You can find many online trading brokers. fxcm markets Classifying them in the right way can help you in finding the most suitable brokerage firm for you. Here are two useful classifications of online brokers to help in you in the task.

Trading of financial instruments got very popular after the introduction of online trading services by online brokers. These brokerage firms offered a different range and level of trading services that make many traders, especially the experienced ones, their customers. Most brokerage firms, both traditional and discount, now offer traders online trading services. In addition to that many new brokerage firms also emerged which offer their services exclusively through internet and their services differed highly from the traditional ones; most noticeable of these changes are the faster execution of orders and highly sophisticated trading systems.

One can divide online trading brokers to different classes according to their services, products, etc. Most noticeable among these classifications are the ones based on products and markets to which the brokers offer access and the services that brokers offer as a whole.

Brokers according to their products/markets

1. Stock brokers – are brokers whose premium service is for traders of equities and other stock exchange traded products.

2. Forex Currency Brokers – These brokers are primarily focused on serving traders of foreign currency in the forex market.

3. Futures brokers – are brokers whose primary service is for traders of futures on commodities. This group include a great variety as one can find many brokers who specialize on certain commodities.

4. Options brokers – are brokers whose primary service is for traders of options contracts.

5. Funds trading brokers are brokers who specialize in trading mutual funds, exchange traded funds and funds.

But this classification is not a very good one for a trader who is looking to start his trading carrier with a very good broker. More over now one can hardly find any broker who specializes on one product. The majority of brokers offer multiple trading services – including stocks, futures and options, as well as funds. The only exception is online forex trading brokers; most of them specialize exclusively on forex currencies and it is the biggest financial market on our planet. The next classification will help traders find the right broker for them.

1. Many call these brokers traditional brokers. They provide services for almost all markets or products, except forex currencies. They provide good trading assistance, as well as many other advantages. They are expensive and not recommended for active and experienced traders who can make trading decisions themselves.

2. Discount brokers are brokers that offer the same services as full-service brokers, but with lower commission rates. They will not provide the same level customer service and trading assistance. Discount brokers are best for experienced traders who can make their own trading decisions.

3. They have been very successful in the last few years. Brokers who use high levels of automation for trading services are these brokers. They offer trading services for very low rates but expect nothing more from them. They usually offer a limited range of products and markets. But there are also some big names among them. These brokers are a good choice if you’re an active trader and only want good trading software, live market data, and high-quality order execution from your broker.

4. Day trading brokers are brokers that specialize in providing trading services for day traders. They have the most advanced trading systems, high automation of trading services and lower ever commission schedules. But they have many minimum requirements which only a day trader can fulfill.