Australian Forex Brokers
Forex traders are often reminded that their financial success as speculators and participants in the world’s most liquid and active financial exchange strongly depends on the service they receive by their forex brokers. It is important to remember that these are retail forex brokers, rather than market makers or commercial banks, and that they only represent a small percentage of the global forex market.
Retail forex brokers today operate in a highly competitive environment. Most of the interactions these brokers have with their clients is through electronic communications, and occasionally over the telephone. When online retail brokers first arrived in the 1990s, their major selling point was the electronic trading platform they operated on as well as the reliability of the clients they offered to clients. While strong platforms are still important, other factors such as fees, customer service and special features are now heavily influencing the decisions of traders.
Choosing Modern Retail Forex Brokers
Luckily for forex traders these days, there is a considerable amount of information on the Internet about potential retail brokers. Online reviews from existing and former clients can be refreshingly informative or brutally honest. Prospective traders should employ critical thinking when reading these reviews. It is easy to confuse a negative review from a client whose trades resulted in losses with an objective review of a broker.
Reviews of modern retail forex brokers should be devoid of major issues with the trading platforms or the clients used. Those may have been common at the end of the 20th century, but such issues would be inexcusable these days. Multiple customer service issues, however, can understandably raise a series of red flags.
Innovative Forex Brokers
Some retail forex brokers have gotten very innovative over the last few years in order to attract more clients and stay competitive. They do this by offering attractive user interfaces, access to their online platforms on the go through mobile clients, free research and analysis, social media interaction to enhance trading, deposit bonuses, debit cards, and more.
These innovations are hardly gimmicks, but they should not be the most important criteria for traders to consider. Reliable customer service and prompt handling of deposits and withdrawals should be higher than innovations on anyone’s list.
Forex Broker Account
For anyone who is looking to make money off of currency trading, it is necessary to create what is known as a Forex broker account. This account is going to allow you to transfer money into a specialized account so you are able to trade it for different currencies. This account also monitors your different currencies, so you know how much you have available, what kinds of currencies you own and what your current statistics are. Due to this, you really need to monitor all of your key information, and with the Forex broker account, you are able to see everything you need to.
Open Forex Broker Account
Opening up a Forex broker account isn’t all that terrible. For starters, you need to find a company that allows you to trade in currency exchange. There are many different locations that give you this option, you just need to select one that works best for you. Some of these services allow you to make all the needed trades, without having to go through an actual broker, while others require you to go directly through an in person broker. There are different fees also associated with the Forex broker accounts. Due to this, you need to know what is going on and what different fees are associated with the accounts. Doing a little bit of research is going to help you find the very best account for your needs. Those who trade more with Forex might need one service, which charges a flat monthly fee, while other individuals might want an account that charges per transaction.
Monitor Forex Broker Account
When it comes to your broker account, you need to stay up on what is taking place in the world of currency exchange. A good broker account is going to give you access to the latest news and information. This way, it should help you with performing the necessary trades and what is taking place with not only the countries with whom you own currency for, but other countries you are interested in trading currency with. Regardless of what currencies you own, it is important to know how the different forex broker accounts are going to help you out and what the accounts are able to do for you. In the long run, this is going to help you drastically improve your performance and make the most possible money with the trading services.
Guide To Choosing a Forex Broker
A Forex (foreign exchange) broker allows individuals to trade foreign currency. Since there is no central market (like the New York Stock Exchange or Nasdaq) for foreign currency exchange, all trades must go through a broker. A forex broker is the ‘middleman’ between the person who is buying the foreign currency and the person who is selling it.
Foreign currency is traded in pairs, since traders buy one currency with another. There are four major pairs (dollar/yen, euro/dollar, dollar/Swiss franc, and British pound/dollar), which are traded by every forex broker. Any two world currencies create a pair, but not every broker deals in every pair. If an investor is interested in a specific currency pair (other than the four major pairs), select a broker that deals in that pair.
Forex brokers can be found all over the world, and it is important to take the time to make sure that you are working with a reputable broker. In the United States, the Commodity Futures Trading Commission (CFTC) is a government agency that is tasked with protecting people from fraud in forex trading and to protect the transparency and fairness of forex markets. This organization ‘polices’ forex brokers who practice in the United States.
- The National Futures Association (NFA) is an industry organization made up of forex and other futures traders. The NFA helps member brokers to understand and comply with government regulations. It is important to remember that this is a self-regulating body.
- A forex broker who is a member of the CFTC and the NFA will include this information on its web site, and membership in these two organizations should be the minimum standard for selecting a broker. Forex brokers who do business in other countries will be regulated by other organizations.
- Forex brokers can offer margin accounts, or leverage, allowing customers to purchase more currency than they have cash in their account. Margin is similar to a loan from the broker in that margin accounts need to be covered, or paid back, with proceeds from trades.
Forex brokers are paid on commission. This means that they receive a percentage of the spread on each trade they broker. The spread is the difference between the asking price and the bidding price of the currency. Some brokers will advertise that they do not charge commissions, but these brokers will only trade larger spreads, which can be difficult to profit from.