Have you ever wonder what exactly is Forex Broker? Still similar to Forex Broker in Malaysia, it is known as a financial services company that provides platforms and media to the traders where the process of buying and selling foreign currencies take place. The word forex is the short form of foreign exchange. Forex broker is the currency trading broker, 24-hours operating and worldwide available, so yes you need good internet to access it.
Now you must be wondering, how you could actually make money out of it? Well, there are two ways that forex brokers are compensated. The first is through a currency pair’s bid-ask spread. The forex broker will get the spread amount when a retail client initiates a position at the asking price and then closes it at the bid price. Second, certain brokers demand extra commissions. Some demand a transaction fee or a monthly cost for access to a certain software interface, as well as fees for access to unique trading instruments such as exotic options.
In Malaysia, there is a handful of the best and trustworthy brokers’ platforms. Some that are worth mentioning are FP Markets and CM Trading.
The Australian Securities and Investments Commission (ASIC) regulates FP Markets, which provides segregation of client money and top-tier liquidity. First Prudential Markets Ltd, which is authorized and regulated by the Cyprus Securities and Exchange Commission, is part of the FP Markets group of enterprises. Forex, Equities (Share CFDs), Metals, Commodities, Indices, and Cryptocurrency CFDs are among the more than 10,000 financial instruments available through the firm. MetaTrader users can choose from a variety of accounts, including the Standard Account (commission-free) and Raw Account (commission-based), both of which offer ECN pricing and maximum leverage of 500:1. Iress Accounts, which are commission-based, are also available to users. The perks of using FP Markets are its ASIC-regulated, with ECN pricing and DMA trading, 10,000+ traded financial instruments, and a wide choice of trading platforms and tools. Customer service and instructional tools are excellent, but for new traders, the sheer number of markets and accounts available can be intimidating.
The second one is CM Trading. The Extreme Fighting Championship, Africa’s largest MMA platform, is a sponsor of CM Trading (EFC). Global Capital Markets Trading South Africa Proprietary Limited is a juristic representative and agent of Blackstone Marketing Proprietary Limited, which is authorized and regulated by the South African Financial Sector Conduct Authority (FSCA). The broker’s trading platforms include the worldwide recognized MetaTrader 4 trading platform for desktop and mobile, as well as the feature-rich Sirix trading platform for web and mobile, which includes access to the Sirix CopyKat social trading community. Users can trade without commissions using one of four account types: Bronze, Silver, Gold, or Premium, with only spreads and swaps to pay. ECN accounts are also available, but they come with commissions, spreads, and swaps. In addition, the broker provides Islamic swap-free accounts and a free test trading account. There are more than 200 CFDs available to trade, as well as commission-free trading accounts, multiple trading platforms, and social trading. Swaps, on the other hand, aren’t the most competitive.