WHAT ARE BEST PLACE TO TRADE FOREX?
The Forex market is another form of the foreign exchange market. It is the process of exchanging a currency into other currency for several reasons, might be for trading, or tour. According to some recent reports from the Bank for International institutes, the turnover of the Forex market is currently at more than $5.1 trillion.
In the next section, we will see the basics of the Forex market including the elements of it. Therefore, you would know how overall activity in this market occurs and how you can make a benefit from the foreign exchange market.
The best place to trade Forex is the Forex trading brokers that allow retail trading possible with a lower deposit.
The forex market is the world’s biggest financial market who are the main participants are institutions out, trader.
Therefore traders from the retail level often struggle to enter the market as it is sometimes impossible for a single person to arrange the money that requires to take a trade in the forex market.
For example, the minimum contract size for a currency pair required almost $100,000, which is very hard to arrange for a retail trader.
However, there is a way to enter the market from the retail level by using the benefit of the contract for difference (CFDs) and leverage.
What is CFDs
CFDs are a process to buy a currency pair with a smaller volume. For example, if you want to take one standard lot of euro USD, you should invest $100,000.
However, arranging such money is quite impossible for retail traders. Therefore, retail traders can buy a portion of the lot size using the leverage.
For example, if you invest 1000$ in your trading account and use 1: 100 leverage, your trading account will act like $100,000 (1000X100).
In that case, you can take trades that require a $100,000 minimum deposit.
However, your money is acting higher than your deposit amount. Therefore, there is a possibility of losing money in case of unfavorable market conditions.
In the following section, we will see the best place to trade Forex based on retail traders perspective:
What are the Best Places to Trade Forex?
In retail trading, using a regulated and well mannered retail trading broker is the best option for trading.
However, there are many types of brokers in the world. Some brokers are suitable for beginner traders, while some traders are suitable for professional traders
In this section, we will see how you can trade from different types of brokers:
#1 ECN and STP Broker
ECN Brokers stands for an electric communication network. In this broker, every transaction has happened directly with the liquidity provider.
A broker only works as a bridge between the client and liquidity provider and charges a Commission part rate.
The best thing about this broker is that it does not manipulate any price; therefore, traders can help the almost similar price from the over the counter market.
However, it is difficult to find the actual electronic communication network broker as some brokers provide wrong information on their website.
Therefore if you want to trade with a good ECN broker, you should find a strong regulation.
How to be a strongly regulated broker with ease and functionality requires a minimum investment and charge that is often impossible for retail traders.
On the other hand, STP brokers are similar to the ECn platform that provide mostly accurate prices.
If you are in a forex market for more than a year and focusing on making an account with consistent growth, you can follow one of these trading accounts.
As it requires higher investment, traders who are about to make a consistent gain are only recommended for this broker.
#2 Market Maker Broker
Market maker brokers are those with their liquidity providers; therefore, they are not linked with other banks and are liquidity providers.
One of the risks of a market maker broker is that they take trades against you. Whenever you make a loss, they break again, and whenever you make a profit, the broker loses.
There is a contradictory Theory that the broker always tries to make you lose as your loss is their profit.
However, it is not strongly true as a strong regulating authority regulates market maker brokers.
Therefore, if you choose a regulated market maker broker, you might minimize the risk of manipulation and better price.
On the other hand, market maker brokers often provide false candles to eat traders’ profit.
Therefore if you want to focus on trading based on consistent account growth, market maker brokers might not be a good option.
Even if you choose a market maker broker, you should ensure that it is regulated by one or two strong authorities.
On the other hand, if you are in the beginning stage of trading and want to learn trading from a broker that requires a small deposit size, market maker brokers is a good option.
Forex Trading Platform
You want to know the best places to trade Forex you should focus on a user-friendly Forex trading platform.
There are a lot of Forex trading platforms in the world, and all of them are not switchable for retail traders.
MetaTrader 4 and MetaTrader 5 are the world’s known Forex trading platforms that are famous among retail investors.
If you want to start trading, you should focus on Forex brokers that have MetaTrader 4 or MetaTrader 5 platforms. As it is a user-friendly and advanced platform to help you to have the best trading experience.
On the other hand, there are some proprietary trading platforms which are also attracted to traders.
You can follow any proprietary platforms if you wish. Furthermore, most of the trading platforms are available in Windows, Mac, Android, and IOS.
Forex trading is a great source of earning money from online.
Why are people from every age able to operate their trading activity from everywhere? Forex trading is the best place to trade Forex work as an important factor as a traders activity.
Every trader in the forex market is one to trade without any hassle.
Therefore, a well-regulated broker with flexibility in deposit and withdrawal and the accuracy in price chart is mandatory for Forex trading.