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Forex market is the largest of all markets globally. And that could basically be attributed to the fact that it is a market where money is exchanged for others. Forex trading came about because of the fluctuation in the value of all currencies and their equivalent values in foreign currencies. The trade therefore aims at profiting from the fluctuations where a forex trader chooses either to sell or buy a foreign currency.
In order to get access to a foreign currency to perform forex trade with, you require a forex broker. A forex broker facilitates the acquisition of the foreign currency you want, and can even do the trade for you. Brokers serve a really vital role in foreign exchange. Some of the advantages of using forex brokers in forex trade include the following.
Merits of Employing Forex Brokers
1. Foreign currency becomes easily accessible
Forex brokers analyse the market at all times using their special tools. Therefore, they are better placed to advise and give you the currencies that are more lucrative to trade with. Without the services of a forex broker, then you will have to rely on currency exchange office where you will have to visit in person to get the currencies for trading with.
You will have to frequent the currency exchange any moment you want to trade. Moreover, there are fees you have to pay to the currency exchange for that service, which is usually a bit pricey compared to forex brokers.
Therefore, it is advantageous utilizing a forex broker as you gain access to foreign currencies at all times, and can place various trades as you may wish.
2. Access to demo accounts
Before you commence doing the real trade, you require experience plus skills. Most brokerage firms provide training plus chance to practise by issuing you with a demo or practise account. You get to nature and polish your forex skills in a real account where the losses incurred are not real. therefore, you get to have a tangible experience and feel, without losing thousands. Hence, through the demo account, you are able to polish your forex trade skills and know the ins and outs of forex trade.
3. Bonuses
There are many forex brokerage firms that have come up to offer forex brokerage services. Given the high rate of competition for the few forex traders online, brokerage firms have devised bonus schemes to be able to attract and retain forex traders.
Therefore, by choosing to use forex brokers with bonuses, you stand to benefit from the bonuses that usually involve awards of dollars.
Demerits of Using Forex Brokers
Despite the advantages above, there are few disadvantages of dealing with forex brokers. Some of them include
1. Fees
A great amount of fees is charged on every activity you undertake in your account. depositing money into your account, trading currencies, and withdrawing funds from your account are some of the common activities in the account that require payment of particular amounts of fees.
Forex brokers are in business and must operate in clever ways that do not expose them to the customers. therefore, get a thorough understanding of the amount of fees chargeable by a forex broker before you consider them to provide you with the forex exchange services. do not just be sway
2. Risk of getting scammed
Online scammers have become prevalent in the current world. Particular forex brokers will gladly receive your money to trade for you. It however become difficult to withdraw the money from the account as they come up with excuse after excuse, and provide you with lots of paperwork to fill so that they can release the money. However, you soon realize that the forex broker is playing games on you and does not plan on repaying you.
Therefore, be very careful of the many forex brokers that claim to offer great services. taking care, and researching on a broker to know more about them before investing your hard earned money with them.
Conclusion
Forex brokers are advantageous to business as they provide you with easy access to foreign currencies, provide you with practise accounts and offer bonuses you can take advantage of to make your first trade. However, be careful so that you do not get scammed or end up wasting most of your money paying for brokerage fees.
You can improve your forex trading with several resources, such as this one here https://www.home.saxo/en-sg/products/forex.
