Forex trade can be carried out both offline and online. It doesn’t matter which one you choose to operate with, they all serve the same purpose. While the offline forex trading may not require the basic knowledge of the internet, trading in forex online requires you to have a good knowledge of the internet laws and regulations in your region and to also have a basic idea of the internet.
With a trade volume of more than $5.3 trillion per day, the foreign exchange market is one of the largest financial markets in the world. When this is compared with the trade volume of the New York Stock Exchange, currently just $22.4 billion per day, you can understand the enormity of the FX market. These figures can however be deceiving. This huge figure of $5 trillion figure relates to a market which happens on a global scale. These numbers are actually much smaller when broken down. The retail FX trading, which is what you will be doing, is a mere $1.49 billion. This is still a big number, but it is not as big as many would have you believe.
Different names are bandied around in connection with Forex trading; currency market, foreign exchange market, foreign currency market, forex market and plenty many more. These all refer to a form of investment that is undertaken by businesses, banks, governments, individuals and traders who exchange and speculate on various currencies.
To so many, choosing a Forex broker that suits their needs and trading style always pose as a challenge to them. To be able to ascertain the reliability of the forex company, there is need to consider some factors such as the following
1. BROKER REGULATION:
The relationship between forex traders and their brokers can be said to be virtual. This is because they do not really have a one on one contact. The trader might be somewhere in Asia, while the broker is in Europe. Distance does not stop them from having a productive business relationship. However, it is important that traders ensure that their brokers are registered under identifiable regulatory body to avoid being scammed by anyone that may pose as a broker but is not.
2. TYPE OF BROKER:
Different brokers offer different services to their clients. Traders should make sure that whatever broker they wish to sign up with offers what they need to effectively trade the forex market.
3. CUSTOMER SERVICE:
It is only sensible that online forex companies attend to their clients or perspective clients whenever the need arises. How fast they respond when summoned, how knowledgeable they are in matters about the business, and so on.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.