To get started and get your first profit in the financial market, you need three things:
Internet access computer
The desire to work and earn
As for the broker, here everything is somewhat more complicated. Therefore, we consider the choice of broker in more detail.
Who is a Forex broker and why is it needed
The fact is that, to individuals, direct access to the foreign exchange market, alas, is closed. This happens for a number of reasons, the main of which is the too small scale of activity of private traders.
Forex combines on its site the largest world banks, multinational corporations, investment and insurance funds, etc., the scale of which is measured not in thousands, or even millions of dollars. You can get acquainted with all the participants in the foreign exchange market in the article “Who Works for Forex?”
Think about it, daily transactions amounting to more than 5 trillion dollars are made on Forex. EVERYDAY. These are simply unthinkable numbers, among which a private trader is simply lost.
What to do? This is where the Forex broker comes to the rescue.
Forex brokers are organizations that act as intermediaries between private traders and large financial institutions of the foreign exchange market.
A broker, unlike a private person, has access to Forex and can conduct transactions there. His help to traders occurs in two main forms.
Firstly, each broker provides its clients with leverage — virtual borrowed funds necessary for traders to trade on Forex. The amount of leverage can vary and be as 1: 4, and 1: 1000.
What does it mean? Suppose you have $ 1000 in your account, which is a trifle for the foreign exchange market. But, your broker has provided you with leverage, say 1: 500. This will allow you to conclude transactions for amounts exceeding your deposit by 500 times! And your maximum deal will not be $ 1000, but all $ 500,000, which is a lot.
I must say that leverage is a rather risky tool and you need to be able to work with it correctly. Read more about this here.
Secondly, the broker can accumulate customer requests, summing up the funds spent by them on the transaction and going to Forex with a total amount. So, for example, you want to buy a currency in the amount of $ 1000, at the same time, a trader from Australia wants to buy the same currency, only in the amount of $ 2000, and another player in the financial market from the UAE for $ 50,000. So the broker accumulates the necessary amount to enter the Forex market, simultaneously serving several applications at once.