Essentially one can trade in the Forex market in four different ways. You can trade manually, with a managed trading account from the brokerage, by using Forex forecast signals, or by using an automated Forex trading system. An automatic Forex trading system is a relatively new approach to Forex trading. It offers traders the benefits of automation and precision execution.
Before you can begin trading in Forex,You will need to open a trading account at a Forex company or brokerage. Your trading orders will be executed by the Forex trading company. Forex trading companies don't charge commissions for their services, unlike brokers who deal with the stock exchange. How Forex trading companies earn for their services is by charging a "spread" on the currency pair that you are purchasing. With the proliferation of online Forex companies, it is easy to get confused about which Forex trading company to choose.
Selecting the correct Forex trading company will require some research and time into the background of the company in question. Although it may take some additional effort on your part to find out about the services offered and the range of "spread" charged by these Forex trading companies, this effort will be worth it in the long term as you need to be fully satisfied with the party that you are closely working with in all your trading.
In order to give you some direction as to what to look for in a Forex trading company, below are some guidelines that you can follow to help you scrutinize the Forex trading companies that you are interested in.
Check to see if the Forex company is registered by a regulatory agency
Their customer service is excellent
Evaluate the online trading platform that they provide
What types of accounts do they have?
The company's policies
Regulating Bodies
Investors who are scammed out of their money and their hard-earned cash by unscrupulous Forex companies have few recourses for their losses. It is therefore important to choose reputable Forex companies registered with an independent regulator. The websi has more information about regulated Forex trading firms in the US. The Australian Securities & Investments Commission is responsible for regulating Australian financial companies. Their website is .
Customer Support
You need to make sure that the Forex company you sign up with offers you 24 hour technical support. You must not compromise because it's your money at stake. Ensure that you are getting "live" support and not a recorded "voicemail" on the helpline.
Evaluation of the Online Trading Platform
Any online trading platform's ordering system is the foundation. Ensure that the system have real time viewing of the exchange rates. The system should also provide you with a summary of all of your trading activity so that you can get an overview of your entire investment portfolio.
Account types available
A new trader has three options when it comes to opening an account with a Forex company. They can be a "Micro Account", "Mini Account" or a "Full Account". When you're just getting started in Forex trading, Micro or Mini Accounts are recommended. They allow you to trade at a smaller scale.
Company Policy
Before you sign up with any Forex trading company, you should also check their policies and well as any terms and conditions they might have. This includes checking:
They deal in currency pairs
The transaction cost like the "spread" and rollover charges
The margin requirement
The working hours
Interest rate they charge for utilizing the margin facility
Finding the xm broker mt4 right Forex trading company to deal with is one of the first steps towards venturing into the Forex market. As such, it very important that you take your time to evaluate each and every one of the Forex trading companies that you shortlisted.