Foreign currency exchange (forex) trading is a popular way for millions of amateur and experienced investors to grow their wealth. Due to its massive popularity, forex trade attracts many new investors every day.
If you are one of them, read this quick introduction to the basics of forex to improve your chances of making a profit.
Choosing a platform
You can find live forex rates and related data on any financial news website but you absolutely need a dedicated forex trading platform if you are serious about investing.
Advanced options like those found on the mt4 forex platform give users the ability to watch multiple factors and currency pairs at once, personalize the interface and set alerts to buy or sell. Such dedicated platforms filter out the noise and allow you to focus on the essentials.
Always familiarise yourself with the features in your forex trading platform to improve your chances of making profitable trades.
Choosing a trading broker
Finding a broker may be simple but finding a responsible broker is the challenge. One of the first things to look for is compliance and regulatory information. They give you a clear picture of the policies to which the company abides and the authorities to which they answer.
Also, pay attention to how they say they will handle your personal and financial information. You will be giving them details that would potentially allow dishonest individuals to commit fraud. Take the necessary precautions and do a thorough check for complaints against the company to ensure you don’t become a victim.
Choosing trading pairs
A forex trading pair is a pair of 2 currencies that are traded for one another. Forex investors buy one currency in the hopes that it strengthens against the other, thus netting them a profit. Forex trade continues incessantly 5 days a week, meaning that variations in the exchange rate are always fluid during the week.
Deciding on a trading pair comes down to understanding the economic data from the country (or region, in the case of the Euro) and how it fluctuates. Visit ForexTB for their information resources and find out more.