Surely every broker has different rules that, in charging for their services. There is something of an interesting fee / commission each lot there that just from the difference / spread between the buy / sell. And generally that is now used broker is from the spread. Usually about 2-3 pips for major currencies (US, Euro, Yen, Pound, or who crowded traded), and can be up to 5 pips for secondary currency. From about 3 Pips is certainly not all merupkan net profit brokers, no operating costs, the cost of the fee to the broker who is greater, the cost of commissions to agents, etc.
What is a Forex Broker
Forex broker is a party, may be a company, institution, agency, or individual which stands to reconcile between the seller and the buyer. Then the product whether that transaction? Surely the form of foreign exchange forex = = currency of the country.
In the normal course of trade between countries, an exchange of currency. And this exchange has been going on since the days when the economic relations between countries began to bond with each other. So it might be argued that this forex broker also there has been since time immemorial. Seeing the development of inter-connection between the state economy that increasingly massive, and saw the forex exchange market, forex brokers certainly more present in the world.
Why Do Need Broker
In fact forex trading activity is dominated by major central banks around the world. With most of the portion of the major currencies such as the US, Euro, Yen and Pound. Well in order to carry out transactions with banks / institutions such large, for us traders (small scale) are not allowed. In addition we have no relation, also the existence of a minimum limit of transactions.
Well, this is where forex brokers take the role, retail forex broker will arrange for any individual trader can allow it to join the forex trading. So the broker will forward the request of traders to the broker who is greater, and so on so will every trader requests can be accommodated in the forex market a big and massive.
Online Forex Broker
Ancient pre-Internet traders using the old communication model for each transaction to the broker. That is by phone, but now this has been advanced age (no internet) traders can directly be real time in forex trading. With advanced application specific (metatrader) trader can do monitor the price, order execution is much faster and in real time. In addition, traders are also equipped with a variety of tools for analysis, access news, chat / discussion, etc.
With the support that the faster internet connection, it is practically almost all brokers in the world should facilitate online trading so as not to be left tradernya and not outdated.
With this online forex trading, it is very much easy for traders. In addition can be done anywhere, also can be done whenever a trader wants.
Regulation, and the legality of Forex Brokers
The problem that then arises is how to choose a forex broker online forex broker diatara hundreds of them. When it was still a bit certainly would not want us to choose a broker that there are, but not right now. Surely these brokers is definitely some good and some bad. There are professionals who work there who take funds from their own clients. This case we need to understand that we are not wrong in choosing a broker. So we need to be careful and do not easily tempted by the bonuses / promotions that are offered by many online forex brokers on the internet.
One who can help us see the broker is to find out info about regulation / regulator which is followed by the broker. Regulated broker that means he must follow the principles and rules that exist in the regulator which he attended.
These regulators generally is the agency / institution under financial official of the state government. The better the regulator is the rule that is followed by the broker will be intense. Brokers can not operate with standard inconsequential, or operating permit can be revoked and sanctioned by regulators.
Surely we should also know that good regulators in countries where? include: NFA (USA), FSA (UK), FSC (Mauritius), and many more.
Various Type Broker
Generally traders do not care, and it is impossible to know how to actually manage each transaction broker who entered from the client. We can only them alone. Brokers who do not clearly regulated and offer tantalizing spread and bonuses tend to get into the type of city where every transaction will be fought solely by the broker. Well with brokers like this there is a danger, because there is a possibility that the broker lost, and eventually went bankrupt. We recommend that you select the type of STP broker / Non Dealing, where each transaction will be forwarded to the bank or broker who is greater.
No comments:
Post a Comment