A forex trading broker is a broker or an agent in forex exchange and his role is exactly similar to a real state broker who handles properties and real estate business. In simple words, a forex trading broker is a consultant who guides you about the behavior and nature of forex trading market. Forex exchange market is indeed a perfect market place for experienced forex investors but if you are beginner then you should keep this in mind that it can be a dangerous and risky trading venture as well because the market is uncertain and it has high risk bearing capacities as well. Beginners can immediately hurt their fingers because there is no place for rusty or in-experienced traders in the market.
Best forex broker
So, what can really help to the novices to excel in the forex exchange market? Well, the answer is forex brokers. An experienced and qualified forex broker can not only facilitate you to access the forex exchange market but he will also allow to trade in the market for 24 hours a days with some important and major currency pairs like JPY, EUR, CHF and US dollar.
With the growing awareness about online forex trading tools and with the latest technological advancement, the role of a forex trading broker is relatively reduced but no one can completely underrate their role in online forex trading. Today, most of the experienced forex brokers have adjusted themselves to the volatile nature of the forex trading market .
Most of them are trying hard to provide better forex online tools and software packages to their online customers so that they can easily help most modest forex investor to conduct trade right from their personal computer screen.
In forex online, PIP stands for Price Interest Points. As we already know that in Forex exchange, forex currencies are generally priced in the form of pairs. The quoted price is actually the price at which the market maker is willing to buy or sell a definite currency pair. However, in wholesale financial market, all the currencies are generally quoted out in the form of four decimal places and the last placeholder is symbolized as a pip or the point. Majority of currencies has usually 1/10,000 pip of the forex exchange rate. For instance, in USD/JPY currency pair, the pip is 1/100th. A forex broker who maintains competitive and tight spread is strongly recommended. Some of the important features of a competitive forex broker are to maintain streaming prices, to fix pip spreads and to maintain competitive pricing in
online forex trading .