If the concept of broker is known today by stock market investors, few really know their role and especially know how to choose them. However, the broker occupies a strategic place in the world of trade. For him to do his job well, you have to choose him carefully, because he is the one who will carry out your orders.
What are the functions of a forex broker?
While some investors have an idea of the need to find a broker to guide their first steps in the stock market, very few really understand the important role of this broker. In fact, the main role of the forex broker is to allow it take advantage of the best purchase and sale prices what are the banks with which it collaborates doing.
The trading broker designates an intermediary between stock investors and stock markets. If you are an online investor, the broker is nothing more than the broker who acts as an intermediary between you and financial markets like Forex. After choosing your forex broker, if you place your buy and sell orders yourself, it is up to him to execute them. It also has the ability to offer you other solutions for your investments, stocks, bonds, difference contracts, etc. Taking the example of Forex, the role of this broker is quite delicate and covers a fairly wide field.
They also have a special tool called “leverage” that allows you toincrease your investment capacity, its importance depends on the type of trading account you have. In addition to maintaining and managing your trading account, the forex broker can also perform clearing.
How to choose your broker?
Finding a reliable broker is essential to operating in good condition and minimizing risks. To do this, you should ideally:
- Find a registered forex broker
- Choose a broker whose currency trading platform really meets your needs
- Stay tuned to differentials and brokerage fees offered by brokers, officially announced spreads may change over time
- Evaluate the quality of execution of your orders by your broker. If it is interesting to have low spreads, it is better to have orders executed at the requested prices
- Bet on a broker that effectively guarantees the security of the funds. To do this, we recommend a forex broker with bank accounts in Europe
- Opt for a broker that gives you the opportunity to choose your leverage
Factors such as the markets offered, the responsiveness of customer service, etc. also come into play. Don’t forget it’s your money – don’t entrust it to anyone, especially since stock markets are already quite volatile. The risk is always present from the moment you want to resort to stock market investing, it is better to rely on a solid and verifiable basis than on promises.