The foreign exchange market traders engage in trading virtually. They buy or sell currencies that appreciate or lose value. In order to execute trades, these traders have to go through forex brokers. These brokers build websites that promote forex. There are broker sites that offer welcome bonus to those who want to engage in foreign exchange trade. Some of these in fact, offer forex no deposit bonus. The bonus that these sites offer can be withdrawn after a considerable of executed trades.
Actually, it is said that these bonuses in the form of currency attract more traders to join forex. Brokers play a role Do the brokers do these for promotional purposes of their forex sites?
Why Are There Brokers?
- Intermediary between traders and interbank
Brokers serve as the intermediary between buyers and sellers and the interbank. The interbank refers to the networks of banks that engage in trade.
- Provide facilities for trade to take place
The primary business of brokers is to provide facilities to engage anyone to trade based on how currencies move in the market.
Having brokers around gives you leverage such as having a no deposit bonus, which entitles you to engage in trade without risking your money.
- Make foreign exchange easy
Brokers also engage in making the complex nature of foreign exchange easy. They set up divisions that take charge of education and research.
They give traders the opportunity to get a grasp of how to be successful at forex trading and provide traders with information on a day – to – day basis.
- Get the best of both worlds.
- They earn whether traders incur losses or have gains.
- While they take orders to buy or sell currencies, they get paid as a commission to their services.
The foreign exchange trade entails risk. The same is true in dealing with brokers. That is why it is very important that you choose a regulated broker. Broker’s reputation is also a gauge that would determine the kind of broker that you deal with. It is also significantly suggested that a trader should seek to know how a particular broker seals with traders.
Brokers are also in charge of promoting welcome bonus to traders. Always know the terms and conditions that come with accepting the bonus. Be aware that there are dormant account fees that could eat up your capital once you do not stay active.