Banks Forex
So, a brief description of the main major players of the Forex market:
1 Central banks (central banks, the Central Bank) in different countries
Central Bank regulates money and credit flows. To do this, use the tools defined legal framework, that is, all legally. The main functions of the central banks of issue are funds, the implementation of monetary policy, foreign exchange policy and some others. If, for example, the Central Bank held an intervention, buying up large quantities or sold a particular currency pair, it is, accordingly, can significantly change the rate of the national currency. A recent example can remember buying the Central Bank of Japan yen volume of more than 15 billion. Dollars after the disaster in one of the northern islands in 2011. Thus, the authorities were able to prevent the depreciation of the national currency, they expected, many market players.
2 Commercial banks Forex (KB)
These institutions are financial institutions that accept deposits from both individuals and legal entities. Commercial banks place money of investors according to their interests and undertake to return the funds to owners at the end of the agreed term. Also, these institutions are open and bank accounts. Each country has several large KB, which may affect the exchange rates. For example, in 2006 the turnover of funds known Deutsche Bank amounted to almost one fifth turnover of the Forex market, namely 19.26%.
3 Forex Brokers
This group of players is represented by natural or legal persons who are the intermediaries and promote the conclusion of monetary transaction. In fact, the broker Forex - a seller of a commodity, currency or securities, which communicates directly with the buyer. Broker may provide additional services to the client, working by, on behalf of and at the request of the latter. Fulfilling customer orders, the broker earns a commission.
4 Forex Dealers
Dealers on the exchange Forex represented firms or individuals who commit transactions for its own account and only on his own behalf, that is, make the purchase and sale of currencies and other assets for their money.
Role banks Forex overemphasized. As you can see, apart from carrying out currency intervention and of other regulatory rate of national currency operations, major players in the market have direct delivery of the currency. Smaller players like brokers "borrow" a certain amount from the banks to execute bids or any other dealer client.
Typically, brokers forex exchange has a large number of client accounts, that is often comes from several applications, not only with the mini and micro accounts, but from the accounts of the classical type. Dealer is to calculate the total amount for each currency and submit an application that is already larger players.
Through this approach to job banks Forex applications and are not overloaded with unnecessary calculations, dealers work much easier. Relatively cent accounts that have small amounts of orders - the broker of your preference amount that allows you to make these operations without the help of the larger players.
Despite the fairly well-coordinated mechanism works in the collection and processing of applications for the purchase and sale of currencies, it is sometimes possible unforeseen circumstances. Traders who use automated trading systems or engaged in scalping (pipsing) can face it.
There may be situations when forex indicators give a lot of frequent signals Advisor (trading robot), respectively, gives a request to the broker, or rather, a lot of applications at once. Lends itself to the server is overloaded, the broker often have to refer to the big player (bank Forex) for the purchase of the next portion of currencies. Most brokers are finding out that prohibit traders use automated trading on the exchange. By the way, this is not true for Forex4you, that welcomes and manual and mechanical methods of trade trader or robot. The only thing that you need to consider - some advisers do not control the size of the depot and apply for execution of orders, even when you do not have enough margin (for example, an adviser Ilan). Take this into consideration in their trade by banning trade adviser at a large loss on open positions.
Additionally, banks can provide Forex broker (s) a channel to enter the Forex market, as well as to take money for the trust (control). Service control to the investor is that the client's money received by the Bank on account of professional Forex trader who operates these funds, increasing capital and at the end of the agreement by returning the enclosed amount of profit + investor. The rest of the profit is distributed between a manager and a trader Forex Bank.
Remember that the gains from trade is highly dependent on you have chosen a broker!
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