Usuario:DrewSudduth973
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última version al 15:51 9 may 2012
If you are interested in Forex trading one of the first things to consider is where to open a Forex trading account. You need a good Forex trading broker. Since not all brokerage firms are created equal you do well to educate yourself about any broker before you deposit your money there. I'm offering you here some helpful tips that will assist you when you do your own research.
In the United States, a reputable Forex Trade Broker will be registered as a Futures Commercial Merchant (FCM) with the CFTC (Commodities Futures Trading Commission). If you have found one that meets this criteria that's a good beginning but you still have to do more research.
Forex trades are highly leveraged, i.e. the broker lends an investor up to 99% of the money required to trade. Therefore, your Forex trading broker should be associated with a company that has sufficient capital. You don't want to deal with a "fly by night" company but with a solid firm that has a good chance of being still in business in years to come. Take heed of this, especially during today's economic crisis.
Forex trading accounts are not covered by the FDIC (Federal Deposit Insurance Corporation). If markets go crazy there's nobody to bail out the brokerage firm and none will reimburse you for any losses. Therefore, choose a large institution that has ample capital to withstand downturns in the market and a rapid drain on their deposits if masses of clients withdraw their funds all at once. Follow this tip and you will sleep better.
Having covered the basics let's consider some other things, shall we?
The Forex markets trade 24 hours a day 5 days a week worldwide. This offers you the opportunity to trade outside of regular business hours. Depending on your style, you may want to have access to your broker via phone and most important, that he answers the phone when you call. Some brokers offer email support and live chat online. Consider if you want a broker that is doing business in your country, speaks your language and operates under the same legal system.
The internet has revolutionized Forex Trading Signals with their sophisticated trading platforms and vps hosting that allow you to instantly trade 24 hours a day even on auto pilot if you want to use a special software or expert advisor (Forex robot). But if you need support, locating a broker you can contact over the phone anytime you want, day or night, may be important to you.
Forex brokers do not ask commissions the way stock or bond brokers do. In Forex trading the broker earns from the so-called spread which is the difference between bid and ask price, that is, what the broker pays to buy versus how much they sell a currency. To compare different brokers you have to look at their spreads.
There are fixed spreads and variable spreads. If a broker offers you fixed spreads on all trades you have the advantage of predictability. Fixed spreads generally tend to be larger than variable spreads.
Opening a Forex trading account is simple and it takes only a couple of minutes. You must fill out an application form asking you about your financial status, personal data and your experience in trading. For identification purposes you are also required to submit a copy of your passport and sometimes a proof of residence like a recent electricity bill for example. This can be done quickly by uploading a scanned document to their server, or sending it by fax or mail.
Most Forex trading brokers offer two types of live trading accounts - standard trading accounts and micro trading accounts. There are also free demo accounts you can sign up to practice with virtual money (not real money) and become familiar with their trading platform before investing real money.
With a standard trading account you can trade currencies in standard lot sizes of 100,000 units. That means, with a standard account you cannot buy $100 for $130; you have to buy $100,000. As this is a large investment for the average trader, brokers are offering leverage. This makes it much easier to trade Forex with smaller investments but you need to understand how to control the risk in order to maximize profits.
Professional traders use leverage all the time. For example, if you use leverage, you put in yourself 1% of the total and the broker puts up the other 99% needed to make a trade. This common practice opens a huge profit potential but it also involves a significant risk of loss. To reduce their risk, brokers apply a margin call policy asking you to back up for any potential losses. In this regard it is crucial to understand the broker's margin call policy.
With a micro account you can trade in smaller units, such as 10,000. This lowers the investment required from you from $3000 to only $300, for example. Micro accounts make Forex trading accessible for many more average traders. You can open a micro trading account with as little as $50. The maximum account balance for micro accounts is often $10,000. If your balance exceeds this mark you've got to open a standard trading account.
Investing in foreign currencies is more complex than investing in stocks or bonds. The Forex market is more volatile too. Forex moves fast. Therefore you need real time prices, technical analysis, fundamentals and up to date market news at your fingertips. Considering this you want a trading broker who is giving you a trading platform that includes all the tools for research and trading you will need to succeed in Forex trading.
It is a good idea to start with a free demo account from any Forex broker you are interested in. This allows you to become familiar with their software and how this account works. It is also smart to test their customer service if you have a chance. If you're stuck, submit a support ticket, use live chat or send an email and wait their response and can visit broker Forex Blog . Good Forex trading brokers offer free tutorials, newsletters, training videos and often live webinars within their platforms.
