If you are ready to become a beginner trader and want to get into the world of trading, you must know familiar terms that are often used in forex trading. You also have to interpret the term and must understand every detail of the term. There are many parts that trading beginners should know such as the role and origin of the activity. If you want to know more, visit no deposit bonus forex 2023 malaysia.
What is a forex broker?
Brokerage is an activity carried out by one person or in a group to arrange transactions for buyers and sellers. After that, the regulator will receive a commission from each transaction activity. Then the forex broker is a party/company that has a role to regulate buying and selling transactions between traders.
Brokers also need legality to determine the future of the company and the benefits it will get. Usually, the broker makes a profit from the transaction money the trader has made. The transaction fund is known as the spread. Brokers also charge more for transactions in a certain currency, which is called a swap fee.
Bad news will befall brokers who do not have legality by getting losses and profits from their clients. If a trader experiences a loss, the broker will get a profit, and vice versa. Usually, things like this will be known as brokers who are not honest, and this system is a form of broker brokerage.
Disadvantages of Illegal Brokers
Forex brokers that do not have legality usually have the potential to cause losses for both parties, be they, traders or brokers. If something bad happens, for example, the profit that should have been obtained but not paid by one party, then this cannot be reported to the authorities.
Unlike the case with brokers who have legality, profits will be transparent and clear, so that profits can be immediately obtained and enjoyed. If something bad happens as described above, then the injured party can report to the authorities and can go to a legal process. The legality of a broker cannot be taken lightly.