Forex broker is a company that acts as a trading intermediary. The broker connects traders with the interbank market network where over-the-counter (OTC) forex transactions occur. Brokers offer prices for various financial instruments (assets) in accordance with prices provided by liquidity providers (banks and financial institutions) affiliated.
Forex broker offers various facilities that make it easy for investors and small traders in online trading activities. What are the benefits of the broker? The broker is able to connect traders with the interbank market and providing various trading facilities.
In addition, the broker imposes several fees that must be paid by traders. Those are the spreads and commission fees. Spread is the difference between the selling price and the purchase price on each forex pair. Meanwhile, the commission fee has a different meaning.
Commission Fee is a certain amount of fees that must be paid by the trader for each forex transaction. A forex broker has important roles in online trading activity. They provide several beneficial features for users to do a trading activity.
Leverage Features for Traders
Brokers provide leverage features for traders so that the funds needed for each forex transaction can be reduced from hundreds of thousands of dollars to only a few hundred dollars. It is beneficial for beginners who are just learning forex.
It is no need to spend too much capital while you are still practicing. Brokers provide a trading platform or software. It will make you able to send, buy, and sell orders online, from anywhere. There are several online trading platforms that you can use.
It is one of the advantages of technological progress. Forex trading is now much easier compared to several decades ago before the digital era where investors needed to call a forex broker first to do a trade. Trading is now can be done through the gadgets.
Forex Analysis Tools and Asset Options
Forex analysis tools are needed by traders to be able to run objective trading strategies and not trade randomly. Forex analysis tools provided by the broker can be integrated into trading software. It can be also presented separately but can be viewed freely on the broker's site.
Traders are free to develop their own trading strategies. It is based on several strategies. Brokers facilitate trading in a variety of financial instruments (assets), not just foreign exchange (forex). The best forex broker generally facilitates forex trading, indexes, and commodities such as gold and silver.
However, many brokers also facilitate CFD (Contract for Difference) and cryptocurrency trading. In fact, a number of brokers also provide Stock Options contracts and ETF (Exchange-traded Funds) that are more complex. Traders can choose their own assets to be traded, according to their interests and experience.
Payment Method
Brokers provide deposit and withdrawal facilities. It means traders can deposit and withdraw funds easily from their respective accounts. Some popular payment methods include bank transfers (Bank Wire), credit cards, e-payments (Fasapay, Webmoney, Skrill, Neteller, PayPal, etc.), up to the crypto currencies.
Traders can choose their own payment method which is more suitable and the cheapest one. Many people wonder, can they trade without going through a forex broker? The answer is certain: it can't. Without a broker, you will not be able to access the market or facilities above.
The first step that must be taken by everyone before starting forex trading is to register with a trusted broker. It is essential to protect your data and for sure the capital. You are able to trade comfortably and safely every day.
One of the best brokers which are recommended by many professionals is DIDIMAX forex broker. It provides easy ways to do online trading comfortably. This best forex broker is now used by a hundred users in Indonesia and it is your time now.
