Top Things to Keep in Mind When Selecting a Forex Broker - Siliconindia.com
Top Things to Keep in Mind When Selecting a Forex Broker - Siliconindia.com |
| Top Things to Keep in Mind When Selecting a Forex Broker - Siliconindia.com Posted: 26 Jan 2021 10:09 PM PST If you are here, then you are probably thinking about entering into forex trading. Forex or foreign currency trading is gaining immense popularity as one of the amazing ways to bang some extra bucks. However, it is not an easy task and not something that you can do without possessing a thorough understanding of the rules that come with it. Hence, you require hiring a professional broker who can explain the process and make good and advantageous trading calls for you. Therefore, you can understand how critical it is that you select the right forex broker before jumping into the relative market. Selecting a forex broker is a tedious task as there are a ton of them available. Going through each one of them and determining who will be the best for you is an arduous and demanding task. To help you in the process, we are providing below some primary factors that you must keep in your mind when selecting an online forex broker. Steering Clear of Fraudulent Forex Brokers You cannot decide on a forex broker based on the claims made by him solely. As mentioned in the beginning, there are significant numbers of brokers available in the relative market and the number is increasing every day. There do exist fraudulent namesake brokers who will simply rip you off of your hard-earned money. Fortunately, it is easy to check whether a broker is regulated or not. Regulatory agencies like NFA, CFTC in the USA, PRA in the UK, and more are present all over the world to tell you whether the forex broker you are looking to hire is trustworthy or not. This should be your first check before keeping money that the broker is listed under these regulatory bodies. Data Security Upon selecting a forex broker, you require opening an account with them. For this, you, indeed, require sharing your personal as well as financial information like your bank account, credit cards, bills, and more. Cases of identity theft and financial information getting leaked are common nowadays. Hence, make sure that the broker implements state-of-the-art security features to prevent any kind of data breach. Hassle-Free Deposit & Withdrawal Process Of course, you require withdrawing money to your bank account after registering profits. Hence, before selecting a forex broker, go through their deposit and withdrawal process. Usually, the deposit process will be smooth, however, there could be certain conditions levied on withdrawal. If you are seeing that the withdrawal process comes with a list of conditions, then it is best to steer clear of that broker. After all, it is your money and the broker only exists to help you in making the right trading calls. If a broker is holding onto your money it could mean that he is using your money somewhere else without your knowledge. Cost of the Transaction Transaction costs always come with any trading call that you will make. Some brokers charge a fixed cost while others may ask for a small percentage of the profit that you will register. Hence, it is advisable to check and agree upon the transaction costs before finalizing the broker. Of course, it is the human tendency to look for the cheapest rates and you will be able to locate the same as well. However, please keep in mind that dependable brokers usually have higher transaction costs as compared to others. Therefore, your target is to find the right mix between transaction costs, security, reliability, and experience. After-sales support Even if you pick the most reliable broker available out there, problems do arise in terms of technical glitches, account-related support, and more. Hence, make sure that the broker which you are selecting, apart from having the knowledge and expertise in forex trading, is competent enough to help you deal with any technical issues as this could have a significant impact on your trading execution. This is important to consider as just like any other market, you can easily land up with brokers that are ultra-kind and supportive during the on-boarding process but have horrible customer service. Currency Pairs you plan to trade-in The usual currency pairs for trading are offered by every broker. However, there are currency pairs that are not that active in the trading scene. If you plan to trade in any such currency pair, then you must check with the broker whether they are offering you the same or not. Please note that though brokers will acknowledge your request of trading in a less active currency pair, you might have to pay more in transaction costs for them. Execution of Trade Of course, the timing of calling a trade holds a ton of significance in forex trading and even a difference of few seconds can decide whether you are registering a loss or a profit. The forex market is extremely volatile and there can be changes in an instant. Hence, your broker must be able to act effectively and promptly to call in the trade when it is the most profitable for you. Please note that there are brokers who are market makers and can call in the trade instantly. However, some brokers have to pass the trading order through an interbank system which usually works slowly as compared to the brokers who can instantly react to the changes in the market. Hence, trade execution is one of the important factors to keep in mind while selecting an online forex broker. Availability of Demo Account The trading platform employed by the forex broker must be user-friendly and should be packed with features that are required to meet the trading requirements of the customer. Check whether the broker you are selecting is offering the facility of a demo account or not. It is a good idea to go through and try the demo account before signing up for an actual forex trading account with the broker. These are the primary things that you must keep in mind before finalizing a forex broker for yourself. Feel free to put down any further questions that might be popping up in your mind in the comments section provided below.  |
| Forex Trading: What you need to know before investing - Loop News St. Lucia Posted: 26 Jan 2021 03:10 PM PST  By now you would have been bombarded with the many people around you who are trying to persuade you to invest in Forex Trading or teach you the art of trading. The truth is with the lack of jobs and hardships of the current pandemic; many people trade Forex as a full-time career. But what is Forex Trading? Forex Trading refers to the buying and selling of currency pairs with the aim of generating profits. The objective is simple; make profits by trading on the constant fluctuation of major currency pairs and yes, it is a totally legal way of making money. However, as quickly as one can make money, they can lose some. There are risks just like any other investment. If you are considering becoming a part of this global market, here are some things you should know before starting out.
You can trade without prior knowledge of forex, but it is not recommended as you will run up significant losses very quickly. Opening a demo account is arguably the best way to get a grip on the different aspects of forex trading as you will be able to experiment freely and adopt new strategies without the fear of financial setbacks. You can also watch video tutorials, attend webinars, and read relevant blogs and articles for both basic and advanced insights.
Forex brokerages effectively act as a middleman between you and the forex market, so it is vital that you choose a broker that is not only reliable and regulated but also well suited to helping you achieve your financial goals. Legitimate traders will provide you with a trading platform that is secure, has access to major pairs, and offers additional tools and charts to support your decision-making. Be aware that there are scam brokers that will attempt to deceive unsuspecting victims with a range of fraudulent practices such as Ponzi schemes and signal seller scams.
Several factors impact the exchange rates. To be able to successfully predict price movements, traders keep a close watch on macroeconomic and political developments, such as central bank announcements, the release of economic data like GDP, trade tariffs, inflation figures, unemployment rate, and manufacturing indices. Political instability can also lead to fluctuations in forex prices. An economic calendar can be a good way to stay tuned to the latest and accurate global financial news.
It takes a while to adjust to market movements and chart patterns. There are times when you might incur some losses initially. In fact, even the best forex traders face losses from time to time. It is part and parcel of the trading journey. The key is to not let losses deter you. Use them to learn and improve your trading strategy.
As noted earlier, opening a demo account will give you free rein to practice your trades so that you have a better understanding of when to buy and sell at the right time. This is also a perfect opportunity to try out new strategies and tactics. You should keep practicing for a few weeks at least or until you feel comfortable making the step up to real money. As much as Forex Trading can be a great source of income, you should beware of scammers. Forex scams often pitch "too-good-to-be-true investment opportunities" as a way of convincing you to part with your money. When you lack trading experience, swindlers will try to exploit your optimism, your fears, and your lack of knowledge. Forex (FX) scams are commonly seen on social media platforms such as Facebook, promisingly extremely high returns on currency investments. Watch out for the following warning signs:
As with all investments, forex trading comes with a risk. If the individual offering to manage your money is downplaying the likelihood of you losing it, or promising significant returns, alarm bells should be ringing. Also, if something sounds too good to be true, the chances are it is.
Always ask for a track record of verified stats from live trading accounts, so you can assess their capabilities for yourself. If they refuse or offer to show you stats from demo accounts, you should exercise caution.
Any legitimate FX trader would want you to be entirely comfortable investing with them before you transfer any money. As such, they would never pressure you to deposit funds during your first conversation or try to tell you to act quickly with limited time offers. If an individual is doing this you should terminate your interactions immediately, as it's highly likely they're trying to involve you in a scam.
Those with nothing to hide have no reason to be evasive, so be conscious of whether the person you are talking to is answering your questions upfront or trying to divert your focus, talk over you, or even getting argumentative. Remember to always exercise caution when making investments, analyze the pros and cons and make a decision that you are comfortable with.  |
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