Playing stocks and forex can indeed increase your coffers. However, when you want to enter the forex world, using the Volatility 75 Index you cannot directly make transactions. You need the help of a broker because the first thing you have to do is create an account with a broker. The Volatility 75 Index can be your guide to playing in the forex world.
The broker has more experience and knowledge of transactions. For commercial transactions, especially those involving high-value goods such as gold, silver, and important documents via the internet, will be more safely supported by brokerage services. The role of a broker is as an intermediary between investors or clients and the capital market. The broker is fully responsible for executing sales and buying transaction orders made by investors.
One of the broker’s functions is to carry out capital market analysis, making recommendations to investors based on stock analysis, such as economic and market analysis, the reputation of the owner company, and other related information on the capital market. The more recommendations are given, the higher the reputation of the broker.
Types of Brokers
1. Retail broker
Retail brokers are also called retail brokers. Retail brokers assist retail investors and receive a commission from each transaction according to customer instructions.
2. Full-service broker
Full-service brokers provide full services, such as providing analysis reports, providing information, executing investor transaction orders, and maintaining investor accounts. Full-service brokers are suitable for investors who do not have much expertise in reading market situations or do not have the spare time to analyze the markets. Because it provides a full service, full-service brokers get high commissions from investors.
3. Deep discount broker
This type of broker offers the simplest services that only execute orders for sale or purchase and management of consumer accounts. The commission for this type of broker is lower than that of a full-service broker.
4. Discount broker
Discount brokers provide services in the form of executing buy or sell orders under customer direction and offering advice in the form of analysis reports or the latest information. Investors who use discount brokerage services generally already have basic knowledge of the capital market and can read the data provided by the capital market. As for the fees, the brokerage discount is below the full-service brokerage, but higher than the deep broker discount.
5. Online broker
As the name implies, online brokers provide services via the internet. With the rapid development of information technology, online brokers are increasingly in demand by the public because the public can try equity transactions with cheap capital. Because it is processed via the internet, transactions can also be made anytime and anywhere. The commission paid is also cheaper compared to conventional brokers.