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People can use these platforms to trade in the forex market. Of course, traders need to be financially eligible to open a forex account. This qualification requires that a customer has to maintain a minimum deposit in his or her account for a specified period of time. The amount of deposit needed depends on the size of one’s account. In general, larger accounts require more funds from its traders.
Forex brokers are highly regulated in almost every country and the following description only states facts and is neutral.
A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies. Prices for currency are established in the foreign exchange market, with millions of transactions being made every day by individuals, companies, financial institutions and governments.
Forex trading is the process of exchanging one currency for another at a current rate determined by the foreign exchange market. For example, a person exchanging U.S. dollars for euros changes the two currencies based on the current exchange rate of “1 EUR = 1.27” USD. The forex market is the largest and most liquid market in the world, with about $4 trillion traded daily.
A forex broker facilitates transactions between buyers and sellers, charging a small fee for each transaction. Each forex trader’s dealings are handled by an individual trader or a team of traders at the same broker; these individuals or teams provide prices to their clients as well as executing trades on their clients’ behalf. A good forex broker will have its own trading platform, which a trader can use to execute trades. Many brokers offer platforms that connect directly to major banks for credit card deposits and withdrawals; however, some brokers offer no credit options, which means arrangements must be made with another financial institution to fund accounts.