changes. The Forex market, as we know it today, originated in 1973.
"Foreign Exchange" is the simultaneous buying of one currency and
selling of another. Basically, there is no real product to buy or sell
in forex market. Currencies are traded in pairs, for example Euro/
British Pound (EUR/GBP) or US Dollar/Japanese Yen (USD/JPY).
Since forex market is opened to public in 1998, many people start to
pay attention in forex investing, especially by doing an online forex
trading. Forex trading has proven to be a highly profitable
investment, so that there is always someone new which dive into this
market in every each passed day.
Forex trading is usually backed by the forex brokerage as the market
makers. For the online investors, there are also exist online forex
brokers for them. By using an online forex broker services, trader
could grab the benefit of 24 hour non-stop forex market. Traders can
do their trade no matter where or when. Broker is an important part in
forex trading, but not every beginner really knows who and what they
are. Below are the frequently asked questions about broker:
(Q) What's forex broker?A forex broker is a person or companies that
buy and sell currency pairs in forex trading as per private or
individual investor decisions. Broker charge some amount of money to
traders who use their services as their commission. Most of brokers
are earn their money through this mechanism. But not every broker did.
There are also some brokers who didn't ask for any trading commission
to their services subscribers (traders). These kinds of brokers get
their money by profiting through the spread of buy and sells in their
currency pairs price.
(Q)Can We Invest in Forex Trading Without a Forex Broker?Of course you
can. BUT, it means you have to provide some numerous amounts of funds
to get yourself ready and eligible to entering the forex market. Not
everybody can afford that. One of our benefits to trade by using
brokers service is that they are asking margin requirement which much
less than what its actually need to trade without them. As individual
investors, especially for they who don't have such of hi-financial
power, we do need a broker to getting involved in forex trading
business.
(Q)What is Margin Requirement? Margin requirement is the amount that
an investor must deposit in a margin account before buying on margin
or selling short, as required by the Federal Reserve Board's
Regulation T. (href="http://www.investorwords.com/2959/
margin_requirement.html" target="_new">Investorwords). Example:
Broker X margin requirement is 2%; it means that you can trade up to
$50,000 if the amount of your margin account is $1,000. Some brokers
are using a fixed margin, and other are using adjustable margin which
usually depends on how much you fund your margin account.
(Q)Who is the best forex broker at this moment? That question can't be
answered with certain answer. The fact is, there is no perfect trading
platform. Every forex trading platform which owned by a particular
broker is unique. There are always a pros and cons from each of it to
trade off when comparing one to another. You have to make more
detailed comparatives and deeper examination on each forex broker
before making a further decision.
(Q)What information do I have to know about forex broker? While
looking for a broker, first you have to make sure that they are a
trustable company. At least they are a registered broker. It would be
better if you can find s their business track record. Here a checklist
of 'trader must know' about broker information:
About the company
? Their regulator? Their client base? Their contact information -
email, phone/fax, headquarter address, contact person etc
About their trading platform
? Leverage? Commissions? Pip Spread (fix, floating, costumized)?
Account types offered (demo,mini,regular)? Minimum account size for
every account type? Their trading platform supports (real time price,
news ticker, history monitoring, stop loss, signal, auto trade,
account money management etc)
About their services
? Supported languange/s? Live support? Trading course or guide
(Q)Where do I can find more information about forex broker?Thanks to
the internet, nowadays information isn't so hard to find. We can find
almost any information we need by simply search for it.
OutroMany people said that forex trading is not so difficult and
highly profitable. The fact is, no matter how good we are, we can't
avoid the risk within forex trading. For minimizing our risk, at least
we have to understanding the theory behind this system.
To properly developing our forex trading system, we have to make sure
that there no single aspects is left behind. Picking a trading
strategy that most suit you, know how to incorporating the fundamental
analysis, and applying technical analysis of in the forex trading. All
of them must be mixed together to get a solid trading system of yours.
A good forex broker will always provide you with their high quality
and fast data transfer (for the charts, quotes, news, etc) to support
your trading. And they'll always treat you by their best services and
supports no matter how much amount of funds is in your account. Some
forex broker are offering an online course, a private assistant,
signal service, etc to guide their costumer in their trade. It could
be quite a good start to learn trading from them. Lastly, good luck
for you and your investment future...
Happy trading,Octa
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