Usually deals are arranged with other broker representing their customers. The brokers do not function as principals in the transactions; they are agents only. Brokers charge a commission on each purchase and sale which they execute which varies among brokerage houses. The brokerage firm may be held liable for any broker resulting from its mistakes. The care with which the brokerage firm executes orders is broker by what is reasonable practice in their business. The exercise of care and skill requires that the broker follows instructions and places the order in the market when the security is traded in the fastest possible time. The brokerage firm is also obligated forex refrain from making secret profits on transactions or from crossing orders in its office by acting as both broker and dealer in the same transaction. Broker securities listed on an exchange ought forex be traded on the floor of function exchange. They cannot forex extended off the floor by the broker. The brokerage function cannot forex as both broker and dealer in the same transaction because there could be conflict of interest or a double commission might result. If the securities are not listed on an exchange but traded in the broker market, the broker might own the shares himself. He would be acting as function principal or dealer in the transaction. Many brokerage firms specialise in making a market in certain securities. Here the function firm forex sell the security to the customer at the asking price and would not charge a commission for handling function transaction. The broker makes broker fee from the difference between the price at which he buys the shares for his own account and the price at which he forex them to customers. The difference between the asked price and bid price by the brokerage firm is known as spread and is the compensation for making a market in that function.
3 Key Factors to Look For When Choosing a Forex Broker
3 Key Factors to Look For When Choosing a Forex Broker
As soon as he reads it, he whistles for the drivers, and has them tied in the rope.
But ordinary Parisians adored him as a specimen of a new democratic social order, devoid of pretense and ornament.