Opting for a reliable forex broker is necessary when you frequently engage in currency exchange services. When it comes to exchanging money or sending money abroad, a user’s first requirement is finding a reliable broker. The sector of forex trading in India faces daily complaints against the increasing number of scams and money laundering. Customer awareness is important though a few only keep their eyes on the updates regarding the currency exchange rates and other necessary details. One of the most neglected things is the types of forex brokers available in the currency conversion market. Generally, there are five types -

• Dealing Desk/Market Makers

• No dealing desk

• Straight through processing

• Electronic communication network

Unfortunately, people hardly notice the classifications and rely on brokers who are easily available and visible through rigorous marketing. It is better to have enough awareness and the first step is knowing the types of forex brokers available in the market. 

1. Dealing desk/Market Makers - This type of broker is known for offering fixed market spreads. They often engage in electing to make a successful quote either below or above the real-market price at the point of time. If you do not wish to work with the liquidity providers or if you are someone who is completely new to the market, choose this type of brokers. They are the most wise and safest option for anyone to choose while investing in the forex trading center. Their source of income is the spreads as they receive payments through that. 

2. No dealing desk - If you are looking for brokers who want to work with the interbank market, then you should choose the no dealing desk brokers. This type has the direct access to the interbank sector. They do not generally require the re-quoting of the conversion prices. No matter whether there is any economic announcements or situations, trading through the no dealing desk brokers is a safe option too as the traders do not face any restrictions. However, if a trader is working with any no dealing desk broker, then the chances of using low and unfixed spreads are higher than usual. If any increase in the volatility takes place, then the value of the spreads tend to increase in a fast pace. 

3. Electronic communication network - Electronic communication network brokers generally work with both the interbank and banks to get the fixed prices. This type of brokers offer actual order book that features the processed orders. Their income generally comes from the amount they charge on each the traded volume. 

4. Straight-through processing - This type brokers pass the trading transactions into the direct liquidity providers. However, they do not interfere in the order execution procedures. 

Choose your broker according to your experience and purposes into the sector of currency exchange in India. If you are completely new, then select the market makers.

Also read - How to Find The Best Money Conversion Platforms Online