Who Is a Forex Broker and How Can You Choose the Best?

A forex broker refers to an agent who acts as a liaison between a buyer and a seller in the Forex market. Most of the brokers in the forex market have large banks that provide them with market rates for different currencies which are then passed on to the traders as a bid or ask price. To find out and identify the best Forex broker, it is a good idea to first know the different types of brokers in the market. It may also be important that you hire or consult a well-established forex company for guidance in your operations.

In the wake of the ever-increasing technology, online currency trading has become very popular and you can make or lose money trading online and worst of all, you can get scammed, so be careful. Ensure that you are dealing with a legitimate and well-established Forex company first. The four well-established types of brokers are market makers (DD), direct processing brokers (STP), deal-less brokers (NDD), and electrical communication network (ECN) brokers. You can hire trading brokers in South Africa from https://globex360.co.za/.

Market makers have what is known in the forex markets as a dealing desk, which is why it is abbreviated as DD. Most traders think that these brokers do not care about their interests because they (these brokers), as their name suggests, simply create a market for forex traders. For traders who want to sell, DD brokers buy from them; For traders who want to buy, these brokers sell to them. These brokers make money by not trading for their clients and through spreads.

They never stand on the same side of trading with brokers because their main brokerage goal is to create a market for forex traders. In this case, the trader cannot see actual market prices and DD brokers can manipulate the prices (buy or offer price) in such a way that they make huge profits. Most forex trading experts discourage traders from trading with DD brokers because in most cases the brokers only benefit from the trade and not the trader.