Essentially one can trade in the Forex market in four different ways. 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.
Before you can begin trading in Forex, you will need a trading account with a Forex trading company or brokerage firm. 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. Forex trading companies make money by charging "spreads" on currency pairs that you purchase. With the proliferation of online Forex companies, it is easy to get confused about which Forex trading company to choose.
Selecting the correct Forex trading company will require some research and time into the background of the company in question. It may require some extra effort to learn about the Forex trading companies' services and spreads. However, the effort is worth it as you will need to be satisfied with your Forex trading company.
In order to give you some direction as to what to look for in a Forex trading company, below are some guidelines that you can follow to help you scrutinize the Forex trading companies that you are interested in.
Check if the Forex trading company is registered with a regulatory body
The quality of their customer support
Online trading platforms are available for evaluation.
The types of account that they have
The company's policies
Regulating Bodies
Said to be largely unregulated market, investors who get swindled out of their money by unscrupulous Forex trading companies will not have much remedies for their losses. It is therefore important to choose reputable Forex companies registered with an independent regulator. More information regarding regulated Forex trading companies in the US can be obtained at the websi. The Australian Securities & Investments Commission is responsible for regulating Australian financial companies. The website for ASIC is www.
Customer Support
Because you are dealing with a 24 hours trading environment, your have to ensure that the Forex trading company that you are signing up with also provide you fxcm-markets.com/ with 24 hours technical support. You must not compromise because it's your money at stake. Ensure that you are getting "live" support and not a recorded "voicemail" on the helpline.
Evaluation of the Online Trading Platform
The foundation of any online trading platform is its ordering system. Make sure that the system allows you to view the exchange rates in real-time. Also the system must provide a summary of your trading activities in order for you to be able to get a snapshot view of all your investment positions.
Account types available
There are basically three kinds of account that a new trader can open with a Forex trading company. You can choose between a "Micro Account", a 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 Policy
You should check the policies of any Forex trading companies as well as their terms and conditions. This includes checking:
The currency pairs that they deal in
Transaction costs such as the spread and rollover charges
Margin requirements
Their 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. As such, it very important that you take your time to evaluate each and every one of the Forex trading companies that you shortlisted.