A forex broker refers to the broker who buys and sells foreign currencies on behalf of his/her clients for financial gains like commission. The task of forex broker is not quite easy. He has to keep an eye over the trade signals arising from manual methods or automated methods. Any wrong decision taken by the forex broker may impact the client’s financial portfolio severely. So, the importance of forex brokers is absolutely impeccable.
The broker term is widely used in the trading of equities, commodities, banking, insurance and real estate market very frequently. They are the agents who work on commissions as against delivery of their financial or market knowledge respectively in more organized manner. They have been into our financial market for many years. The significance of brokers into our financial market is incredible. They are also called ’Financial Consultants”.
Forex brokers make money in form of commissions charged from their clients for providing them financial consultation. They provide retail services like bidding to their clients either small traders or big traders and negotiate in the interdealer market. FX market is based on online trading or foreign currencies which is only accessible by retail forex traders through dealers.
Forex brokers generally offer two types of trading which are as follows:
- In the “dealing-desk trading”, the brokers work like dealers and reacts the opposition side of the trader. The traders are ready to pay high spreads for such kind of trades.
- The second type is “No dealing-desk trading”. The traders are provided access to the interdealer market and they have to pay for the service. They may have face wider spread on the occasions as per the marketing fluctuations.
So, Forex brokers are the pillar for the FX. Without their financial consultancy, traders may be on the verge of immense loss.
