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As only banks can participate in this type of broker, it is not suitable for beginners. If any other broker grants you direct access to the Interbank market, he does not play fair as the market is not open to individual traders. Furthermore, institutional brokers have direct access to the market and represent 50% of all Forex trading.
Now you can see, that only four of the five mentioned markets are open for individuals. From these four, the Retail market maker is the most appropriate one. Within this type, there are a lot of different types and they are easy to find. However, one must take a look at the services provided by the broker he selects. But don't chose a book maker or bucket shop, as they are illegal.
Despite the fact that this type of broker represents most brokers on the market, they do not provide the same services and access to the market. A lot of traders chose this type and is also suitable for beginning traders. Nevertheless, one most be aware of the provided services. In the United States and most other countries, this type of broker is legal.
This type of broker has the most direct access to the Forex market and is very suitable for beginners. You can be given more direct access to the Interbank market, when you are willing to pay a larger sum of money.
There are many dealers with online access to be found on the world wide web, both legal and illegal. Many offer the same services and access to the market, but their policies and procedures might differ. Therefore, every trader must chose his type carefully.
Beginners need to be very careful, as the market allows a lot of trading services, which are not suitable for beginners, to operate on the market.
Different levels of the Forex market are represented by each type of broker, ranging from a high level with direct access to a lower level with little or no access to the market at all. We will cover the different types of brokers below.
