Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18
How to Know If This Stock Market Rally Will Continue for Two More Months? - 14th Jan 18
Everything SMIGGLE from Pencil Cases to Water Bottles, Pens and Springs! - 14th Jan 18
Land Rover Discovery Sport Very Bad MPG Fuel Economy! Real Owner's Review - 14th Jan 18
Gold Miners’ Status Updated - 13th Jan 18
Gold And Silver – Review of Annual, Qrtly, Monthly, Weekly Charts. Reality v Sentiment - 13th Jan 18
Gold GLD ETF Update.. Bear Market Reversal Watch - 13th Jan 18
Stock Market Leadership In 2018 To Come From Oil & Gas - 13th Jan 18
Stock Market Primed for a Reversal - 13th Jan 18
Live Trading Webinar: Discover 3 High-Confidence Trade Set-Ups - 13th Jan 18
Optimum Entry Point for Gold and Silver Stocks - 12th Jan 18
Stock Selloffs Great for Gold - 12th Jan 18
These 3 Facts Show Gold Is Set to Surge in 2018 - 12th Jan 18
How China is Locking Up Critical Resources in the US’s Own Backyard - 12th Jan 18
Stock futures are struggling. May reverse Today - 12th Jan 18
Three Surprising Places You See Cryptocurrency - 12th Jan 18
Semi Seconductor Stocks Canary Still Chirping, But He’s Gonna Croak in 2018 - 12th Jan 18
Land Rover Discovery Sport Panoramic Sunroof Questions Answered - 12th Jan 18
Information About Trading With Alpari And Its Advantages - 12th Jan 18
Stock Market Investing 2018 - “I Hope I’m Making a Bad Buy” - 11th Jan 18
S&P 500 Fluctuates As Stock Market May Be Topping, Or Not? - 11th Jan 18
SPECTRE Microprocessor Security Flaw - Big Brother = You - 11th Jan 18
7 Market Forecasts 2018 from the Brightest Financial Minds I Know - 11th Jan 18
It’s Not Enough to Be Contrarian - 11th Jan 18
Stocks That Take One for A Roller Coaster Ride Through the Thick And Thin Of Every Single Investment Made - 11th Jan 18
Police Arrest Tree Protester on Meersbrook Park Road, Sheffield - 10th Jan 18
Stock Market Aggressive Sell Signals - 10th Jan 18
The 2018 Decline in Precious Metals - 10th Jan 18
Gold Hits All-Time Highs Priced In Emerging Market Currencies - 10th Jan 18
TMV : 3X Leveraged Short on US Treasury Bonds - 10th Jan 18
Here are the Key Levels in Gold & Gold Miners - 10th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

Best Foreign Exchange Broker

Currencies / Forex Trading Nov 08, 2017 - 08:35 AM GMT

By: Kavinesh_A

Currencies

Foreign exchange is basically the exchange of one country’s currency or money into another country. The other name of foreign exchange is Forex. In the economy of a country, the total value of the currency depends on the supply and demand of it. Otherwise, we can say that the value of a country’s currency can be fixed to another country’s currency, like U.S dollar. And also by the country’s government, the value of that country’s currency can be fixed.


Based on some factors, the market forces determine the value of any currency and that factors are a trade, tourism, geopolitical risk, and tourism. In a country, there are several numbers of tourists who visit there for a trip or for some work. When they visit in another country, they have to pay for the good and services with the currency or money of that country only. For that reason, a tourist has to exchange their home country’s money to get the host country’s currency. This type of currency exchange is one of the demand factors. Another type of currency exchange needs when one country’s company wants to do business with a company in particular country. Usually, the local company will e paid by the foreign company in their local money. An investor can invest his/her money to other country and this investment can be profitable. Because of all these reasons, we need Foreign exchange and so that Forex markets are so large.

Basically, the foreign exchange rate is the current exchange rate. A currency pair can be sold or bought by the forex spot rate. The forex spot rate is different from the forward rate. However, the value of the money depends on the today’s foreign currencies rather than the future time currencies. Most of the traders use forex spot rate at the time to trading with online валютный брокер or foreign exchange broker.

About Foreign Exchange Broker

It is also known as Forex broker. Basically, it is a company which provides services for currency exchange and this company is controlled by financial authorities. It is not a bank but a lower range of cost is often offered by this company. The foreign exchange broker or валютный брокер acts as an intermediary between a company and the interbank. And that company has to purchase the foreign currencies that need to be exchanged with the other country’s currency. The broker has to buy the money at the rate of interbank but it has to be sold at a lower cost than a bank, so the visitors can save their money on international goods and services payment. For this reason, foreign exchange broker is also known as currency wholesaler

There are several numbers of foreign exchange company who help thousands number of people every year to buy or sell currencies. The forex brokers at Foreign Exchange Company gain trust from a huge number of corporate clients all over the world. Every time you need consult with a forex broker whenever you want to do all these works:

  • Buying an international property
  • In the time of emigrating
  • Purchasing a high amount asset like a car
  • In the time of regular international  money transfers for pension purpose or mortgage

If you choose a forex broker to exchange international currency then you can save your money as it offers lower exchange rate than the bank. If you check the current ongoing rate of interbank then you can find what the exact rate they offer is. You don’t have to pay transfer fees as they offer no money for each and every visit you make. Moreover, you can also get protection against fraud or negative rate of foreign exchange. This service is really very simple to understand and use. You can get 12 months favorable exchange rate from forex brokers.

Benefits Offered by Forex Brokers

  • Leverage- One type of loan can be offered by forex brokers and every account has a capacity to use forex leverage that varies from 10: 1 to 100: 1. The exact meaning of 10:1 leverage is that you may have $100 for trading for every $1 in your account. As you gain exponential profits from leverage, this can be both good and bad. You should also keep it in mind that you may also face the mounting losses.
  • Education- Faster education with better prices can be possible if you consult with a broker. You can gain the market price from trading with a Foreign exchange broker. As they provide lower rate than actual market price, you can get a much better education offer. And you don’t have to go for the bad prices offered by a bank.
  • Liquidity- you can measure the liquidity of a market by a total number of traders that exchanging trades. More liquidity is added by the brokers and their clients to their trading market.  It is important when you want to trade for a large amount of money.
  • Regulation- Most of the forex brokers are ruled by the government to do fair transactions.

The Spread
Through charging a broker can make the primary money, which is called spread. When a foreign exchange trade is opened by you with a broker, they eventually pass the trade through the market only for you. By this whole process, you can get a price that is offered by brokers which is different from the market rate. This process is called collecting the spread. Throughout the day, the spread can vary for each instrument. If a market is more liquid then the marker has less spread.

Types of Forex brokers

There are two types of foreign exchange brokers and those are a market maker and straight through the processor.

A forex broker makes it easier for you to buy and sell foreign currencies and they also have set of rules and regulations to maintain a proper process that is required.

If forex trading is a new thing to you, you should study the forex trading and learn the whole thing what you are exactly doing. Actually, foreign exchange trading is not so hard if you have knowledge about it and also consult with a good forex broker.

By Kavinesh

© 2017 Kavinesh - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules