A forex broker is a financial institution that gives traders access to a trading platform for purchasing and selling international currencies. Forex is short for forex trading. Transactions in the free marketplace are usually between a pair of international currencies. A forex broker can also be called a domestic futures broker or a commercial forex broker.
When you sign up with forex brokers with zar accounts, you will generally receive a trading account that will be immediately credited. Once you’re all set to go, you’ll need to learn how to make money by trading currencies using this account. This can be done by regularly (at least once per week) placing buy and sell orders on your broker’s platform.
You may find that your retail forex broker may offer you a variety of currency pairs to trade, which can be confusing initially. Your retail forex broker may not know much about foreign exchange, but he/she probably knows plenty about the rest of the financial markets. Once you start learning the ropes from the broker, you’ll quickly discover that most of your problems in making money from currency trading will be due to information overload. It takes a long time to learn something new about forex trading, so this information overload can be quite frustrating.
The best way to learn how to make money on the free marketplace is to get started with a demo account at a few of the online brokers first. demo accounts allow new traders to learn the ropes without risking any real money. This is an excellent way to get a feel for the market and to build a foundation for your trading forex brokerage account. Demo accounts may be offered by several brokers, so take the time to shop around. You can even open a demo account on one of the many websites that offer free demo accounts.
Once you have a good feel for the market, you may feel ready to begin transacting in real trades. Your next decision will be whether or not to use a “thin” or “light” version of the forex broker you are going to be using to conduct your trades. Thin versions of these brokers allow you to trade in only one or two primary currencies; they often offer more flexible trade execution options than their “real” counterparts do. They can also oftentimes offer lower fees, as well as fewer trade delays.
Light versions of these brokers are designed to be used by individual traders and are not intended to function as a major source of trading revenue for their creators, usually financial institutions or large trading companies. “Real” forex brokers are usually traded by major banks, hedge funds, investment firms, and other large trading companies. The forex broker offering the “light” version is designed to be simple to use but still provides the trader with significant trade execution options.