• eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    3.95

    BTC/usd 15.674.99

    4.78

    ETH/usd 674.99

    11.37

Two Major Categories Of Forex Brokers

Broker on Billboard with a shadow hand

Broker on billboard

Trading was once only for the Highly incomed, banks and Big institutions, for one to be in the market huge liquidity was required. It was unheard of to hear an ordinary Zimbabwean citizen talking about forex worse of partaking in it. This is not the case anymore because of many players coming into the exchange offering brokerage services. Because of Brokers you can be in the market from as little as $10 Us Dollars your money is given some leverage so that you can have access to large amounts of position with a little deposit. However choosing brokers is not a matter that should be taken with negligence. If you want to venture into this industry there are two types of brokers that you must know and how they operate.

What is a broker

A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies. Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies

There are two main types of forex brokers which are:

  • Dealing Desk Broker (DD)
  • Non Dealing Desk Broker (NDD)

Dealing desk forex brokers

Dealing Desk brokers, also called Market Makers, are a type of broker that takes the opposite side of their client’s trades, by fixing the bid and ask price and waiting for a trader who would place an order with their setup

  • These type of brokers makes money through spreads
  • Dealing desk forex brokers are also called market makers because of equity they provide both selling and buying quotes.
  • If they so desires they can wedge a trade against you so that they profit when you make loss.

Non Dealing Desk Forex Broker

No Dealing Desk describes a trading platform offered by a forex broker that provides unfiltered access to interbank market rates of exchange

 

Other Trending Posts