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Finance is serious, choose your guide well!

Financial investment is something you need someone to help you deal in. When the firms allow a trading platform for investors and traders...

Qualities of a good broker

A licensed/regulated and supervised by local and international authority broker is a quality broker...

How does a forex broker make money?

In return for trading for your orders and deals, the broker charges commission from the seller and the buyer ...

Finance is serious, choose your guide well!

Financial investment is something you need someone to help you deal in. When the firms allow a trading platform for investors and traders, they let them buy and sell foreign currencies. A forex broker or a Foreign Exchange Broker handles and assists in such an investment. Brokers are the people who are the middlemen between the currency trading companies and the investors. They act like the supermarket in between the producer and the consumer. A quality broker invests your money in a profitable deal. He should have the insight and experience to judge such an opportunity.

Qualities of a good broker

  • A licensed/regulated and supervised by local and international authority broker is a quality broker. Without regulations, the broker has no laws to check from and hence he may do disastrous blunders.
  • He gives you an option to choose from a plethora of account types and explains about each one. He gives you the freedom to choose from this list, as; he understands that your expectations are dear to you.
  • He gives you a demo account to satiate your trading fantasies first before you get into the real world.
  • He puts your money in segregated accounts for safety in testing times.
  • A good broker has your trust and faith. If he keeps things transparent, he deserves to be where he is. The keynote here is, if you can trust your broker, you can rest assured of good returns on your investment.
  • He has a good experience about market trends. His portfolio is balanced. Not just success, he should have seen some failures too. After all, we all learn from failures better than what we learn from wins.
  • He should steer you in the right direction always. He keeps you abreast of the dynamics played in, and directs you if to be affected by it or not and how.
  • He gives you a risk warning in every possible way. A broker who keeps alluring with offers, cash-backs, and bonuses or likewise isn’t doing his job
  • A calm broker settles your impulse. You may be desirable to invest in a certain lucrative deal; however, it should be thoroughly analyzed. Here, your broker pitches in.

 

How does a forex broker make money?

In return for trading for your orders and deals, the broker charges commission from the seller and the buyer, both. The spread is the broker’s commission. There is a difference in the bid price (of a deal) and the ask price (for a deal), the broker will keep the difference portion as his takeaway. No matter the gains or losses, the broker will take his commission. Sometimes brokers offer commission-free services and only take their spread, however, in such cases; they usually increase their take by widening the spread. Also, to earn well, and of course, it falls in the broker’s prerogative that for the same currency, their bid and ask prices are different for investors. Hence, to keep a keen eye on pricing is a good idea.

 

Wisdom bit

For those who are sincerely thinking about investing in forex, should fore mostly look for a good broker. There are many in this sector baiting for investors who have a big capital base and are enthusiastically looking to invest. There are fraudulent schemes and offers from the money minting brains, which promise huge gains but return losses. There is a lot penned down about forex/finance and trading; all experienced finance pros become finance authors. Read, but nothing teaches better than experiencing yourself. So, be aware of the market fundamentals, trends, and charts. Do the analysis, ask and question. If need be, object.

Keep in mind

The trends vary from day to day, week to week, month to month and year to year. Know yourself as an investor. What kind of investor are you? And decide in retrospection.

As a novice investor, go slow and invest low. Pay attention to indicators, strong or weak indications in the charts can help you decide your next move. This can be buying another currency while one is falling or something else.

 Learn from professionals and avoid ditsy making mistakes. After all, it is your own money.