Forex Trading and Brokers Platform
Forex market is considered as the largest market of the world where the amount of trading currency is teetering due to which average daily trading has now reached to the amount of $5 trillion.
The pace of ‘individual retail trading’ is growing on the daily basis but its proportion is still not very large.
Forex trading is very popular among states but largely among US citizens inclusive of restrictions over some other online investment forms.
Forex brokers can be found in the country as well as at the offshore who provide trading to Americans for operators.
The Most Traded Currency…?
The US dollar is the most traded currency and is considered as the most sought and strongest currency in the world. In Forex trade, the participation of US dollar is over 85% among the whole trade. Among the other seven strongest currencies pair, the US dollar pair is considered a major pair. The minor currencies which do not belong to the family of strong currencies are usually paired with the US dollar.
- Most traded currency – US dollar
- Symbol of forex trading for US dollar- USD
- The US dollar is the major currency pair among the traded currencies
Choosing the Right US Forex Broker
An encouragement of Americans for engaging themselves in Forex trading is the role and importance of US dollar being the most powerful currency. Change in Forex market prevails due to change in the value of currency which can either be increased or decreased too or due to change in the political climate of the country due to which traders might get benefit as well as loss too.
Learning the movements of currency in the rise and fall of its value with the comparison of other currencies is not an easy task. Infact nobody can actually predict the price movements in the whole time. But with the passage of time one can always get better and can manage to get the right price movements most of the times. But one of the best thing one can do for managing the right price movements is to find the best and reliable US forex broker.
Legal aspect is the first and most important aspect in Forex trading. One is being advised to trade only through regulated and licensed brokers who have the permission to provide trading services to US citizens. This is the only way to protect ourselves and our money from any kind of danger or fraud.
The body in charge for regulating several financial markets in country including Forex trading is known as Natural Futures Association (NFA) which is a self-regulatory and non-profit organization. The NFA was founded in 1982. There are many other institutions which are the allowed to offer Forex trading after registering themselves with the NFA are registered broker dealers and holdings, future commission merchants (FCMs) and retails foreign exchange dealers (RFEDs).
The duties of NFA are:
- To issue licenses to approved forex brokers
- To combat fraud and to tackle fraudulent behavior
- To make sure that the approved brokers adhere the required capital standards
- To ensure that all forex brokers keep records and submit regular reports to the NFA, as required by law.
Things to Consider
Now according to our establishment, in order to provide services the Forex broker needs to be licensed by NFA and should also adhere the certain standards.
One shouldn’t expect too many variations as the legal standard doesn’t allow American forex brokers to offer high leverage. But there are some things which are to be taken into consideration.
- Minimum required deposit
- Welcome bonus
- Fees and commissions
- Currency pairs
- Available platforms
- Customer support
- Accepted payment methods
Minimum limit which one needs to fulfil to start trading may vary. If one is planning to start trading with a larger amount then there is no issue with this aspect but if one is planning to start with $30 or $50 then one needs to eliminate all the brokers who have higher initial deposit limit.
Most of the operators provide their customers with the bonus as the welcome bonus. This bonus can be given initially or at the time of first deposit. If the terms and conditions under which the amount is awarded is more favorable foe the trader than the bonus for the lower amount can be more money making or remunerative.
Mostly no fees or commission is being charged by the traders, usually they get their profits through the spread. But in some cases the operator may charge some fees per deposit, for deposits made via certain deposit methods.
Profit is being made by the brokers according the difference between the two positions or the spread. Due to this all the players are looking for the brokers that offer lower spreads. For example, there are two cases in which one broker is offering you with 1.1 spread whereas in other case the broker is offering you with 1.5 spread on trading then one should go for the broker who is providing with 1.1 spread.
Multiple platforms are provided by forex brokers. In addition to be able to choose between a download and an online version, one can differentiate between PC and Mobile trading platform. A broker can offer a platform with basic and simple features as well as with the complex once. One should always have an option to choose. With the passage of time, when one gets the experience he is able to get into more complex platform and can start trading with floating spreads which yields higher profits.
Customer support is the important aspect of every online based service industry and same is in the case of forex trading. Brokers are being trusted by the traders with their hard cash in order to get best customer service. Operator should provide the traders with at least few methods of communication like email, phone or live chat and customer support stuff should always work around the clock.
As already mentioned above that fees can or cannot be charged on deposits and withdrawals with the acceptance of wide range of payment methods including Debit and Credit cards, e-Wallets, cheque, bank transfers, etc. one will be required to prove their identity before one is being allowed to start the trading and before the first withdrawal can be completed. Forex brokers are under legal obligation to check and confirm the identity of their customers. Also, one is required to provide a proof of residency, so that there should be no doubt regarding the citizenship of the trader.