Online Forex Trading Platforms Make The Foreign Exchange Market Very Accessible
Foreign currency trades were once available only to wholesale market players, or in other words, institutional investors and professional fund managers. The infrastructure and tools to allow individuals to trade foreign currency were simply not available. However, over the past decade or two, all that has changed. A large number of online forex trading platforms have been specifically developed to open up the retail market. Today, tens of thousands of individual, independent traders participate in foreign exchange market. Trades on the platforms are available 24x5, being closed on weekends.
Millions of traders now trade forex on a 24x5 basis with these trading on these platforms shut only during weekends. The platforms serve as aggregators or distributors for registered brokers that are authorized to transact trades with a licensed exchange. The platforms are available online transparent, easy-to-use and inexpensive in terms of commissions charged. The cost is generally 1-2 pips per trade. Some platforms also support trades in various other instruments such as the main equity indexes (FTSE, Dow and S&P500) as well as some commodities (oil, gold and silver).
The platforms are popular and used heavily by a wide range of users around the world. A platform may have more than a million account holders based in more than a hundred countries. Along with the low trading commission, another attraction is the low minimum deposit necessary to establish an account. Many platforms have $50 as the minimum deposit amount.
The platforms provide traders with user friendly interfaces, free practice account using live market rates, low initial investment, personal trading coaches graphic trade visualizations, spreads as low as 2 pips, no dealing desk, automatic execution, personal account managers, leveraged investment ranging from 1:5 up to 1:400.
The platforms have a plethora of education and training tools. These include online trading courses, free video tutorials, online blogs and forums allowing interaction with other traders, live chat rooms, access via video to live trading rooms and strategies formulated by experienced traders as well as 24x5 online account support.
The deposit of funds to establish an account is straight-forward. Many alternatives are acceptable such as bank transfers, major credit cards, Western Union as well as online payment systems such as Neteller, Moneygram, PayPal, Moneybookers or Webform. Interest on deposited account balances is usually not offered. Withdrawals are also relatively easy to arrange although the withdrawal process involves more time than depositing.
In conclusion, as is common in all foreign currency markets, the trading options are quoted as foreign currency pairs. A pair is simply the quotation of one currency relative to another currency. The currency that acts as the reference on forex trading platforms is called the base currency.
Article Source: FxTradingStock.com
About the Author
The uprising of forex techniques will always make things a little extra competitive to all. Whereas, you as a wise trader, must always look at the fundamental fx trading strategies.
by: Veidi Yee
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Word Count: 454
Date: Wed, 29 Jun 2011
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