Doubts about exchanges and brokers

Firstly, someone can explain me what means the term “exchange” in financial markets? What’s the difference and similarity between the terms “exchange”, “change”, “swap”, “shift”, etc. (Detail: English isn’t my natural language!)

What are the “stock exchanges” and what they do? They provide services for whom? If exist stock exchanges so why exist stock brokers?

By the way, what’s the difference between a “stock exchange” and a “stock broker”?

Why the stock exchanges doesn’t offer support for operate through the MetaTrader?

What’s the relationship between the stock exchanges and the stock brokers?

Secondly, about forex, forex = foreign exchange, correctly? So, what’s means the term “foreign exchange”? What’s a “foreign exchange”?

Exist some “forex exchange”? If yes, what?

About the “forex brokers”, I already know what they are. However, what’s the FOREX.COM? Is it a broker? Is it an exchange?

And why the traders of forex prefer to making trading using others forex brokers instead of the

What’s the relationship between the and others forex brokers?

EDIT: Moreover, what’s the difference and similarity between a broker and a exchange?





edit: here : School of Pipsology | Learn Forex Trading


Wikipedia is disinformation!

Choice an area where you have so much experience and knowledge and search in wikipedia the page about your area, look if the “informations” exposed in the wiki are too clear how the knowlodge than you have in your mind.

I use wikipedia by reading the articles it references to for its articles, not necessarily the articles themselves. In that regard it can actually be pretty helpful.

In a nutshell, the process of “exchange” is that articles are exchanged, or change hands, between participants. The “Exchange” is generally the market place in which these articles are exchanged. Since not all persons wishing to give or gain articles are able, or allowed to, participate on the exchange they employ a middleman, or agent, to act on their behalf. This middleman is for example the stock broker or forex broker.

In the olden days the market, or “Exchange” was always a physical location somewhere where the participants met and bought and sold goods. Nowadays, markets tend to be “electronic” and have no physical location, such as the foreign exchange markets. But the principles are still the same. Things are exchanged by people wanting to exchange and who agree on the terms (price. delivery. etc) of their exchange.

However, in practice, forex brokers are not always just middlemen and actually do the exchange direct with the client and keep the position for themselves. These are marker-makers. They do not pass on your transaction to others, they simply manage their own total exposure. Other brokers do pass your transactions straight through to the market, as in ECN, and charge a commission for doing so.

An exchange is a central place where people can buy and sell. Originally, it was a physical location - like the New York Stock Exchange. These days, they are mostly electronic.

A broker is an agent of someone looking to do a transaction. In terms of an exchange, the broker has the right to transact there (they are “members”, allowing them to operate on behalf of their customer(s).

The foreign exchange market is a market where currencies are exchanged. It is not an exchange, though forex transactions in the form of futures contracts are traded on some exchanges. Mainly forex operates in what they call and over-the-counter market where dealers transact with each other and with customers.

The difference between a broker and a dealer is that the dealer actually takes the other side of a customer’s trade (even if just temporarily) where a broker is strictly a pass-through operation.

About the “forex brokers”, I already know what they are. However, what’s the FOREX.COM? Is it a broker? Is it an exchange?

Most “brokers” in the forex market are technically “dealers”. They are only brokers if they are executing trades on behalf of their customers outside their own platform then they are brokers. is not a market. It is probably mainly a dealer, though there might be some brokerage.

my friend, you are asking questions in the level of “hey can someone explain me what 1+1 in and please can you tell me what it makes that the answares is 2?” so wikipedia helps you a lot. You actually come here expecting people to waist their time on explaining you things that YOU can find out by making the work of entering few letters into google and read it up?

why do you think wikipedia is disinformation? seriously? wikipedia isnt allowed in doctors thesis or a diploma thesis lie it wasnt back then when i graduated but for general information it is more then you need and you will finnd all answares of YOUR questions there.

so dtop waisting time of people and read the simple and basic stuff that YOU need by yourself.

Yes i agree, posting the picture of “google mother****er, do you use it?” seemed bit offensive, but it wasnt meant that way, its a very old online forum joke which i simply remembered from like 10 years ago and it seemed very fitting. wasnt meant to make you angry, was only meant to be funny, i keep forgetting not everyone is participating in online forums since 15 years or so and some of my “jokes” are outdated and not funny anymore.

if you asked a question about technics or numbers or patterns or psychology or whatever that isnt easily found on the internet then fine, but this is a real time waister and I saved up time for other people to post, unfortunately you were to lazy to use up your own time to read. where i come from people say “give a person a fish you feed him one day, give him wikipedia or google and he can look up how to fish” :wink:

and to be honest i respect everyone who willingly invested his/her time to explain you your questions.

The problem is that although that nowadays exist internet and Google, exist too a lot of information that no make sense. Letters, words, books, videos, etc, etc, wrote and recorded by incompetent peoples.

Still is too hard find good informations!

About the mother****, I don’t care. No problem.

Ha, true, too much information can also be a problem. Still, I prefer having too much information than none at all - after all, I can learn to differentiate between useful and useless information,but if I have none of it, there’s nothing I can do.

More than that i would say that there is overdose of information so that we are not able to take the right decisions :33: