The foreign exchange market is like a big ballpark, everything is fair game. The players in this game are composed mostly of banking institutions from all over the world. Traders are not usually allowed to play in this field, and they could only do so through their “managers”, which can either be market makers or electronic communications network. What is the difference between the two?

Market makers normally have a bid and ask price. When we sell, they buy. It is just that simple. Traders can easily see through the screens the exchange rates which are set by the market makers based entirely on their own interest. The only problem is, they may turn against us and not exactly give us what we are looking for. Basically, they are given enough room to manipulate prices against us. The electronic communications network, on the other hand, may provide better bid prices, but then, traders have to pay their commission, which is all they ask, for every transaction.

If we are traders and we are looking for the best manager to represent our interests in the ball field, then we must first weight every situation carefully. This is where having a Hedge Fund Copier would be ideal. If the first one we choose does not perform or fails to deliver, then it may be about time to make a big change to spell a difference of earning a profit or not.