Brokers are regularly used by buyers and sellers when transacting commodities like money. You communicate with the market through the forex broker's mediation. To put it another way, a broker will bring you in touch with the appropriate party if you need to find a buyer or seller of currencies. However, in addition to serving as a middleman between you and another buyer or seller, the broker can also work as a mediator between you and a person who is recognized as a liquidity provider, such as FXCM, a renowned broker for Forex Malaysia.
Online searches might help you locate a forex broker. Since there are many forex brokers available, shopping around and comparing their offerings is beneficial. You can create an online forex trading account as soon as you find a broker.
When choosing between forex brokers, it's important to consider the following factors:
Authorized by FCA
The Financial Conduct Authority (FCA) oversees businesses that provide, advertise, or sell financial services or goods in the UK. The Financial Services Compensation Scheme (FSCS) will protect your investment if a forex broker is licensed by the FCA.
If a business fails or you received bad advice that cost you money, the FSCS will guarantee up to £85,000 of your investments.
Currency pairs, or pairs of currencies, are traded in forex. This is due to the fact that exchanging one currency requires selling another.
The following three categories of currency pairs:
The major currency pairs are the ones that are exchanged the most.
Minor currency pairs: those that do not contain the US dollar (sometimes known as cross-currency pairs).
Exotic currency pairs typically combine the currencies of a developed and a big economy.
Although not all forex brokers offer minor and exotic currency pairs, the majority cover the major currency pairs. So, before selecting a forex broker, it's important to find out which currencies you'll have access to.