There are many articles
talking about how to choose the best or trustworthy broker. The thing is
many beginners don’t even know what the role of broker in forex market
is beforehand. Do we really need it actually? What actually they do?
Bridging You and Other Players
Forex market
is similar with traditional market, in which buyers and sellers are
interacting with each other in certain period of time. The thing is you
don’t directly see either the buyers or the sellers. Forex market is a
worldwide field, which other players are scattered all around the round
and you hardly meet them in the eyes. This is where you need someone who
can connect you to either buyers or sellers. There is special procedure
to meet in forex market
as well, by which only broker can run the mechanism. Do you think you
need to at least meet the broker face to face? No, as nowadays you can
interact with them online.
Bridging You and Liquidity Provider
What is liquidity provider beforehand? Large amount of currency
providers such as bank and any financial institution are called
liquidity provider. You may want to buy a large amount of currency, but
in the field, forex trader only sells few amount of it. You eventually
will get it from liquidity provider, and that what’s broker is going to
do. Broker basically will do any execution to buy or to sell currency,
but the decision maker is always yours. You have several kinds of order
in your hand to control your broker’s act.
