What is the difference between a foreign exchange dealer and a foreign exchange broker?
With forex brokers, investors use their own funds deposited in accounts opened with the broker, and the account's risks and profits/losses are borne by the investor themselves. On the other hand, with forex prop firms, investors find a prop firm and participate in their evaluation. If they pass, they trade using the firm's account. The account's risk and losses are borne by the firm, while profits are shared.
If you open an account with a broker, you put in your own principal. All risks are borne by the investors. In addition, you also need to prevent fraudulent brokers from allowing withdrawals, black-hearted spreads, fake brokers, fake customer service and other issues. You really need to do your own homework.
The self-employed model is to register with the self-employed company and after the assessment, they will give you a sum of funds, and you will help them trade. All losses will be borne by the company (the most is the loss of the registration fee), and when you make a profit, you can get a share of the profit. All the problems that may be encountered in the broker are handled by the company.Worry, and investors just need to concentrate on the rules and profit.
Risk Warning: Foreign exchange and Contract for Difference (CFD) margin trading carries a high level of risk and may not be suitable for everyone. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange and CFDs, you should carefully consider your investment objectives, level of experience, and risk appetite. You may lose some or all of your initial investment. You should be aware of all the risks associated with foreign exchange and CFD trading, and seek advice from an independent financial advisor if you have any doubts.