The decision to buy or sell something is a big one. For the former, you could be buying you don’t need. For the latter, you could be selling something you’ll need later on. But if you are sure about things, then the issue becomes whether you’re getting something worth the same value in return. This is where trading brokers come in.
A trading broker is simply that – a person who mediates a trade between buyer and seller. A broker becomes a principal party to the deal if he or she also acts as either buyer or seller.
It should be noted that the term isn’t limited to an individual. The term broker is also used to refer to a company that specializes in brokerage services.
How to look for a good trading broker, you ask?
Always ask for references. And when we say references, we mean people you are actually planning to speak with. A little talking with people and researching goes a long way in helping you save money later on.
Make sure the trading broker is registered as FCM (Futures Commission Merchants), CFTC (Commodity Futures Trading Commission), and with the NFA (National Futures Association). These organizations will vouch that the person you are looking to hire is a full fledged trading broker.
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