Forex Trading Platforms Make The Foreign Exchange Market Accessible

May 19, 2012 by Leo D. Endo  
Filed under Finance

Trades in foreign currencies used to be the sole preserve of wholesale market traders like institutional houses, banks and professional investment managers. For many years, there was no infrastructure available to private individuals wanting to trade in the market. Online forex trading platforms have changed all that. Today there is a large number of web-based tools specifically designed for the retail market.

Millions of individual traders can now trade foreign exchange on a 24×5 basis market, closed only on weekends. The platforms essentially serve as distributors for brokers authorised to transact trades. They are a simple, transparent, easy and inexpensive channel through which to trade currencies. The cost per trade is generally 1 or 2 pips. Some platforms also offer the opportunity to trade other instruments including the main equity indices plus commodities.

The platforms are popular and used heavily by a wide range of users around the world. A platform may have more than a million account holders based in more than a hundred countries. Along with the low trading commission, another attraction is the low minimum deposit necessary to establish an account. Many platforms have $50 as the minimum deposit amount.

The online platforms have user-friendly interfaces, live practice account provided at no charge, small initial investment (minimum deposit), trade coaches or mentors, live graphs (with multiple time periods (minute, 5 minute, 15 minute and soon) and formats (lines, candlestick, etc), buy-sell spreads as low as one or two pips, no proprietary dealing desk, very rapid execution, personal managers for individual accounts, leveraged investment starting from 1:5 ranging as high as 1:400.

The platforms have a plethora of education and training tools. These include online trading courses, free video tutorials, online blogs and forums allowing interaction with other traders, live chat rooms, access via video to live trading rooms and strategies formulated by experienced traders as well as 24×5 online account support.

The deposit of funds to establish an account is straight-forward. Many alternatives are acceptable such as bank transfers, major credit cards, Western Union as well as online payment systems such as Neteller, Moneygram, PayPal, Moneybookers or Webform. Interest on deposited account balances is usually not offered. Withdrawals are also relatively easy to arrange although the withdrawal process involves more time than depositing.

In conclusion, as is common in all foreign currency markets, the trading options are quoted as foreign currency pairs. A pair is simply the quotation of one currency relative to another currency. The currency that acts as the reference on forex trading platforms is called the base currency.

What would a very effective forex trading tactic bring to your fx trading business instantly? Every type of forex trading strategy that is introduced must be scrutinized really well.

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