Who is a Forex broker and how does a Forex broker earn?Johannes Röll 25 / August / 23 Visitors: 395
In the huge and ever-expanding world of Forex trading, finding a reliable and trusted broker is crucial for both novice and experienced traders.
A mandatory condition for trading on the Forex market is cooperation with a brokerage company. This is due to the fact that, according to the laws of our country, a private person does not have the right to trade on the exchange without an intermediary. In this article, we will find out what Forex brokers are and how they operate.
The first question before developing a trading strategy, launching a deposit, etc. which Forex broker should I choose? I understand that you should look at the website itself so as not to stumble upon a scam.
In addition - trading conditions, the issue of withdrawal and replenishment of the account, the convenience and functionality of the trading platform, the number of currency pairs, the mobile application, customer service, the license of the central bank, the duration of the company and what else?
I have looked at the rating of Forex brokers and more than one, but they are quite contradictory and it is not clear how much they can be trusted. I started searching manually. Since I have this broker on the stock exchange, I started with reviews of BKS Forex. It is clear that reading about 10-20 companies is unrealistic. I may miss something with my beginner's view, but even without that the criteria are not few.
Question for those who trade Forex for more than a day, who is your forex broker and why this choice?
Who is a forex broker?
A forex broker is a special company that acts as an intermediary between the investor and the currency exchange. It is also called a trading center that provides access to various financial instruments and analysis. In addition, with the help of a team of specialists, it helps to properly prepare all the documents necessary to conclude the transaction.
Principle of operation
The dealing center provides access to the market through a dedicated platform. It can be its own service or popular trading platforms, for example, MetaTrader 4. With its help, a trader can use a wide range of tools and technical indicators, make financial transactions and monitor changes in asset prices. The investor can receive up-to-date information on all quotes. This reduces the risk of buying illiquid assets.
The broker also gives you the option
using leverage and trading amounts that exceed the client's deposit tens or even hundreds of times.
What does the broker earn?
It is obvious that the brokerage organization is not a charity and requires material remuneration for its services. Her main source of income is commission. It is expressed both as a percentage of each executed trade and as a bonus to the spread.
Forex brokers therefore act as intermediaries in the stock market. They provide their clients with access to a wide range of assets and useful features. Since the main income of the dealership comes from every transaction made, it is more interested in the good profits of its customers than anyone else.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer