What Is A Forex Broker ?

What Is A Forex Broker

Forex broker is a party, can be a company, institution, agency, or individual which stands to bring together between the seller and the buyer. Then the product is it traded? Of course in the form of forex (foreign exchange) or foreign currency.

In the activities of trade between countries, happen currency exchange. This Exchange is already underway since it used to be when economic relations between countries begin to mutually bound to each other. So arguably, forex brokers are already there since ancient times. See the development of economic relations between countries increasingly massive, as well as the rapid growth of the forex market, forex brokers are certainly now more and more in the world.

What Is A Forex Broker

Why Do We Need A Forex Broker?
In fact, forex trading activity dominated by large banks around the world. Transact directly with the major banks is almost impossible for individual traders. In addition, the transaction must have a liaison with major banks also cannot be done in small amounts. In other words, the standards of practical transaction is beyond small scale traders like us.

Well, this is where forex brokers took the role. Forex broker will arrange for any individual trader can join the trading on forex. The broker will forward requests from trader to broker a larger, and so on so that later every request could be accommodated traders in the forex market are big and massive.

Forex brokers also provide software and other devices that allow traders to make transactions online via a computer, a laptop, as well as various other gadgets. Therefore, the trader so can access the forex market with only install certain programs or through the browser. The transaction can be done anywhere, anytime.

Of Which Forex Broker Benefits?
Each broker has a different rule in charge for their services. But in General, the broker can charge a Commission (Commission Fee) and atauSpread. Commission fee is discounted in the magnitude of Dollars imposed on any volume transacted by the trader. While the spread is the difference between the selling and buying rates rates (bid and ask). There are forex brokers who enact them, but there are also just set the Spread only, or Commission fees only.

Normally, the quantity of spread depends on the type of the currency pair will be traded. The spread could be worth about 2-3 pips for the major currency pairs traded lively like the EUR/USD (Euro to Us dollars). On the other hand, Commission fees will vary depending on the type of brokernya.


Online Forex Broker
In the old days before there was the internet, the trader uses a model of communication, such as via telephone, to make deals to broker. But in an era of all-round internet as it is today, almost all forex brokers should facilitate trading online so as not to be left tradernya and is considered outmoded.

With the development of this technology, there is an awful lot of ease acquired trader. In addition to eliminating the difficulties of pre-internet trading and allows transactions anytime and anywhere, the trader can get real-time trading facilities. With advanced applications special (MetaTrader), a trader can monitor the price and create a direct order execution in the trading platform. In addition, traders are also facilitated by the wide variety of tools for analysis, access news, and much more.

Example: online forex broker

A Minimum Deposit Of Forex Brokers
Extra Facilities Registration
online forex-broker instaforex
$1
Forex trading course, various deposit bonuses, and other attractive facilities for beginning traders.
List Of InstaForex
online forex broker agea
$1
Free capital $5, comfortable Streamster trading platform for beginners, etc. List Of AGEA
online forex broker fbs
$1
Various bonuses, sweepstakes, and contests; There is also a local bank deposit facilities, etc. List Of FBS
List of forex brokers online and full reviews can be found in a Review of Forex brokers.


Regulation And Legality Of Forex Brokers
The problem that then arises is how to choose a forex broker diatara hundreds of online forex broker in the world. When the first is still a bit, the choice of the broker is extremely limited, so almost no demands for a trader to be selective. But with the growing interest in global forex trading, against presidential brokers recently with various types, advantages, and drawbacks. These brokers there is good, but there is also a need to look out for. Anyone working professionally, there's eating of funds from their own clients. Such situations need to be understood well so that traders were not wrong in choosing a broker.

One of the ways that can help traders choose a broker that is safe is by finding out info about the regulation of the broker. Forex brokers are regulated, means he should follow the standards and regulations that set out the regulator concerned.

Regulators generally forex broker is the official financial institution or agency under the Government of a country. Getting good regulators, regulations that followed the forex broker will be more strict. Brokers cannot operate with a standard that is inconsequential, because there is a penalty imposed if he violates the conditions of the regulators. The broker can get a warning, are sanctions, until revoked the permit to operate.