Forex Brokers in Canada
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Our Feature FOREX Product:
Rate your Forex Broker
You can rate your Forex broker depending on the method of their trading, how much profit they can produce, and the quantum of business they get. Based on these factors, not all Forex brokers are equal. Therefore when rating your Forex broker is sure that they answer all the questions you ask them.
Some of the factors that can help you rate your Forex broker are:
The Size of the Broker: The quality of execution and the prices vary among Forex Brokers. As the Forex exchange market is treated as over-the-counter market, the services offered by different Forex Brokers vary. Larger institutions with greater trade volume receive higher benefits, such as the benefits of size, better prices, and better execution. Your Forex broker can then pass these benefits to you.
Execution of Order: This describes the manner in which the Forex broker quotes their rates. This varies across the market. Either your broker offers Dealing Desk or No Dealing Desk. In the first situation, the Forex broker creates the prices of different stocks for you and quotes your orders at that price. In such cases the spread of stocks are generally higher than the average variable spreads. In the second case, your Forex Broker facilitates a number of banks to execute your order. This does not levy any restrictions on trading news or economic events.
Spreads: You Forex Broker can spread his trading business either by Fractional Pip Pricing or by Scalping the market. When the Forex Broker spreads in the Fractional Pip Pricing, they quote the currency pairs as 0.0001 or 1 basis point. This equals one pip and the Forex Brokers generally round the price up or down the nearest pip. However, there are many others who offer fractional Pip pricing too.
Using the Market Scalping Technique: A Forex brokers use short-term scalping methods for stock trading purposes. In this technique they can place the orders only inside their spreads. However, there are many other Forex brokers who do not allow this strategy as it needs the market to loose, and involves lot of risk.
Rollover: Another point that needs to be considered is the Rollover policy followed by your Forex broker. The Rollover policy determines the interest earned or paid in the interest positions held on any given trading day. It keeps on fluctuating depending on the interest rates offered between pairs of currency and the movement of prices.
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