A retail forex broker in the modern financial trading is mediatory who sells and buys assets or asset for a commission. In other words, a forex broker is a salesman of the financial goods. From where the name came is unknown, but some people consider that it is dating from the old French language. Being a probusfx forex broker, you will need some great financial skills.
History of forex brokers
If you look through a history, you will be able to find brokers in the real estate and insurance markets, commodities, and equities since the modern era have begun.
Almost all brokers were operating by the phone until the internet age has come. Clients would make a call in order to order a trade, and the brokers would sell and buy assets on the client’s accounts, but for a commission that was percentage-based.
Get more information about it here: https://en.wikipedia.org/wiki/Cold_calling
With the rise of the internet, almost all brokers have made possible for the clients to have accounts and do trades through computer applications and electronic platforms. In the past, a forex broker was just an individual professional that worked for an agency that people used to call brokerage.
In modern days, the brokerage is changed to a term “broker”. It is easier to handle because you don’t have direct contact with the investor, but it is harder to form trust. Many brokers say that building trust fast is one of the most important skills you can have in this business. Click here to read more.
Dealers and brokers
A lot of forex brokerages are having the role of dealers. In order to provide a smooth trade, the brokerages will take the second side of a trade.
How are they making money? Well, through the activity mentioned, they will charge a fee in order to have a steady cash flow. Before the retail forex brokers became known, you would be discouraged if you wanted to enter the market with the amount less than $1 million. Every people in business world should know the difference between dealer and broker.
Usually, forex traders will join the market with the brokerages, but forex brokers are generally offering two types of trading.
The first way of trading is called “dealing-desk”. Here, brokers are taking a different position from a trader and act as dealers. Inform yourself more on this page.
The other way of trading is called “no dealing desk”. By using this method, traders will be given a straight away access to the market, but will usually be charged with a fee for the service.
Bottom line words
The forex brokers are offering the most important services for the retail traders. With the rise of the internet, traders can now connect to the mobile phone or a computer and open an account for trading. Knowing what is dealing desk and no dealing desk will benefit you in the start. Only financial institutions, large companies, banks, and very wealthy clients were able to do this in the past. Nowadays, brokers offer a lot of services that are valuable to understand the prices and to make a profit.