In this one we will continue talking about how to learn to trade and what we should do, this time I will explain what a broker is, how to choose one and what kind of broker there is. All this is to encourage more the trandig theme and end with the fear of some people to work with cryptocoins.

What is Broker?

A broker is a person or financial company that deals with the buying and selling of assets (currencies or cryptos) and for this it charges commissions. A trader cannot operate without a broker because they have licenses for buying and selling in the different markets.

There are some differences between traders and brokers and it is good to know them:

• Brokers provide the platforms and traders work on it, traders are forced to need a broker as they cannot trade without their assistance.

• Brokers do not assume any risk, they are only an intermediary, they charge a commission for each operation they carry out.

• On the other hand, traiders carry out all operations at their own risk and the way they see a profit is if the selling price is higher than the buying price.

Types of brokers

• Among the types of brokers we can find the bad ones or known as brokers market markes this type of brokers does not work with the market in real time they only create an internal market where they move the money at their convenience, these brokers get more profit when the client loses than for operations.

• Another type of brokers are those who, in addition to earning profits from the sales they make as intermediaries, charge an extra commission by increasing the price of the currencies they sell.

• Finally we leave the best brokers, they win if you win. The main objective of them is to find the best prices when selling or buying so that the traiders do not have any loss, the idea of them is to be transparent when making any operation and thus generate more customers to increase orders and thus increase their profits.

The first thing to know before working with a broker is the spread, this means that we must know the market price in real time to be able to compare it with the one that the broker is giving us, the following is to know how much is the charge for each transaction made, we must know how much is the commission fee for entering money to the account with which we are going to do trading and finally ask the commissions for the moment we want to make a withdrawal from the market.

For all these reasons it is important to have a reliable broker when making trindeg, there are some people who are trideng and blokers at the same time and others who are only brokers or treidens individually, this depends on each person.The important thing is to be well informed before starting to work in any market either cryptos or currencies.

Here is the link to my previous post where I also talk about my project

Translated with www.DeepL.com/Translator
(free version)

Thank you for reading my publication

Posted Using LeoFinance ^Beta