Forex Trading for Beginners Part 3
In this third part of our continuing series on forex trading I'll be providing more details on the background of forex trading as well as further information on why the advantages of forex trading have made it the most popular form of global investing for both small and large players.
First, it is important to understand that forex trades can be made at almost any hour of any day. There are just a few gaps over the weekend between market openings but other than that it's an open market. What does this mean for the trader? Well, it's just one of the advantages that forex trading has over other forms of trading. You have much more control over when you can trade and since the forex market can be so volatile being able to make trades whenever you want is extremely important.
Another factor that gives you control is the fact that you don't need to use a broker to trade through. YOU trade directly through a software platform that is provided by a brokerage firm. You make the trades yourself based on your own interpretation of the market and not advice from a broker who may have ulterior motives for giving that advice. For example, in the stock market there are many brokers who provide advice on stocks that is based on their own agenda. This is one of the reasons that many people have moved to forex trading from the stock market - they simply became mistrustful of taking advice from brokers that they lost faith in.
Now although you don't need a broker to make trades you do need a company to set you up to trade and here it is very important that you choose a reputable firm to deal with. Basically, the firm's involvement is as follows. You will set up an account with a forex firm and deposit some money. The firm will provide you with a software program that will allow you to make trades. The more reputable firms will provide on their websites information such as you are reading in this article to help their clients learn as much as they can about forex trading. After you are set up to trade, however, as mentioned above you do not need to make your trades through a broker. You control your own trading.
One important thing to consider when choosing a company is whether or not the company is regulated by a government banking system. This is important to ensure that your funds are 100% safe at all times. Many forex companies, even some of the largest in the world are themselves unregulated and also based in countries that have loosely regulated banking systems. This is potentially worrisome so it is best to stick to forex firms that are regulated and in countries like the U.S., Great Britain, Australia, Canada or other countries that also have strict banking regulations.
In our next article I'll cover more of the basic aspects of forex trading so that you'll have an even clearer picture of how you can get involved in this exciting form of investing. I'll highlight the advantages of forex trading over other forms of investments along with other interesting information.
First, it is important to understand that forex trades can be made at almost any hour of any day. There are just a few gaps over the weekend between market openings but other than that it's an open market. What does this mean for the trader? Well, it's just one of the advantages that forex trading has over other forms of trading. You have much more control over when you can trade and since the forex market can be so volatile being able to make trades whenever you want is extremely important.
Another factor that gives you control is the fact that you don't need to use a broker to trade through. YOU trade directly through a software platform that is provided by a brokerage firm. You make the trades yourself based on your own interpretation of the market and not advice from a broker who may have ulterior motives for giving that advice. For example, in the stock market there are many brokers who provide advice on stocks that is based on their own agenda. This is one of the reasons that many people have moved to forex trading from the stock market - they simply became mistrustful of taking advice from brokers that they lost faith in.
Now although you don't need a broker to make trades you do need a company to set you up to trade and here it is very important that you choose a reputable firm to deal with. Basically, the firm's involvement is as follows. You will set up an account with a forex firm and deposit some money. The firm will provide you with a software program that will allow you to make trades. The more reputable firms will provide on their websites information such as you are reading in this article to help their clients learn as much as they can about forex trading. After you are set up to trade, however, as mentioned above you do not need to make your trades through a broker. You control your own trading.
One important thing to consider when choosing a company is whether or not the company is regulated by a government banking system. This is important to ensure that your funds are 100% safe at all times. Many forex companies, even some of the largest in the world are themselves unregulated and also based in countries that have loosely regulated banking systems. This is potentially worrisome so it is best to stick to forex firms that are regulated and in countries like the U.S., Great Britain, Australia, Canada or other countries that also have strict banking regulations.
In our next article I'll cover more of the basic aspects of forex trading so that you'll have an even clearer picture of how you can get involved in this exciting form of investing. I'll highlight the advantages of forex trading over other forms of investments along with other interesting information.
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