using horse racing terms...trading against a bookmaker or in a true exchange.. I know what I would prefer! Market risk is one thing, happy to take that but the silly broker and counter party risk!that is another risk one does not need to bother, unless it is odd ball exposure that you want to hedge! for example for AUD/USD why would I bother with OTC when I can see exchange traded products but for AUD/ Mex may be one will have to go the OTC route.... oh by the way somebody mentioned the scumbag Binary Options in this space! LOL
When you feel you are ready to start trading currencies, you need to find a reliable Forex broker. First we should address exactly what a Forex broker is. Your first priority is to carry out research with the aim of discovering whether a broker possesses an exceptional reputation and whether they are able to meet your needs. The vast majority of the main Forex brokers will permit prospective clients to test their services with a practice or demo account, so that they can obtain a good understanding of what the system is actually like. It would be wise of you to test out as many platforms as you can prior to deciding on which broker to use. The purpose of the remainder of this article is to teach you how to choose a good Forex broker.