In investing, there are many things that you must learn. One of them is the understanding of brokers as intermediaries for transactions in the capital market. Oleg Tkachenko is аn economist-analyst and rіѕk mаnаgеr wіth more than ѕеvеn years оf рrасtісаl еxреrіеnсе wоrkіng in fіnаnсіаl іnѕtіtutіоnѕ. Oleg ѕресіаlіzеѕ іn соmmоdіtу аnаlуѕіѕ, Forex, thе ѕtосk mаrkеt, аnd nоn-ѕtаndаrd іnvеѕtmеnt markets (cryptocurrency, hypes, рееr-tо-рееr lending).
In the capital market, the profession of a broker is also known as a broker. Brokers are individuals or companies that act as intermediaries for buying and selling.
The role of brokers in online trading
The following are the roles of brokers in making it easier for investors and traders to transact online.
1. Online trading platforms
Brokers provide websites, software, and online platforms that make it easier for investors to trade wherever they are. It is one of the advantages of technological advances.
2. Analysis tools
Online brokers usually also offer the analytical tools needed by traders or investors. That is why the trades carried out are not careless because they are based on in-depth analysis results.
3. Choice of financial instruments (assets)
Brokers facilitate trading in various financial instruments (assets), foreign exchange (forex), stocks, commodity exchanges, etc.
4. Pауmеnt mеthоd
Brоkеrѕ рrоvіdе dероѕіt аnd wіthdrаwаl facilities ѕо trаdеrѕ can dероѕіt and wіthdrаw fundѕ еаѕіlу frоm thеіr respective ассоuntѕ. Sоmе popular рауmеnt mеthоdѕ іnсludе bаnk trаnѕfеr (Bаnk Wіrе), сrеdіt card, аnd е-рауmеnt (Fаѕарау, Wеbmоnеу, Skrill, Nеtеllеr, PауPаl, еtс.). Traders can also choose whісh рауmеnt mеthоd іѕ mоrе ѕuіtаblе аnd сhеареѕt.
Fundamental analysis factors for Forex
As an investor, choosing an in-depth understanding of fundamental analysis is necessary ass forex as an investment instrument, and you can get by understanding profile in social networks regarding fundamental analysis as a forex investor is an ability or expertise to understand global trends in currencies related to movements or economic dynamics of one or many countries. Therefore, fundamental analysis is usually carried out by forex investors who want to make long-term investments because the analysis carried out refers to the country’s economic development from foreign currencies, not just looking at market movements. The following factors require fundamental analysis in assessing the price of investment assets.
1. Economic factors
As you already know, the movement of the value of a currency is quite large, influenced by the development side or economic policies that a government is carrying out. Using fundamental analysis, the economic policy issued later can be an estimate of the good or bad results that can affect economic development. If it is deemed not good, gradually, the economic policy will have an impact on weakening the currency’s value. Vice versa, the currency’s value will strengthen if the policy can have a good conclusion for the country’s economic development. To carry out a fundamental analysis from an economic point of view, an investor must be able to carefully and carefully read the economic data report of a country released by the relevant party or agency.
2. Social and political factors
Outside of the economy, social and political factors are also considered capable of influencing the value of a country’s currency. Therefore, an investor also needs to conduct must also analysis from the social and political perspective. If a country’s social and political conditions experience changes or movements that are considered massive, that country’s currency value can change significantly. One common example that can affect the value of a currency is general election activity, especially presidential elections. In Indonesia and other countries, election contestation is often one of the triggers for fluctuating currencies. During these activities, it will be difficult for investors to determine the exact value. However, with fundamental analysis, an investor is expected to be able to guess the stable value of a currency in the long term.
3. External factors
Economic, social, and political factors are common factors for fundamental analysis to be carried out to find the exact value of the movement of a country’s currency. However, there are also external factors that can influence this value. An investor needs expertise in fundamental analysis to understand currency movements generated by these external factors. This external factor is considered surprising, so it can also present significant fluctuations in currency values. So, the fundamental analysis must determine when the currency value movement can return to normal soon.
It is highly recommended if you want to make forex investments, transact, or invest in a trustworthy institution, such as Traders Union.