In today’s advanced world financial trading market is a regulated or governed activity, countries like The USA, The UK, The EU, Australia, Japan, and Canada are very particular about this.
The governments and concerned institutions have rules and regulations for licensing and regulating the financial brokers. In case of any misapprehension between you and your broker, these institutions will have a decision authority; your broker should have a license otherwise the terms of your contract is only your protective shield, which is not sufficient enough. While signing a client agreement, you should be conscious about your broker must possess a license.
The financial market is brimming with numerous brokers and banks that provide suitable trading accounts, offering services according to your business nature and needs.
The Broker’s office
Market makers is a suitable term for dealing desk brokers. A market maker is just not only an access provider but a special person who designs a market for yourself. He shows you the actual price of quotes. He saves your financial position by letting you provide a platform for safe trading instead of using any interbank he himself keep your money in case of loss and provides you his own case of profit. In this financial trading world, the only other available party is your broker, so he rightly called market maker.
There arises a question as for many traders a broker as a market maker is merely a non-functional body while ECN is a safe way. Is broker, being a market maker, a bad option?
The answer is simple; you are in safe hands if your broker is under the safe cover of rules and regulations of, the ASIC in Australia, the FCA in the UK and MiFID’s regulators working. You may feel secure against (i) the broker misrepresents your capital or changing your charts and (ii) your capital is an isolated or separate account in case of broker’s or bank file’s bankruptcy.
Once you have selected a broker, let get started with step two which is selecting a right trading account. A broker in the trading account is just like your common debit account with a bank, but very minor that you can invest your capital in your trading account to get into the financial market. In this case, you can use your capital to start online Forex trading.
After reading guides about forex trading, you will come to know about the pros and cons of high leverage. It is observed that Forex brokers UK offer high leverage as compared to other stockbrokers, financial broker or any commodities brokers. There is a minute difference between using and abusing if we consider high leverage.
The world-class advice is, always play safe means invest your capital as you can lose. Forex trading is similar to trading in another financial market. It’s a hazardous venture in which risk capital must be used. In this case, the trader can be in the safe zone as invests his risk money. So he must be careful while investing his money especially in the early stages of Forex trading.
Before starting a Forex account, you should have a complete knowledge of this financial bailiwick. You are advised to start a demo account. This demo account will allow you to have a complete experience of Forex market with the cost of ZERO money. Practice your skills on this demo account till the complete understanding of real Forex world. Real feel comes with real-life experience, so live account has no match. Let’s start your Forex venture with a demo account!