Business, including trading, has been a major source of income for thousands of years. Although the way we bought and sold goods and services changed slightly over the centuries, it was not until the advent of computers and the Internet that things began to evolve rapidly.
Today, we live in a digital world where how we work, play, study, communicate, and watch our favorite movies and shows are all done online. This was not the case three decades ago.
A trader is somebody who buys and sells financial instruments, currencies, commodities, vehicles, cattle, sheep, and other goods or livestock. Somebody who specializes in buying and selling currencies is a forex trader.
The Internet has also completely transformed how forex traders work. Before the Internet existed, it was not easy to enter the world of foreign exchange. Today, all you need is a computer, an Internet connection, common sense, patience, and a good credit rating if you need to borrow.
The word Forex stands for Foreign Exchange. The term refers to the international foreign exchange market, i.e., a global market of currencies. It determines the relative values of most currencies that exist today. Forex is crucial for international trade.
Foreign exchange is by far the world’s largest trading market. The daily volume of trade in this market is approximately $5.1 trillion, compared to $84 billion for equities globally. On 15th September 2019, global forex turnover reached a new record – $6.6 trillion.
What Forex Brokers do
Forex brokers are intermediaries between the interbank market for currencies and their clients. They can also lend money to their clients (traders), i.e., they help them trade with leverage.
Brokers earn a profit by spreading the cost of funding traders’ leveraged positions.
There are two types of forex brokers:
- Market Markers – they don’t have direct access to the interbank market.
- ACN/NDD (Non Dealing Desk) Brokers – they can direect access to the interbank market.
The Trusted Forex Brokers
If you are a forex trader and you want to trade using a broker, you will only consider a professional, reputable, and trusted one. If you are not sure how to search for the best brokers in the marketplace today, read on.
https://www.trusted-broker-reviews.com/forex-broker/ has a comprehensive list of the most trusted forex brokers there are. It has over seven years’ financial market experience. It lists and rates the cheapest providers that offer the best service. None of the brokers listed have any hidden costs.
According to Trusted Borker Reviews, these are the top 10 brokers (December 11th, 2019):
- XM Forex
- Vantage FX
- IC Markets
- Adminal Markets
Trusted Brokers Reviews says the following regarding security:
“Security has the highest priority in online trading. When it comes to trading leveraged financial products, you have to be able to trust the forex broker. It is not uncommon for large sums of money to be used to generate a large profit.”
History of the word ‘broker’
The word Broker appeared in the English language in the mid-fourteenth century in England. At the time, it meant “factor, commercial agent.” It also mean “an agent in sordid business.”
The term came from the Anglo-French word Brocour, which meant “small trader.”
It was not until the 1630s that people started using the term as a verb.
Interesting related article: “What is Forex?”