Understanding Forex Trading
is the buying and selling of various global currencies. Currency is always
traded in pairs; one currency is traded for another. The Forex market is the
largest market in the world in terms of trade volume.
can seem very confusing at first; the idea of trading currencies is often
harder to understand than trading stocks. Stocks are tied to a company and its
success, but Forex trading is essentially the act of purchasing stock in a
particular country and its economy. The strength of each country’s currency is
directly affected by both the current state and future expected state of that
A pip is known
as the smallest movement (either positive or negative) that is possible between
a currency pair. The bidding price is the specific price where an investor can
either buy or sell a currency pair. The ask price is the particular price where
a seller is willing to sell a currency pair. The difference between the bid
price and the ask price is known as the spread. Forex brokers generally refrain
from charging commissions and instead make money off the spread between
Investors typically buy and sell on the
Forex market with the help of a Forex broker. The Forex broker provides access
to the market and works to match up buyers and sellers so that transactions can
Who Can Trade on the Forex Market?
Anyone can trade on the Forex market. The
Forex market provides exciting trading opportunities for investors of all
sizes, from large banks to new investors. It is possible to start trading in
the Forex market with smaller sums of money; the top Forex brokers will have
the platform and trading tools available to accommodate investors of all sizes.
Finding the Top Forex Trading Brokers
Whether you are
new to Forex trading or a seasoned Forex trader, finding the top brokers will
greatly enhance your experience. Here are some things to consider when looking
for Forex trading services:
Discover the amazing investment
opportunities that are available from understanding Forex trading. Speak to a
top Forex trading company today.
- Customer service – brokers who
are focused on customer service provide a better overall trading experience.
This includes providing personal, yet professional, services with up to 24-hour
support available. The top brokers understand that providing exceptional
customer service is essential to creating long-term relationships with clients.
- Straight Through Processing
(STP) – the ability to conduct the entire trade process electronically. This
means that trades are executed directly through to the market and do not pass
through a dealer.
- Low spreads – every trade
involves paying a spread. Finding a broker with consistently low spreads means
more potential profit for every transaction. Some brokers offer spreads from as
low as 0.1 pips.
- Secure and regulated – ensure the
safety of your investment with a brokerage company that is fully authorized and
regulated by the FCA.
- Multiple trading platforms –
having access to multiple trading platforms (PC, Mac, or mobile) makes it
possible to trade at any time, wherever you are.
- No requotes – some brokers may
not be willing or able to complete a trade at the particular price that was
entered due to market changes. This can result in a requote.