In essence, there are four ways to trade the Forex market. You can trade manually, with a managed trading account from the brokerage, by using Forex forecast signals, or by using an automated Forex trading system. A relatively new trading approach in Forex trading, an automatic Forex trading system provides a trader the benefit of automation as well precision execution of trades.
You must first obtain a Forex trading license.You will need to open a trading account at a Forex company or brokerage. Your trading orders will be executed by the Forex trading company. As compared to brokers dealing with the stock market, Forex trading companies do not charge commission for their services. How Forex trading companies earn for their services is by charging a "spread" on the currency pair that you are purchasing. With the proliferation of online Forex companies, it is easy to get confused about which Forex trading company to choose.
It will take some time and research to find the best Forex trading company. Although it may take some additional effort on your part to find out about the services offered and the range of "spread" charged by these Forex trading companies, this effort will be worth it in the long term as you need to be fully satisfied with the party that you are closely working with in all your trading.
Below are some guidelines you can use to scrutinize Forex trading companies you're interested in.
Check if the Forex trading company is registered with a regulatory body
Their customer service is excellent
Online trading platforms are available for evaluation.
What types of accounts do they have?
The company's policies
Regulating Bodies
Investors who are scammed out of their money and their hard-earned cash by unscrupulous Forex companies have few recourses for their losses. It is therefore important to choose reputable Forex companies registered with an independent regulator. The websi has more information about regulated Forex trading firms in the US. In Australia, the Australian Securities & Investments Commission (ASIC) is the regulatory body that is in charge of regulating financial companies. The website for ASIC is www.
Customer Support
You need to make sure that the Forex company you sign up with offers you 24 hour technical support. Because it is your money that is at site link stake, you must not compromise on this prerequisite. You should only accept "live" help and not "voicemails" recorded on the phone.
Evaluation of the Online Trading Platform
Any online trading platform's ordering system is the foundation. Make sure that the system allows you to view the exchange rates in real-time. The system should also provide you with a summary of all of your trading activity so that you can get an overview of your entire investment portfolio.
Account types available
There are basically three kinds of account that a new trader can open with a Forex trading company. They can be a "Micro Account", "Mini Account" or a "Full Account". When you're just getting started in Forex trading, Micro or Mini Accounts are recommended. They allow you to trade at a smaller scale.
Company Policies
Before you sign up with any Forex trading company, you should also check their policies and well as any terms and conditions they might have. This includes checking:
They deal in currency pairs
The transaction cost like the "spread" and rollover charges
The margin requirement
The working hours
Interest rate they charge for utilizing the margin facility
One of the first steps to entering the Forex market is finding the right Forex trading firm. It is important to take the time necessary to carefully evaluate all of the Forex companies you have shortlisted.