The role of a broker in forex trading

When talking about forex business, one of the key players in this business is a forex broker. Playing forex or trading foreign currency broker is a professional company that can also take the form of agents, institutions or individuals who a function to bring together the seller with the buyer in buying and selling foreign currency (forex trading).

In the world of buying and selling foreign currency, in reality, this activity is dominated by large banks from around the world. With the major currencies of the world such as the US, Yen, Pound, and Euro, then a large portion of currency buying and selling transactions dominated by the central banks of the major powers. Therefore, because we run the forex business with a limited nominal and small scale, it is not possible to make transactions with the big banks.

What’s more, we also need a linkage relationship with the big bank where there is a minimum nominal limit in order to make transactions with the big bank. This is where it takes the role of forex brokers. Forex brokers can serve retail transactions that will arrange for each individual trader can allow for forex investment. In practice, this retail forex broker will forward the request from a trader to a bigger broker, until so on until every request of trader can be accommodated in the forex market.