If you are actively trading in the New York Stock Exchange, one of the most active exchanges in the world, you should be very thankful. Its total daily transactions are averaging approximately at U.S. $50 billion, making it the largest stock exchange in the United States in terms of dollar volume. There are many individuals who want to get their feet wet on the ground of this New York City-based stock exchange.
Yet, you are luckier if you are actively involved in trading foreign currencies, or commonly known as Forex trading, which is considered to be the largest market on the world. Its average daily trading turnover is approximately U.S. $5 trillion, exceeding the combined magnitude of all other equity markets, including the New York Stock Exchange. Thus, you are luckier since you have the opportunity of getting more profits out of that $5 trillion traded everyday.
If you are not yet involved in Forex trading, then you are currently missing the benefits of trading foreign currencies 24 hour trading time, transactions conducted in real time, extreme liquidity, and others. Thus, you should decide to get a Forex trading account and start trading right away.
However, just like other types of investment, you must be aware of what kind of ground you are stepping into. In other words, before getting a live Forex trading account, you must be properly educated first about the background of Forex trading. You must learn how you will maximise your earning potentials as well as decrease the risk that you are into through practicing with free demo accounts. Moreover, you must have a trading system to follow and the necessary tools that will help you analyse varying conditions of the Forex market to position yourself on the profiting aspect of a certain trade.
Once you know what you are getting into, you are now ready to get your live Forex trading account, web-based trading system and platform, and other tools that you will need in your Forex trading career. Most Forex traders obtain their trading accounts and platforms through a Forex brokerage company or agents. There are many brokerage firms out there and you need to be selective, or else you will suffer the adverse consequences.
You will need to consider the following things when choosing a broker:
For the ultimate safety of your hard earned cash your broker should be registered with a regulatory agency such as the below:
United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
Australia: Australian Securities and Investment Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
France: Autorité des Marchés Financiers (AMF)
Canada: Investment Information Regulatory Organisation of Canada (IIROC)
You will need to compare the commission and the spread cost between brokers. Remember the cheapest one does not always suggest the best service.
Deposit and Withdrawals
A good broker will allow you to deposit and withdraw earnings hassle free. It is always good to check customer reviews on how this function works.
This is a key part of the of choosing a good broker as the trading platform will need to be user friendly and have all the required tools to aid your trading.
Your trades need to filled as soon as possible meaning you do not want to buy a currency pair at a particular price but due to a technical delay you enter at a less favourable price.
Always check a brokers reviews regarding their customer service as this can be one of the most frustrating aspects of broker. We always want a broker who can fix our issues in a reasonable timeframe.