Broker Guide
Before becoming a trader of foreign exchange market (Forex), you need to select a broker for ahead financial operations (for this purpose, the broker list given here may also be useful). The selection of your broker is nearly the most important commitment, strictly determining the future success and type of the part of the carrier to follow. Of course the broker can always be replaced, but this will involve extra expenditures and unlikely one will want to switch brokers every day.
A correct choice of the broker depends on a wide number of factors: from his reputation (based on opinions and common wealth of other traders, who collaborated with the broker or are working with it currently) to financial warranties present in case of various incidents (the presence of regulation and client funds insurance against fraud, and also their independency from the broker’s operating funds).
The potential broker’s business model is also important, including the efficiency of its reaction on trader’s requests and orders, the presence or absence of automated trade systems, and if there are any, the amount of the automation (in percents). Besides, especially if the automation is present, it’s important to know the broker’s policy for the case of disagreement with trading style of its traders.
Besides the factors listed above, there are lots of other things that are important when you choose the broker: the spread and its features, limitations presumed by the broker on different market aspects, the trade platform and the possibilities provided by it, and finally, the details on creation and management of the account the broker will give to a novice trader.. This guide is created to make the search and choice of a suitable broker easier, considering the moments listed above and lots of other details.
Best Brokers
Wherever a competition is present, there are leaders. Of the entire broker list available, the leading brokers of foreign exchange market (Forex) are listed here.
A broker becomes a leader due to many factors: its own wealth and success, the variability of collaboration models, warranties and services the broker provides to the traders working for it, and many other things.
Detailed information on how to select a broker can be found in brokers guide.
Forex Basics
To start getting income from foreign exchange market (Forex), you don’t need to have any financial experience. You just need to find your way in the multitude of possibilities offered for those looking for profit from national currencies rate variations. The point of classic Forex trade, meant to get a quick income, is simple (which hardly differs from other markets): you have to sell on higher price what you’ve bought on lower price.
But to get a grip on currency rates, you need more than simple mathematics. First thing, you have to learn all definitions: Besides the correct meaning of terms “currency” and “rate”, you need to know what “quotation” means, along with “currency pair” (which consists of base and counter currencies). You need to know what are “point”, “spread”, “trend”, “position” etc. Every action on Forex market is preceded by an analysis. Depending on its functions, the analysis can be fundamental (when the economic dynamics of a country are being studied thoroughly, along with prognoses on its changes), or technical (when we apply a mathematic approach to the graphs of currency rate fluctuations).
The trade on Forex market goes on twenty-four hours a day. Saturday and Sunday are traditionally considered days of rest. The same as for all the other markets, work on Forex market uses a certain set of strategies, methods and techniques. There are rules you have to try and follow, and there are things you shouldn’t do. Every market session (Asian, European and American) has its own law and established traditions, which you also have to learn about.
And finally, for the trade on Forex market you need to use certain tools (software, papers etc.) without handling which the theoretical knowledge will be useless.
