Forex Brokerage – Concept and Benefits It is not necessary that only daily trader to take advantage of the Forex market – In fact every time while overseas travelling exchange of currency happens and one participates in Forex market. In fact Forex market is a single unique identity which joins the world wide countries together under a single market. Despite of the fact that this market has overpowering size the trade concept is very – very simple.
Forex trading happens through the traders and parties involved are called as trader and the broker respectively. Every broker can be considered as trader but vice – versa is not possible. That means a Trader may not be a broker. Broker is an intermediary between the investor and the network of banks that trade in between, for Forex. They make their money by taking a small amount during the trade. This small amount is called as Forex Brokerage and is charged in various ways. Forex brokerage is the commission charged by the Forex brokers over the trading carried out by investors during the Forex trading. Forex brokerages have three forms and there offerings vary from firm to firm which are given below:-
Fixed spread Forex brokerages.A fixed spread remains constant for a specific currency pair without considering the situation or conditions of the market. Variable spread Forex brokerages.Floating spreads are offered as a range, which changes as the market conditions change. Therefore, sometimes you can enjoy a low rate and sometimes you will have to bear a high rate. Percentage of spread Forex brokerages -