To become a successful forex trader you need to align yourself with a forex broker. This is especially true for all true for all retail traders. Success in trading the forex market as a small trader is determined by the forex broker that the trader chooses and how good the trader is.
Who Is A Forex Broker?
A broker is an individual or business entity that facilitates the completion usually of a business transaction by connecting producers or sellers to customers. After the transaction is completed the broker is then compensated on commission basis on a previously agreed upon commission rate.
In forex trading, a forex broker is a financial entity that acts as an intermediary to the forex market for all retail traders. The forex broker provides means by which a retail trader can participate in the forex trade and profit from it. The broker then earns from the traders’ transactions commission or a fee.
Rakuten forex brokers is a leading forex broker in the world with strong financial foundation and many retail traders from all over the world as they also offer their services online.
Services That Forex Brokers Offer Forex Traders
This is the main method through which traders access the forex market. A trading account is just like a bank account only that it is used for transactions that lead to a forex trade. It is also different from a bank account in that it is not offered by a bank although you can deposit, save and withdraw your money and profits accrued from your trading activities.
Forex brokers offer different types of different accounts. Depending on your broker, these accounts are called by different names but are determined by the amount of capital you have to trade with. Even so, the most important thing is that you will participate in the forex market with whichever trading account as long as you meet your forex broker’s minimum capital requirements and that you provide your correct personal information.
Unlike the trading account, a demo account is not used for actual trading in the forex market. A demo account as the name suggests is an account that the trader uses to learn how to trade.
It is usually loaded with virtual money and runs exactly like an actual trading account. With this virtual money the trader can then learn how to play the market for maximum profits without ever risking their own money.
Additionally, through the demo account, traders are able to learn how the trading software provided by their forex broker works.
It is advisable for all new traders to acquire a demo account and train on it for about one year before they actually invest their hard earned money to prevent them from losses.
Forex trading is an online based activity. As such, forex brokers provide specialized software to their clients. Through this software, traders are able to place their buy or sell orders for the currencies they are trading. In addition, they are able to stop their trades when they make sufficient profits or suffer losses.
Examples of trading software include MT4, MT5 or Ctrader, and different brokers provide different software to their customers.
This is one of the most important services that forex brokers provide to their clients in addition to a trading account.
The forex market is the largest and most liquid market in the world and it operates 24 hours a day five days every week. To make significant profits in this market, a trader, therefore, needs to have a sizeable chunk of capital and this is where leverage comes in.
Leverage is a loan that forex brokers provide to traders to provide them sufficient capital to capture a larger portion of the market with their provided capital to enable them to make significant profits in their trades.
From the services they provide, we can see that forex brokers are an important cog in the wheel of forex trading.
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