What kind of company does FX?
What kind of image do you have for Forex companies?
Nowadays, it is common to trade online, so we can only guess from information such as photos, letters, and company profiles that can be seen on the homepage. You will also hear rumors from friends and acquaintances. After all, I want to choose a company that I can feel safe with because I am entrusting important money. Here are some points that are important when choosing a Forex company.
Is the FX industry itself safe?
It was relatively recently that FX was opened to general investors, and the Foreign Exchange Law was revised in 1998. Until then, only financial institutions could trade foreign exchange (FX), but now non-bank traders have also started trading. It started when I was able to start working. Taking this opportunity, various companies entered the industry in a jumble of ways, but at the time there were no strict rules in place. Various problems arose there, but the 2005 financial futures trading reforms put the Financial Services Agency under strict control and supervision, and companies with sloppy fund management and fraudulent companies were wiped out. With the enactment of the Financial Instruments and Exchange Law in 2007, FX has become a highly reliable financial product that stands shoulder to shoulder with stocks and investment trusts.
How will the deposited money flow?
There are two types of Forex: over-the-counter trading and exchange trading. In order to understand the difference between these two, it is necessary to understand the flow of money that you deposit with the forex company.
Over-the-counter transactions are deposited at the trust bank that each FX company has its own contract with, but in the case of exchange transactions, they are collectively stored at the Tokyo Financial Exchange. In both cases, even if the Forex company goes bankrupt, it is a mechanism to protect your deposited money. Depending on the FX company, there are companies that only handle over-the-counter transactions, companies that only handle exchange transactions, and companies that handle both, so be sure to check in advance. In the case of foreign exchange online, both are handled.
which one is better? Over-the-counter and exchange trading
So far, both are equally safe for investors.
The biggest difference for investors is transaction fees and swap points. The difference is that exchanges charge transaction fees, but swap points are advantageous. On the other hand, over-the-counter FX is free of transaction fees in most cases, but swap points can be said to be a disadvantage.
Forex online supports both, so choose according to each trader's trading style. For example, exchange FX is more advantageous in the case of currency pairs with large swap point spreads, high-interest rates, and Turkish lira, which is suitable for long-term holding. On the other hand, if the holding period is short and the number of trades is high, over-the-counter FX is definitely more advantageous.
Is it safe to use a face-to-face FX company?
If you want to start Forex, it would be a good idea to get information on various websites, get an introductory book on Forex, learn the basics of Forex, and learn how to trade.
And it will be a good study to participate in the seminar of the Forex company that is free of charge. The words of a veteran trader who has actually been active in the world should be a bit different. And after the seminar, in most cases, you can ask the instructor questions, so feel free to ask anything. Another advantage of participating in seminars is that you get to know the atmosphere of the company. Forex trading is almost always done online. By actually visiting the company and feeling the atmosphere first-hand, you may be able to understand the company more specifically.
Make full use of free information!
Each Forex company offers various services to support the investment activities of traders. The schedule of each country's index release that may affect the exchange rate, and the reports by senior analysts are updated daily on Forex Online, so you can check the previous day's review and future cautions. In addition, in the "Foreign exchange LAB", weekly reports by eight famous traders will also train your eyes to see the exchange rate. There is also a wealth of information available that may be useful for market forecasting. I'm sure you are all busy, so it will be difficult for you to read all the reports.
So, why not sit back and read only the reports of a particular prominent trader? I'm sure you can understand the unique market perspective of the person. I think that you will surely acquire your own trading style while understanding various trading methods. For that reason, please take full advantage of the reliable information that you can obtain for free.
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