Today We will look into What is forex broker is and what services they bring it to you. A broker as an individual or a firm otherwise known as the middleman, prime responsibility of a broker is to bring sellers and buyers together that for brokers the third person facilitator, between the buyer and seller that job is to act as an intermediary by arranging transactions by aggregating price feeds in quotes from multiple banks traders institutions and other parties that connected to the market.
Through all of these prices coming in from buyers and sellers , it just brokers job to match all of these parties at by connecting them to one another in the market through the connection the first make between the parties the participants have option to buy and sell given financial instrument in exchange for the brokers services small commission for trade is charged.
Forex market place where buyers and sellers meet in different currencies. Most of the time, they can be miles apart. For transactions to take place should be a mechanism that will facilitate them. This is where the broker comes in the picture. Essentially acting as an intermediary between the various traders who are actively engaging the market.
Primary Function: They are a very important link between the people and the Forex market are
For example, one of the most basic, to say you are a seller and you need a buyer of a particular currency for the transaction. By going to a broker you will be sure to be matched with a buyer and as a result of the completion of the exchange rate of your choice. In other words, forex broker as an intermediary between the various traders who are actively engaging the market operates. The primary function of forex broker, but not the only one.
Liquidity Provider : The role of liquidity provider, a broker provides customers with a permanent price range, for example, buy and / or sell order. This creates more price stability, guarantee transactions, while all make sure that you, the buyer or seller, unable to find a face for your transaction at any time.Brokers work to make profits by facilitating speculation in the volatile Forex Market. The means by which brokers make money is called spread i.e. the difference between the Bid and Ask prices for a currency pair, and by charging commission on transactions of certain types of accounts.