Online Forex Broker Types

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Its not always a case of one forex broker fits all requirements; the kind of online forex broker you choose to sign up with can have a large affect on your trading results.  If you trade over a short duration of time a large spread could render some trading strategies as useless.  Maybe you see the benefits of spread betting but plan on holding trades for weeks on end..this would potentially result in rollover charges which were unacceptable.

Retail traders are not able to utilize the interbank market as they don’t have the required credit facilities with the top Tier banks.  There are however different types of forex broker available which provide inherent benefits and drawbacks.  When it comes to forex brokers; the back office systems they use and precisely how the broker executes the trades they are given carries a substantial influence on how “fit for purpose” they are for the traders using them.  The trade execution speed, transaction fees and spreads on the various currency pairs are all important.

Online forex brokers come in three main categories which we will cover in this article.  Each category has noticeably different methods of working with client orders.

ECN brokers do not have associated dealing desks as they are software driven.  Forex market buyers and sellers are able to transact via the electronic platform provided. This kind of platform is historically associated with institutions or the bigger individual traders. ECN brokers operate in a  similar way to Tier 2 bank.  The ECN broker passes through the available quotes from associated banks for clients to trade.  ECN providers quite often offer lower leverage which means the trader has to tie up more capital in order to trade any size which is potentially a negative factor for many. There is also often no facility for more granular position sizing as only full lot transactions are allowed. These kinds of trading accounts are often said to provide very tight spreads with very fast execution; one can obtain forex spreads as low as to 0.5-1 pips for majors. ECN accounts do not have anti-scalping rules like some of the other accounts do. They do however charge commissions which is potentially a negative factor, or not, depending on your account size.

The most common type of online forex broker out there is known as the market maker. Market makers take the opposite side of any trades that are given to them. When a trader loses money the market maker stands to take that money.  This kind of online forex broker nonetheless gains a certain fee even when you win which is called the spread.  The business model of a market maker is to have enough buy and sell wagers running through their books so they  can make money from the spread with minimized risk exposure. If a market maker receives a large bet they pass this off to another 3rd party and balance the books somewhat.  The average trader will use this kind of service as the spreads are nowadays quite competitive.

Forex brokers who employ this system operate directly with liquidity providers.  No dealing desk brokers function by obtaining the most suitable quotes from a number of diverse liquidity providers. These are typically financial institutions like banks. These no dealing desk brokers execute trades through the different channels they have available to them. This is what allows them to be brokers and what provides these no dealing desk brokers the liquidity to trade. Market speculators utilizing this system have access to instantly executable exchange rates.  These online brokers typically charge commission on a per trade basis or add to the the spread they receive from other market makers.

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Obtaining Travel Medical Insurance - 5 Types Of Coverage You Need

In days of old, when Polynesian, European, and other ancient seafaring peoples set out to sea for a journey in their hand-crafted boats and ships, they had no guarantees that they would be coming home again. These brave peoples only knew that they were searching for riches or new places to live someplace far away, but they did not have compasses, maps, or a GPS system to guide them. And often, they did not return home.
Today, when we take a trip by sea, air, or land, we have a much, much better chance of returning safely than did those ancient seafaring peoples. Travel has become an extremely safe affair, especially when it comes to the major modes of transport to and from our destinations. Airplanes, ships and trains have become extremely safe modes of transportation - much safer than the automobiles we use every day while at home, in fact.
And yet, even these days when you travel you face certain risks. There is always the possibility of getting into a fender bender, getting injured while hiking, having a boating accident, falling ill with a rare disease, getting food poisoning, etc. Fortunately, we have something these days that our ancestors did not: access to travel medical insurance.
If you are planning on obtaining travel medical insurance for an upcoming journey abroad, here are 5 types of coverage you need:
1. Make sure it covers your care from time of accident or illness until you return to your home country:
Some illnesses and accidents that you encounter while on the road can be treated successfully while you are still in-country. However, getting into a very serious accident or succumbing to an exotic disease for which you forgot to get vaccinated is not outside of the realm of possibility. To handle this type of situation, you will want to make sure that the travel medical insurance policy that you purchase includes coverage for your continued care once you return home.
2. Check out any destination or activity restrictions:
Read the policy you buy carefully and look for any restrictions related to either your planned destination country (or region) or any types of risky activities. It would be a shame to buy a policy that you cannot cash in on because you unknowingly violated a hidden policy restriction during your trip.
3. Verify that the policy will cover your hospital needs while you are still in-country:
Of course, as a basic requirement, you will need your policy to cover your in-country hospital bills for a reasonable duration that covers your treatment.
4. Make sure that the policy will cover your transportation needs to and from the hospital:
If you get into an accident or get sick at your hotel while traveling, you will need access to transportation staffed with medically-trained staff (i.e., an ambulance) to transport you to and from the hospital. Be sure that coverage for such transportation is included in your policy.
5. Read the fine print concerning specialty treatments:
Finally, read the fine print about getting access to specialty treatments. For example, if the hospital to which you are first transported does not have the proper facilities to handle your required treatment, you need your coverage to take that possibility into account; you need coverage for expenses related to secondary transportation to another facility.
As you look into obtaining travel medical insurance, consider these 5 types of coverage that you will need in order to get the peace of mind you deserve for your upcoming trip.