Until a few decades ago, all transactions in the stock and commodity markets were carried out using the phone or even in writing. To buy or sell shares, their owner called or wrote to the broker, who executed the transaction. Today, trading in financial markets takes place with the help of dealing centers or brokerage companies. What is a DC, about its properties, functions and what opportunities it provides for traders, the reader will learn from this article.
What is a dealing desk?
Modern trading most often takes place over the Internet. To understand what a DC is and how it works, you need to know about its functions and what opportunities it provides to traders. A dealing center is a brokerage organization. Most often, it is simply called a broker. He is an intermediary between exchanges and traders.
There is also OTC trading in the financial markets,to which "Forex" belongs. Forex dealing centers do not bring transactions to exchanges, and they take place within a brokerage company between participants. As a result, speculative sales and purchases are made on the currency market, and traders earn on the difference.
Types of DC
In trading on financial markets, there are three types of dealing centers. This is:
- Centers for the provision of intermediary services in the stock market.
- Dealing companies for commodity exchanges.
- Forex dealing centers.
The first two options DC provide financial services for the purchase and sale of assets such as stocks, securities (bonds), metals (gold, copper, silver) and various commodities (coffee, timber, wheat). All transactions without fail occur through exchanges. For their services, the broker sets a commission. Transaction fees can range from a few dollars to hundreds or even thousands.
In the foreign exchange market, as mentioned earlier, transactions are not displayed on the stock exchange. Therefore, traders do not have to pay commissions, but for each open transaction they pay the spread. Depending on the dealing center or brokerage company, it can be from a few points to dozens.
For example, in the dealing center "Alpari" for the euro / dollar currency pair on a cent account, the spread is two points. In the same dealing center, but for other assets, it can be more or less independing on trading conditions and specialization of contracts.
Functions of brokers
Knowing what functions a broker performs, it is easy to understand what a DC is. Dealing companies provide intermediary services for traders in the financial markets. Each client, after choosing a broker, opens a trading account in the DC and replenishes it in a convenient way and currency.
The broker provides the trader with 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.
To trade on it, it is necessary that the dealing center, the broker has integration with it. Only in this case, all transactions that the trader opens will be displayed not only on the trading floor, but also in the personal account, on the DC website.
As well as brokerage companies provide the necessary financial services, 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 this purpose.
In addition, brokers ensure timely opening andclose 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 or even write to anyone, as it was before, it is enough to select the necessary parameters for the transaction and open it.
Possibilities of dealing centers:
- Trading in financial markets via the Internet.
- Pending trades using special orders.
- Loss limits.
- Automated profit taking.
- Training for beginners.
- Providing a free marketplace.
- Favorable trading conditions.
- Quick withdrawal of earned money.
- Deposit your trading account, within a few minutes.
- Auto trading and special programs.
- Trading tools and more.
If a person wants to become a trader, then it is enough for him to undergo special training, replenish his trading account and start trading, and the broker will provide him with all the opportunities for this.
Training at DC
Anyone can get special training. The basic course is always free, and there are trading master classes for more advanced traders.
- Fundamentals of trading in the financial market. They include specific terminology, patterns of the financial market, its features and importantcharacteristics, as well as information about brokers and the choice of a trading account. A beginner will learn such concepts as what a DC is, what functions they perform, types, how to replenish a trading account and choose it correctly, withdraw earned money, and other trading conditions. In the terminology section, a novice speculator will learn the meaning of the basic concepts that are used in trading. Here he also receives information about the features and patterns of the financial market, that is, how it works, about the participants and much more.
- Money Management. This is the whole science of money management. Every novice trader should know how to properly manage their deposit and balance financial risks in order to minimize them.
- Psychology of trading. This is one of the important sections in which beginners will learn about the influence of large players on the movement of the market and Market Makers. They also learn the rules of trading, self-discipline and learn to keep calm while trading, manage their psycho-emotional background.
Advantages of dealing centers
In addition to basic training in dealing centers, you can choose a trading method with which a trader will earn in the future. The benefits also include a constantly updated information base, reviews and expert opinion. Many brokers offer their clients to subscribe to a newsletter with daily analytics.
And it should also be noted that many brokers provide their clients with the opportunity to use in tradingautomated programs such as robots and experts. 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, and unlimitedly, and withdraw the profits in a short time. Many of them practice weekly and even daily withdrawals.
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 also do not withdraw the money earned at all.
There are a lot of complaints about the provision of poor quality services, such as slippage on trading floors and other technical problems.
Therefore, when opening an account, it is necessary to devote maximum time to studying information about the DC. To avoid any problems in the future, 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, the deposit, to enter the market. Most brokers providing financial services in the foreign exchange market do not provide for clients to open an account at allno restrictions.
Forex DC Rating:
- Forex Club.
According to professionals, all these brokers are reliable and have excellent recommendations and reviews.
In recent years, trading in financial markets has attracted more and more 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.