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Forex Stock Exchange Forum » Forex and Stock Trading English Forum » Forex School » The Role of the Brokerage Firm

The Role of the Brokerage Firm

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1attention The Role of the Brokerage Firm Wed Jul 22, 2015 10:52 am

time is money

time is money

Although most trading takes place on an exchange, you can't get there without going through a broker, your entrto the trading world. In fact, your only contact with trading may well be your broker as you may not know or care which exchange is executing your order.

The broker serves a number of functions in addition to holding your trading account and transmitting your orders to the exchange. Depending on the level of service you require, the broker can educate you about trading; provide you with data, price quotes, research reports and other information; offer trading recommendations, or perhaps even trade your account for you in a managed account. For more information on how to determine what type of broker you need, see the section in this tutorial on picking a broker.

At a minimum a brokerage firm serves as a conduit to expedite your orders, reports confirmations and provides you with account statements of your activity. 

An important broker function is to determine traders' "suitability" for trading various instruments based on their financial status and their eligibility to trade specific positions based on the amount of money in their account. As a gatekeeper to the trading arena, the broker also helps the futures or securities industry maintain the integrity of the trading process by screening every customer and every order as part of its fiduciary responsibility to collect, hold and monitor the funds you entrust to a segregated customer account. 

All U.S. brokerage firms must be registered with government regulatory agencies. Depending on their level of financial backing and the services they provide to traders, futures brokerage firms may be classified as futures commission merchants (FCMs) or introducing brokers (IBs). Individual futures brokers are registered as associated persons (APs).

2attention Re: The Role of the Brokerage Firm Sun Oct 11, 2015 10:27 pm

Vlad

Vlad

Each broker has pros and cons. It is impossible to select the perfect broker. Therefore, it is necessary to look for a broker with less number of weaknesses. In my opinion, the FreshForex is the one. As trading conditions and execution of orders - no questions. No shutdown of the platform. Withdrawal of the profit is really fast and also a lot of options where you can make profit. Analytics is also good, it can be used not only for theory but also in practice.

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