Buyers and sellers frequently turn to brokers when buying and selling commodities like currency. The forex broker mediates your interaction with the market. In other words, if you need to find a buyer or seller of currencies, a broker will put you in touch with the proper party. However, in addition to acting as a middleman between you and another buyer or seller, the broker can also operate as a middleman between you and a person who is known as a liquidity provider like us FXCM as the reputable broker for Forex Malaysia.

Forex brokers often fall into one of two categories:

1. Market makers, also known as dealing desk brokers, determine the fixed spread used when buying and selling currencies. Institutional investors frequently employ dealing desk brokers because they establish their own market for clients to trade in.

2. No dealing desk: Brokers without a dealing desk examine foreign exchange rates provided by various financial institutions, including banks, and offer the best one to traders. Individual investors and retail traders are more likely to employ no-dealing desk brokers because it is more difficult for them to access the interbank market and execute trades on their own.

Forex broker scams: what are they?
In order to defraud investors of their money, fraudsters will pose as existing, genuine services in forex broker scams. They typically duplicate the name, phone number, and registration number of a licensed forex broker. To deceive investors into funding them, some even build similar websites.

A forex broker’s FCA authorization status should always be verified by looking up the broker on the FCA register. They might be a scam broker if they’re not on the list. As it is typical for businesses to use the exact same details with a different contact number, always use the contact number shown in the register when contacting any corporation.