Brokers Forex or dealers? Difference and description
Forex brokers as well as dealers provide a possibility of commission of commercial transactions in the financial markets. Forex dealers makes transactions with clients on its own behalf and at own expense. Forex = the broker conducts trade operations for and on behalf of the client. Income Forex broker is a commission, the income of the dealer is formed at the expense of a difference (spread) between the buying price and sales of currencies and securities. However good Forex broker brings money of the client to the real market whereas the dealer can pay off with the client from own means. In too time, the brokers Forex often perform also functions of the dilingy center.
Trading: Through Forex broker or the dealer?
Thanks to existence of dealers Forex any person with the minimum capital can take part in trade in currency in the market. Working conditions the dealer always mean a possibility of conducting marginal trade and use of leverage. The brokers Market Forex often work at the request of large financial institutions and the companies, operating with considerable financial means. Dealers Forex, work with natural persons more often — traders.
How do DTs work?
Activity of the dealing centers and the brokers Forex of the Companies is regulated by the legislation. For work in the Russian Federation the dealer has to obtain the license of the Central Bank and correspond to a number of the requirements established in the Russian legislation. Existence of such license — the evidence of reliability and conscientiousness of the company Access to trade in the market is provided on the Internet by means of the special software — the trade terminal. Teletreyd Group provides to the clients access to trade to Forex through the popular, reliable and checked by time MetaTrader 4 platform.
Trade volumes in the market Forex are estimated in lots. One lot is equal to 100 thousand basic units of currency. So, in currency pair USD/JPY basic currency (or currency for which buy goods — the Japanese yen) is the US dollar, therefore, one lot of the currency contract on this couple will be equal to $100 000. The one who wants to enter independently the market Forex has to have this sum. But everyone has such money not. Those who don’t have enough funds for implementation of trade in the market with the whole lot can use the means provided by dealers that is make transactions via the mechanism of marginal trade. Actually all retail clients — natural persons — work at the market, using this mechanism.
Profit and its extraction of the dealer companies?
Dealers Forex are intermediaries in implementation of transactions of purchase and sale of currencies on Forex. From this activity they gain the main income which is formed at the expense of spread, or a difference between the buying price and currency sales, or a direct payment for perfect trade operation. Therefore the companies are interested in activity of clients, in that those carried out as much as possible transactions and got from them profit.