No doubt if you have heard of forex trading then you must have heard of forex brokers as well. But who are these people and why are they important in forex trading. In this article we’ll try to explain forex brokers in a way that will be easy to understand and also show you why they are important in forex trading.
Simply put forex brokers are middlemen between you and forex trading. Brokers provides you with easy to use platforms and tools that helps you in forex trading. Look at it this way, they are the link between you and the virtual currency world. Since forex trading is mostly about predicting the differences between currency exchange prices, you need a platform that will help you to predict, the tools to predict and how to make gains or calculate your loses. Forex brokers provides you with all the above to help you in trading forex.
WHY ARE FOREX BROKERS IMPORTANT
Below are some reasons why these brokers are important
1. Provides You With Basic Knowledge of Forex:
Before now the concept of forex trading is hard to understand. But with the introduction of these middlemen almost anyone can learn the tricks of forex trading. Most of these brokers provide you you with files, tutorials and even emails to help you trade and earn. For example, Fxtimes provides its newbie users some online tutorials and demo accounts to get them started.
2. Simple To Understand Platforms:
Latest forex trading platforms like Olymp Trade, Fxtimes etc are designed in such a way that they are very easy to understand. Take Olymp Trade for example, it’s interface is designed in such a way that all you have to do is predict if a currency price goes up or down. If your prediction is correct congratulations you just made some money. It’s as easy as that.
3. Calculate Your Loses and Gains:
One of the important factor to consider when trading any business is lose and gains calculations. Forex brokers helps you to know if you are making gain or getting loses. For example, if you have $100 in your forex account in the morning and by afternoon you are left with only $10 then you can understand the hand writing on the wall. The reverse can also be the case and you make profit. The point is, brokers makes you not to trade blindly you get to know if you are making profits or not.
4. Withdrawal of Funds:
Most forex platforms allows you to link your debit card to your online account. This makes withdrawal of profit very easy and relatively fast.
5. Demo Accounts:
Almost every forex brokers platform now have demos accounts that allows users to test their trading skills before deciding to trade forex. Olymp Trade gives about $10,000 as demo amount for its new users. Imagine learning to trade forex with about $10,000, it will sure help you to be better prepared for the real deal.
Now you see that you can’t think of forex trading and take away forex brokers from the equation. The question now is which is the best forex broker website to trade with. In our next article we’ll bring you a list of forex brokers platform.