Foreign exchange refers to the conversion of a particular currency to another or exchanging a currency for another one. The forex market is the largest market without a central marketplace. It operates 24 hours for five days weekly. Forex market generates the most amount of money than any other trade with trillion dollars being exchanged on a single day globally. It is also called the FX market. In the FX market, the interested traders from individuals to governments come to exchange currencies as well as speculate them.
There are several brokers in the foreign exchange market. The major banks make quotes of the forex which the brokers then try to find an average across the banks and avail them to you. The banks don’t necessarily have the same price. You can venture into forex trade for income or just as a hobby.
All currencies are paired and it is for you to choose which pair you want to trade. A well-analyzed speculation in the forex market can earn you a profit while a poor one will land you a loss. If you think one of the paired currencies is going to rise against the other, you buy it then hopefully sell it later for a profit.
Are you ready to kick-start your forex trading venture? Then you need to create an account with a forex broker. This broker bridges the gap between you and the forex market. Through the broker, you can access the market price charts and control your trade. You are also able to get leverage that enables you to handle your forex account. There are three ways in which you can access a broker, and that starts with your local bank, a currency futures exchange or online. However, it can be quite a task to settle on one particular broker since there are so many of them.
How to choose a forex broker.
There are many brokers in the forex market operating from all corners of the world. Therefore, there are no universal regulations that you can refer to that regulate the brokers since each country subscribes to their own rules. It is essential to research well about the broker you settle for and find out what their state requires of them for their operation. Also find out the reviews of the broker from its clients.
The minimum account and lot size
Finding out this information is very important especially if you are new in the forex market. A broker offering mini accounts could be a great starting point, unlike brokers who offer standard accounts that require huge deposits.
Charges and fees
Whether a broker asks for a commission or not is essential information for a trader in the long run. Traditional brokers usually don’t charge any fees and get their earning from the spread which is the difference between the bid and ask price.
The quality of service
Since the FX market runs 24 hours for five days in a week, it is crucial for you to have excellent communication with your broker. Generally, the broker should be available all the time. Also, find out any other communication channels they have like email or phone contacts. It is good to pick a high-class broker to avoid any disappointments that could be associated with technical errors or any other reasons. The broker should as well have the pairs you intend to trade.
TradesPrime.com is one of the top-ranked brokers you should consider. It has a very strong platform which is easy to use. The platform also has numerous trading tools that are critical in helping you develop your trading strategies. TradeX1.com also has many branches nationwide which you can as well walk into at your wish.