Beginners who wish to trade forex often have a myriad of questions, such as “Can I trade in forex without the aid of a broker?” It's understandable that beginners ask these questions like this because they want to cut down on the costs of having an intermediary. When you buy currency at a currency exchange or bank and sell it at a higher price, you make some profit. However, this isn’t really trading in currency assets. For serious trading in forex assets, you have to make use of a broker.
If your aim is to be an investor who is taken seriously, and you wish to diversify your risk and make profit in split seconds, you absolutely need a broker who deals in forex. To trade forex online, this is necessary. It's true that you may be able to execute forex online trading by placing requests online, but this is only via channels of reputed brokers like Motilal Oswal. A forex broker is an official entity which represents an intermediary between buyers and sellers, or traders, and the market of forex itself. Private individuals are not permitted to execute trades to do with currency by themselves. Any trading operations have to be registered via a broker of forex. These brokers are licenced and run broking systems as per specific legal regulations. In the markets of currency trading, the participants are made up of legal individuals, retail traders and institutional traders.
- Is it Possible to Trade Forex without a Broker?
Once you know about the role of a forex broker, you will understand why you cannot trade without the aid of one. This is the way that brokers of forex work:
- A brokerage company makes a contract with providers of liquidity. These are big investment banking institutions or ECN systems. The broker also has to open separate bank accounts in order to keep the client’s funds and its own apart.
- If clients wish to trade in forex, thay have to make an agreement with brokers - a broker service agreement. Clients then get registered. Furthermore, trading accounts are opened for every client. To trade forex online, this is a must.
- The client then tops up their account with funds and gives ‘orders’ to the broker to sell or buy currencies through a dedicated terminal for trading.
- If you still think you can trade forex without a broker, you have to understand that as an investor, you need access to the forex market. How do you get that? Only through an online trading platform. As brokers invest in trading platforms with costly licences, they are officially permitted to offer private traders this service.
- Trade Forex on Motilal Oswal
To trade in forex as an asset class, you have to have a trading platform which is electronic. This is offered by one of the premier brokers in the country, Motilal Oswal.
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