A few decades ago, all transactions in the stock and commodity markets were carried out by telephone or even in writing. To buy or sell shares, their owner called or wrote to the broker, who executed the deal. Today, trading in financial markets is carried out with the help of dealing centers or brokerage companies. What is DC, about its properties, functions and what opportunities it provides for traders, the reader will learn from this article.
What is a dealing center?
Modern trading most often occurs via the Internet. To understand what DC is and how it works, you need to know about its functions and what opportunities it provides to traders. The dealing center is a brokerage organization. Most often, he is simply called a broker. He is an intermediary between exchanges and traders.
There is also over-the-counter trading in the financial markets, which includes Forex. Forex dealing centers do not place transactions on exchanges, and they occur inside a brokerage company between participants. As a result, speculative sales and purchases are made in the foreign exchange market, the difference of which traders earn.
Types of DC
In trading in financial markets, there are three types of dealing centers. It:
- Centers for intermediary services in the stock market.
- Dealing companies for commodity exchanges.
- Dealing centers "Forex".
The first two options of DC provide financial services for the purchase and sale of assets such as stocks, securities (bonds), metals (gold, copper, silver) and various commodities (coffee, wood, wheat). All transactions without fail occur through exchanges. The broker sets a commission for his services. The size of the commission on transactions can vary from a few dollars, to hundreds and even thousands.
In the foreign exchange market, as mentioned earlier, transactions on exchanges are not displayed. Therefore, traders do not have to pay commissions, but they pay the spread for each open transaction. Depending on the dealing center or brokerage company, it can be from several points to tens.
For example, in the Alpari dealing center, for the euro / dollar currency pair in the cent account, the spread is two points. In the same dealing center, but for other assets, it can be more or less depending on trading conditions and specialization of contracts.
Brokers Functions
Knowing what functions a broker performs, it is easy to understand what DC is. Dealing companies provide intermediary services for traders in the financial markets. After choosing a broker, each client opens a trading account in the DC and replenish it with a convenient method and currency.
The broker provides for the trader several options for trading platforms. A future trader can use the web platform from the developers of the dealing center or download a special program to a computer, tablet, laptop or phone. The most popular, according to traders, is MetaTrader.
In order to trade on it, it is necessary that the dealing center and broker have integration with it. Only in this case, all transactions that a trader opens will be displayed not only on the trading floor, but also in your personal account, on the website of the DC.
And also brokerage companies provide the necessary financial services, for example, such as withdrawal and deposit of funds, transfer between accounts, and ensure their financial safety.
In dealing centers, the client gets access to various trading assets, reference and analytical materials. Almost all brokers conduct free training with clients and even provide a special demo account for these purposes.
In addition, brokers ensure timely execution of opening and closing orders and perform other technical functions.
Opportunities for Traders
Any dealing center (DC) provides traders with the opportunity to trade online. The client does not need to call anyone, much less write, as it was before, just select the necessary parameters for the transaction and open it.
Possibilities of dealing centers:
- Trading in the financial markets via the Internet.
- Pending transactions using special orders.
- Limitations on potential losses.
- Automated profit taking.
- Training for beginners.
- Providing a free trading platform.
- Favorable trading conditions.
- Quick withdrawal of earned money.
- Replenishment of a trading account within a few minutes.
- Analytics.
- Auto trading and special programs.
- Tools for trading and much more.
If a person wants to become a trader, then he just needs to undergo special training, replenish his trading account and start trading, and the broker will give him all the opportunities for this.
Training in DC
Anyone can take special training. The basic course is always provided free of charge, and for more advanced traders there are trading master classes.
Basic program:
- Fundamentals of trading in the financial market. They include specific terminology, patterns of the financial market, its features and important characteristics, as well as information about brokers and the choice of a trading account. A beginner will learn such concepts as what are DCs, what functions they perform, types of how to replenish a trading account and choose it correctly, withdraw money earned, and other trading conditions. In the "terminology" section, a novice speculator learns the meaning of the basic concepts that are used in trading. Here he receives information about the features and patterns of the financial market, that is, how it works, about participants and much more.
- Money Management. This is a whole science of money management. Every novice trader should know how to properly manage their deposit and compare financial risks in order to minimize them.
- The psychology of trading. This is one of the important sections in which newcomers learn about the influence of large players on market movement and Market Makers. They also learn the rules of trading, self-discipline and learn to remain calm during trading, to manage their psycho-emotional background.
Advantages of dealing centers
In addition to basic training in dealing centers, you can choose a trading method by which a trader will earn in the future. The advantages also include a constantly updated information base, reviews and expert opinion. Many brokers offer their customers to subscribe to the daily analytics newsletter.
It should also be noted that many brokers provide their clients with the opportunity to use automated trading programs, such as robots and experts, in trading. By connecting such a program to the trading platform and setting it up, the trader does not have to do anything at all, since the robot trades on its own. As a result, the trader receives passive income, without his own participation.
According to most traders, brokerage companies and dealing centers really provide an opportunity for everyone to earn money, and unlimitedly, and withdraw the profit in a short time. Many of them practice weekly and even daily withdrawals.
Negative characteristics
From the negative reviews about brokerage companies, you can understand that most often people complain about fraudulent activities. For example, unscrupulous and dishonest dealing centers not only delay, but generally do not withdraw earned money.
A lot of complaints come about the provision of poor-quality services, for example, slippage on trading floors and other technical problems.
Therefore, when opening an account, it is necessary to devote the maximum time to studying information about DCs. So that in the future there would be no problems, it is very important to choose a reliable broker with an impeccable reputation.
Rating of the best brokers
Forex brokers are the most popular among traders. This is due to the minimum threshold, that is, a deposit, to enter the market. Most brokers providing financial services in the foreign exchange market generally do not impose any restrictions on opening an account for clients.
Rating of Forex Trading Center:
- Alpari
- FinmaxFX.
- RoboForex
- Forex Club.
- Finam.
- InstaForex.
- Forex4you.
- Amarkets.
According to professionals, all of these brokers are reliable and have excellent recommendations and reviews.
In recent years, trading in financial markets has attracted an increasing number of people. However, it should be borne in mind that you need to start trading only after special preparation, have a sufficient deposit amount and choose cooperation with a reliable brokerage company.