|
Choosing a Forex Brokers. |
 Choosing a Forex Brokers.
There is a great deal of fraud in the forex market, so it would behoove the new forex investor to check out the broker thoroughly. One of the best ways to do so is to check if the broker is registered by the National Futures Association (NFA). Because the forex market is largely unregulated, forex brokers do not have to be members of the NFA, but they can register if they want to. If they are members of the NFA, then ... Read more |
| Reputation
Unlike brokers acting on other financial markets, Forex brokers are attached to banks or lending companies because they require large amounts of capital. Brokers need to be registred with a regulatory authority such as the Commodity Futures Trading Commission (CFTC) for US companies or the SFC (Securities and Futures Commission) for Hong Kong. ... Read More | Types of Accounts
Individual investors may choose between different types of accounts: Read more
|
| SpreadThe spread is the difference between the sell quote and the buy quote (or bid and ask price). Its importance can be significant if you buy/sell a lot or have trades with low pips. A pip is the smallest price increment a currency can make. Read more | Leverage
Leverage allows you to multiply your position on the market: with a leverage of 100:1, you will use $100 on the market for each $1 of your capital. Read more | Margin
It is the deposit required to open or maintain a position. If you experience high losses, your margin deposit available decreases in order to control your position. Read more
| Rollover Policy
A position is said to be "rolled over" when it is being held overnight. In this case, you pay or receive what is called a rollover fee. This fee is calculated by the difference in the interest rates that apply to the two currencies in the currency pair you chose to trade in. Read more | Trading platform
The trading platform is crucial. You will use this tool very often, so you need to feel as comfortable as possible with it. Read more |
|
