In order to trade in the Best condition, here is what you need to choose.
When trading in the exciting and lucrative FX markets, what should one look for? Which are the factors that make all the difference between a smart trader and a novice trader?
- Spreads-the lower the better!
The spread is the difference between the buying price and the selling price of a foreign currency. Traders everywhere are looking for low spreads as this guarantees double the profit when trading volume.
- ECN/ STP-trading environment
This involves no intervention of a third party, thus no Dealing Desk, allowing for transparency of live prices, all orders and rates can be seen by the client, reflecting market depth and allowing the client to make better buying and selling decisions.
- Flexible Leverage-the higher the leverage the more risk involved!!
Leverage allows a trader to trade more money than he /she actually deposited into the account. So a client who deposits $100 and selects a leverage of 200:1 allows him/her to trade with an equity of $20,000. The higher the leverage the more risk involved as more funds can be lost.
- Choice of Advanced Online Trading Platforms
Trading has never been so easy as it is nowadays with the use of user-friendly software. All trading platforms are easily downloadable and managed, with self-explanatory advanced features, widgets and other applications making the art of trading attractive. The ability to see all financial instruments, and different currency pairs or sessions on multiple screens, to generate historical reports of all trading activity, to integrate all EAs needed , to create graphics, follow technical analysis, to add other plug-ins, all these factors are essential in facilitating FX trading, not to mention the fact that most platforms are nowadays available in many languages too.
- Fast execution- the speed at which trades are executed is always a star attraction for any trader!
The currency markets evolve rapidly and it’s important that orders are executed at lightning speed so the trader makes no losses on his bid, and the broker fills him in the best possible price, or the price nearest to the market price at the time he clicks the ‘buy’ or ‘sell’ button. It is a fact that a few pips difference in price can make that much harder to win a trade.
- Forex Economic Calendar-master news trading!
Learn how to use the real-time Economic Calendar which covers all important events and releases that affect the FX market. Learn about Forex Trading News ND Market analysis etc.
Approximately 7 pieces of data are released daily from the 8 major currencies (EUR/USD/GBP/JPY/CHF/CAD/AUD/NZD) and their countries. A savvy trader will learn to master the time at which the economic news are released and select the most relevant information for FX trading and how he can take advantage of this data.
Data such as : interest rates, unemployment, inflation, trade balance, retail sales, industrial production etc. The importance of each of these key features will differ each month.
- Funding Methods
Clients should be allowed to deposit and withdraw their funds and profits whenever they wish and without any hassle. After some experience in trading with different brokers, a client will understand which are the best funding and withdrawal options available.
- Security of the Broker – do not touch a non-regulated broker!
Who wants to hand-over their hard-earned cash to a broker which is not regulated or authorized? None. It is therefore important to check the legal status and credibility of the broker you are dealing with and nowadays this is information which is readily available from the regulatory agencies in each country.
- Customer Care-should be available 24/5!
A savvy trader will make use of the support and advice of the professionalism of the customer care. The competence of the customer care department of any broker is just as important as its performance on executing trades.
Once all the above factors are well and truly mastered, you are now a savvy trader and will enjoy all the benefits and profitability of FX trading!!!