Types of brokers
A Wealth of Knowledge
The emergence of online brokers has brought about distinct changes on to the financial markets. This meant that trading would be accessible to anyone who is interested as the internet is universal. Not only that but, online broker's had made it easy for anyone to speculates in the financial markets. Most obvious thing to note is the affordability of their services. While this may sound good, it is also important to note that not all of them are good, especially when one is starting out as trader. Most trader's do not know which broker to choose, even better yet, why they even need one. it is all good as there is something new one learns everyday. So, first and foremost, what is a broker? well in simple terms a broker is a person who buys or sells assets for others. So what they do is act as a middle man between the market place and a person, well a trader in this case. They offer trading tools to traders such as trading platforms/software, webinars and other learning content to help traders trade in the markets. The platform usually comes with a list of trading instruments offered by that specific broker e.g.: Forex, Commodities, CFDs, Stocks and Indicies.
Types of Brokers
There is about 4 types of online brokers market makers, STP, DMA, ECN