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Foreign exchange, FX or forex trading is the largest, most liquid and actively traded asset class in the world in which currencies are pitted against one another to determine foreign exchange rates. According to the Triennial Central Bank Survey of Foreign Exchange and OTC derivatives markets conducted by Bank for International Settlements (BIS), daily traded volumes in the globally decentralized or over the counter FX markets exceeded $5 trillion in April 2016.
Forex markets are open 24/5 and trading is carried out by a large number of participants comprising of central and commercial banks, financial institutions, hedge funds and corporates. If you’re a newbie to forex trading, there are a number of basic jargons and forex trading strategies that you need to be familiar with before you begin trading. The first step would be to understand the key elements of forex trading and the factors influencing prices. You can find quite a few online forex tutorials that can assist you right from the basics of the forex markets and also familiarize you with some of the key forex trading strategies used by successful traders.
Once you’re acquainted with the fundamentals of the forex markets, the next step is to start looking for a reliable retail forex broker. Since there are numerous FX brokers offering identical products and services, it is hard to differentiate between the genuine and phoney players, especially if you’re a newcomer. One way to overcome this issue is to identify a forex broker who is registered with the financial services authority in the country of operation. JustForex is regulated by the Belize International Financial Services Commission (license no. IFSC/60/241/TS/17).
Setting up your trading account with a regulated forex broker is the most important step and many countries have regulators specifically governing FX brokers to ensure fair and ethical business practices and they typically frame a large set of guidelines that also includes all licenced FX brokers to maintain sufficient capital requirements to guard against uncertainties in the markets. Licenced FX brokers are subject to frequent audits and reviews by the regulator who also acts as a watchdog to guarantee the safety of investor’s funds in the event of a financial dispute with the broker.
The next criteria is to prune the list of licenced FX brokers and go with the one that complies with most of the following characteristics
- Ensures funds are parked in segregated client accounts.
- Offers encrypted data exchange to safeguard unauthorized access to client data.
- Provides trading platforms that can function across multiple operating systems and devices.
- Unstinting access to demo accounts.
- Runs adequate liquidity at all times.
- Liberal spreads even during times of elevated volatility.
- Access to a wide range of real-time analytical tools.
- Moderate initial margins and appropriate leverage.
- Mix of products and services that compliment your trading style.
- Compensates clients if trading accounts run into negative balance due to unexpected market volatility.
JustForex meets all the above stated criteria and is a reliable broker trusted by millions of clients from across the world. We offer the most widely used MT4 platform and are associated with some of the world’s largest banks to ensure sufficient liquidity, even during thin volumes (Review of the JustForex). It provides the best in class forex trading infrastructure that covers a host of FX pairs, cryptos and social trading. We also deliver a wide range of forex trading strategies and our forex trading platform supports all devices.
Short-listed your forex broker! Now it’s time to start using the demo platform provided by the broker before you setup your LIVE account. Demo trading gives you the opportunity to learn everything you need to know about the platform and the forex markets beginning with risk involved in forex trading, margin requirements for the various FX pairs, the several lot sizes to choose from and the corresponding leverage. The demo platform also allows clients to test the various fundamental and technical analysis tools provided by the forex broker and allows paper trading your forex strategies until you’re fully organized to invest in the LIVE markets.