What is a Forex Broker?
The currency / foreign exchange market is the world’s largest and most dynamic market. About $ 1.8 trillion is traded every day. The word derives from the words of foreign currencies. An agent is a person or company acting as intermediary between buyer and seller. Forex brokers are firms that deal in foreign exchange. The currency market is very similar to the equity markets, except that the foreign exchange brokers typically do not charge a commission. However, foreign exchange brokers are required to have a license. Forex brokers earn money from the spread (also called “pip”). The spread is the difference between prices in a currency that is bought and sold. A pip is the smallest increase in prices in one currency. For example, in the Euro / dollar (EUR / USD), a movement from 0.9008 to 0.9009 is a pip. U.S. Dollar / Japanese Yen (USD / JPY), a movement from 127.41 to 127.42 is one pip. Forex brokers can be compared on the basis of the spread they charge. Most foreign exchange broker
A forex broker is an institution, often a bank or a big financial company, that allows you to trade currencies in the forex market. What is important to check when choosing a forex broker? • 1. Spreads – make sure the company is giving tight spreads. A spread is the difference between the buying price and selling price at a certain time, and the lower it is, the easier it is for you to profit. • 2. Supported currencies – all forex brokers support “the majors” – the currencies with the highest trading volume: the US Dollar (USD), the Euro (EUR), the British Pound (GBP), the Japanese Yen (JPY), and the Swiss Franc (CHF). Most brokers also support additional currencies, even exotic ones (such as Polish Zloty, PLN, and Israeli Shekel, ILS). However, when trading currencies other than the majors, it’s important to check the spreads, since they are often much higher than the spreads on the majors. • 3. Required invetment – some brokers, such as Easy-Forex, allow you to open an account with a
Forex broker is an intermediate between a trader and the currency market. Retail foreign exchange
trading is not possible without Forex brokerage. Finding the best Forex broker among hundreds of the
online companies is not an easy task.Affiliate program
In Forex affiliate program, Forex broker plays very important role, so always choose a good broker. A foreign exchange broker acts as an alternate to the usual methods of transferring funds overseas. They present both commercial and private clients with far better rates of exchange than what banks offer and have exact proficiency in the area. Several foreign exchange brokers also give free transfers which again is an advantage against a high street bank.
Foreign exchange (forex) trading is an attempt to make money from the relative movements of different world currencies. For instance, today one US dollar (USD) may purchase 0.7095 Euro dollars (Euros). Tomorrow, one USD is likely to buy a different amount of Euros. The change will likely be very small, but over the period of a week, the change may be significant. A week later, for example, one USD may buy 0.6995 Euros. In the example above, if you had spent 1,000 USD to purchase 709.50 Euros, a week later you could have sold your Euros for 1,014 USD, making a nice profit of 1.4% in just one week. Most forex brokers will allow you to use leverage to increase this amount considerably. However, leverage magnifies both your gains and your losses. A forex broker makes money from the difference between what the buyer pays for the currency and what the seller receives for the sale. This means that there is no commission on each sale; it is built in. This is very similar to the way a market ma
