What is the Role of Forex Broker?

Markmuffin

Active Trader
Oct 20, 2009
3
0
37
www.moneytec.com
We have constantly talking about trades and traders many times; I like to start a topic which describes the role of Forex Broker…

I feel Forex broker is a firm or an individual that works as the intermediary between the buyer and seller.

What do you think? Do they act much?
 

Pinalli

Master Trader
Jan 31, 2009
334
2
54
Actually forex broker particularly help you in forex trading but he will only have to deal with the execution of your decisions. Although recommendations and opinions may be welcomed, you have to limit them. You have to find a broker that will only transact with your orders and nothing more.
 

daniellefr

Active Trader
Jul 2, 2009
54
0
37
Well... I wouldn't call it serve, because they do get quite good cut from every trade done. Broker provides services required to be able to trade forex. Without it, you either can't do it at all, or need millions :D
 

anna575

Active Trader
Aug 17, 2010
59
0
37
Hi

Well, Role of forex broker is to serve as a middle man when the dealing is carried out between buyer and a seller. It is very important to constantly watch your broker and get the best facilities and services from them as there may be chances that they can scam you.
 

Megamind

Active Trader
Jan 14, 2011
12
0
37
There are two broker's working styles:

Win-Win

You make a deposit and trade with a lager amount of money. You as a trader have a profitable strategy and make many trades per week.

Broker executes your trades and takes his interest.

More trades - more profit - more interest for the broker.

________________________________________________________________
 

juliescott26

Trader
Apr 2, 2011
2
0
12
Forex broker will act as a middle man when do deal between buyer and seller. It is very important to watch your broker and obtain better facilities and services, and there may be opportunities can deceive you.
 

forexreviews

Trader
Jan 11, 2011
2
0
12
www.forexreviews.com
You must be selective in finding the best broker, since it is a difficult task for there are lots of forex broker in the trading market. And also look for a broker who could help you in your market trading fortune.
 

reed

Banned
Jun 5, 2013
51
0
0
I don't really think all brokers do that, those are market makers that trade against their client. While others like STP or the like of it just take your orders directly to the right source. For instance the broker am with presently profiforex, don't trade against their client. This type of brokers just get spreads as rewards.
 

Emibluz

Banned
Aug 22, 2013
165
0
27
Brokers are the bridge between the client and the interbank, helping to execute clients orders. Some could be market markers who trade against their clients, some ECN broker, some boilerrooms or bucketshops. Some get their profit through their spreads etc. They would offer you leverages, demo accounts etc. But you must recognise before hand that the transparency of your broker is your private job as not even all regulated brokers don't racket their clients. Forex is really delicate and is no beach to relax. If you are diligent enough you even can sustain lucrative trades with broker not under regulation. Just be diligent and do your apt researches.
 

nurfakih

Banned
May 21, 2013
27
0
0
sidoarjo_indonesia
Brokers are the bridge between the client and the interbank, helping to execute clients orders. Some could be market markers who trade against their clients, some ECN broker, some boilerrooms or bucketshops. Some get their profit through their spreads etc. They would offer you leverages, demo accounts etc. But you must recognise before hand that the transparency of your broker is your private job as not even all regulated brokers don't racket their clients. Forex is really delicate and is no beach to relax. If you are diligent enough you even can sustain lucrative trades with broker not under regulation. Just be diligent and do your apt researches.
Why do market market trade againts their clients???
How if there are now market makers who trade against us??
 
Sep 24, 2013
1
0
12
Access to the fx market (most of us dont have the net worth to trade directly with banks)
Liquidity to buy and sell when I want
reliable execution , even during news!
tight spreads
real service from people who know fx ( some people could care less about this but I like knowing the person on the other end of the call like my stock brokerage. )
Has to be licensed with some regulatory body

Simple as that

If you think market makers are different than dealing desks or ECN or the so called "interbank" you are making this way too confusing. These are ALL dealing desks, the only difference is the interbank and ECN models have their dealing desks another step removed from the trader. And if by "trading against you" means sell when you buy or buy when you sell, realize this is also called liquidity. These are all marketing terms used by brokers to confuse traders, plain and simple, I learned this years back when I looked into FXCM's "non dealing desk" promotions. Someplace , somewhere, a dealing desk has to take the opposite side of your trade in order for you to speculate in fx period. That is fact.
 

Jason Rogers

Master Trader
Sep 16, 2011
22
1
49
New York, NY
www.fxcm.com
If you think market makers are different than dealing desks or ECN or the so called "interbank" you are making this way too confusing. These are ALL dealing desks, the only difference is the interbank and ECN models have their dealing desks another step removed from the trader. And if by "trading against you" means sell when you buy or buy when you sell, realize this is also called liquidity. These are all marketing terms used by brokers to confuse traders, plain and simple, I learned this years back when I looked into FXCM's "non dealing desk" promotions. Someplace , somewhere, a dealing desk has to take the opposite side of your trade in order for you to speculate in fx period. That is fact.
Hi Becky,

You're right when you say that someplace, somewhere a dealing desk has to take the opposite side of your trade in order for you to speculate in FX, but that doesn't mean all execution models are the same. It's important to recognize the difference between Dealing Desk and No Dealing Desk (NDD) forex execution.

In our NDD model, FXCM does not take a market position, eliminating a major trading conflict of interest. Your orders automatically fill from the NDD price feed, which is the best available bid and best ask prices from all of our liquidity providers plus FXCM's mark-up. While it's true that these liquidity providers have their own dealing desks manager their risk, the key point is that your orders are anonymous to them. They cannot see your stops, limits, or entry orders. They only see market orders coming from FXCM, and they have to compete with each other, because only the liquidity provider quoting the best price for you at a given time will get the opportunity to fill your orders.

That is a big difference from trading with Dealing Desk brokers who may actively trade against your positions. They can profit when you lose. Alternatively, they may lose when you profit. Because of this, Dealing Desk brokers are incentivized to manipulate your orders. They may for example place restrictions on stops and limits or re-quote your orders. FXCM's NDD execution model does none of this.

While FXCM believes that NDD execution provides the best all-around trading experience, we also offer dealing desk execution as an option for traders whose primary concern is low spreads. The Dealing Desk offering, however, has certain trading limitations. If you are trading on our Dealing Desk execution and your trading style exposes us to more risk than we're comfortable with, FXCM may, at our sole discretion and at any time, change your execution type to NDD. This is how FXCM can comfortably offer both options without having to resort to some of the common "dealer intervention" practices mentioned above which take place at many forex brokers.

Jason
 

arvind123

Trader
Oct 1, 2013
5
0
12
You make a deposit and trade with a lager amount of money. You as a trader have a profitable strategy and make many trades per week.

Broker executes your trades and takes his interest.

More trades - more profit - more interest for the broker.
 
Sep 5, 2013
12
0
12
The trading platform that offers a Forex broker must have real-time information and good analysis tools, so that you provide daily decision making and help you optimize your investment.
 

rrayne20009

Trader
Sep 13, 2013
57
2
17
Brokers are the bridge between the client and the interbank, helping to execute clients orders. Some could be market markers who trade against their clients, some ECN broker, some boilerrooms or bucketshops. Some get their profit through their spreads etc. They would offer you leverages, demo accounts etc. But you must recognise before hand that the transparency of your broker is your private job as not even all regulated brokers don't racket their clients. Forex is really delicate and is no beach to relax. If you are diligent enough you even can sustain lucrative trades with broker not under regulation. Just be diligent and do your apt researches.
Interbanks---it's a term that refers to networks of banks that trade with each other.Forex broker will offer you a price from the banks that they have relationships with.
 

Akriti

Confirmed IFC Markets Representative
Jul 23, 2013
126
0
32
India
The role of the broker? It is a comapny which is an intermediate between not buyer and seller, but between an individual/corporation and the financial market...
 

John_Davy

Confirmed 1LotSTP Representative
Nov 20, 2013
66
0
22
I'd like to define them as a middle man between buyer and seller!

Before finalizing any broker do your own research!
There are to many brokers now days. (so the chances of scammers are high)
 

rrayne20009

Trader
Sep 13, 2013
57
2
17
I'd like to define them as a middle man between buyer and seller!

Before finalizing any broker do your own research!
There are to many brokers now days. (so the chances of scammers are high)
maybe you can share us how to point out potential scam brokers?What signs do we look-up to know that they are fraud.