Financial instruments are expensive, and companies will always find a way to pass that burden onto their consumers. It is this balance between how much a trader will make and how much it will cost them completing said transaction that determines profitability.
Obviously, there are different costs that any given trader might incur. But, when it comes to forex trading, the main one will always be the bid-ask spread. And when talking about the bid-ask spread, there are only two options to choose from: fixed or variable. Neither option looks better than the other at first look. After all, both have their own and highly distinct advantages and disadvantages.
However, there are many ways to take when it comes to your money’s well being. Regulatory bodies play a huge part in Forex trading and the safety of each investor, and one of the ways they ensure this is with investor compensation schemes.
Since it is of your best interest to keep your investment secure, you are about to learn all you need about them.
Thanks to the recent consulting related to the sale of derivative products to retail customers and traders, the Financial Conduct Authority (FCA) plans to implement similar measures now, while it is intending to extend such limitation so they include also products that can be easily substituted to a certain extent.
The reason for such extension of existing limits is the revelation of serious risks for the clients who trade at retail markets.
The purple broker - Purple Trading – is trying to bring completely new and unique innovations to our “modern” world of finance for some time already. Primarily, we had a vision in Purple Trading to develop technologies and services in general that will make the life of people and traders all around the world easier. And we could see later, it was successful.
With regard to the fact that also thanks to you, our clients, we are still growing as a company, we would like to stick to our values even more, including e.g. freedom, fair attitude or friendship. Therefore, we have joined a completely new and unique project, the “purple foundation” which aim is to provide help to those, who missed that much luck in their life as others.
And as we do not only speak, but do real things - this idea did not stay only in paper, but we are part of the Purple Foundation in fact. This allowed us to support organisations performing meaningful work and supporting those who faced uneasy situations in their life.
Nevertheless, skilled and experienced forex traders will be able to more easily identify these opportunities and to take advantage of them. There are several different types of forex arbitrage opportunities.
These bonuses are usually small, and the average bonus range is from as low as $5 to as high as $100.
With a no deposit bonus, a new forex trader or investor is not required to make a deposit in order to trade through the platform. The proceeds may be used to start trading on the platform and basically allows the trader or investor to try out the broker’s platform for free. That’s a great incentive! Also, the no deposit bonus allows a trader or investor to gain some trading experience while having the opportunity to test the broker that they signed up with. This presents an opportunity for the trader or investor to actually make profits using the broker’s own funds.
How is this even possible? What is the problem? This will be the topic of today’s article.
Has it ever happened to you that the broker deepened your loss compared to the one which was originally set as Stop-Loss?
Do you know why?
Recently, the hottest topic in the world of financial markets is the planned ESMA regulation for sure, not only restricting trading binary options completely, but it also limits the use of financial leverage followingly:
Are such worries legitimate and is the forex as we know it coming to an end, or is it all just about the transition from gambling to trading for some traders?
One such possibility is investing in the strategies of experienced traders who trade for a living either on Forex or on other markets. But to be able to legally manage their clients’ funds, they must get the necessary authorization or licenses, which is not an easy task.
In the previous article, titled “Regulation in Forex Trading” we discussed how the Forex market is regulated, what are the respective regulatory authorities in some of the developed countries as well as what regulation means for traders.
Do you disagree with ESMA about the restrictions on trading leverage in EU? Make your opinion count!
However, before we start writing about the issue itself, we would first like to show why this topic is so extremely important. The main issue is the fact that many traders have a great and profitable trading system on paper (theoretical), but in reality – on a live trading account very often it does not work.
Operating on the foreign exchange market long term is the dream of many beginning and experienced traders. When traders get through the rough patch of starting out in Forex, they get more knowledge, experience, and abilities to get closer to their goal.
How fair or unfair the trading will be thus depends entirely on the broker that you will trade with.
If there are other buy orders from other clients then the broker can match the two orders in which case the two clients will trade against each other. However, if there are no opposing orders from other clients then the market maker broker will itself sell the currency pair to the trader.
Below we have prepared a simple list of differences between poor-quality and high-quality brokers that should help you to get a better view of your current broker.
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