What or who is a Broker?

A broker is defined as a person (or, more often, a company) who is responsible for a buy/sell transaction on a specific market (e.g. the WSE). He acts on behalf of the client, which can be an individual, private person or institution, and mediates the investment of money in various financial instruments. In the case of the Forex market, the term broker is used to refer to companies that provide the opportunity to trade CFD instruments.

 

Where can you use the services of a broker?

Brokers usually work in banks and brokerage houses. They are usually people with an economic background. Forex brokers, on the other hand, you can find here.

How does a broker earn money?

The broker usually imposes a commission on each transaction made, which is his remuneration. Therefore, customers, when planning to buy or sell, still have to add or deduct the broker’s commission for themselves.

Does the broker make money even when the client loses?

Not everyone can predict all the situations that can happen in the stock market. The broker can also make a mistake. The strategy worked out between the client and the broker may, in addition to profit, bring losses, but the broker always takes a commission, because it is not calculated on the profit, but on the value of the transaction made.

How to Choose a Forex Broker

Choosing a Forex broker is not an easy task. You should take into account a number of factors such as the assets you want to trade, your deposit or the commissions charged by the broker. It is worth noting the service in Polish or the friendliness of the trading platform. Due to how many factors there are, it is worth taking a look at the Forex broker ranking available on our site.

Which broker for beginners

When we are beginners in the Forex market, the choice of broker can play an even greater role. It is worth focusing then primarily on the ease of use of the trading platform, the availability of educational materials on the broker’s website, but also, extremely importantly, with the minimum possible deposit or the smallest size of the transaction we can make. We suggest using our eBook to help you choose the right broker more easily.

Where to look for reviews about Forex brokers?

On our portal we collect reviews on most popular brokers. Each of them is unique and moderated before publication, so you can be sure that they are completely true.