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Types of online trading brokers


You can find many online trading brokers. trading cfd c'est quoi You can find the best brokerage firm by classifying them correctly. You can use these two classifications to find the best online broker for you.



Online brokers introduced online trading services that made financial instrument trading very popular. These brokerage firms provided a wide range of services and levels that made many traders, particularly the more experienced ones, become their clients. Most brokerage firms, both traditional and discount, now offer traders online trading services. In addition to that many new brokerage firms also emerged which offer their services exclusively through internet and their services differed highly from the traditional ones; most noticeable of these changes are the faster execution of orders and highly sophisticated trading systems.

Online trading brokers can be classified according to the services they provide, their products, etc. Most noticeable among these classifications are the ones based on products and markets to which the brokers offer access and the services that brokers offer as a whole.

Types of brokers according to the products/markets

1. Stock brokers are brokers who offer a premium service to traders of stocks and other products traded on the stock exchange.
2. Forex Currency brokers - are brokers whose primary service is for traders of foreign currencies in forex market.
3. Futures brokers are brokers who specialize in trading futures contracts on commodities. This group include a great variety as one can find many brokers who specialize on certain commodities.
4. Options brokers are brokers who specialize in trading options contracts.
5. Funds trading brokers are brokers who specialize in trading mutual funds, exchange traded funds and funds.

This classification is not very useful for traders who are looking to begin their trading career with a good broker. More over now one can hardly find any broker who specializes on one product. Most brokers now offer services for trading multiple products - stocks, futures, options and funds. Online forex brokers are the only exception; they specialize in forex currencies, which is our largest financial market. The next classification will help traders find the right broker for them.

1. Many call these brokers traditional brokers. They offer services for trading almost all products or markets; except forex currencies. They offer good trading assistance and many other trading advantages. But they charge quite high and thus not much suggested for experienced traders and active traders who can make their own trading decisions.
2. Discount brokers - are brokers who are pretty much like full-service brokers but charge less commission schedules. They will not provide the same level customer service and trading assistance. Discount brokers are best for experienced traders who can make their own trading decisions.
3. Deep-discount brokers - they established themselves very well in recent years. Brokers who use high levels of automation for trading services are these brokers. These brokers offer low-cost trading services, but they expect nothing else from them. Usually they offer limited number of markets and products. There are some big names in there. They are good option if you are an active trader who demands only good trading software, streaming market info and quality order execution only from the brokers.
4. Day trading brokers - are brokers who specialize in offering trading services to day traders. They have the most advanced trading systems, high automation of trading services and lower ever commission schedules. But they have many minimum requirements which only a day trader can fulfill.


Website: https://www.fxcm-markets.com/insights/how-to-choose-the-best-cfd-brokers-in-malaysia/