A broker is a company responsible of placing client orders on an exchange. So is a Dealer (intermediary) specializes in the forex market.
Because of the high potential profitability of the brokerage activities, their number has exploded, but a twenties of them stand out and monopolize 90% of the individuals market.
A real regulation was put in place over recent years. The brokers are controlled by financial authorities credible. They can not use such money deposits to cover their internal costs.
Brokers allow traders to provide a trading platform, where they place their orders. These platforms are available on mobile phone by connecting to a secure web page, or by installing a software on the computer.
Usually there aren't investment expenses: the broker receives a portion of each spread. The spread is the difference between purchase price and the sale. These Commissions are extremely low (of the order of 0.0002% of the amount of the order) compared to those performed on other exchanges.
It coexists two types of brokers.
The Market Makers are widespread, offer fixed spreads and ensure prices. Some of are very playful, other techniques the contrary. Most of them have a dealing desk that allows them to vary the way against the trader's positions until a certain limit.
Despite their relatively poor reputation, some take their game by offering honest and reliable services to investors.
The ECN ,highly acclaimed and often reserved for experts, pass client orders directly on the market and in an anonymous way. Investment expenses are generally higher, but in counterparty, prices are identical certified to those market. The automated trading is always allowed.
In general, the minimum deposit amount authorized is between 100 € to 250 €. Sometimes 1 € is sufficient, some require several thousand euros. Brokers still offer customer service reachable at any time. The withdrawals of funds are from 1 to 5 days (verifying the identity of the client).
Because of the high potential profitability of the brokerage activities, their number has exploded, but a twenties of them stand out and monopolize 90% of the individuals market.
A real regulation was put in place over recent years. The brokers are controlled by financial authorities credible. They can not use such money deposits to cover their internal costs.
Brokers allow traders to provide a trading platform, where they place their orders. These platforms are available on mobile phone by connecting to a secure web page, or by installing a software on the computer.
Usually there aren't investment expenses: the broker receives a portion of each spread. The spread is the difference between purchase price and the sale. These Commissions are extremely low (of the order of 0.0002% of the amount of the order) compared to those performed on other exchanges.
It coexists two types of brokers.
The Market Makers are widespread, offer fixed spreads and ensure prices. Some of are very playful, other techniques the contrary. Most of them have a dealing desk that allows them to vary the way against the trader's positions until a certain limit.
Despite their relatively poor reputation, some take their game by offering honest and reliable services to investors.
The ECN ,highly acclaimed and often reserved for experts, pass client orders directly on the market and in an anonymous way. Investment expenses are generally higher, but in counterparty, prices are identical certified to those market. The automated trading is always allowed.
In general, the minimum deposit amount authorized is between 100 € to 250 €. Sometimes 1 € is sufficient, some require several thousand euros. Brokers still offer customer service reachable at any time. The withdrawals of funds are from 1 to 5 days (verifying the identity of the client).
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