What is Forex?
Forex and ‘FX’ are shortened terms used for ‘foreign exchange’. Foreign exchange or ‘currency trading’ is the exchange of money from different countries. The value of one country’s currency is constantly changing against the value of another country’s currency. Forex traders make money through buying and selling currencies on the foreign exchange market.
What are Forex Instruments?
Forex Instruments are the products or ways of trading in foreign exchange. Examples of Forex Instruments are Day Trading, Limit Orders and in some regions also Forward deals.
Is the Forex market regulated?
Yes, in many world regions Forex is regulated (though not all regions).
Is Forex risky?
Yes, Foreign exchange trading does involve substantial amount of risk. With most Forex Trading platforms, you cannot lose more than your ‘margin’, the money you are prepared to risk plus the daily rolling fee if you have entered a Day Trade transaction. Profits are unlimited but you can never lose more than what you initially risked. However, risk only what you can afford. Before you join you need to read the Disclaimer and Terms and Conditions of the Forex Trading site.
What should I look for in an online trading platform?
There are many online platforms available to trade with. Some key points to look for in the platform you choose:
- level of personal service and support - live chat, SMS services
- personal training
- trading tools offered including charts, outlooks, news, financial calendars
- ease of platform – can you do everything online or do you need to download software
- how quickly can you can start trading
- easy deposit methods – e.g. e-wallets such as PayPal, credit cards, Wire Transfers
- 24 hour access to your account
- leverage offered
- tailor-made accounts and spreads
- real-time exchange rates
- no hidden costs – commissions on deposits or withdrawals
- no maintenance margins
- cost of renewal/rolling fees for Day Trades
- guaranteed rates and stop loss limits
- security and safety of the site and your information
- a company that has a regulatory license for your region
- genuine company with real people in real offices around the world
Please note that Forex Trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.
