Online Trading Platforms and the Role of Forex Brokers

In recent years, the trend of online trading has increased significantly, attracting tonnes of potential investors and winning their confidence. This increase in the popularity of online trading has called for a need for forex brokers and brokerage companies. They assist and guide new traders to make them familiar with the market trends.

Various brokerage companies are spread around the globe that provide products and services in online trading such as FX list. Every company works in its own specific manner, some work as market makers and the other provides services such as STP (straight-through processing) or ECN (electronic communication network), which is a better choice because it expands the selection of assets for trading. This platform is all about trading ventures. New venture advancements and modifications have helped evolve the forex market and brokerage businesses to a great deal.

Among numerous roles of forex brokers, these are some important ones:

Market Access

This is the major responsibility of a forex broker because the forex market has no physical infrastructure; it is entirely based on online servers and databases. The centre of the forex market consists of an interbank which offers different sale options in currency pairs. No one can access these platforms on their own because they are under forex brokers, and they are responsible for the provision of these platforms.

There is a way possible for people to directly access these market platforms that is through the help of ECN/STP platforms or indirectly by using market-making platforms that route orders directly to the broker’s table. However, it comes with some basic requirements that the traders should understand, such as the processes followed, the minimum finance requirements to make a deal and different trading styles.

Trader Training

In modern times, the need for training and education of the trader has increased at a rapid rate and hence, it is becoming more and more significant. According to statistics, due to the lack of trading education, it is estimated that 90% retail traders would lose 90% of their accounts within 90 days. So, no broker would be willing to put his money on a trading company or individual who once enters the market, will be pushed out of this platform because of his 90% loss in just 90 days.

However, this realization has led to many brokers investing in trading education to be on the safe side. Three sources i.e. webinars, videos and articles are provided to every beginner trader at the time of his introduction into the forex market. These mediums assist to make them familiar with the marketplace and guide them through the complications of the world of online trading.

Research of the Market

Another potential role of a forex broker is to provide the traders with necessary market tools, news feeds and analyses as soon as traders enter the market, after completing their trading education. Many brokers now think of this as an opportunity and for the traders this is something they direly need.

Choosing a Forex Broker

Nowadays there are thousands of forex brokers available and to choose the right one, one must ensure that they fulfill the needs of the trader for factors like spread and commissions, leverage, regulation, trading resources and customer support, as these features carry immense significance in the online trading world.

Author Bio:

James is a writer, blogger and professional traveller. My real-world experiences allow my articles to speak to readers on a personal level. Formality is great, but readability and engagement are the most important factors in my writing. I love helping, and that translates to articles that inspire and guide.