What is a FOREX broker ? :

What is a FOREX broker ? :

A FOREX broker is an operator linking you - the trader - and the real market of FOREX. This is the equivalent of what was commonly called a "broker" or "forex trader".

Today, brokers come in the form of software (available online or downloadable) that allows you to carry out your trading operations on the internet.

All brokers offer the possibility to trade in virtual mode or "demo" mode. Which leaves you all the leisure to train you to speculate in the FOREX market without taking the risk of being able to lose real money!

When you trade in real money, the broker takes note of your orders and applies them instantly (or almost) by investing your money with large international banks. Your capital is thus in the Forex market, until you close your transaction in order to recover your capital swollen by your profits or reduced by your losses.

There are dozens of different brokers. Some are preferred for beginners, others for intermediate traders, and some are reserved for expert traders with a substantial stock market. That's why choosing one's broker is essential to get started properly in the world of Forex trading.

Difference between broker market maker and no dealing desk

Another importance also exists, there are 2 types of brokers:

- The NO dealing desk which are intermediaries between the trader (you) and the interbank market. All your transactions are automatically placed on the market. There are two types of broker no dealing dealing, Straight Through Process (like FXCM) and Electronic Communication Network (ECN) (+ forex broker no dealing desk)
- The dealing desk (or market maker) that serves as a bureau de change. This means that they behave themselves as the market. Some positions are covered, others are not. (+ Info on broker forex market maker).