Role Of Brokers In The Career Of Traders

Discussion in 'General Trading Discussion' started by Adam Smith, Dec 26, 2017.

  1. Adam Smith

    Adam Smith Member

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    We have seen many people who do not like their brokers. They always have complaints about their brokers. They do not like the brokers, their brokers are cheating on them and sometimes they try to quit their trading because of the brokers. The role of brokers in the career of a Forex trader is very important. If you know what you want in Forex and you can trade the market accordingly, there are chances that you can make your successful profits with the help of the brokers. If you are wondering why your broker will help you, let us remind you that your charges your money whenever you are placing trades in Forex. This is the broker's benefit when traders are making their profits. They know these traders are making money, they are trading big and most importantly the brokers are also making money with your investment. If your broker is bad and you do not like your broker, your career can have a turn in Forex. This article will tell you about the role that brokers play in the career of professional and part-time Forex trader. As most people trade Forex part time or full time, we will talk about the role of brokers on these two types of traders.

    Reputed brokers
    Majority of the novice traders don’t understand the value of premium brokers like Saxo. But if you ask for a suggestion from the top class Aussie traders then every single one of them will tell you to trade with the reputed brokers in this industry. Instead of looking for the deposit bonus scheme you need to look at your trading environment. If you think that you can easily execute good trades with a low-end broker then you are making a big mistake. Trading is very sophisticated and you need the right environment to place your trade. In fact, without having a premium trading platform it’s nearly impossible for you to do the perfect technical analysis.

    Trading environment
    Trading environment plays a great role in your success in the Forex trading industry. You might think that you can trade the live asset from the mobile device platform but in reality, things are not so easy. You need to have a specific trading room where you will do all the market analysis. Develop a strong patience and wait for the best trade setup. Make sure that you are always trading with the market trend.

    Role of brokers on part time traders
    If you think you are the only person who is trading in Forex as the part-time trader, there are many people like you. Fortunately for the part-time traders, the role is not much importance to them. They know they are on this market temporarily and they can quit trading whenever they want. These brokers do not have the longtime goal in their mind which makes their investment small in Forex. Most traders in Forex are part-time and they like to trade with the broker with the lowest spread. Brokers have little role in their career as they can always change their broker anytime with their low investment.

    Role of brokers on full-time traders
    The role of brokers on full-time traders are very important. This is where these brokers make the most of their money. If you are new to Forex and you are trying to select your broker, you will see that there are many brokers who have very high charge. These brokers have high charge than most of the brokers and the full-time traders are their registered members. It is because they are transparent in their services, they know what they are offering to the traders and they can help the traders. Professional traders prefer quality over money as they have a lot of investment going on the market. A successful and good broker can transform the life of a full-time trader in Forex.
     
  2. Phillip Mark

    Phillip Mark Active Member

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    I feel brokers do much more, they are more like mentors for us, a guide if I must say. They just don't carry out our trades, they lead us through. So choosing wisely is paramount, because if a blind man leads another they will all end up in the gutters!
     
  3. Chartman

    Chartman Senior Investor

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    I find that the good brokers can make great sounding boards from whom to bounce ideas off. However, dont forget, at the end of the day it is YOU that decides what to buy, when to buy and how much to invest. Brokers and all other advisors will disappear when an investment goes pear-shaped :(

    It is ultimately your decision :)
     
  4. J_C_Anderson

    J_C_Anderson Active Member

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    Sometimes broker could provide you with useful information via the platform. For example, it could be possible to subscirbe on advanced market data or newsfeed. Brokers could also offer some sort of analytics, but it would be better not to rely on it.
     
  5. gowiththeflow

    gowiththeflow Senior Investor

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    As the majority of broekrs brokers already have access to these types of system I think your are right @J_C_Anderson

    The more information you have access to - both fundamental and graphical - the easier it should be to make a decision. How do you pick your stocks @J_C_Anderson ?
     
  6. J_C_Anderson

    J_C_Anderson Active Member

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    I prefer to trade SmallCap stocks as they could show huge price movement.
    First of all, I use screeners like Finviz to find today`s top movers and form a list of the most interesting ones. Then, I read all information available - nearest earnings reports (at least for two quaters), conference calls transcripts, press-releases, etc. Another important part of analysis is to wait for the technical confirmation - the price should stay in the upper range and hold the level for at least two days for earnings reports and for two-four days for the news. Price movement in the upper range, connected with high volume confirms that I`m not the only interested in this stock. The accumultion period lasts for several days. After the stock starts movement, each day I just move stop below the low of the previous day.

    So, the process is the following: find on scanner - research fundamentals - wait for support - hold and let it grow.
     
  7. Phillip Mark

    Phillip Mark Active Member

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    Basically our whole trade depends on the broker we choose, so we should be careful while choosing one as it might mean success or failure for us.
     
  8. fxstreet

    fxstreet Active Member

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    I completely agree with you. I always check Forexchief daily market analysis and updates before trading. It's good the broker offers something useful to traders.
     

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