Broker – What is a Broker?

What is a Broker?
Definition of Broker: Broker is an individual, firm or an agent that acts a mediator by putting the purchasers and sellers together who work for a specific commission or fee. On the contrary, a dealer entrusts assets and takes the position by hoping to earn by spread by closing the position in the trade with the next party. There are generally two kinds of Forex trading brokers. ECN which stands for Electronic Communication Network is considered as an inter bank broker in the trading market by linking the main brokerages and banks with Forex traders. Spreads are regarded to be fewer, which suggests either a flat charge or this particular type of broker or dealer will not do the trading against one. Another one is known as Retail Forex Company, which is generally referred as a maker of the market, as it makes its individual trading markets. It is decided arbitrally and can be created against one and the gains are handed out at the discretion of the broker. The Forex companies looks attractive to people who are new in this field and for those on money as they do not need large investments. They permit one to demo the trade on the stages until one knows that things they are doing and offer high leverage. A sensible trader will carry out widespread due diligence, read the reviews of the prevailing Forex broker before they make a final decision.