Most retail investors should spend time investigating a forex dealer to find out whether it is regulated in the U.S. or the U.K. (dealers in the U.S. and U.K. have more oversight) or in a country with lax rules and oversight. It is also a good idea to find out what kind of account protections are available in case of a market crisis, or if a dealer becomes insolvent.
Analysis: Does the platform provide in-built analysis?, or offer the tools for you to conduct technical and fundamental analysis independently? Many Forex traders make trades based on technical indicators, and can trade far more effectively if they can access this information within the trading platform, rather than having to leave the platform to find it. This should include charts that are updated in real time, and access to up-to-date market data and news.
Live Spreads Widget: Dynamic live spreads are available on Active Trader commission-based accounts. When static spreads are displayed, the figures are time-weighted averages derived from tradable prices at FXCM from January 1, 2019 to March 31, 2019. Spreads are variable and are subject to delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.
One of the most common trading and investment philosophies is to 'buy low and sell high' - this is particularly the case with long-term investments, such as investing in stocks or bonds, which rely on the asset increasing in value. In the Forex market, you can also sell high and buy low. This way, you can potentially make profits on both downward and upward trends.
Hedge funds – Somewhere around 70 to 90% of all foreign exchange transactions are speculative in nature. This means, the person or institutions that bought or sold the currency has no plan of actually taking delivery of the currency; instead, the transaction was executed with sole intention of speculating on the price movement of that particular currency. Retail speculators (you and I) are small cheese compared to the big hedge funds that control and speculate with billions of dollars of equity each day in the currency markets.
Set your limits in advance: Before embarking on any Forex trade, you should have defined the price at which you'll open the trade, the price at which you will close it and take your profits, and the price at which you will close it, should the market turn unexpectedly, thereby cutting your losses. Then, once you have set those limits, it's important to stick with them!
The app offers customisable live data on over 20,000 financial instruments, excellent charting for mobile and tablets and a real-time economic news calendar in 16 languages. You can also build your own algorithms and alerts within the app and synchronise them to your desktop. Overall, a great all-rounder from one of the biggest names in the business.
When learning about Forex trading, many beginners tend to focus on major currency pairs because of their daily volatility and tight spreads. But there are numerous other opportunities – from exotic FX pairs, to CFD trading opportunities on stocks, commodities, energy futures, to indices. There are even indices that track groups of indices, and you can trade them as well.
One of the most popular trading apps provided by a broker is TD Ameritrade's thinkorswim Mobile, a full-service trading platform application. thinkorswim allows TD Ameritrade clients to trade currencies, options, futures and stocks with an easy-to-use, on-screen interface. Users can access live, streaming charts that they can load with common technical indicators or even chart study tools that the user has created for themselves.