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Found 8 results

  1. FOREX trading might sound to you like something unique, but it’s not difficult to explain because most people consider it tough to understand. Though it is true, this is different from what you normally use in other capital markets, but the ideas behind it are the same; to get as much profit as possible in a very short time. The Forex exchange market is the largest market in the world without anyone approaching it. It is traded in trillions of dollars a day all the time, so it is attractive to both; traders who trade in small or larger sizes because Forex trading is relatively easy to complete your trade and the cost of doing business is much lower. So, without any further ado, let’s dive right into Forex trading and how it works. What is Forex trading? Forex is a synonym of foreign exchange, so basically it is trading one currency with another currency. Most of us have probably done this kind of exchange, manually if not electronically. For example, if you go on holiday to Malaysia, you must convert your money to Malaysian ringgit, or if you go to the US for a vacation; You will spend USD in the US. This is a form of Forex trading where you sell your own domestic currency for foreign currencies. How does a Forex broker work? Forex brokers are basically intermediaries who buy and sell on behalf of someone. Every time you work through a broker, he will get some money as a commission called a spread. Now, the great thing about the Forex market today is that the spreads are far lower because Forex brokers are very competitive businesses. When you open an account with a good broker like Exness, they will do what is known as KYC, called Know Your Clients. So, that means you have to show some credentials to ensure that you have good credit, especially if they give you leverage (lend money to trade). Who trades Forex and why? On a much larger scale, trade is carried out by central banks, large banks, companies, governments, and retail traders. Central banks intervene in the foreign exchange market to bring a balance in the currency so that they remain competitive in exports. So, they sell their own domestic currency on a large scale to buy whatever relevant raw materials they need from other countries. Finally, retail traders; like you or me, speculate in the Forex market for profit. The advantage of Forex trading High Liquidity So, every time you place an order on the Forex market, you don’t need to worry about completing your trade because there are many buyers and sellers in the market. According to the latest survey, Forex traders have jumped close to 10 million in the market. Risk management Forex allows you to trade very small lot sizes. Unlike stocks, where there is a large risk involved, in Forex, you don’t need to trade big to get big profits. Open 24/7 Forex gives you the option to trade whenever you want, Monday to Friday. You can wake up early or late at night. You can go home from your daily work, and the Forex market will remain open and in full bloom. So, in the end, Forex trading is now on the edge of online trading. Though many people still don’t know how it works. So, for them, if you have any question in my mind regarding Forex trading then please let me know.
  2. When it comes to creating a forecast, you have to take into account the percentage of statements in central bank monetary policy. These statements define the tone of the long-term currencies with the fluctuations of the prices given per day and the adjustments of the volatility according to the main trend creates a new risk. That being said, I’ll now review the monetary policy statement of the largest economy and tell you how it will affect the foreign exchange market. US Dollars The US Federal Reserve has continued to influence the US dollar interest rate since 2018. The interest rate has been raised four times recently. It is helpful to drive the dollars to new highs against a basket of currencies this year. There was some volatility in the dollar. The interest rate has not been as steady as expected. Performance over the last ten years has reached a multi-year high of 3.25%. It contributed to the dollar's rise, but this return was reduced to 2.75%. Last year, the Fed raised rates with a healthy economy. The central bank hinted in the latest monetary policy statement that will pause another rate hike in 2019. It will not do so until economic data confirm it. Current pricing trends do not increase the rates of the Federal Reserve. If this assessment is true, trading will continue at 2.75% benchmark. The US dollar-dominated forex currency pairs. But it is important that you learn the basics of forex before trying your luck. New Zealand Dollar Last November's monetary policy statement, the Reserve Bank of New Zealand maintained its official castrate rate at a constant rate of 1.75%. The RBNZ governor, Orr, said the central bank intended to maintain it throughout this year. OCR will be an expansionary level for a considerable period of time, will help maximize sustainable employment and maintain low and stable inflation. There will be risks associated with growth and protection against inflation. The timing and direction of the movement will depend on the data. Major consumers remain below 2% at mid-term. The need to continue a supportive monetary policy. The political meeting, oil prices plunged US Treasury yields. They fell with the stock prices. The New Zealand GDP was below expectations. Still, it's a wearable market for Forex traders. Several regulated brokers offer excellent packages in New Zealand dollars. Find a good pair and start trading. But you must make sure that you are investing with the right trader. To do your research, visit a Forex Broker review to compare forex brokers. Australian dollar The Reserve Bank of Australia maintained its official rate at 1.5%. It's a historic low. The low level of interest continues to support the Australian economy. The continuation of the process reduces unemployment and the goal of returning inflation is expected. The process is slow, but they take all the available information. The jury that judged this decision did not change position. The meeting aimed for sustainable growth and achieved the corresponding inflation target. Inflation has remained stable and weak. Initiation to the CPI was 1.9, but in fundamental terms, it rose to 1.75%. We do not know how that will change in the future, but it will remain positive in 2019. The RBA is a little optimistic about rising inflation. Consumer spending and the weak housing sector will limit the interest rate. If RBA does not move, it will be a rate cut. Japanese Yen Japanese policymakers disagree on the feasibility of allowing bond yields. It will go to the goal of zero percent. This will reflect division within the board on how to deal with the growing difficulties of prolonged easing. Decision makers have predicted a collapse and we are seeing the results now. Efforts are being made to make the Japanese yen attractive, but USD / JPY is not the right pair it was before. So, this was some information regarding how will the world's largest economies affect the Forex market. Do you find it helpful?
  3. The cTrader IC Markets platform gives you approach deep liquidity in 64 currency pairs plus 16 major equity indices. Active traders throughout the world value trade in the ECN environment, combined with surpassing cTrader functionality and streaming prices from several global banks, giving you the best trading solutions. Very Low Spread IC Markets recommends several tight spreads from all Foreign exchange brokers globally. Spreads on EUR / USD can often be seen at 0.0 pips during European and North American trading sessions. The average spread on EUR / USD is 0.1 pip 24/5. This is currently the most stringent EUR / USD average spread from any broker globally. No Restrictions on Trading - Scalping Allowed CTrader IC Markets Platform has no restrictions on trading. We have some of the best trading conditions for scalping and high-frequency trading globally, allowing traders to place an order between spreads because there is no minimum order distance and a freezing level of 0. This means orders including stop-loss orders can be placed as close to the market price you want. Traders can also hedge positions because there is no first exit rule (FIFO) with IC Markets. Price Level II - Market Depth CTrader market depth shows the full range of executable prices that come directly from liquidity providers. Orders are fulfilled for full order books using Volume Weighted Average Price (VWAP). The cTrader platform offers transparent liquidity for each currency pair by showing the available volume for each price level at a certain time. High liquidity, spot prices are out of sync, and low latency guarantees the tightest spread possible. About IC Markets IC Markets is the only Forex True ECN broker in the world that provides trading solutions for active traders and brokers, as well as traders who are new to the Forex market. IC Markets offers its clients the leading trading platform, low latency connectivity, and superior liquidity, latest market news, accurate signals etc. IC Markets revolutionizes online Forex trading online traders can now gain access to prices and liquidity that were previously only available to investment banks and high net worth individuals. For more information: https://www.topasiafx.com/best-forex-broker/ic-markets So, my trader fellows, read the process of choosing a trustable, reputable and almost best broker platform to start trading for the modern days: https://www.topasiafx.com/blogs/15-best-choosing-ways-of-a-trusted-forex-broker Media Contact: -International Capital Markets Pty Ltd -Level 6 309 Kent Street -Sydney NSW, 2000 AUSTRALIA Email: [email protected] Global Phone Numbers General: +61 (0)2 8014 4280 Fax: +61 (0)2 8072 2120
  4. Foreign exchange (Forex) is the process of converting one currency into another. Currency is important for everyone in the world, and treading foreign currencies has become an efficient way to increase bank balances. Foreign exchange trading is very popular, so overall, around 5.3 billion USD is traded every day as Forex by governments, banks and companies from various countries. In the past few years, the popularity of Forex has increased because climbing Forex is really profitable in the short and long term. Here are some tips that will help you as a beginner to become proficient in Forex Trading. Know everything As a newbie when you know about the benefits of Forex trading, you want to invest it without knowing everything about it. That's one of the most common mistakes and suicide. As a trader, you must know all about Forex trading. Before you start your journey on Forex, find out about each different trading style and risk profile. Determine Goals and Styles Setting goals always help you plan your trip, and the same rules apply to Forex trading. As a beginner, first, decide that Forex trading is really difficult because of unrealistic expectations. It is recommended that you start your Forex trading journey with the best trading brokers and software. Broker and Trade Platforms The broker and trading platform that you choose determines many things about your success. It is wise to invest more time in finding famous brokers and to find out about their policies. As a trader, you also need to know about trading on the free market and trading on an exchange-driven market. A good combination of brokers with good platforms is not easy to find but is the only way to get success in Forex trading. For that, you will have to choose the best broker that meets your needs. Here is 15 Best Ways To Choosing A Trusted Forex Broker - TopAsiaFX Calculate Expectations Hope is a formula used to calculate the reliability of your system. It is always recommended to calculate expectations to find out whether you and your trading on Forex are going in the right direction or not. Take your trade with profit and more with losses and make calculations to find out whether you profit and loss.
  5. The advent of international trade has brought many benefits, one of which is to consolidate the foundations of globalization. While other factors such as global peace and stability played a crucial role in the foundation of globalization and the laws that governed it, international trade was essential to accelerate the process. In doing so, countries have been able to export crucial resources to other countries in the world and to import indispensable resources. In addition, the changes during the period have also led these countries to put in place a monetary system. Initially, these currencies were attached to a specific commodity - gold at the time - and then to the US dollar. However, as history will have it, most countries have finally chosen not to join and have finally adopted a floating monetary regime, one in which a country's currency is allowed to fluctuate according to the forces of the country demand and supply on the market and not controlled by a government or indexed to a specific dominant currency (as was the case under the aforementioned regime). As more and more countries have started to participate in international trade, the above-mentioned monetary regime has been widely adopted by these countries. All of this progress was made at a time when the economy and finance were on a growth trajectory as more and more research was conducted on the pricing and hedging mechanisms for different financial products. Research on stochastic methods, bivariate analysis, and other complex financial models has dominated this space, leading to new methods of forecasting the movements and future prices of currencies and other financial products such as currency derivatives. The result of the currency trading instruction meant that currencies were at the top of this new paradigm of finance and that currency trading was resulting. As with any new financial product, developments in the financial markets have led to the rapid adoption of different currency pricing mechanisms. This led to a change in the hedging structures of these financial products, which led to the start of currency transactions. These exchanges were based on movements in the financial markets, in particular, foreign exchange markets, which in turn were driven both by foreign exchange - the import and export of a country's products - as well as by foreign investment. in a country. with stronger policies encouraging investments as well as those with higher mechanization - used to ensure greater value added to their natural resources - had much stronger currencies than their counterparts). Over time, new research has been undertaken in this area, which has resulted in technical and fundamental currency analysis. These methods have revolutionized the way different currency traders perceive trading, as well as the strategies and analyzes associated with them. In this article, we examine some of the currency trading strategies and briefly evaluate some of the tools needed to trade hard currencies. Forex Trading Strategies: An Introduction The way to understanding currency trading developments in the money markets, accurately anticipating anticipated developments and exploiting one's comprehension of future developments, making an arrival/cash all the while. When trading monetary standards (otherwise called Forex trading), there are various elements which figure out which strategy one ought to pursue. Key among this is to comprehend the term of your speculation: short, medium or long. While a few financial specialists hope to transient exchanges, for example, minutes or even hours, a few techniques work better with medium-or longer-term speculators who hold positions for quite a long time, weeks or now and again, months. An examination of economic situations additionally assumes an urgent job in Forex trading. Besides, while it is apparently rewarding to use more or incorporate higher capital in one's exchange in order to help the profits, given the unstable idea of the Forex advertise, unforeseen swings may have critical results on one's portfolio and crash one's speculation. In that capacity, a comprehension of hazard the executives are exhorted for financial specialists in this market. It is additionally imperative to bring up that there are various variables which decide how well your forex exchanges will play out, some of which are explicit to various people. While there are various techniques which have been back tried and explored by particular cash traders, individual inclinations and dispositions additionally influence the trading process. As an outcome, while the strategies checked on in this piece have worked for previous traders, one should test them for their particular exchanges in order to guarantee that they work for them. Sorts of Trading Strategies There are various Forex trading techniques which have been embraced by the monetary markets, some which are explicit to specific exchanges which have been made previously. In any case, in this segment, we audit principally systems which have been embraced, looked into and back tried by forex traders. Day Trading Day exchanges include one holding their portfolio for no longer than one day. Such exchanges exploit intraday unpredictability hence speculators investigate transient exchanges as a method for boosting their portfolio development. Similarly, as with the name, such exchanges are not intended to be held for longer than a multi-day and this empowers the speculator to maintain a strategic distance from the hazard related with enormous Forex developments which may happen medium-term. Such financial specialists will in this way almost certainly be engaged with five-moment to hourly exchanges dependent on their investigation of specialized devices instead of on macroeconomic and principal examination. The outcome, nonetheless, is that such exchanges are inclined to noteworthy changes, some which can crash one's whole position. They in this way expect one to have a reasonable comprehension of specialized investigation, particularly on the planning of passage and exit of an exchange. Scalping Likewise, with any cash, there are both offered and offer costs. The distinction between these two costs is known as the offer/offer spread. Scalping is a transient trading strategy which includes a trader attempting to beat the offer/offer spread and make some benefit out of skimming a couple of focuses before shutting the exchanges. By and large, hawkers have an enthusiasm for downturns in the market and how they can exploit them and this is for the most part surveyed through the request stream device. While this is the situation, the combination of automation with cash trading has come to reform this fragment because of the lot quicker adjustment to changes like (FIX API). As calculations audit this spread and make brisk exchanges, they incapacitate people from making 'exchange openings' or skim away focuses as with scalping. Scalping, in this manner, expects one to be reliably evaluating their exchanges (for a considerable length of time here and there) and making quick exchanges the procedure. At last, it likewise necessitates that people contribute high measures of capital as the exchange expenses related to these exchanges may crash any benefit which might be produced using little size exchanges. Position Trading In contrast to the past two, this is an all the more long haul trading strategy (hold one's situation for a considerable length of time or even months) which involves a trader attempting to make a benefit from huge changes in the market. Given the idea of such huge cash developments, the majority of these developments are driven by basics and changes in macroeconomic factors. For such exchanges, one initially has a perspective on the macroeconomic conditions influencing a particular exchange, for example, understanding the explanations behind the GBP being relied upon to pick up against the USD over a particular period, state financing cost climbs in Britain. One that is clear, the trader will at that point examine specialized apparatuses in order to comprehend when is the best time to get into an exchange just as leave the exchange. This procedure is known as shaping a position, subsequently its name. This sort of trading has much lower hazard when contrasted with different types of trading given that the trader isn't influenced by intraday instability. In any case, while it will, in general, be more beneficial than other trading techniques, this strategy likewise expects one to infuse a great deal of capital and have a reasonable comprehension of central investigation. Swing Trading Now and then the Forex market encounters noteworthy single developments. In fact, some of them are known as moving normal ricochets or exchange pullbacks and breakouts, all which see the market move one way or radically influence from a leaning back position to a benefit position. Every one of this is incorporated into a class known as a swing. Swing trading enables a trader to exchange on such enormous single developments. This strategy is a short-to the medium-term strategy which sees the financial specialist clutch exchanges for a considerable length of time or weeks and which sees them evaluating value examples and attempting to benefit from them. Dissimilar to position exchanges, there are more open doors for one to benefit from swing exchanges consequently financial specialists who have a reasonable comprehension of specialized investigation instruments can profit significantly from this. Moving Average Trading Moving midpoints structure a huge part of specialized examination instruments. The moving normal is a measurable investigation toolbox which examinations the normal incentive over a progression of information: for a pool of week by week information of around one year, the moving normal will be utilized to break down the proceeded with a normal incentive in the course of the last say a month. This technique at that point keeps on finding the normal over a four-week time frame recursively over the whole year. The moving normal is a slacked normal and is helpful in clarifying the distinction in execution between the short and long haul. On account of a rising moving normal, the present moment generally will, in general, be beating the long haul and the other way around remains constant for the declining moving normally. Associated with candlesticks, the above is an important bargaining toolbox. In this case, one can configure their technical tool to buy when the candlestick is above the moving average and sell when the candlestick is below the moving average. The rationale is supported by the fact that, for the average of the former, there is an upward dynamic that should push the currency higher than its average value in the short run and a buy recommendation is therefore given. On the contrary, for the latter, there is a downward pressure which should lead to an underperformance of the security relative to the moving average in the short term, thus requiring a sale of securities. 50 pips Trading Pullback The above is a bargaining option for scalpers that take advantage of morning movements. It works best with the most liquid currency pairs such as EUR / USD or GBP / USD. The trader fixes a 50-pips perspective on the currency's position, both in recovery and in retreat. The trader opens two opposing positions, which means he is looking to take advantage of a reversal of the aforementioned positions. At the opening of one of the above positions, the other transaction is immediately closed. As with other short-term strategies, the above is a risky strategy and requires the inclusion of stop loss so that the trader does not incur significant losses. However, these movements tend to make traders realize minimal profits early in the morning before other moves during the day. Conclusion Although there are many methods of trading; However, the six strategies above have been tested in the past and have been found to be effective for traders. These, however, do not include all strategies as more and more investors develop their own strategies that worked for them. In addition, technical analysis tools such as Bollinger Bands, Candlesticks, Mobile Mean Convergence divergence (MACD), Alligator and Fibonacci tools also play a vital role in ensuring that investors are actually analyzing their transactions. In conclusion, even if there are different strategies, they should be evaluated and the most appropriate for each individual. Each of the above strategies is categorized based on the capital investment required to complete a transaction, in the short or long term, and thereafter. While some investors prefer risky investments, others will need certainty to invest, making them less likely to take risks. Thus, different options will work better for different people depending on these different factors. Overall, Forex trading is an important financial product that offers investors a great way to create wealth in both short- and long-term trading options. Investors will benefit greatly from considering this wealth creation option.
  6. Foreign exchange (Forex) is the process of converting one currency into another. Currency is important for everyone in the world, and treading foreign currencies has become an efficient way to increase bank balances. Foreign exchange trading is very popular, so overall, around 5.3 billion USD is traded every day as Forex by governments, banks and companies from various countries. In the past few years, the popularity of Forex has increased because climbing Forex is really profitable in the short and long term. Here are some tips that will help you as a beginner to become proficient in Forex Trading. Know everything As a newbie when you know about the benefits of Forex trading, you want to invest it without knowing everything about it. That's one of the most common mistakes and suicide. As a trader, you must know all about Forex trading. Before you start your journey on Forex, find out about each different trading style and risk profile. Determine Goals and Styles Setting goals always help you plan your trip, and the same rules apply to Forex trading. As a beginner, first, decide that Forex trading is really difficult because of unrealistic expectations. It is recommended that you start your Forex trading journey with the best trading brokers and software. Broker and Trade Platforms The broker and trading platform that you choose determines many things about your success. It is wise to invest more time in finding famous brokers and to find out about their policies. As a trader, you also need to know about trading on the free market and trading on an exchange-driven market. A good combination of brokers with good platforms is not easy to find but is the only way to get success in Forex trading. For that, you will have to choose the best broker that meets your needs. Here is 15 Best Ways To Choosing A Trusted Forex Broker - TopAsiaFX Calculate Expectations Hope is a formula used to calculate the reliability of your system. It is always recommended to calculate expectations to find out whether you and your trading on Forex are going in the right direction or not. Take your trade with profit and more with losses and make calculations to find out whether you profit and loss.
  7. Most Forex trading brokers usually go out of their way to lend funds to traders, allowing them to grow their investments. Traders have the freedom to determine how far they can go with minimal capital. Sometimes leverage in Forex trading works very well; at other times it can make your business breathless. All we can say is that it can be a double-edged sword. However, if you apply certain money management rules correctly, you can quickly avoid any risk, get large amounts of money, and increase your return on investment. What is leverage and how does it work? This involves traders borrowing money from their respective brokers to increase their profit margins. The fact that traders have this advantage is what makes the whole concept of Forex trading popular. In order for brokers to use leverage, there needs to be a minimum deposit on a trader's account, usually called a margin. Using the initial margin requirements, suave trade can build their investment to a higher scale. There is a simple formula that is used to calculate the initial margin. You only divide the total transaction value by the amount you want. This is a perfect example; You are asked to deposit 1% of the total transaction value as a margin. Your intention is to trade using a standard lot that is usually equivalent to $ 1000 000. In this case, the lot margin required is $ 1,000. You simply divide (100,000 / 1,000) which represents a ratio of 100: 1. This formula can be applied to other margin requirements to allow you to generate margin-based leverage. How Leverage Affects Forex Trading Basically, every margin-based leverage is only proportional to the maximum amount of leverage that traders can use. But what you also have to pay attention to is that real leverage can sometimes be different especially if a trader does not use their entire account as a margin for each of their transactions. The most experienced traders know how important it is not to use all of their margins available at that time. You can only do it when you know that the risk is almost down to zero. For example, a trader can easily determine the potential loss of funds by linking the number of risks that come with the number of pips available. The general rule is that every loss cannot exceed 3% of trading capital. In addition, leverage needs to be significantly reduced if the potential loss is predicted to be much higher based on a trading account. A trader who is just starting to be in the dark doesn't know the abundant risk of proper leverage. An example is if you decide to use all available leverage without considering the amount of money in your account. Simply put, non-anchored leverage can delete your trading account in an instant. You also need to consider the fact that the higher the leverage you take, the higher the transaction costs. So when you choose a broker, one of the most important things you need to pay attention to is what is the transaction cost for your trading capital. Can You Limit Risk? The answer is yes. You can implement various risk management rules and techniques to eliminate risk. As an example; You must be fully aware and ready to face all the risks that come with influence. You then need to consider how much you can take risks without having to burn your finger. Also check the amount charged as a transaction fee. This allows only for what you can afford when it comes to using it. Apply stop order rules that allow you to move stops so you can break even. Conclusion It is always important to calculate the risk based on what is available in your merchant account. Unused loans can easily eat your trading account to be negative. Basically, the only funds you can speculate on are the types of money that represent the type of risk you are prepared for. These are funds that you can lose without sacrificing your business, and overall finance.
  8. Forex trading now has become a common profession across the world. When it comes to Forex trading then you have to choose a Forex broker that meets your expectation. The regulations, commissions, platforms, minimums, and account fees are just some of the factors to consider when choosing a Forex and CFD broker online which you have to watch when choosing a broker. The foreign exchange market is the largest financial market in the world, with a turnover of over $ 4 trillion a day. Despite its enormous size, this market does not have a central exchange allowing traders to carry out their transactions. Instead, Forex traders must conduct their trading activities through an intermediary, the Forex broker. This shows the importance of the broker's role in the negotiation process. When it comes to choosing a regulated broker, traders literally have thousands of Forex brokers from which to choose on the internet. But the real question is how you can be sure the broker you have chosen is right for your business needs. To assist you in your broker selection process, we have prepared a guide with a list of key factors that you should consider when choosing a broker. Regulations The first thing to consider when selecting a broker is whether it is regulated by a competent regulator (to learn more about the regulation of Forex and CFD brokers). By doing business with a regulated dealer, you can be assured that they have met the operating standards set by the regulator. Some of these standard regulatory requirements include adequate capitalization and separate accounts to protect client funds. In addition, the regulation provides protection for the fund in the event of the company's insolvency and ensures that the broker meets rigorous standards as a financial service provider. Countries with financial regulatory agencies backed by strict enforcement include: Australia (ASIC) Eurozone (Mifid and local regulators) India (SEBI) Japan (FSA and JSDA) Switzerland (FINMA) UK (FCA) USA (CFTC and SEC) Trading platform and software Because the trading platform is your gateway to the marketplace, you want to make sure that the trading platform you use is reliable. Most brokers will offer traders a selection of trading platforms to choose from. Most of the time, trading platforms are provided by third-party trading solution providers such as MetaQuotes Software. Some brokers have also begun to develop their own trading platforms to try to differentiate themselves from other brokers in the industry. Often, these proprietary platforms are the best trading platforms because they are specifically designed by the broker's clientele. Nevertheless, a good broker should be able to provide a good selection of platforms. Indeed, some traders prefer to trade from the desktop and some traders prefer to trade from their smartphone. Additional features Examine the features offered by trading platforms. Do they come with: The complete package of cartography Wide range of technical indicators One-click trading on the trading platform Risk management tools such as stop loss order and leak stop. Although all these elements may seem innocuous at first, they will later play a crucial role in enabling you to experience a transparent and productive trading experience. But when it comes to choosing a platform, it's really a matter of personal choice. Most of these platforms will have the same basic functionality. The best way for you to find the platform that suits you is to try them with the demo account provided by the broker. For brokers who do not provide a demo account, they may not be newsworthy. Commissions and spreads This market, unlike other traditional financial markets, operates primarily on spreads rather than commissions. This is the reason why most brokers advertise that their services are without commission. So, how do brokers earn money? Simply, they earn by charging the traders. The spread is the difference between the purchase price and the selling price. For example, if the Bid & Ask price of the EUR / USD currency pair is 1.0875 / 1.0878, it means the spread is 3 pips. As a Forex trader, you will encounter 3 types of trading cost structures charged by a broker: Spread fixed - when the spread does not change and you know the amount of the spread before trading. Floating spread - This spread is variable and constantly varies according to the volatility of the market. Commission Fees - These are calculated as a percentage of the Broker Margin. You must be aware of the amount to pay before negotiating. As a general rule, for traders looking for transaction costs with certainty, fixed spreads will be favored. Traders looking to pay a smaller spread would prefer floating spreads. In the end, the best choice will depend on your specific business needs. The type of spread you will receive will depend to a large extent on the type of business model on which the broker operates. The business model of the broker During your search for a broker, you will encounter terms such as "STP", "ECN", "NDD" and "Market Maker". All of these terms are actually used to describe the business model used by the broker. So what do they all want to say? There are two main types of brokers: the trading desk and the non-trading office. Dealing Desk Forex or Market Maker traders process their clients' trading instructions through a trading desk within their company. A transaction broker takes the other side of the transaction, which means that when you open a position such as EUR / USD, the transaction will be executed by the broker and they will then be exposed to this transaction. Non-Dealing Desk A non-trading dealer (NDD) transfers the transaction directly to a third party. There are two types of NDD broker (ECN and STP). They are both essentially the link between you the trader and the market maker or the reseller. ECN With the first type (ECN) when you press "Buy" on your trading platform, your trading orders will be processed on the broker's computerized trading system and transmitted via the Electronic Communications Network (ECN) without a trading desk. the trading term "non-trading office" (NDD) comes from). STP With the second type of NDD broker, upon receiving your transaction orders, he will forward them directly to another party for execution by the market maker's trading desk. In this case, the broker is called Straight Through Processing (STP) broker. Forex brokers ECN and STP are both intermediaries to several trading desks or market managers in the global Forex market. Market makers or traders will transmit their prices to the ECN or a third-party liquidity provider with the volume for which the quotation is valid. Why is it important? The broker's business model is important because it will affect the type of spread you will receive and whether the spread will be fixed or variable. Forex Broker for Beginners For beginner traders, look for brokers with the following qualities: Comprehensive Educational Resources on Trading - Many brokers provide a variety of educational materials to help traders master their skills. These usually include webinars, videos, courses, guides, and articles. Unlimited access to the demo account for professional traders - most Forex brokers, if not all, provide demo-trading accounts to their clients. This is especially useful if you are new to the world of Forex trading or if you want to test a broker's platform before trading for real. User-friendly trading platform - there are a variety of trading platforms on the market, some more complex than others. As a novice trader, you do not need a complex platform with features like EA and complex trading strategies. This comes later, but you should now look for a quick and easy platform to grab. Forex Broker for Professionals For professional traders, their trading needs differ considerably from those of a novice trader. Generally, professional traders prefer brokers who can provide them with: Comprehensive Trading Tools - As a professional trader, you will now need several tools, including a commission calculator, an economic calendar and, of course, complex real-time charts to implement trading strategies. Strong leverage - not for sensitive souls, professionals will seek to use this leverage to multiply their capital. Leverage increases the risk and also increases the reward. Low spreads - if you trade a lot, you want to make sure your spreads do not eat away at your capital. It is important to check the spreads to pay before choosing a broker. In general, the higher the type of account you use, the lower your spreads. Forex broker for day trading Generally, for a day trader, most brokers will be able to meet their trading needs. However, given the shorter period with day traders, it is preferable that the broker be able to provide a range of different instruments for the day trader to look for trading opportunities. These may include a signal service, tools such as an economic calendar, updating market news and results reports. As you will probably place more trades in the short term, make sure you know the spreads before trading. Forex broker for Scalping Scalpers are traders who occupy their positions in the market for an extremely short period of time. Although they only hold a position in the market for a short period of time, the frequency of their transactions is higher than that of the average trader. Their goal is only to make a small profit on all the trades they do, spread over a large number of trades. Note that not all brokers allow scalping. As such, if you intend to trade as a scalper, you should always check with the broker that you intend to register if it allows scalping. Types of account The majority of the sector's foreign exchange brokers offer traders a selection of trading accounts to suit different traders' categories. Micro Account - The smallest trading account type is the Micro trading account where a transaction lot equals 1,000 units of the traded instrument. Mini Account - The following trading account type in the hierarchy is the Mini account where a lot represents 10,000 units. Standard Account - The standard account is a lot equal to 100,000 units. With Micro and Mini accounts, only a low minimum initial investment is required for you to start trading. With the standard account, although the minimum investment may vary from one broker to another, you will generally need more trading capital. Given the different minimum investments for each type of trading account, you must select the trading account corresponding to your investment capital. Customer service Most novice traders tend to forget to consider customer service when choosing the broker with which they will sign up. They may not realize the importance of customer service in their overall business experience. With customer service, it's not about whether you'll ever need their help, but about when you'll need their help. Because no matter the experience or the knowledge of a merchant, it will always be necessary to appeal to the customer service. At this point, you want to be able to contact the support team without any difficulty. It is therefore important to check whether the broker you intend to register with is able to provide you with reliable customer support. Check if there are multiple ways to contact customer support. Most brokers will provide their customers in several ways, such as email, live chat and phone, so their customers can contact customer support. Value-added services In a sector as competitive as online trading, some brokers will try to differentiate themselves from other brokers by offering additional value-added services such as free market analysis, news feeds and trading signals. Most of these value-added services are provided free of charge, but some brokers may require you to deposit a minimum amount before you can access these services. Questions to Ask the Broker How can I choose a broker? We are here to help with that! Check out our list above and choose the most appropriate broker for you. Should I choose a regulated broker? Yes, you should try to choose a regulated broker with whom to work. This guarantees recourse in the event of litigation or insolvency of your broker. Remember that by using a regulated broker, you will also have access to an investor compensation fund, which ensures your deposit up to a certain amount. What should I look for when selecting a broker? You should consider the range of platforms offered and even ideally test the platform you want to use. Take a look at the additional resources offered by this broker, for example. Signal service, educational tools, copy business. Finally, do not forget to inquire about spreads and types of accounts before depositing a deposit. Conclusion As noted above, many factors must be taken into account when choosing your broker. Nevertheless, with the help of this guide that we have provided, you should be able to see which broker is best suited to your needs. To further facilitate your search, we also conducted extensive reviews and verified each broker on our list of recommendations to ensure it met the required standards. Once you have found the right broker to work with, you can focus more on your trading activities and trade more confidently, increasing your chances of succeeding in the market.
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