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Trade
Forex dealers and the whole truth about them
Speculators who trade on Forex, as well as people who are interested in trading, I often hear about brokers and dealers who offer their services. Externally, these two groups of organizations allow traders to open accounts for transactions, as a rule, do not differ.
In fact, the principles of operation of brokers and dealers Forex diverge significantly. Next, I will talk about who are the Forex dealers, and why they are beneficial failure of the client, is to work with them and more.
Broker - mediator between market participant enters into the transaction, and the platform (in this case Forex). These are companies that charge a Commission on each transaction of the client, which is their commercial interest.
Forex dealer is the counterparty for each client. The company does not output the transaction to the market, the Commission takes primarily to cover their real interest is in earnings on the loss of money by traders. Excellent, in my opinion, the comparison would be a comparison of the dealer of the foreign exchange market and the bookmaker at the races (in both cases you can earn, but there are nuances).
Now the activities of Forex dealers in Russia are regulated by the law (read more).
Why you need a dealer when there is a broker?
Often novice speculators the question arises, why the need for dealers if there are brokerage companies that are indifferent or even interested in profitable trading? Unfortunately, we have to put up with reality, and she's friends with the following factors:
• the broker will not be able to offer, for example, cent account, so as market such volumes are interesting;
• they do not get to go - this is the real market;
• great leverage, no one will get;
• trading conditions are likely to be less profitable than the dealing centers.
The big players for fear of conflict of interest, of course, seek to register accounts in international banks or large brokerage companies. I would like to follow their example, but the starting amount for deposits will begin with hundreds of thousands of dollars, if not millions. Naturally, there are players with similar needs and capabilities, but not enough remains private speculators with small amounts of money.
For beginners, the choice is almost not available, because a lot of people want to start working on the market, for example, from $10-1000$, with leverage 1:500 or more. There are systems that combine the statements of the speculators, who operate through the same that are on the same network, the banks, but again, will the company withdraw the customer's trades?
All about the commercial benefit, even if there is a selection, print a customer transaction in the interbank system and earn a Commission or to wait when a trader will merge and keep all the money, most profitable second option. How so, You ask, and if the trader has earned, what then?
According to statistics on the market consistently earns less than 10% of all speculators, this means that you can get lost in trading means 90% of merchants and to pay with these tools profit the professionals (10% or less). Hence another very important conclusion:
major dealer in Forex always without problems will pay profit to the client because it has much more losses from many other traders and want to maintain your honest reputation.
How very nice that the company earns on the failures of the traders, right? On the other hand, even if the person will work through a broker, you will lose money just the same, because it is primarily in their own skills in Forex. Who knows how to trade that earns at least from the broker even the dealer.
The intricacies of the trade through dealers in the Forex market
From my experience I can say that it is not necessary to be afraid of dealing centers, you can at least years to trade profitably on their accounts and not have any problems. True, you will need to consider some features when choosing a company and to work with it:
• choose only major broker that protects its reputation and honestly working with traders (valid only in the framework of the regulations);
• be sure to read the client agreement (rules), because there may be bans on certain styles of trading and other conditions;
• pay attention to feedback from colleagues about the integrity of a broker.
I can say that one of the leaders in Russia among the dealing centers Forex Alpari is a company (probably the company combines the work of dealing and broker). This organization for over 15 years and in terms of the reliability of this company on the height, you can even earn millions and be confident that the money will be paid.
Is it worth to trade on Forex if you have to work through dealers? As mentioned above, to earn the foreign exchange market is really important to learn to make profitable trades. Of course, good trading for traders a little, but in the case of using a big company you can be calm for your money, and then everything will depend on the speculative skills of the trader.
Today almost every company is offering their services on Forex says that is a broker and displays all transactions on the market. It's pretty funny, especially when the organization provides a shoulder, for example, 1:1000, offers cent accounts and creates prohibitions on different styles of trading as scalping.
A real broker will not oppose a particular trading style, because the company earns money from Commission, so it is beneficial to the increase of the trade turnover of customers. Of course, there are exceptions when trading style of the trader "hung" server, but with the current hardware and communication channels such causes seem ridiculous. Dealers of Forex in turn can limit the ways of trading their clients about what not forget to write in the client agreements.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 315
| Rating: 0.0/0 |
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