What Is Forex Broker

Forex broker is a party, can be a company, institution, agency, or individual whichstands to bring together between the seller and the buyer. Then yg does producttraded? Surely be forex = foreign exchange = currency countries.

In the activities of trade between countries, happen currency exchange. And these exchanges already underway since it used to be when economic relations between countries begin to mutually bound to each other. So arguably this forex broker thatthere's been since ancient times. See the development of inter connections betweencountry's economy increasingly massive, as well as see the forex exchange market,forex brokers are certainly more and more now in the world.

Why do we need a forex broker?

In fact forex trading activity is dominated by the large central banks around the world.With most of the portion on the major currencies such as the US, Euro, Yen, andPound. Well in order to make transactions with the banks/institutions that enormous, for us traders (small scale) are not allowed. In addition we must have relations, also there is a minimum limit of transactions.

Well, this is where forex brokers took the role of the retail broker, will be set up so that every individual could enable traders to do forex trading. So the broker will forward requests from trader to broker a larger, and so on so that later every requestcould be accommodated traders in the forex market is huge and massive yg.

Which forex broker benefits?

Surely every broker has different rules, in charge for their services. No reply fromattractive fee/Commission each lot no reply just from the difference in/spread between buy/sell. In this yg and generally now used a broker is of the spread. Usuallyabout 2-3 pips for the major currencies (US, Euro, Yen, pounds, yack yg or traded), and could be more sd 5 Pips for secondary currency. From about 3 Pips that is certainly not all is the net profit of the broker, there are operational costs, the cost ofthe fee to the larger brokers, Commission fees to agents, etc.

Online Forex Broker

The era before there was an internet trader using the old model of communication for each transaction to the broker. That is with the phone, but now it's been advancedtimes (no internet) trader can direct more real time in doing forex trading. Withadvanced applications special (metatrader) trader can do monitor price, executiongenerally much more quickly and in real time. In addition traders also comes with avariety of tools for analysis, access news, chat/discussion, etc.

Supported internet connection yg more quickly, then practically almost all brokers in this world should facilitate trading online so as not to be left tradernya and notoutdated.

With this online forex trading, then ease for traders is very much. In addition can be done anywhere, can also be carried out whenever the trader wants.

Regulation, and the legality of a Forex Broker

The problem that then arises is how to choose a forex broker diatara hundreds ofonline forex broker. When the first is still a bit off course we would not want to choose a broker imaginable, but now it's not. Surely the brokers there is definitely yg ada ygis good and not good. There is a nice working professionally, ada yg consuming funds from their own clients. This we need to understand that we were not wrong in choosing a broker. So we need to be careful and do not easily tempted by lucrativepromotional/bonus offered by many online forex brokers on the internet.

One of the antecedent could help us in looking broker is by finding out info aboutregulation/regulator wrote adhered to by the broker. Broker yg beregulasi means he should follow the principle and rules imaginable in the regulator wrote him follow.

This generally is the regulator body/institution financial official under the rule of a country. The more good this regulator then wrote a rule followed by the broker will be more strict. Brokers cannot operate with a standard that is inconsequential, or permitits operation could be revoked and are sanctioned by regulators.

Surely we must also know the regulators-regulators wrote in which country? among them: NFA (American), FSA (United Kingdom), FSC (Mauritius), and many more.

Various Types Of Brokers

Generally traders no matter, and it is not possible to know how brokers manage each transaction from the influent clients. We'll just have them only. Yg beregulasi brokerare unclear as well as offer spreads and seductive bonuses tend to get into the type ofairport where every transaction will be countered by the broker. Well with brokers like this there is a danger, because there is a possibility the broker is lost, and eventuallywent bankrupt. We recommend that you choose a broker type of STP/Non-Dealing, where every transaction will be forwarded to the bank or broker larger.