Forex Brokers – who are they? why traders need them?

Forex Brokers introduction

Forex brokers are the company or the agent that execute your trading orders in open market on your behalf. In simple words, forex broker helps you to open a trade in international forex market. Without help of forex broker, it will be very difficult to open a single trade in forex market. This is because the volume of trades and order will be higher and for $1 lot order, trader will have to buy $100,000 units. It means that if a trader has $100000 in his account then he will be able to open trade.


Why Forex Brokers are necessary?

Forex Brokers are necessary for all the traders. They allow you to trade with freedom of mind. Even if you have limited amount of money, they allow you to trade in forex market or any other commodity they have. Question arise, how much minimum amount is required to trade in forex market? Well, answer for this question is, if you have only $10 in your pocket, then you can trade in forex market. Yes, it is possible to trade in forex market. But not all the brokers offer this facility. Only a few brokers offer this facility. It is called leverage. We will learn about leverage in other articles.


What to see in Forex Brokers?

Before you to to search a good broker, I would like to advice you to please learn forex trading first. Because if your base is strong then you will be able to stand in forex market and make money of course. Traders should learn forex charts analysis too. When you are choosing a broker, then the first thing that you will need to see is its payment methods that they accept. If they accept famous payment methods then they are good. If they are accepting only a few then its a precaution. This is because, if you have money in a e-currency processor and they don’t accept those monies then you won’t be able to trade with them.


The main thing is forex broker’s license with regulation authorities. This is the most important thing to see, when you are going to choose a broker. Their license and the location where the broker actually has physical office. This is necessary to know, because this will make you feel secure. After checking that facts and figures, trader should see which software they are offering for trades. The most popular are meta trader because of their quick executions.


Software with Brokers


If they are offering meta trader 4 and meta trader 5 then that’s also good. Traders must see whether they are offering demo accounts free of cost or not. Because some brokers offer demo accounts with some small fee. If they are offering demo account free of cost then trader must try that demo account to understand their execution and spreads etc. The market peak and normal time execution. Because most of the traders have problems with orders execution timing.


Brokers with latest technology should be preferred for trading purpose. Some brokers do not allow scalping and some do not allow expert advisers. Expert advisers are robots that do trade by using scripts. Traders should use those EA (Expert advisers) if they know how to use them. It is also important to see the minimum lots the broker is offering. I hope that these information will help my readers to understand the quality of brokers when choosing good broker.


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