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Do you want to bet the BRITISH pound will diminish after BREXIT? Then you will need to trade the pair USD / GBP. Containing every currency in the world, the Forex market is the largest and most liquid market in the world, with an average daily turnover of just under 4 billion USD. To access this market you will need an online Forex broker. In order to choose the right broker to trade with, you need to understand how they work and most importantly, how they can help you. Each broker is different and has its own quality and downfalls. Some brokers may place a stronger focus on customer support, or low cost, while others may offer more sophisticated tools and resources. Knowing your investment style, and the area where you want the broker you are in a strong would make it easier for you to narrow your search. Of course, there are also things you should be aware of when looking for your ideal broker, the industry has different rules, and different countries strictly enforce the law. Here are the deets… Few key points regarding a Forex Broker. Allows you to buy and sell foreign currency Opening an account with Forex trading has become easier over the years. Now, it is quite a simple and easy task, and generally only takes a few short steps to complete. A broker will offer significant leverage with your account, which varies in amount. Forex broker is traditionally made money on fees and commissions but this is now a thing of the past, paving the way for the industry more accessible. Many brokers offer education, research materials, and even the center to help guide you and prevent you from much every rookie, or even more advanced but an error prevented. Some brokers offer exceptional knowledge, research, and customer support to help you strategize, avoiding loss and grow into an expert trader. Forex market as we know it today is a relatively new industry with regulations that can also depend on where the broker is located. What is a Forex Broker? Forex brokers basically work as a middle-man between the trader and inter-bank, or a bank network, to allow you to buy and sell foreign currency. A Forex broker will take the price of the bank and offer the best price available. Forex Brokers can also be called a retail Forex broker, or currency trading broker. Once you have a broker, you can access the market to speculate on rising or falling prices in the hope of making your own great Soros win. Okay, so you probably do not have much money to put down (yet), but a big win nonetheless! institutions or large companies can also benefit from the service broker. Understanding Forex Broker Role In order to trade, you need access to the currency pair; Brokers do it by giving you access to the major currency pairs, including: EUR / USD GBP / USD USD / JPY USD / CHF Along with the other G10 currencies. You can then start buying and selling a currency pair. For example, buying British Pound with outside of the US Dollar will require the purchase of the GBP / USD. Once you have done this then you can try to make a profit by closing a partner when the exchange rate changed in your favor. Open Account Opening an account with Forex trading has become easier over the years. Now, it is quite a simple and easy task, and generally only takes a few short steps to complete. The whole process should only take a few days. Some Forex brokers will require you to have a minimum account, but fewer broker asks these requirements with the industry move towards zero cost. Increase Your Income With a leverage A broker will offer the maximum to your account, which varies in amount. This leverage can be anywhere from 10: 1 to 100: 1. For example, if you have $ 1,000, your broker can provide leverage 1:10, which means that you can make initial trading of currency pairs up to $ 10,000. Do not let it get to your head though. Traders often can forget the risks that come along with leverage. This can increase your profits but also can bring you down a terrible loss. Broker Commission & Fees: A Sea Change accessible Trade The brokerage industry traditionally made most of their income from commissions and fees, but we are now approaching a new era with many brokers reduce and eliminate costs in an effort to remain competitive. Not all brokers have reached the stage of zero charges again, so you’ll need to be aware of individual fees and commissions depending on the broker. Spread Deployment is one of the ways that the broker will get money. This is the difference between the bid and asks the price of a currency pair, or in other words, the price at which to buy and sell. Forex brokers analyze the market and then offer a price for the pair. These prices usually vary slightly from market prices. For example, if the asking price of the currency from 1.15558 to 1.15557, the spread is 0.0001, or 1 pip. A pip is a term used to express the number of brokerage fees. Deployment is one way to determine the brokerage commissions. However, some brokers offer variable spreads or fixed spreads, then take the difference between the spread and the spread of their own market. A Variable Spreading A broker will offer a variable spread to avoid possible losses or market risk. To do this, the broker added cost on top of the spread, which leaves room for market fluctuations in the spread. If your broker offers the potential of a variable spread then you should take these costs into consideration when trading. A Fixed Spread If a broker that offers fixed spreads then you will have a spread of pre-set no matter the currency pair. The idea is that the broker will be higher spread than the spread of the market, which will enable them to profit from the difference. The fixed price spread is easier to work with and better for consistency when buying and selling a currency pair. Some brokers also charge a fixed dollar commission per trade 100,000 units. For example, if you trade 100 units, you have to multiply it by 0.01 to get the price of the commission. With this, if you are trading on margin, then you may be subject to the interest rate for this as well. The final cost to be aware of is the cost of holding overnight. Some brokers charge this fee to hold positions overnight, this happens when the market is closed, which is not often. You do not need to pay the cost of futures trading though, because they already have the cost built into the spread. Besides if you choose a good and regulated Forex broker then you’ll also get several types of market indications, accurate signals, latest currency news, various trading guides, etc. So, make sure you CHOOSE the best one. The Bottom Line Brokers have many traders who offer whether you are just starting in the world of trading or if you are more advanced. Choosing the right broker will help you learn, grow, avoiding risky situations, and develop strategies along the way. Be sure to research where your broker and regulations they are responsible for before and be careful with your leverage; the possibility of winning big also brings with potential for large losses. There are many great brokers out there, just check our broker reviews to learn more and find the perfect one for you. Good Luck!