Forex Brokers by Category
Among the numerous types of forex brokers, finding the broker according to your requirement is tiresome. When you search for a broker, you will find hundreds of them across the world. Hence, it becomes difficult to match all the criteria with different types of forex brokers. That is why experts recommend searching the list of forex brokers by category such as instruments, trading platform, regulations, trading account, brokers by country, brokers by execution types, etc. So, if you can specify your criteria as per the forex brokers by category list, you can easily find the right broker, which you may use for the long term. Furthermore, forex brokers by category enable you to select a broker from the desired requirement.
This article will provide you a glance at the forex brokers category so that you can choose the best forex broker and dive into the trading world with ease.
Forex Brokers for Beginners
When you think of forex trading, there are several types of forex brokers categorized based on the offered instruments or the market, and you will find different types of forex brokers for beginners. Therefore, it is necessary for beginners to understand the broker based on the instruments.
So, as a beginner, you should know the regular brokers as well as the CFD brokers too. While the regular broker works with the foreign exchange, CFD may have different instruments. CFD, widely known as the Contract for Difference, is mainly an agreement between two parties. The parties agree to exchange the difference “between opening and closing price” of a CFD item. The traders can trade live with the CFD instruments without owning them actually. Furthermore, you don’t need to pay anything for the virtual ownership of the instrument. Therefore, traders can sell the product anytime and buy it back later. The good thing about the CFD brokers is that it allows accessing more than 10 thousand markets within your fingertips.
Best Forex Brokers by Category List
ECN Forex Brokers
Let’s take a look at the forex brokers by category list based on ECN. It is mainly a process that works through the electronic communications network. ECN brokers mainly work on connecting the retail forex traders to the available liquidity provider. For your information, ECNs are non-dealing desk operators which connect between the parties.
PayPal Forex Brokers
When it comes to the transaction method in forex trading, everyone prefers the easiest method. From experience, it can be said digital payment wallets are a quick and easy transaction method for traders. PayPal brokers fall under the forex brokers category based on transaction methods. PayPal gives the easy, quick, and safest deposit and withdrawal method for all. In recent times, the demand for PayPal Forex brokers is increasing exponentially.
Skrill Forex Brokers
Like PayPal, Skrill is another digital wallet system, which also allows traders to make the transaction safe and secure way. So, Skrill forex brokers also fall under the forex brokers by category list based on the transaction method. However, Skrill Forex brokers may charge some fees based on the transaction. It also imposes inactivity fees. So, it is advisable to know the Skrill broker’s terms and conditions before you sign up with them.
Neteller Forex Brokers
Here is another transaction method for the forex brokers. However, it is not widely available all over the world. So, you may not be able to sign up with a Neteller Forex broker if your country doesn’t allow Neteller transactions. You may not open a forex account with the broker unless it has other acceptable payment methods.
Zero Spread Brokers
The Zero spread forex brokers category usually does not offer any difference between the bid and ask price. Therefore, a zero spread broker lets the traders know the entry and exit point whenever they open a position. Furthermore, this type of forex brokers helps to calculate the non-trading losses. It is mainly ideal for scalping and day trading strategies.
Low Deposit Forex Brokers
Deposits are mandatory to start forex trading. Different types of forex brokers may ask for minimum deposit amounts. But the new traders always prefer the low deposit. So, brokers with the minimum deposit amount have a different fan base. Many brokers offer as low as $5 for the minimum deposit, while the maximum deposit may not have a limit.
Gold Trading Brokers
Many forex brokers offer other trading instruments than the currency pair. And sometimes, some brokers also offer gold as a trading instrument, which is one of the most popular trading items after foreign currency. It is just an asset that also has store value too. Moreover, gold is considered a safe-haven asset for traders and general people as the price of gold tends to rise always. For example, over the spend of last few decades, the gold price has risen gradually. As a result, the demand for this type of forex brokers is increasing.
Aside from the gold, silver is also another good option. Because silver was one of the ancient currencies from history, which was able to grow fascination for many traders, in simple words, you can look at silver as an asset to trade. Besides, it has a store of value, and some economists see good prospects trading the silver.
However, it is different from gold and is considered an industrial asset with demand issues. But silver is not considered as a safe haven like gold. Holding or trading silver has good value for both the present and the future. Get the list of best Gold trading brokers.
Oil Trading Brokers
Trading oil has become popular over the period simultaneously with the forex. It is because crude oil’s market price is extremely volatile, which also depends on the politics, economics, and security of a country. Nevertheless, crude oil is the main fuel for humans. But this demand can change if the world moves to green energy. But until then, traders can initiate trading and make some money from Oil trading brokers.
Cryptos are the new addition to the market, which is mainly private currencies. It is decentralized and doesn’t have a governmental observation on crypto. But Cryptocurrencies seem to be safe as they cannot be manipulated or even devalued. Furthermore, cryptos don’t face any inflation, and they are safe. Hence, many traders are moving their investments into cryptocurrencies. So, which forex brokers category is applicable for trading crypto? You can use Forex / CFD brokerage to trade cryptos with cryptocurrency Forex brokers.
Other Common Type of Forex Brokers
Aside from the FX currency trading, different types of forex brokers offer commodity trading too. When it comes to the commodities forex brokers category, a commodity broker is usually a firm or even an individual that works on buying or selling various commodity contracts on behalf of the traders. These types of forex brokers usually charge commissions. Commodities include wheat, cocoa, soybeans, sugar, and more.
Most of the traders, as well as the general people, are familiar with stock trading, and a certain portion of the world population have traded stock in their lifetime. Many forex brokers offer stock trading besides the forex. If we look at history, we can see stock trading has been there even hundreds of years ago. Therefore, it is evident that many brokers have emerged and gone. So, trading stock has become a forex brokers category for many brokers.
Exchange-traded funds, also known as ETFs, allow for selling or buying shares easily. The good thing about ETFs is, it enables the traders to access numerous important assets.
Brokers by Trading Platform
Although there are several forex trading platforms available in the industry, a few of them are chosen by all. As per the forex brokers by category based on the platform, you will get to see MT4 forex brokers, MT5 forex brokers, cTrader brokers, social trading, copy trading, and automated trading.
The trading platform defines a significant role in forex trading as your trading outcome will depend on the platform. That being said, MT4 and MT5 are the two widely accepted brokers in the industry. So, when it comes to the list of forex brokers by category on the trading platform, you can choose the brokers that offer MetaTrader 4 and MetaTrader 5. However, this recommendation doesn’t weigh out the other forex brokers category with a different platform. It actually depended on the traders and their requirements.
If you want success in forex trading, there is no alternative to having the idea of different types of forex brokers. If you have a clear idea about all type of forex brokers, you can easily work on selecting the best forex broker in the industry.
So, you may look at an in-depth analysis of the forex brokers by category list and take your decision on the right broker.