You might be asking yourself: Why do I need a broker to trade forex? Well, forex brokers have a lot of benefits for those who are looking to trade the currency markets. Brokers give you access to over 100 instruments and provide instant trades on these assets. The average trade execution time on Forex is only 100 ms, meaning you can make ten transactions in one second. Brokers also provide you with important information about the market, which you might not be aware of. This makes trading with a broker safer and more profitable.
A broker’s services are not free, however. Usually, you have to pay for the services of an agency broker. These brokers will act in your best interests by finding the best deals for you. However, it’s important to note that they don’t hold the inventory of the assets being traded. Their main role is to act as an intermediary between you and the other party. Agents are reserved for high-net-worth individuals and may not be able to give you a full refund if your trading account is closed.
While you can opt to trade forex without a broker, it is important to choose a good one. The benefits of working with a reputable company are low-cost trading, robust resources, access to the worldwide interbank system, and reliable customer support. As with any other business, forex trading is not for those with zero or little money. Instead, traders should hire a broker that can manage their investments and handle their money with care.