However, Forex Participators can be Simplified into 3 groups. Which are Banks, Brokers and Us (Retail Traders). We do not include other companies because they buy though Banks, so the Banks represent all other companies, and the banks are the Ones who have high influence in forex because forex was created when Banking Computers Exchange Currencies when executing international transactions. Banks are many, every country has its Minor Banks and Major Reserve Bank that participates in forex to determine value of its country currency. As a result there's no One Bank that Controls Forex, all Major Banks are Having Major Influence In Forex.
Brokers are just small and medium companies that help us Retail Traders to speculate in forex. Brokers connect Traders to banks.
There are Banks that makes Forex Trading possible, we call them Liquidity Providers or Market Makers. When a Trader click buy during trading, banks will sell to the trader, if trader click sell, banks will buy from the trader. Banks Takes the opposite side of Trades we take. even if you press both buy n sell, the Forex Banks will both buy and sell your orders
Here is how we are connected to forex. Us (Retail Traders > Brokers > Banks (Liquidity Providers).
Do not Confuse ordinary Banks with Forex Liquidity Providers or Market Marker Banks.
Here is how we are connected to forex. Us (Retail Traders > Brokers > Banks (Liquidity Providers).
Do not Confuse ordinary Banks with Forex Liquidity Providers or Market Marker Banks.
The Market Marker Banks are the ones that make it possible for Retail traders to Trade in forex. they are the ones who take orders.