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Who are the intermediaries in the forex market? Their tasks

Who are the intermediaries in the forex market? Their tasks

 

Who are the intermediaries in the forex market? Their tasks

To access Forex trading, you need a lot of money. Money is estimated in millions of dollars, which the middle class does not have. Therefore, intermediaries come to the rescue who are ready to take money from you and fulfill your orders for the purchase / sale of currency, for this they charge a fee in the amount of the spread.

 

Intermediary in the foreign exchange market - a commercial organization that executes your applications for the purchase / sale of currency for a fee

 

There are two types of intermediaries:

Brokers - send applications to special electronic networks where they find contractors.

Dealing centers - provide more favorable conditions, but often do not bring transactions to the open market.

Broker

Brokers are characterized by complete transparency of actions, a fixed fee is charged. The broker is interested in you making as many transactions as possible with the largest lot, because its profitability depends on it. Brokers must have a special license for this type of activity, which they value and therefore perform their services efficiently. Brokers are regulated by special state bodies; clients' money is stored securely in bank accounts.

But brokers may have additional requirements for a minimum deposit, so not everyone can always afford to use its services.

 

Dealing Center

In the CIS, this category of intermediaries is most widespread. Dealing centers are advantageous in that they have underestimated requirements for a minimum deposit, so even a low class of population can trade through them.

But dealers often do not bring transactions to the international market, they remain within the company. This helps to reduce the spread, increase leverage. Therefore, it is worthwhile to understand that dealers do not earn on the spread, but on your losses, so they are interested in making you trade negative.

I advise you to think several times before attending the next training organized by the dealing center.

 

Broker and Dealer. What to choose?

 

 

Immediately pay attention to the license. If it is, then there should be no problems with the withdrawal of funds. If there is no license, then I would not consider this company.

Brokers are suitable for more experienced traders, because deposits with them, as a rule, from $ 5000.

It is better for beginners to start with dealing centers, because there is the opportunity to trade with minimal funds, you can even open a cent account and not lose almost anything. Dealers assist in the development of the terminal, in the basics of trading.

 

There are also organizations that combine both a broker and a dealing center. The client base is important for them, therefore they launch larger applications from experienced traders on the international market, but newcomers do not. Thus, they earn both on the spread of professionals and on the drain of beginners.

 

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