If you are entering into forex trading, definitely you require good skills, experience, and a deep understanding of the market. However, a vast majority of us, who are interested to penetrate forex trading, lack these needful traits. Hence, we hire the services of a forex broker who helps us understand the market and makes the right trading calls. In return of which, the broker is entitled to a pre-decided share from the profit that you will make.
In fact, due to the rise in the popularity of forex trading, there are so many forex brokers around that it gets difficult to decide on one. For this selection task, there are websites like CompareBrokers that help us select a perfect forex broker. But, the question here is that, since with the availability of good quality hardware and software anybody can enter into forex trading, do we even need a forex broker? Let us have a look at both sides.
Forex Trading with Broker/Without Broker
Speaking about the benefits of forex trading without relying on a broker, one of the major benefits is that whatever you earn, the entire sum will come into your account as you don’t have to pay any commission. However, you require acquiring skills to properly read the market, learn the terminologies, and make the right trading calls. So, if you are a newbie, this will be indeed a tedious task for you.
Brokers, on the other hand, are in the game for long. They can understand the market in multiple ways that you can never imagine being a newbie. So, it is correct to state over here that brokers, due to their skills and experience, will have more information on the market as compared to you. Hence, following the trading calls suggested by the broker makes forex trading a considerably less risky affair for you.
Moreover, if you are trading without a broker the major thing that you lose is leverage. A forex broker keeps your money out of risk by defining leverage. The other major hurdle in your forex trading dream is ‘TIME.’ Of course, forex trading will be more of a side hustle for you and it is a difficult task to focus on your primary job and simultaneously research on the market and make the right trading calls all by yourself. Hence, you indeed need a forex broker to rely on when entering into the market of forex trading.
The best thing that you can do is that if you are a newbie and don’t have much time in hand, you must hire the services of a forex broker. Simultaneously, in your free time, you can work on acquiring and polishing your skills of reading and researching onto the market. You will learn a lot from the experience of the forex broker as well.
So, trading without a forex broker does have its advantages or disadvantages. But, until and unless you get to know everything about trading currencies and learn how to read the market, it is in your best interest that you get a broker to handle the forex trading for you.