Online Trading Australia

Online Trading Australia

Are you interested in trading Forex? Overpowered by trading jargons and don’t know where to start? It’s OK, most traders experience this at some stage.
Where you should begin becomes a personal preference. How much time do you have to learn to trade? How much money do you have to get started and what are your expectations?

Before actually trading there are some foundations that need to be in place to make sure that when you do start trading, your money is as secure as possible. First off is finding a good, regulated broker that provides the service you are looking for.

Some things to look for include:

Online Trading Australia

Online Trading Australia

1) Regulation - Safety of Funds

Are the client funds insured? Many online brokers operate under tight regulatory environments imposed by regulatory authorities of countries in which brokers are licensed in. Some countries forex trading regulation are more demanding than some other countries especially off shore countries. Countries such as Australia, Canada, Switzerland, United Kingdom, and United States have dedicated monitoring of forex brokers. Always check to verify which regulatory authority the broker is regulated by. If you cannot find the information on their web site, make sure you contact them before by signing up to trade with them. If the broker is not regulated by any regulatory authority or licensed by a reputable authority, then I would suggest you find another online broker.

2) Execution of Trade
Find out what a prospective forex broker employs in the way of business models. For example, are they more of an electronic communication network or market maker? Does the broker offer automatic execution for trades? If not, how fast is order execution on average? Do they offset client trades? How much can you trade without requesting a quote? These are all good questions to ask a prospective broker.

3) Trading Platform
Is the trading platform downloadable or web based? And can it handle high volume during a fast-moving market. Though a given platform may run well on normal days, you're not going to know for sure how it performs on fast days until you see it in action. Does it offer important order types such as Limit and stop orders. Also, how many currency pairs you can trade and what other services does the platform provide. As a minimum it should offer charts and breaking news that affects the currency markets as well as a demo account to get the feel of the trading platform before trading live.

4) Account Size
Some brokers have minimum account trade size that you must trade and some brokers will not allow you to adjust the standard lot traded. Also, some have mini and standard accounts in which to trade and require a minimum account opening balance to trade.

5) Spread
Forex brokers make their money from the spread. In forex trading, the tighter the spread is, the better. However, it is important to find out whether the broker spread is fixed or variable. A fixed spread means the spread does not fluctuate and is the same day or night. Some brokers use a variable spread, which may seem narrow and tight while the market is quiet, but when things get volatile they can widen the spread which requires the market to move greater in your favor before you start to make a profit.

6) Commissions
Does the broker charge commissions or are they built into the spread?

7) Margin
Find out what your broker's margin requirement is. Some brokers have different margin requirement for standard and mini accounts? Also does the margin requirement change for different currency groups or days of the week?

8) Support
As forex trades 24 hours a day it is important to find out what kind of support the broker offers. Do they offer phone support 24 hours a day or just email support? The broker should be offering 24 hours support and also be able to provide orders over the phone just in case you lose internet connection at a critical time.

Comparing online brokers on these factors will help you make the right decision when choosing a broker for you. With the power and speed of the internet today, it isn't hard to choose the right broker. When you have found the right one try them out by using their demo account before signing up with them. Journey to 1000 Pips, Inquire now to know more!

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