Thursday, January 28, 2016

What is a Forex Broker

In our previous articles, we have discussed about the advantages of forex trading. We have also explained some of the most basic forex trading terms. Today, in this article, we will now talk about the role and significance of a broker in forex trading.

First of all, what is a forex broker? A broker is a company or an individual that acts as an intermediary between the interbank and the investor. Basically, the broker is the one who handles the transactions, and buys and sells orders according to the decision of the investor. Brokers earn money either through commission or by charging a fee for their services.

To provide enough funds for margin trading, the forex broker needs to be associated with a large financial institution – like a bank. Also, the forex broker must be a member of a regulatory authority, such as IFSC to protect yourself from illegal practices such as scam, fraud and abusive trade practices.

Setting Up a Forex Trading Account

Before you can work with a forex broker, you must first create a live trading account. However, doing so might be difficult at the beginning, as you might feel overwhelmed choosing from a multitude of forex broker that offers their services out there. You can read this article so you can carefully choose the best forex broker

Opening an account with a forex broker is very similar to opening a bank account. Doing so requires money, paperwork, identity verification and other similar things. The process itself might take a few days. However, if you’re not comfortable providing personal information and a substantial amount of money right away, you can test the broker by creating a demo account first.

To be more familiar with forex trading, you can count upon our educational blogs and articles. Spot who the best forex brokers are, visit our official website WibestBroker to find out :)

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