Today traders are able to buy/sell currencies through Forex brokers seamlessly. However before the concept of brokerage existed, traders were needed to have special relationships with banks and a huge sum of money, to buy foreign currencies. The advent of brokers has been immensely beneficial for traders, and today we can participate in currency trading without much complication.
Brokers play a huge role in facilitating trades and guiding novices towards success. Here’s how Forex brokers help you make riches: ic markets discount
1) Providing Trading Platforms: The link between you and the foreign exchange market is provided by a trading platform. From observing markets to placing indicators, every small aspect of your trade will be carried out on your trading platform. Originally, trading currencies was a very arduous task and Forex housed a minimal crowd; however since brokers started providing platforms to trade on, the number of participants has increased phenomenally, and in turn has made Forex trading a very efficient ecosystem!
2) Demo Account Facilities: Several traders make the mistake of initiating their Forex career without any prior practice. This seems adventurous at first but proves very costly down the line. Brokers help novice traders accustom themselves to currency exchange, by providing them with Forex demo accounts to practice on. These accounts have similar features to the live-trading platforms and help new traders learn how to use a variety of tools to trade currencies.
3) Providing Leverages: What make Forex so exciting is the leverages brokers give. A leverage of 10:1 lets you control $1000 on the market with just $10 in your account. People find Forex interesting and lucrative due to the availability of leverages. So even with a minimal investment, you can yield substantial profits! However, a leverage that gives, can take as well. It’s a double edged sword; if you don’t keep a grip over your trades, the $1000 of investment will become incurred loss in no time!
4) Devising Strategies: Though this isn’t something all brokers do, a good Forex broker will help you strategize and conquer all your trades! Forex requires immaculate planning and perfect execution to see consistent profits. Brokers play a huge role in coaching novice traders and helping them learn the markets. Starting off trades, a beginner will not have any idea about platform usage and reading the market charts; a Forex broker helps him/her understand the various aspects of a trade and how to work around the markets. With a good agent by your side, you can learn trading mighty quickly!
Forex trading sees over 85% of traders lose most of their deals; this is because of improper planning, lack of Forex demo accounts and hasty trades. Accompanied by a good broker, you can make the most out of all your trades!