The type of broker you should choose for handling your Forex transactions is entirely up to you. The truth is that there is no broker who is better than the other since it solely depends on your tastes and preferences in trading. It is upon you to make a decision on whether you want a broker with tighter spreads (difference between bid and ask price) but pay commission for every transaction or a broker with wider spreads and does not require commissions for every transaction you undertake.
In most cases, day traders and scalpers, who do not hold overnight positions, prefer to go for Forex brokers with tighter spreads (compare spreads here). This is because it is easier to exit trades on small profits since the market requires less ground to get over transaction costs. On the other hand, swing traders or position traders, who hold positions for a number of days, tend not to be affected by wider spreads.
When you want to choose a broker, you should remember that there are three types of brokers: No Dealing Desk (NDD), Market Maker, and Electronic Communications Network (ECN) brokers. As mentioned earlier, the type of broker you will choose completely depends on the type of trader you are. Further, knowing their differences will assist you in making the decision on which one you should go for. It is essential to note that the type of broker you will choose will play a very critical role in determining the quality of service you get as well as the transaction costs you incur in trading.
Basically, NDD brokers provide immediate access to the interbank market, most have variable spreads, and provide automatic execution of orders with no re-quotes. Market maker brokers literally create a market and artificial currency exchange rates, most have fixed spreads, and fill orders on a discretionary basis. ECN brokers simple offer the best possible spread according the current market participants, most have variable spreads or commission fees, and offer automatic execution of orders with no re-quotes.
Importantly, you should remember that Forex brokers are simply not out there to catch you. Their intention is to do business with you; if you succeed, they also succeed. They are not looking for ways of kicking you out of business since your business is entirely dependent on theirs; if you lose your money, they will also lose clients. Essentially, brokers want their customers to continue executing trades through their platforms to make them stay in business.