The global platform
Forex trading is global—it is open around the clock. Trading in this market requires a large amount of capital, and there are no tariffs or taxes applied to transactions. That’s why some forex broker may not be suitable for individual traders with low amounts of capital, who would have to trade at very high volumes to get a decent return on their investments.
Forex trading can be intimidating. But the Forex market is also beneficial for any trader who wants to make use of this financial instrument.
There are different kinds of forex brokers, and each one is suited to different risks and expectations. There are online and offline brokers that provide trading services in the Forex market. Online forex brokers show all their services as “software” which trades automatically on your behalf through a program. Offline brokers use a system called “ECN” – Electronic Communications Network – to place bids in individual currency pairs with direct access to the server, rather than through their Internet website interface. The person who gets the first right to buy or sell a currency pair receives a higher price. Forex brokers get their income by charging fees to the traders.
The Forex market is not suitable for every trader. A good trader will choose a forex broker that suits his or her needs and trading strategies to take advantage of the Forex market.
There is no standard procedure for establishing a Forex trading account, as each broker has its product. If a forex trader chooses an online broker, he or she will be required to fill in all the forms and documents, including personal data and banking information. Once this information is received by a forex broker, they proceed with transactions on the trader’s behalf according to procedures established by their rules and regulations.
Forex trading has high risks and has attracted lots of traders. However, to make some profit, a trader should be selective in choosing the best forex broker.