Now that you know a little about forex, you’re probably itching to start your pippin’ adventures. But before you set off on your journey, you need one more thing… An actual account with a broker!
Of course, we want you to work with a broker that will provide the right services for your individual needs, so we decided to come up with this section to walk you through the right things to consider when choosing!
But first, we’ll begin by revisiting the pages of history to find out how brokers came to life. Name the best thing that the mighty powers of the Internet have brought us. YouTube, Facebook, Twitter, BabyPips.com… Yes, those are all awesome. But what we want talk about is the greatest gift to forex junkies like you and me: Retail FX trading!
In fact, forex junkies probably wouldn’t exist if not for the birth of online forex brokers. You see, back in the 90s, it was much more difficult to participate in the retail FX market because of higher transactions costs. At that time, governments were like strict parents keeping a watchful eye on exchanges, restricting their activities. After time, the CFTC decided that enough is enough. They passed a couple of bills, namely the Commodity Exchange Act and the Commodity Futures Modernization Act, and opened the doors for online forex brokers.
Since almost everyone had access to the worldwide web, opening an account with a forex broker was simple and convenient. Various forex brokers started popping up here and there, eager to take advantage of the booming forex industry. But now that there are many choices out there, it’s a little tougher to distinguish between the good brokers and the evil ones. We’re not kidding about the evil ones, which are also known as bucket shops, and we’ll delve into that a little later.