Best Brokers
Understanding Brokers – Investing in stocks or forex can be used as an additional income or what people often say as passive income. However, if you want to enter the world of forex, you cannot do transactions/trading directly. In other words, you need the help of a broker.
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This must be done because the first thing you need to do is to create an account with a broker. A broker can be said to be a company or an individual who acts as an intermediary between a bank or underlying product and a trader or consumer Best Brokers.
So, to make it easier for you to understand what a broker is, you can read this article. So, read this article until the end, okay?
Understanding Brokers
A broker is an individual or a company that mediates transactions between investors or consumers in the capital market. Why is a broker needed? Because consumers only receive orders from individuals or companies that are members of the stock exchange. Therefore, a trader really needs the services of stock exchange members.
In fact, the role of a broker is to provide recommendations to investors based on an analysis of trends such as the market economy and the reputation of the company owner as well as information regarding current actions in the capital market.
This recommendation really affects the reputation of the broker. In other words, the more recommendations a broker has, the higher the reputation of the broker.
In Indonesian, a broker is also often referred to as a stock broker and according to KBBI, a broker is an intermediary dealer who connects one trader with another in terms of buying and selling or buying and selling.
By following up on customer requests, brokers can also conduct research, investment plans, and stock market analysis that is provided to investors. Therefore, to become a broker, you must be good at monitoring the stock market.
Broker Duties and Responsibilities
For a broker to be successful, the main goal of a broker is to understand customers at certain levels, such as the micro and macro levels. At the micro level, you will want to understand the goals and objectives of your current business, but at the macro level, you will want to understand how this project fits into it as a whole. Forex Mony
However, there are still several other broker goals. Below are the purpose of a broker.
1. Assessing customer needs
The duties and responsibilities of a broker are not far from assessing customer needs. Yes, that’s right, because being a broker means that you have to have a comprehensive vision of your products and services and provide advice to customers to understand the products or services they need.
2. Maintaining Good Relationships
It can be said that providing the best service to consumers is the main job of a broker. Naturally, a broker must maintain good relationships, which means simulating customer needs, identifying customer problems, providing solutions, and providing regular support.
In building strong relationships with customers so that they feel comfortable and act honestly and honestly, proper and effective communication is needed. That’s why the key to communicating clearly and consistently while being a broker is very important and should be taken care of.
One of the best ways for a broker is to build a strong clientele by developing a reputation as an expert who delivers unrealistic results. When setting reasonable expectations, you should give yourself the opportunity to really impress the customer and position yourself as someone they want to continue working with.
3. Increasing Sales and Purchases
The next task of a broker is not far from increasing sales and purchases. This task is of course not easy because they have to educate the customers until the agreement is concluded. On the other hand, the broker must ensure that there is no disappointment from the parties involved.
Once the deal is done, the broker must be responsible for preparing and completing all the current documents required for the sale.
Although dealing with clients is a professional thing, treating them as friends is a very beneficial step. This is because being a broker means being able to see the personal fit.
You need to appear confident because as a broker you should be seen to exude confident energy because clients can feel the broker’s enthusiasm and passion for the work, which makes people happy to be around them. Because in the end, clients will be happy to work with them.
4. Provide educational information
If clients cannot understand your area of expertise, they probably do not really understand the process. This can cause business operations to stop due to ignorance. Therefore, the broker must start the communication by providing educational information so that he can help clients understand what the broker does.
To build strong relationships with clients, the broker’s job is to be trustworthy because clients will rely on you as an expert, which is why it is very important to have a broad and angular vision in everything.
Types of Brokers
There are five types of brokers, and here are the types of brokers and their explanation:
1. Retail Broker
The first type is the retail broker, which helps the investor get a commission from each transaction according to the results of the sales or purchases made by the client
2. Full Service Broker
This second type is the broker who provides full services to investors or individual clients, such as providing reports on the results of the analysis, providing information, executing the client’s transaction orders, and providing the choices or steps that the clients want in the product.
3. Deep Discount Broker
As for the third type, which is the deep discount broker, its mission is to implement the purchase and sale operations in addition to managing the clients’ accounts.
4. Discount Broker
This fourth type of broker provides services in the form of executing the purchase and sale orders under the supervision of the client in addition to providing advice in the form of analytical reports and the latest information. Investors who use the services of this broker usually have basic knowledge of the capital market and can read the data provided by the capital market.
5. Online Brokers
This last type of broker, which is the online broker, is a broker that provides services over the Internet. With the rapid development of information technology at this time, online brokers are becoming increasingly interested because people are trying to make transactions with a small capital of up to IDR 10,000. Since it uses the Internet, transactions can also be made anytime and anywhere. Apart from that, the commission paid is much cheaper than traditional brokers.
What is a Forex Broker?
Now that we know about brokers as a whole, we can now focus more on a platform used for investment that is very popular with the public, which is Forex brokers.
A Forex broker is an agency that brings together individual traders and sellers to carry out currency buying and selling transactions.
In Forex trading, there is no demand for a particular currency in order to be able to make a profit. Apart from that, more importantly, the trader must be able to analyze the market situation (supply and demand) and make the right decision when buying or selling.
Many people think that Forex trading is the same as exchanging currencies through an offline exchange. In fact, transactions made by online Forex traders are carried out with the aim of making a profit.
How does Forex trading work?
Basically, forex trading is very easy. Moreover, there are currently many platforms that provide facilities such as trading robots that help consumers who do not have time to check market conditions or are still beginners by analyzing the market using algorithms.
However, despite the existence of such facilities, you have to be very careful and make sure of the results of the analysis because trading robots are currently not legal in Indonesia and are at risk of a lot of fraud or falsification of information.
Strategy for conducting Brokers forex transactions
In order to avoid this fraud, you must be able to carry out this activity optimally and it is very important that you really understand how forex trading works. Here is a strategy for conducting forex transactions:
1. Get used to the current investment tools first
Generally speaking, forex traders have experience and capabilities in the world of investment that can be said to be very long. The trader uses this tool to increase side profits by investing in a number of products such as mutual funds, bonds, stocks, etc. As much as possible, before trying this forex trader, we advise you to understand and learn about investments in order to understand the risks and how to deal.
2. Learn how to trade forex
After understanding and understanding how the world of investment works, start learning how forex trading works. You can learn more about forex trading by buying a book or buying an online course.Buy best-selling books online
3. Set up cold funds
Like other investment activities. Try to do forex trading using cold money with the aim of ensuring that the financial conditions remain favorable and do not carry risks that cause losses that can disrupt your funds.
Before losses occur, make sure to start trading with a small nominal amount first, for example $ 10-50. Only when you are familiar with how transactions work and find methods to get more specific profits, only then can you increase your capital.
4. Choose a reliable and secure broker
This is no less important, make sure to choose a reliable and secure broker service. First check if the service is legal to avoid the risk of fraud.
5. Maintain your behavior when trading Forex
This last point may be very important, why? Because when doing this trading, you really need to have a precise, disciplined and consistent attitude so that you can get the best results and minimize losses. Because ordinary traders often follow their emotions and this is what causes huge losses due to chaotic time management.
Risks when trading Forex Brokers
If we talk about investment, especially in the world of Forex, we will definitely not talk about risk. Here are the risks of forex trading, including:
1. It has high risks
The first risk in the world of forex trading is that its risk is very high compared to other investment instruments such as stocks, bonds and mutual funds.
This high risk can be obtained due to the leverage system present in forex trading. What this means is that the system allows its users to execute transactions with large amounts even though they use a small capital
2. It has currency movements that are difficult to predict
In this second risk, currency movements are difficult to predict, because currency movements in general are very volatile. Therefore, before starting to trade forex, it is very important for users to know the forex movements well.
In the world of forex itself, there are many factors that can affect the movement of the forex itself, such as economic factors, geopolitics, and the transactions that are being executed.
3. High risk of fraud
In this third risk of forex trading, there is a high risk of fraud. Since forex trading transactions are done digitally or online via internet channels, the transaction process that is done without a face-to-face process increases the possibility of fraud.
4. It requires very high enthusiasm and activity
In this last risk of forex trading, high activity and enthusiasm are very necessary, because it must be done so that you as a user can avoid the possibility of fraud. So, in general, people who trade Forex are also active in monitoring the market movements they make.
Tips for choosing a good Forex broker so you don’t get scammed
Here are some tips for choosing a good broker so you don’t get scammed easily:
- As a trader, you should choose a broker whose regulations can be adjusted to match the deposit requirements that are set according to the amount of funds approved by the trader.
- Make sure that the broker you use makes it easy to make withdrawals, not just easy to deposit money. Look for those who process deposits and withdrawals within just one day.
- Try to keep the commission fees, interest (swap) and the difference between the selling price and the buying price, often called the spread, low. Because this is what determines the amount of profit or loss we get when doing trading activities
- Choose a broker with a large number of pairs. What is a pair? A pair can be said to be a pair of two different currencies, where the value of one
- currency is quoted by another, for example, USD/JPY means that the US dollar is the base currency or first and then the Japanese yen is referred to as the quote currency. This will benefit traders if one of the pairs is experiencing sideways conditions or what is known as market conditions that tend to be doubtful.
Pay attention to the customer service provided. Generally, if a reliable broker has a service that can be reached 24 hours a day, 7 days a week.
Close
A successful advisor is quick to adapt to communication styles, formalities, methods and uses emotional intelligence.
If you are already in this business world, keep in mind that communication is the key to building a trustworthy relationship and talking to your clients to find out what they value most and linking their preferences to the workflow.
This is the discussion about brokers and types of brokers. We hope that all the above discussion will add to your vision. So, do you want to become a broker?
