DEFINITION of Forex broker
Forex broker is firm that provides currency traders with access to a trading platform. That allows them to buy and sell foreign currencies.
WHAT IT IS IN ESSENCE
A currency trading broker, also known as a retail forex broker, or forex broker. It handles a very small portion of the volume of the overall foreign exchange market.
A forex broker is a firm that buys and sells currencies on behalf of retail traders, via a forex trading platform.
Like stockbrokers, they charge a fee, usually in the form of a spread instead of commission. In order to execute orders placed by their clients.
Unlike stockbrokers, forex brokers will place trades in the OTC market instead of on an exchange.
Forex brokers will allow customers to trade all major currency pairs. EUR/USD, GBP/USD, USD/JPY, and USD/CHF. As well as the remaining g10 currencies and all the cross rates.
Most brokers will allow customers to trade emerging market currencies.
HOW TO USE
Forex broker will require customers to deposit money into their account as collateral, all have to be done before start trading. However, through leverage, customers can trade larger amounts than what is deposited in their account.
Most major forex brokers allow newcomer clients to use a practice account to practice, learn and understand what the system is like.
It is a smart idea to test out as many platforms as possible before deciding on which broker to use.
The majority of brokers don’t take the other side of your trades.
Instead, they pass them on to other traders, acting more along the lines of what you had in your mind that a ‘broker’ is. Most of them simply connect buyers and sellers and take a commission on facilitating the trade.
Your broker, your true and professional broker, will never take the other side of the trade, and he will never bet against you as a client.
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