Choose a Forex broker trading platform
Provide guidance to help investors evaluate the most appropriate use of market forex broker trading platform rankings, here will detail the various features of Forex trading broker platform, and you can safely manage your money, because we will strictly examine these trading platforms Regulatory security, and we will list the detailed fee costs at the same time.
Through our one-stop evaluation and comparison to choose each unique trading platform broker, you can easily find the most suitable trading platform broker for you and your friends.
Basic of forex trading
Foreign exchange are called as know as forex trading and involve the exchange of the currency of one sovereign country for the currency of another sovereign country. In the foreign exchange market, you can trade many currency called currency pairs.
Among foreign exchange traders, the most actively traded currency pairs are called major currency pairs and major cross currency pairs. A currency pair with moderate trading volume is called a secondary currency pair, and a currency pair with the least active trading is called a Minors pair.
In all major currency exchanges, you are free to buy short or buy long. Some medium-sized developing countries curency are often controlled by the their central banks, so there are often drastic and artificial improper manipulations, so when analyzing these secondary non-primarycurrencies, you need to carefully consider the political situation of each country.
In all major currency pairs, you can freely go long or short one specific currency against another currency, although some domestic currencies that are not actively traded are subject to exchange rate control. These controls are usually supervised by the central bank, which limits the value or fluctuations of the national currency relative to one or more currencies of other countries.
For those who are interested in Forex trading, open your own Forex trading account…The good news is that now Forex trading only needs to be easily operated through the mobile app, and a small amount of principal can start adventure through the foreign exchange market gain profit.
Forex Trading Scheme
Before you start trading Forex, you should first make sure that you understand the basics of forex trading. This means that you have a forex trading platform can execute transactions, and you know how to enter and exit the foreign exchange positions. You also need to understand the different types of orders allowed by your forex broker,
How to enter them and when to use them appropriately.
For a better understanding of Forex trading, all you need to make money as a Forex trader is to buy low and sell high. Although accurate predictions to determine which transactions are high-risk, which trade are low-risk trade may take a lifetime to master. Therefore, it also makes sense to formulate a reasonable fund management strategy so that you can place appropriate bets based on transaction certainty, risk tolerance, and account size.
Use fundamental analysis forex trading method
Forex trading is the result of a common capital market supply and demand balance turned to a higher or lower ratio, therefore, to accurately predict future changes in exchange rates, need to be considered related to two specific currency pair in the currency fundamentals, as well as future currency Policies, current changes in the country’s overall industry, etc. are taken into consideration.
The economic data calendar regularly browse through some economic predictions and the upcoming release of what to expect and may result in significant fluctuations in the currency of the time to understand, regularly taking notes forex fundamental analysis is the most important lesson, those with important data release can cause liquidity problems, and therefore sometimes avoid some of the pre-data release is wise, even the foreign exchange markets are often illiquid,
With the release of important data, spreads widened and the trend became more intense.
How to ensure that the forex broker trading safe?
The most important thing to consider when choosing a forex broker is how the company’s reputation has been in the past,
Some forex brokers in question refused to refund the customer’s deposit or failed to separate client funds with their own funds manage their business so that they remain safe and in the case of broker bankruptcy can be returned to their Trader.
Most good reputation forex brokers will be regulated major financial regulators, such as Britain’s financial behavior Authority (FCA).
This type of organization usually aims to ensure compliance with financial laws designed to protect retail currency traders within their jurisdiction to maintain and protect the honest broker broker customers. Regulators may also review the brokerages internal procedures, handle customer complaints against the broker, and insist that the broker separate client funds from its own funds.
Depending on its jurisdiction, the funds of certain broker clients may also be protected by compensation schemes. For example, in UK-registered forex brokers, forex brokers must provide insurance up to 85.000 pounds of customer deposits, in case they go bankrupt, as part of the Financial Services Compensation Scheme.
All forex brokers listed on this site are subject to official supervision of financial regulators. You can also view forex broker website for the name of its regulators.
It should also list their regulatory registration number, so you can check the status of their cooperation with the approval of regulatory authorities.
What are the costs of Forex trading, taxes, fees?
Forex trading involves by the list of costs:
- Spread
- Tax
- Transfer fee
- Swap Fee (overnignt fee)
Spread
Spread every forex trading platform have differences, so if you take the A platform to platform B comparison is meaningless, because every trading mechanism designed trading platform, after risk control ﹑ market share are very different only to consider whether the broker platform to provide accurate quotes as well as excellent trading network traffic so that investors can get the profits and risks they deserve.
Tax
Most of the country’s thought the foreign trading broker platform does not require any tax burden, the most common tax investment income remittances to send money by wire-transfer more than the national standard established by tax will be charged, in general you can wait through the virtual currency Other methods to transfer these assets
Transfer fee
Deposit and withdrawal fees have always been one of the most frequently discussed topics by investors. There will be different fees according to different channels. In order to provide investors with a convenient way to deposit and withdraw funds, the relative fees and fees are also different.
Swap Fee (overnight fee)
Keep in mind that when trading forex, wide trading spreads and/or swaps and high trading commissions will significantly increase your fee, so you need to minimize them, especially if you plan to actively trade forex.
At the same time, if you are a Muslim, you can open an Islamic account, which usually has no swap interest rate associated with it at all. Trading in spite of higher costs Islamic accounts, Islamic accounts to check their trading costs when choosing forex broker and make sure they fit your trading style is justified.
Does the trading broker have a suitable trading platform tool and charting tools?
Although forex brokers trading platform will provide customers with the ability to perform forex and enter orders, but their function, display style and a wide range of target user audience,
On the one hand, it is a highly intuitive trading platform for novices, such as the self-developed platform provided by eToro or Plus500. May attract traders with no trading experience
While trading experienced traders will choose a more complex foreign exchange trading platform, developed by the MetaQuotes very popular MetaTrader 4 and MetaTrader 5 platform, for example, may include advanced features such as automatic trading on a series of historical data and trading strategies Back-testing.
Many forex platform broker also provides a powerful charting tools, and the ability to add technical indicators to the chart.
If you know how to program or can find someone else to do it for you, some platforms even allow you to create your own custom indicators.
You need to choose the right forex trading platform depending on your level of experience as a trader, you develop a trading plan and the type of asset you want to trade to a large extent.
For example
Technical forex traders may need a good platform for real-time charting capabilities and data exchange has, but the fundamentals or news traders may prefer to have a high-quality financial news pod platform. In addition, some foreign exchange to manage multiple accounts for yourself or someone else a trader may want to allow them to most effectively do this platform.
Generally speaking, a good way to compare the trading platforms of various foreign exchange brokers is to open several foreign exchange simulation accounts funded by virtual currencies.
You can then test it to determine which platform is more suitable for your personal trading and market analysis style.
Forex Order Execution mode
One of the key when comparing forex brokers consideration is the way they execute customer transactions as well as transparency in the implementation of.
For some traders, the most important factor in choosing a b trading broker platform is how the orders of the transaction are executed. Therefore, when you decide to use these trading platforms, you may have a conflict of interest in the transaction. Most foreign exchange brokers have five types It operates under one of the different broker models, although some brokers use a hybrid structure that combines two or more models. It is helpful to understand how these models work, so that you can choose the best broker with the execution method you like to use in your trading business.
The following section describes and compares the most common Forex broker models so that you can better choose from them.
DD- DealingDesk/(MM) – MarketMaker Broker Model
As a market maker forex brokers often operate trading platform, known as B-Book Forex broker mode.
They profit from the bid-ask spreads quoted to their customers and try to make as much profit as possible from the spreads.
Market makers usually provide two trading modes
The way of trading prices with fixed spreads depends on the currency pair quoted, although spreads may widen and prices will change rapidly in a highly volatile market. Market-making brokers take risks and effectively trade with clients, and since most traders are statistically losing money, it is often profitable to do so.
NDD– No Dealing DeskBroker Model
Traders in the trading room usually widen the customer’s trading spreads, and have prevented losses from severe trading fluctuations. Some trading platforms will adjust prices in a way that violates the interests of customers. Doing like it so can make more profits for their company.
Choosing an NDD trading platform broker can save you transaction fees and market makers, because these DD traders try to make additional profits from trading. When you want to trade, it is best to choose to have an NDD trading platform broker can help you get a fairer price, although you may need to abandon the human factor as a way of appealing when interacting with the trading platform broker.
STP-Straight Through Processing Broker Model
Brokers that use the STP broker model do not have trading rooms and traders and provide fully automated trading systems for their customers. Transactions are processed electronically without manual intervention. They are a kind of NDD-like brokers, sometimes referred to as A-Book brokerage models in the industry.
STP brokers usually anonymously send orders to the market maker bank of the liquidity provider and provide customer orders for auction execution when triggered. This means that you can usually execute quickly, avoid human error and reduce transaction costs. STP brokers usually also provide greater liquidity,
Smaller spreads and better order transactions, because more than one market maker bank is involved.
ECN – Electronic Communications Network Broker Model
When investors use forex brokers use ECN model, they allow customers direct access to the interbank foreign exchange market trading platform. This type of NDD brokers usually offer the best pricing and trade execution, although each transaction will increase the fixed commission or extra points often weaken this advantage to some extent.
ECN forex brokers often displays the order signals and real-time exchange rate fluctuations from the interbank market. ECN Forex brokers also have a lower error rate because transactions are processed electronically instead of involving manual labor.
Another advantage of ECN brokers is that there are few price slips.
This allows the use of high levels of volatility before and after the major economic data or news published by news traders benefit.
Direct Market Access (DMA) Broker Model
Forex brokers use the DMA model to execute customer transactions and automatically match customer orders with market makers’ transaction prices. ECN brokers usually provide DMA services to customers, and not all STP brokers do this.
The DMA broker will pass all customer orders directly to the liquidity provider for execution at the current market price.
This process tends to be more transparent than the broker filling out customer orders by himself. DMA brokers usually provide variable trading spreads instead of fixed spreads, but they usually increase the commission per lot or a fixed per trade lot markup.
Multilateral Trading Facility (MTF) Broker Model
MTF brokers (also known as alternative trading system brokers in the United States) operate similarly to regulated financial exchanges such as Chicago IMM, where currency transactions can also be conducted.
They basically match buyers and sellers so that they can form a transaction contract according to MTF’s internal procedures.
Compared with regulated exchanges, MTF generally has good transparency, fair pricing, reasonable execution and lower costs.
Hybrid Broker (HB) Models
Some forex brokers trading model using a model of two or more other types of mixed or combined. Some brokers also provide different execution modes for different accounts, so large traders may have ECN access, while small traders may need to go through the trading desk.
Common hybrid models involve the hybrid of ECN or DMA models and STP models to produce fully electronic foreign exchange brokerage services. This allows brokers to drastically reduce costs after their system is developed and significantly reduce human error.