Forex is known as foreign exchange market, currency market or fx trading. In a nutshell, it is simply where one currency is traded for another. Similar to stock market, the aim of forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
It is best to deal with brokers with the lowest spread. Be aware that some forex brokers have a variable spread that changes with market conditions ex. Currencies in Forex Trading are traded in Lots. A Standard lot size is , units. A Mini lot size is 10, units. A Micro lot size is units. The unit refers to the base currency being traded. For beginners, trading micro lots is recommended. The smaller the lot size being traded, the lower the profits, but of course, lower losses, too.
A forex broker that has a fast order execution is definitely an advantage especially in volatile markets. Different forex brokers have different forex trading platforms.
Included in their platform are their technical tools like the Fibonacci, moving average, stochastic, etc. Having an easy to use indicator technical tool would greatly help a forex trader. A good forex broker will offer you the ability to change your leverage as needed. A forex broker that forces you to use high leverage is probably trying to help you lose your money. There will be times when more leverage is appropriate and times when less is appropriate.
You should be able to call your forex broker and have your leverage changed any time that you need it to be. Checking the credibility of a forex broker is one of the most important steps. There are regulatory agencies all over the world that separate the trustworthy from the fraudulent. Check from the commissions above before you send your investment money. Good Forex Brokers will let you deposit or withdraw your funds and earnings fast and smoothly.
Some forex brokers even extend their hand by giving more options like paypal, credit card or western union. When you start trading forex online , the trading platform will be your best guide. This will be like your cockpit in forex trading. All the controls charting tools are there and familiarity to it will be a great advantage. Check for a user-friendly and stable forex trading platform. It is best to try their service by asking them questions through email, chat or by calling them directly.
This will give you the competence of the forex brokers when dealing with trouble shooting which will be critical if something wrong happens to your account.
For a beginner in forex trading , creating a practice account is advisable. A Trial account is free and easy to have. Diving to something you are not familiar with gives great risks and usually ends up in a blown account. There are only a few credible Forex Trading teachers or Forex Trading mentors here in the Philippines. One of them is Mark So , owner of Businessmaker academy.
Learn Online Forex Trading. Exchange rate fluctuations are typically caused by actual monetary flows as well as expectation on global macro-economic and micro-economic conditions. Important news that concerns currency fluctuations are most likely to be released worldwide at the same time, giving foreign exchange market little or no inside information. The FOREX market is open 24 hours per day throughout the week between individuals with Forex brokers , brokers with banks, and banks with banks.
If the European session is ended, the Asian session or US session will start, so all world currencies can be continually in trade. This gives opportunities for Forex traders to react to news when it breaks. Other investments such as stocks wait for the market to open.
FOREX market is hard to manipulate since it is one of the largest markets in the world. Some Forex brokers give up to 1: There are lots of online Forex brokers available. This makes the competition very competitive. Competition stimulates better service, promos, and good rates. You can open a forex account for as little as one dollar. Extensive Technical Tools Different forex brokers have different forex trading platforms.
Adjustable Leverage A good forex broker will offer you the ability to change your leverage as needed. Security Checking the credibility of a forex broker is one of the most important steps.
Here is a list of countries with their corresponding regulatory bodies: Deposit and Withdrawal Good Forex Brokers will let you deposit or withdraw your funds and earnings fast and smoothly. Info and photo from: Is Forex Trading for you? Manila Hair Salon Recommendation: Thoughts on APECMore...