction.

3. STP (Straight Through Processing):

STP brokers send traders' orders directly to liquidity providers, without dealing desk intervention, facilitating fast and accurate trade execution.

4. Criteria to choose a forex broker

Here are some criteria that I consider important before depositing my money with a broker. I hope this helps you choose the most suitable one for you:

Regulation: Look for brokers regulated by recognised entities such as the FCA (UK) or ASIC (Australia), which offer a framework of protection for investors.
Reputation: Check the broker's rating on sites like WikiFX (minimum a score of 7 is recommended)
Experience: Choose brokers that have been operating for at least 5-10 years, as a guarantee of their stability and experience.
Flexibility in deposits and withdrawals: Check that they offer multiple methods for deposits and withdrawals, such as card, crypto, and bank transfer. Withdrawals should be fast and commission-free.
Trading Platforms: Make sure they offer multiple trading platforms. MT5 is a preferred choice for many traders due to its advanced features compared to MT4.
Support: Make sure they have good customer support and in your language.

5. Demo account when trading forex

A demo account is an invaluable tool that many brokers offer to traders, especially beginners. These accounts allow you to practice trading in a simulated environment using virtual funds, giving you the opportunity to familiarize yourself with the broker's platform and the forex market without risking real money. It is also practical if you want to test new strategies.

Benefits of a demo account:

1. Risk-free practice: Demo accounts allow you to test trading strategies and learn how to trade the market without financial risk.

2. Familiarize yourself with the platform: You can explore all the features and tools of the broker's trading platform, from charts to technical analysis tools.

3. Strategy refinement: By trading on a demo account, you can develop and refine your trading strategies before applying your tactics on a live account.

4. Knowledge of market conditions: Although trading on a demo account does not fully reflect the emotional pressure of live trading, it does allow you to get a feel for market conditions and dynamics.

I recommend making the most of demo accounts before committing real funds, especially if you are new to the forex market. Once you feel confident with your skills and strategies on the demo account, you can move on to a live account with more confidence.

6. Brokers I use and how to create your account

If you are just starting out in the world of forex trading and are looking for a reliable broker, I recommend Vantage, StarTrader or FP Markets.

They are all regulated and offer competitive services.

Note: you can have one account (or several) in different brokers, in fact it is a good practice, since you diversify the risk and you can give different uses to those accounts (example: one for one strategy, another for Eacho, another for long term etc.). Don't go overboard creating accounts, which you can't manage later, but if you organize yourself well it is interesting to carry out that diversification strategy.

Broker	Years of existence	Regulations	Main headquarters	Trading Platforms	Linsk to create your account
StarTrader	10 - 15	ASIC, FSA, FSCA	Seychelles, Australia	MT4/5	Create account with StarTrader
Vantage	15	ASIC, FCA, FSCA, CIMA, VFSC	Australia	MT4/5, Vantage App, Trading View, ProTrader	Create an account with Vantage (see below Tu
FP Markets	15 - 20	ASIC, CySEC	Seychelles	MT4/5, Trading View, cTrader, WebTrader	Create account with FP Markets

ASIC: Australia

FSA: Seychelles

FSCA: South Africa

CySEC: Cyprus

FCA: United Kingdom

CIMA:Cayman Islands

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