Finding Brokers for Forex Market Trading

The best brokers for the forex markets are not the ones that allow you to start trading with a $250 or even $500 account. Why is this? Because most forex brokers who accept such small amounts of opening deposits are not entering your forex orders into the international forex market place.

These firms are often acting on their own behalf with orders and are taking your trades onto their books. They are acting as the counterparty to your trade. They know that forex traders starting out with such small amounts of money will probably end up losing that money. Since they are the counter parties to your trade when you lose they win.

This is very much the way a gambling casino works. In a casino you are always playing against the house and the house always enjoys a small edge. Over time that small edge means that the casino will end up with your money unless you are extremely lucky. Not only do you have to be extremely lucky to win over the long run but you also have to be smart and disciplined enough to quit after a big win.

Since many online forex brokers work in this manner you need to be careful when opening an online forex trading account. If you want to give forex trading a go and only have a small amount of risk capital to open an account with you may go ahead and select a broker that accepts small deposits. Just be forewarned that the playing field will not be as level as is good for your financial health.

In recent years with the popularity of online forex trading growing large highly reputable banks have established forex trading facilities for smaller forex traders. While the starting capital is larger, usually in the $3,000 to $10,000 range, you will benefit from working with a bono fide player in the international forex market. Spreads will be tight and you can trade fast moving markets without frequent requotes taking away the advantage of speedy executions.

Deutsche Bank says that it is the number one forex dealing bank in the world and you can now open a retail account with Deutsche Bank. The minimum account size is $5,00. The bank also offers a $50,000 play money demo account that will allow you to test their trading platform.

Deutsche Bank feeds real-time streaming prices into the dbFX Trading Station. Prices update dynamically tick by tick with the slightest market move. Dealing rates are not an indication of where the market is trading, but of actual prices at which the currency pair can be bought or sold on the FX Trading Station. dbFX offers spreads from as low as 2 pips under normal market conditions.

To find other examples of major banks that welcome smaller retail forex trading business run a Google search for “forex trading banks” and the like. If you plan to make forex trading into a business venture with a good prospect for success you will gain an edge by using the services of first class forex dealers and forex brokers.

By Gerald Greene - Forex Trading Guru