Trading on the currency market attracts not only high profitability, but also more than affordable investments in trading, because all kinds of intermediary organizations provide their clients with several options of trading accounts, which, among other things, differ in deposit minimums. So, any trader can begin trading by depositing from 15 dollars (and in some organizations the requested amount is even less).
In addition, intermediary companies Forex support their clients financially, providing traders with leverage, in addition, intermediaries provide clients with the necessary information content and programs, including the trading terminal – the software through which trades are made, as well as some additional analytical tools (economic calendar, price behavior indicators, etc.).
Unfortunately, not all intermediary companies (dealers, brokers) provide services of high quality, moreover, many companies are even swindlers, so in order to prevent the broker from causing troubles to the participants of the currency market, it is important to choose a reliable broker. To protect yourself from unscrupulous brokers, it is advisable to read the real reviews about the activity of the interested company.
Dealer and broker in Forex: what is the difference
Brokers and dealers are intermediaries between a trader and the currency market, working on similar principles. But there are significant differences in their work:
- Brokers carry out purchase or sale of currency on behalf of the client, choosing the best execution of the orders at the exchange. In this way, the broker’s client has direct access to the exchange. Reliable brokerage firms allow novice traders access to demo accounts. It helps beginners to learn how to work under real market conditions, without risking their own capital.
- A dealer mediates in his own name and at his own expense, providing clients with a quotation flow. The dealer transfers the client’s orders not only directly to the exchange, but at his own discretion to the balance of the dealing center. This is how dealers create favorable trading conditions for their clients, allowing them to trade even with small amounts on their deposits.
If you want to choose a reliable forex broker, you need to study the rating of by clicking on the link. This will help you narrow down and find the company with which you can achieve great results. Finding a broker is an important task and you should do it responsibly.