Anyone interested in making a fortune in forex trading should first learn all the basics of what is a forex broker all about.
The term forex broker is also known in other words as a currency trading broker.
In short, a forex broker deals with forex trading on behalf of forex traders from all over the globe. So, it means that a forex broker is a middleman in the world of real-time forex trading.
A broker will take care of everything within the scope of forex trading especially all things related to the interbank system.
That system is the actual trading system in a network of banks around the globe to trade stuff one of which is forex.
What is a Forex Broker – The Role
The term forex stands for foreign exchange as the thing to trade in forex trading. A trade of foreign exchange will at least involve two different currencies.
The gap between the initial buying price of a currency and the selling price of it, later on, is the possibility of benefit to get.
So, what is a forex broker? Aside from the commonly known things about a forex broker as mentioned earlier, knowing what it has to do will help understand it further.
It will commonly offer the price of currencies from banks to the traders to decide. Hence, the offered price is already a summary of the best one of the different prices from various banks.
It is okay to say that a broker is a gate for traders to access the market of foreign exchange regardless of their actual location.
Consequently, there will be some amount of money as a fee to use the service of a forex broker through registration for an account.
Traders in forex trading are not just individual retail traders though. The broker offers its services for large institutions as well such as firms and investment banks.
Nowadays there are many forex brokers all over the globe to serve many forex traders so that there is a kind of competition between brokers as well to attract traders to use their services.
In that case, a highly capable personal assistant for forex trading is okay to answer the question of what is a forex broker.
In some ways, a forex broker serves the functions and duties as an assistant to the forex traders. The traders will just have to be able to make a decision whenever needed and everything else will be done by the broker.
Therefore, a broker will get its benefit from a forex trading through the bid-ask spread.