First of all, a forex broker works as an intermediary between us (operators), and the stock market.
Normally a Broker charges a small and really reduced commission for each operation that one sends to the market.
It also requires a license to do so and they are regulated by the countries in which they reside.
The difference between broker and trader, confusion is normal that often happens with new traders who confuse the term operator and broker.
The trader buys and sells Cfd`s contracts.
The broker only acts as an intermediary between the trader and the market, he or they do not buy or sell, they are only intermediaries.
There are many types of broker, but the important thing is which one is best for you?
Obviously many things come into play since you will trust them with your money and your profits, there are real position brokers and others who are speculators or as they are known Market Makers.
What is the difference between one and the other because that is very easy. The broker market maker does not place your order, whether it is to buy or sell instantly or live, as we often say, but what does it mean now?
It means that this type of broker waits to have a good sum of money from open operations to launch them all together on the market.
Normally a professional with privileged information, and several years in the industry are to like to operate with this type of brokers since they have very very low spreed (commissions) for large amounts of money.
However for a novice trader this more than liking it, it can cause the reason of disgust.
So it is always advisable to use a broker that offers open positions in real time and with the least delay time to the market, these consist of having a sum a little higher than the MM, but nevertheless your operation is defined by you and not by a set of people.
Whenever you are looking for a good broker, check what is available in your country, how fast the withdrawal and deposit transactions have and above all check the history of their managers.
I hope I have helped you, I would love for you to comment if you need help to find a good broker that suits your needs, I am Jeremiah and I say goodbye from Argentina.