One thing that is rampant these days is scams. Whether it be an email promising you riches for helping royalty or someone promising to double money you wire them, they are all over. In the trading world, there isn’t an exception. This is especially the case with FOREX since it is not a centralized market such as the stock market. But there are a few things you can look out for when you're getting started to make sure you don’t get roped into a false trading company.
Starting something new is exciting and scary at the same time. The unknown of what will happen, what will change, can be extremely overwhelming. I’ve prepared some questions I know brokers are frequently asked by people who are unsure whether they want to make the plunge and get into the Forex business or not to help guide you to some clarity.
Previously, we looked at some things to look into for choosing a broker and if you need a broker when it comes to trading FOREX. Here, we'll look into some of the questions you should ask your broker before you start with them. Knowing key details about your broker will affect your trading and profits. You can review Apiary Fund’s “creating a trading business” practices that go along with choosing a broker in their 13th education course. This can further help the profits and how to take in your profits from your broker. So, when picking a broker to trade with, ask these questions:
An extremely popular, and usually first, question individuals ask when they’re looking at getting into trading is, “What broker should I use?” or even “Do I need a broker to trade?” Short answer, at least with FOREX. is no. You don’t need a broker to trade currencies. The longer answer is yes, though. FOREX trading is really just saying “I want to make my Canadian Loonies into Japanese Yen, then to U.S. Dollars, then back to Loonies and hopefully, I will make money in that process.” Banks and international airports usually have a teller where you can walk in and do this. For that, no brokers to worry about. Instead, you just have outrageous conversion fees. If you’re looking to get into trading as a professional and not just add a cool-looking 100 yen bill to a shadow box at home, you need a broker to trade through like Apiary Fund. Review these tips before making a decision.
Margin and Free Margin are standard FOREX jargon you'll hear thrown around. But what do they mean and how do they effect you? Lets start with your leverage:
Proprietary trading is not a new concept. In fact, it’s been around for decades, though the structures of today’s proprietary trading firms are as varied as the selection of cereal at your local grocery store. Generally, proprietary trading firms, or prop shops, are focused on finding professional traders who can manage the firm’s assets. While the structure provided by a proprietary trading group is great for the professional trader who knows how the industry works, there are some hidden pitfalls for the semi-pro or greenie trader choosing a firm to work with. In this post from the Apiary Fund, I’d like to go over a few elements common to most prop shops, and show you how the Apiary Fund’s unique model compares.
You've probably heard the term, "It takes money to make money." One of the first things you should look at when getting involed with the Forex markets are the costs. While there are many costs to trading forex, most costs are categorized in three ways:
Explicit Costs, Implicit Costs and Optional Costs
When it comes to trading foreign currency, most investors have at least heard of the two main camps that most forex brokers fall into. There are Electronic Communications Networks (ECNs) and Market Makers. Let me begin by first introducing each of these.