The foreign exchange market is the world’s most traded market, with turnover of $5.1 trillion per day. The U.S. stock market trades around $257 billion a day; quite a large sum, but only a fraction of what forex trades. Forex is traded 24 hours a day, 5 days a week across by banks, institutions and individual traders worldwide. Unlike other financial markets, there is no centralized marketplace for forex. Currencies trade over the counter in whatever market is open at that time. All forex trading is conducted over the counter (OTC), meaning there’s no physical exchange (as there is for stocks) and a global network of banks and other financial institutions oversee the market (instead of a central exchange, like the New York Stock Exchange).
A vast majority of trade activity in the forex market occurs between institutional traders, such as people who work for banks, fund managers and multinational corporations. These traders don’t necessarily intend to take physical possession of the currencies themselves; they may simply be speculating about or hedging against future exchange rate fluctuations. A forex trader might buy U.S. dollars (and sell euros), for example, if she believes the dollar will strengthen in value and therefore be able to buy more euros in the future. Meanwhile, an American company with European operations could use the forex market as a hedge in the event the euro weakens; meaning the value of their income earned their falls. Website at AlphaBetaStock.com
More insight to Forex Pairs:-
Before understand how to choose the forex trading broker, we should understand about the Forex Currency Pairs. In the EUR/USD cash pair, the world’s most famous forex exchanging instrument, EUR is the base money and USD is the statement money. An EUR/USD quote shows a proportion that generally matches what you’ll pay assuming you visit Paris and need to trade dollars for euros. USD rises to $2.00 in this estimation, so a “EUR/USD 2.46000” quote implies the euro is exchanging 46% higher than the U.S. dollar ex Currency Pairs. Forex merchants bring in cash on long EUR/USD positions when the proportion goes higher and lose cash when it goes lower. Then again, dealers bring in cash on short EUR/USD positions when the proportion drops and lose cash when it rallies. While intermediaries might offer many money sets, four significant sets draw in gigantic exchanging revenue.
To get the Profits out of the forex market, traders have to conduct the transactions through an intermediate party known as forex broker. It is an oblivious that for novice or pro trader it’s being a challenge to find out the best forex broker to commence trading. There are many factors that should be considered while choosing the right trading platform online which has shared with you below:
Regulated Brokers: –
Always you should check the regulations of the broker. Which means that the broker is operating his business with the standard of procedure. This Guideline offers protection assurance of the firm against bankruptcy and guarantees the agent is maintaining thorough principles as a monetary specialization.
Fund Security:-The Forex market is said to be risky due to its volatility & Liquidity. As billions of people and entities intervene in it. So the fund security should be on always priority. Traders should consider the broker who will help to manage your trading risk by providing you appropriate knowledge and provides the features to protect your equity on fluctuation of markets.
Spreads & Commissions:-Spreads & Commissions are the way from which your broker earns. So, you should know about it that how much they are charging from you. There are basically two types of spreads – fixed & floating which has to be taken care in account before start trading. Fixed spread is the spread which doesn’t change whereas floating spread is variable & depends on the market volatility.
Type of Trading Accounts Offering:-
The need of the traders always varies as per their trading profiles. If you are novice then you can’t trade on the account which suits the trading requirement of Pro trader. So, you must check that broker should provide you the different accounts for different types of trader which provides you suitable trading conditions for your trading as per your trading profile.
Broker’s Business Model:-There are two major types of broker – Dealing Desk and Non Dealing Desk. The Dealing desk is a forex broker who processes their clients trades through a managing work area inside their organization. Where as a Non-Dealing Desk broker passes the trade straight through to a third party.
Education Support: -The forex trading is open for all but still required skills to get benefit from it. So, you should take care that the broker should assist you to build your forex trading career & provides you the best knowledge in the industry. These usually include webinars, videos, courses, guides and articles.
Practice your skills:-Before direct diving into the ocean of forex trading, you should know how to swim in the pond. You should first learn to place trades on the demo trading account. This feature is advisable to all novice traders which provide the chance to learn placing the orders in the market & to test their trading strategies before taking a risk on the real trading account.
User-friendly Trading Platform:-There are entire hosts of trading platforms is available, some more complicated than others. As a novice trader you won’t require a complicated Platform at your stage and complex exchanging procedures. So, beginner should consider for a platform that is quick and easy to get a handle.
Investment Options:-There are many people who would like to only invest in the forex trading business. Non availability of time to learn or consciously they only want to invest. Then in that case the broker who provides the investment options should consider.
Customer Support:-Most beginners generally neglect the factor in client assistance while settling on their decision of the dealer to join with. They may not understand the significance client assistance plays in their general forex trading experience. The best customer support assists you to make your trading experience better with the broker.
Value added Services:-In an online forex exchange industry, vale added services makes a broker to stand unique from others. Example, free market analysis and continuous news sources which adds the value to the vast majority of the traders. So, it can be also the factor to take in consideration to choose best broker.
Recommendation:-
Considering all above factors, this is my personal recommendation for the most trusted forex regulated ECN broker- Xtreamforex with No Dealing Desk which means you can place the trades direct in the market & enjoy the higher liquidity from Liquidity providers , serving in the market since 2015 and growing their business worldwide. They provide the negative balance protection feature which provides the extra safety to your funds while trading. They offer investment options like Copy Trading & PAMM Trading. You can trade on latest trading platforms like MT4/MT5. They provide the different trading accounts suitable for all types of traders. The best 24/5 customer support gives another reason to choose them as your broker.
Conclusion:-
As indicated above, there are many factors that you need to think about while choosing your broker. You have to qualify the broker as per your requirement. You can also test the services of the broker we have recommended. Whenever you have found the right broker to work with, you can focus more on your trading activities. Trade more confidently thereby increasing your chances of success trading the market.
