Forex features
Forex is a trading platform that involves users making money by exchanging currencies. A huge number of people are engaged in such trades. The daily volume of the Forex market exceeds $5 trillion. Forex trading entails making accurate forecasts concerning the exchange rates of specific currencies.
What a forex trader does
A foreign exchange trader is an entrepreneur, profiting off of buying and selling currencies at the currency exchange. This individual may carry out operations either with his own funds or with the money of the investors who entrust this person with their funds.
The objective of currency exchange operations is to profit from fluctuations in currency exchange rates. Essentially the trader is an exchange player, who strives to buy currencies at the cheapest price and sell them at a higher one.
Foreign exchange traders compile schedules of exchange rates and keep track of events, which may influence market trends. Nevertheless, a risk constantly arises that instead of the anticipated growth, the price of the currency will plummet, generating losses instead of profits. Conditions are constantly changing, so this type of earning involves a great deal of chance.
Differences between a broker and a trader
Brokers and traders deal with fundamentally different tasks and functions. The trader carries out operations but does not deliver them to the market directly. To put it simply, a forex trader places purchase or sales orders whereas a broker executes them, serving as an intermediary organization between the trader and the market. The trader cannot function without a broker as well as the latter without the former. To make forex trading bring the desirable result, the trader needs a reliable foreign exchange broker.
Selecting the best forex broker
It is safe to say that the best and most reliable Forex broker is probably among the most important requirements for comfortable and successful trading on the Forex market. Sometimes finding the best company with suitable trading conditions among hundreds of offers is quite difficult even for professional traders, to say nothing of beginners. Look up at topbrokers.com to find the regulated brokers of the currency market.
Figuring out the apparent and hidden commissions, finding out the available trading instruments, and analyzing the trading accounts offered represent just some of the features that the list of the best brokers will help you understand. The key point about a broker is trustworthiness: the company must be regulated by competent financial supervisory authorities and comply with certain requirements. Apart from the legal requirements, there are also several other important criteria to consider, such as:
— Offered trading platforms
— Market Training
— Competitive trading conditions
— Trading styles
— Available markets
— Demo account availability
— Customer service in your language
— Other traders’ opinions
The one obligatory condition is that the broker has to have separate bank accounts, where the client's funds are deposited, independently from the broker's own funds. Moreover, the brokers, as well as the banks, have to disclose information about their account balances. In case the company refuses, be careful, perhaps it has something to hide.
