FOREX Trading
• What Is
FOREX?
• FOREX
Or Futures?
• FOREX
Or Stocks?
•
FOREX Trading for
Beginners
• FOREX
Terms To Know
•
Preparing for FOREX
Trading
• Is
FOREX Trading Risky?
•
The Philosophy of FOREX
Trading
•
FOREX and Fundamental
Analysis
•
Tools for FOREX Trading
•
Trading Strategies for
FOREX
• Trading Systems
for FOREX
•
Reading and Understanding
FOREX Quotes
•
FOREX Profits and Losses
•
FOREX Technical Analysis
Part 1
•
FOREX Technical Analysis
Part 2
•
FOREX Trading Brokers
• The
FOREX Margin
•
What Are Currency Options?
•
What Are FOREX Signals?
|
Online FOREX Trading
FOREX Trading Brokers
As with other types of trading, you can use a broker to handle your FOREX
transactions. A FOREX broker may be an individual person, or a company, that
buys and sells FOREX orders, depending on what instructions they receive
from you. FOREX brokers will charge a commission for each trade, or at the
very least, a fixed fee.
FOREX brokers typically work with financial institutions, such as banks,
so that they are able to have funding for margin trading. Can you trust a
FOREX broker? Absolutely. A FOREX broker must be registered with both the
Commodity Futures Trading Commission (CFTC) and as a Futures Commission Merchant
(FCM) before they can broker trades. This, of course, protects consumers
against fraud, as well as illegal or abusive trade practices.
You will need a FOREX broker, however, choosing a broker can be a bit
overwhelming, as there are numerous brokers to choose from. You can find
many, if not most of them, online. Before you dive right in and select a
broker, there are many considerations to undertake, and you must do some
research. This research will help you to better understand and compare services
and fees.
Often, when we buy something, we do so because someone we know recommended
it. It works the same way with FOREX brokers. Talk to your family, friends,
or other connections to find out who they are using for a FOREX broker. Find
out what they like, what they don't like, etc.
Take a look at the FOREX brokers you find online. Many will have online customer
support centers or help desks, where you can speak with them, or an associate
of theirs, to get more information. Their response time, as well as the actual
responses, will go a long way in choosing a broker.
Because stock prices change so rapidly, including FOREX, you need a broker
who quickly executes your buy and sell orders, with little or no slippage.
Make sure that the broker you select offers automatic execution, and read
their policy concerning slippage.
Obviously, the fees that come with a FOREX broker matter a great deal. You
need to know, in advance, what those fees are, and how and when they are
charged to you. Does the type of account that you have with the broker have
an impact on those fees? Is there a spread? If the spread is small, the trader
(you) will realize more profit, but this typically means that you get less
service.
Because FOREX trading depends so heavily on Margin trading, you need to have
a good understanding of the broker's terms that concern margins. What are
the requirements for a Margin account? How is it calculated? Does it change
depending on the currency that is being traded? These are things that you
absolutely must know!
Most FOREX brokers will offer you the use of software that helps you in your
trading. Some will offer it at no additional charge, while others will charge
a fee for the use of the software. If possible, try out a demonstration account
with the broker, so that you can see how it all works. The software should
be highly reliable, and perform well in fast markets. It should also include
automatic trading, and it may have trailing stops and trading charts as well.
Just as there are minimum balances required for bank accounts, the broker
will probably have a minimum account balance requirement as well. You also
need to know about how interest on your FOREX broker account is figured,
and when and how it is paid. Other information that may be important to you
include: What currencies you are allowed to trade, the size of lots that
you can trade, and whether your funds are insured.
|