Access to foreign exchange (forex), the largest market on the planet, is generally done through an intermediary known as a forex broker. Like a stockbroker, these brokers can also provide advice on forex trading strategies. This advice for clients often extends to technical analysis and research approaches designed to improve client forex trading performance.
Financial institutions are generally the most influential in the foreign exchange market through large volume and high value currency transactions. Historically, banks enjoyed monopoly access to the foreign exchange markets, but through the Internet, any currency speculator can also enjoy 24-hour market access through a foreign exchange broker.
Today, secure web connections allow many forex traders to work from home, where easy access to news and other technical advice informs decisions about which forex positions to take. Stockbrokers are making similar moves, which are also moving away from banks and other traditional institutions.
Your needs in the market will influence your choice of forex broker. Online forex brokerage firms, known as houses, provide those new to the forex market with detailed research, advice, and simulators to learn how to use their forex trading tools. The experienced online forex trader is served by other brokerage houses, with in-depth advice, but less focus on forex trading instructions based on the assumption that he is familiar with the forex market. To make an informed decision, it is advisable to try several different online forex brokerages and their trading tools to find the one that best suits your needs.