Who Is Forex Broker?

 

As an individual, it's almost impossible for you to join fully the forex market by the way of finding someone to trade currencies directly hand to hand. This fact is like people need a mobile phone network and a network provider who manages it in order to contact to each other, instead of meeting and talking to them directly. Therefore, forex brokers were borned in the same way.

 

Basically, forex brokers act as intermediaries between the two parties involved in a forex transaction: the buyers and the sellers. They are usually registered as a company, which provides service that match up the demand of buyers and suppy of sellers. In other words, they are the portals open to forex market make trading environment for traders. Note that "Buyers" and "Sellers" here is not limited at individual traders (like you and me), but also other market participants such as banks, institutions, hedge funds, etc.,.

forex broker workstation

The workstation inside a forex broker

 

Forex industry have really boomed only since the revolution of Internet and electronic trading platforms were introduced. Nowadays, with those great utilities, you can stay at home, open account with an online broker and start trading (but should be educated first, of course). It even allows you to deposit to your account as well as withdraw from it at anytime by many modern payment methods. Everything is online, easy and convenient.

 

Another great offer from forex brokers is giving traders (as their clients) the option to access leverage. Getting leverage helps you to make significant profits with just small amount of money. This is specially important for retail individual traders.

 

Beside of the main function that connecting buyers and sellers as well as giving leverage, forex brokers also offer other services that typically benefit traders such as charting platforms, analysis tools and news feed.

 

Like many other business, forex brokers don't work for free, of course. They get compensation by spread or commisson per trade, depend on which brokerage type they are (which we will define later).

 

How to choose a right broker?

 

Although openning a trading account is mostly easy, chosing a right broker is very important task that you should do before putting real money into forex market. All your investing capital will be deposited to your broker, all your trades will be executed through your broker and all your profits (we hope so) will be withdrawn back from your broker, too. That's why it's not an exaggeration to say that your success is partly depend on your broker.

 

Just like any other field, forex market also have good brokers and bad ones. But this is only relative because someone's trading style or strategy works best with a broker, while someone's does not. There is the fact that some traders complaint about their broker when they get losses, while some others give nice words to the same broker when their balance gain. Each trading style or strategy usually only works best with specific trading conditions, thus works best with some (or even one) specific brokers. So, simply find a broker that "Fit Your Needs". In later part of this guide, we will show you which conditions you should regard and their effects to your trading.

fit your needs

Choose what fits your needs

 

Beside of the technical condition issues, the procedures as well as how clients comment about the company are other factors to evaluate the broker's quality. Funding and withdraw procedure must be safe and convenient. Reading comments is also helpful to know your broker well, but you will find out that there are a lot of both good and bad comments out there. So, you might be confusing and overwhelming from those. Don't let those comments have too much effects on your choice. You are the very person to have responsibility for your decision.

 

Don't worry, our broker list on website will help you to find out how to choose a right broker (yes, it's the most appropriate one, not the perfect one). Since the forex market have developed more and more nowadays, there are hundreds of retail forex brokers out there to serve. Picking up one among them, which is best suited for you, is not an easy work. So, we don't need to try looking at every brokers that are existing. Just focus on those which are reliable, good brand and have suitable trading conditions. It's not neccessary to collect all brokers, our broker list just filter them out to keep only the most appropriate ones.