Many of us would have travelled to different countries the first thing we do immediately after landing in the airport is to look for the currency exchange booth or we may visit the nearby bank and would change the present currency in our hand to the country’s currency which we are visiting...
Many of us would have travelled to different countries the first thing we do immediately...
Traders have to depend on the intimidators the so called forex broker to execute trades...
Many of us would have travelled to different countries the first thing we do immediately after landing in the airport is to look for the currency exchange booth or we may visit the nearby bank and would change the present currency in our hand to the country’s currency which we are visiting. Yes, behind this foreign currency exchange there exists an hidden world of forex trading.
What is forex trading?
When your turn comes in the currency exchange booth or in the bank, a list of exchange rates will be displayed for different currencies of different countries. Thus the moment we involve in exchanging the foreign currency we are also participating in the FX trading through Forex market. Thus after a wonderful vacation, again we exchange back to our own country’s currencies and there exposes a big difference. The secret of buying price is more than the selling price. Thus the forex brokers play a vital role in making money with these foreign exchanges. The largest financial market in the world is the foreign exchange market, having a turnover of $5.3 trillion per day, which is greater compared to the New York Stock Exchange.
Who is the Forex broker?
Traders have to depend on the intimidators the so called forex broker to execute trades. The forex brokers always gain profit either by commission or fixing a fee irrespective of the fact that the traders might lose or gain money. It is very essential to understand the money making business of forex broker and it is mandatory to choose the trustworthy forex brokers:
Trusted forex broker:
The trusted forex broker should qualify the following:
Regulatory Compliance: In many countries the forex broker will be a member of the regulatory agency for that country like National Futures Association (NFA) for U.S and he will be a registered person in Commodity Futures Trading Commission. These regulatory bodies play a vital role in development of rules, procedures and services to forex market, traders and investors.
Account Details: Every forex broker has different account types that include leverage and margin. “Leverage is a loan extension for the margin account holders”. A complete knowledge of leverages is required to perform forex trade. A broker makes profit only through commissions and spreads.
Many brokers do false promises that they do not charge commission but they will set wider spreads.
Initial Deposit: Majority of the forex accounts are funded with a very little initial deposit (like $50). Many brokers offer many types of different accounts like standard, mini and micro accounts with various initial deposit amounts.
Ease of Deposits and Withdrawals: A trusted forex broker will have a clear picture on his account deposit and withdrawal policies. They may use a variety of account payment methods like credit card or ACH or PayPal or etc. Fixing a fee or serving for free is all up to the broker’s independence.
Currency Pairs Offer: A broker may offer the most wanted currency pairs as per the higher exchange rates. Generally the dollars, euros and Japan currencies are the most wanted by traders.
Customer Service: This kind of Forex trading happens 24 X 7 round the year. Possibility of live chat in various languages would help the customers. The monetary details like how long the broker is into this broking, his expertise needs to be evaluated.
Trading Platform: In today’s world platform for trading plays a major role. The ease of use of the online website is a must for the customer satisfaction. It should be equipped with a variety of tools for self-calculation, analysis and comparison analysis. The online forum should have a well-defined buy and sell buttons. The user interface, the visual appearance, FAQ, easy chat all this paves way for satisfied customers. Further, online trending like news feed about forex market research on daily basis, automated trading options and trading alerts. Many brokers provide a free demo accounts to make the traders comfortable with their trading accounts.
The Final words:
It is mandatory to evaluate the expertise and reliability of the forex broker we chose. Once the relationship is good, we get a clear idea about the trading options, spread and forex strategies. We can try out with many forex brokers at once and can venture the reliable one.