Choosing a forex trader
To choose a forex broker needs that you first of all figure out the type of investor that you are and the goals you have in investing in the currencies. Exness, like any other broker who features the forex investments has their own disadvantages and disadvantages. Some of the things which are most important that you have to consider are the security level which is provided, regulations and the transaction fees.
The security features tend to vary form one broker to the next. There are some brokers which tend to have security features which are integrated such as the two-step authentication which ensures that the accounts are safe from being hacked.
Most of the forex brokers are regulated. The brokers found in the US are normally regulated by the NFA – National Futures Association and some with the CFTC – Commodity Futures Trading Commission. And for Germany, France, Australia, Switzerland, the United Kingdom and Canada, they also do have forex brokers regulated. But you have to know that, not all the brokers are regulated and thus, a need to be wary of firms which are unregulated.
Brokers also tend to differ when it comes to their platforms which have different requirements for the account minimums and the fees for transactions. Before you start to hop from one trading platform to the next, you might want to come up with a budget for your investment in life.
You have to figure out the amount that you would wish to invest in, the amount which you are willing to pay for the fees and what your goals are. There are several factors that you will have to explore as you choose the right platform for yourself. Ensure that you are able to take a lot into account before you get involved.
Getting to understand the forex currency pairs
It is recommended that, before you can go ahead and sign up for a forex trading account, you have to know the basics regarding the forex trading market from the pips to the currency pairs, to profit and much more. The currency pair is one which likens two currencies value via a denominator/numerator relationship with base currency being on top and quote currency to be on the bottom.
In EUR/USD currency pair, being the most popular instrument for forex trading in the world, where the EUR happens to be base currency, with quote currency being the USD. With the EUR/USD quote, they are able to display a ratio which roughly matches what you are likely going to pay in case you visit Paris and there is a need of exchanging dollars for euros.
The USD normally equals $1.00 in such a calculation and that a EURUSD 1.23000 quote denotes that the euro is trading at about 23 percent higher than the USD. Each ratio is normally quoted in two to about five decimal places and comes in a version which is flipped over, creating a new pair of currency which moves in the opposite direction.