Probably the most important decision a new trader will make before he even makes a trade is choosing which Forex Broker is right for him/her. There are numerous sites that will help a new trader compare forex brokers based on a number of different factors including but not limited to Minimum Deposit, Max Leverage, Spreads, Commission, Swaps, or whether they are an ECN Forex Broker or Dealing Desk Forex Broker.

Spread Charge
The spread is the difference between the ask and bid prices which can range from zero to whatever amount of pips. There are even brokers that charge absolutely no spreads, but probably will pass off their operating costs in some other way such as commissions charged per trade. To learn more about Forex Brokers with No Spreads go here.

Commissions on Trades
When a broker charges a commission on a Forex trade, it will be applied in such a way: $4 per 1,000 or $40 per 10,000. $4 referring to their rate (which can be $1-$5 at least); 1,000 & 10,000 refers to the contract size. Most brokers that have higher spreads will not charge commissions. Most ECN forex Brokers charge a commission but will apply a much smaller pip spread. Brokers that have high spreads and high commission are NOT worth your time.

ECN FOREX BROKER or DEALING DESK BROKER
An ECN Forex Broker stands for Electronic Communications Network Broker.  Typically what sets these brokers apart from the rest is, in short, they are able to link you up to many different networks with buyers and sellers, allowing you to get the best possible deal on the trade you are making.  Dealing Desk brokers in a way, manufacture the market, allowing them to make money off the spread between the ask and bid prices.  A Dealing Desk broker is not a scam, but they do make trading profitable for them, more than you and will make money whether you win or lose.  Generally speaking, ECN Forex brokers are safer and more reliable, to find out more about ECN Forex brokers visit this site.

Forex Brokers You Should Try (for Free)