What Is Foreign Exchange?
In 1999 the internet made foreign exchange (Forex) trading a reality for a new generation of investors. Before 1999 Forex was a foreign exchange trading opportunity for large banks, hedge funds, and the government. Now online foreign exchange or Forex trading is available and accessible to anyone wishing to profit from investing and trading private funds.
When choosing a Forex broker the first thing a trader or investor should do is to review the brokers’ profiles available online. Using a search engine to compare brokers and examining their websites is a good way to accomplish this. Websites say a lot about a business or an individual and they should be read extensively. Where a broker is located or operates from is very important. All legitimate foreign exchange brokers will have a physical address that you can visit, with a contact number and should offer some type of customer service support. If a broker does not have a physical address, they should be avoided. In addition, investors should read broker reviews carefully before selecting a broker to trade for them.
It is important to know your choice of broker will have a substantial impact on your trading performance. Before choosing a Forex broker you should confirm that the broker is a FCM and/or CFTC accredited broker. Accreditation is important because usually the most experienced and honest brokers have gained credibility through accreditation. Also, brokers capitalizations should be compared when choosing a broker for online or mobile trading. The larger a broker’s capitalization, the more flexibility they have to support your investment. A broker’s spread (difference between the buying and the selling price), the minimum capital requirement, the types of account offered, the deposit and withdrawal methods, the trading platform (is it user-friendly?), leverage, trade execution, and customer support, is a list of the other key aspects that an investor or trader should be concerned about when using an online broker.
After choosing a broker you should open a demo account to get familiarized with the Forex trading procedues. You can then decide what you want from Forex trading, by asking yourself a few simple questions. For example, what currency pairs should I trade? What fees will I be charged for withdrawing or transferring money? Do I need a ECN/STP broker or a dealing desk broker? Do I want a hedge? By addressing these questions before you began trading or investing, your Forex online or mobile trading undertaking will be a rewarding and easy experience.
When considering a broker to do your trading, a good broker to examine is Real Forex. Real Forex gives traders the best advantages available in the market and they are an ally promising to always level the trading field for traders or investors. Below are the Real foreign exchange advantages:
- Tight spreads – starting from 1 pip only
- True ECN – no dealing desk or dealer intervention
- Offset of all transactions – no conflict of interests
- Best bid offer – multibank streaming rates from world top 10 banks
- Fractional interbank pricing - 5 decimals
- Push technology – only executable quotes, NO Re-quotes
- Ultra fast execution – less than 50 milliseconds
- Over 30 currency pairs
- Fix API connection & MT4 EA's for automated trading
- Secure funding - segregated accounts & regulatory environement
- No hidden fees or extra charges
Traders can choose between "MetaTrader4" or "Real Stream trading" platforms.
