What is a broker? A broker is an individual or a company which acts as an intermediary when making transactions in various financial markets. The activity of the brokerage company is to carry out trading operations in the currency, stock, and commodity markets on behalf of a client.
Online brokerage services
Before the development of technologies in the 90s of the 20th century, trading in financial markets was carried out by a broker on a trading floor, who received traders’ orders by phone or personally. Those services, of course, were not cheap. With the appearance of the Internet, the interaction between traders and brokers has been dramatically changed. Thanks to high technologies the price of services of brokerage companies and dealing centers significantly decreased due to the reduction of costs, the increase of liquidity of the markets and the reduction of operating expenses. Investors with a small amount of money got access to Financial Markets. Trading in the Forex market became especially popular due to a number of advantages (Learn more about What is Forex Market).
Online brokerage services, first of all, involve the provision of platforms for remote trading, Forex Leverage, technical support and a wide range of trading instruments.
Dozens of brokerage companies offer online trading services, and each of them has its advantages and disadvantages. Before starting to trade, a trader should carefully examine all these features. The most important factors are the following:
- provision of a good trading platform;
- diversity of trading instruments;
- client support service;
- conditions of deposit/withdrawal of funds.
Online Trading on the Forex Market
Trading on the Forex Market is attractive due to its availability, opportunity to easily and quickly earn much money. But everything is not as easy, as it may seem at first sight. Effective online Forex Investments are possible only in case of developing own effective trading strategies. These may be methods of either manual or automatic trading, with or without the usage of indicators, and with the consideration of fundamental and technical analyses. Successful online Forex trader always understands the level of his trading risks, constantly educates himself, and is always up to date.
