Who are Forex Brokers

This is a question that most of the new comer in forex market ask, there are so many common questions like, who are forex brokers? how can we trade in forex market? what is the purpose of forex broker, if we are doing direct deal etc. So, let me tell you something about forex brokers. Who are they are why they are necessary for retail traders?

Well, if you have decided to enter in this lucrative market and want to make some bucks with this market that may be an extra income that you may earn in your spare time, but that is far now, this is beginner guide. What forex broker are? Actually forex brokers are those companies and institutions that are active in market and those who have a lot of money to invest in market. The trading in market is not easy, if you are not trading with broker. Because you invest only a few bucks but the broker invest the rest of money in the market on your behalf, that is called leverage, he gives you leverage and you then trade in market to earn money.

Types of forex brokers

Without broker if you are going to trade then you will have to invest at least one hundred thousand dollars for the sake of 1$ lot trading, because market runs with lots, and if you buy 1$ then it means that you are buying one hundred thousand dollars. The broker invest his own money and this is the rule of market. In return what he gets from you? He earns through delay, swaps, spreads and account maintenance etc.

There are two type of forex brokers I know in forex market, one is direct dealing desk broker and other is non dealing desk brokers. The difference between in these two brokers, if I tell you in simple words, then one give lives market rates each second and other gives market rates that may differ from original market rates.

As you can see in this picture, that No dealing desk has STP and ECN Plus STP, and Dealing desk are market makers. 

What a trader do in forex market?

For some beginners in forex market, this is the big question that what a trader do in forex market, if you are heading to join forex market and start your career as forex trader then it is the most basic thing that you need to understand what a forex trader do in forex market. But if you are familiar with stock market then you will be familiar with forex market too. But if you are not familiar with stock market then you need to understand what's inside forex market.

Forex Market Chart

Actually, in forex market, a trader do three things that are most common. One thing is buying, second thing is selling and third thing is exchange of currencies at current or determined market rates. The big market traders or you can say "the market runner" are the world's largest banks. Central bank of country do not intervene into this market, this market is controlled by large international banks, they buy in huge volume and then we see market collapse and when they buy in same volume then we see market hike. 

What a trader do in forex market. A sensible and sharp trader always watch the market and its logarithm, He / She see market charts, the history of market, the expected movement of market so that he put an order whether buy or sell, and when market goes in favor of the trader then the trader earn money, the profit depends upon the volume of trade the trader opens. If you want to be a forex trader then you will have to see several aspects and a lot of work. 

What is Forex?

Well, there are hundred of thousand websites related to forex trading and forex information, this one is also for forex trading and its material, so what is new in this blog? why you shall keep reading and subscribe this blog? 

The answer is, I am a very old forex trader and I know so many things and some secrets of forex trading, that's why I think that I can give you some good information related to forex trading and forex market. In this post, I am going to tell you about the initial information about forex trading.

Basically, the word forex stands for "Foreign Exchange", but we know it as forex, so that's why it has become popular on internet. In ancient time, this business was done by manual dealing, in which some people come USA and they used their own currency, (it is a story that I heard somewhere).

Forex trading rules

They did not have american dollar and they were european, so they need to spend their vacations in america, that's why they decided to change the money to other currency and that was the beginning of this lucrative business. After all that dealing, the people involved in this business set the price with dollar against the counter currency, and then this business started between some businessman, and after the revolution of technology and access to internet, this limited business rose up and now it is more than three trillion US Dollars a day business in the world, if we call it the world's biggest business market, then it will be true.

This is just a basic information that I knew about forex. Nowadays a lot of people working and trading in forex market day and night. There are some sessions that make this business very much lucrative and attractive and that's why the traders in this market are rising day by day.

I hope you will like this post, I will wait for your comment, please comment below, if it helps you.