A very popular form of trading is done on the foreign exchange market, also known as the forex market place. You have probably heard of people doing daytrading, or perhaps trading foreign currencies. This is exactly where it is done. This is an industry that trades five trillion dollars in currency every day, with tens of thousands of people that are able to make a substantial amount of money. It is also an essential marketplace for without it, it would not be possible to conduct any type of foreign trade or business if currencies could not be exchanged. We will look at how you can open up an online Forex trading account with XTrade so that you can get started in this very lucrative industry.
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Online Forex Trading Account
Why This Industry Is Unique
This is one of the more unique ways to engage in online Forex trading because there is actually no central marketplace where this is done. Unlike the stock exchange, or when commodities are traded, everything is done over-the-counter electronically. There are vast numbers of computer networks that are operated by traders from all over the world. It is actually open five and a half days a week, trading 24/7, at major financial centers including Hong Kong, Paris, Tokyo and New York.
Why You Need to Open Up An Online Forex Trading Account
You will want to research many different companies, XTrade included, that offer this service before you open an online Forex trading account. It is very similar to how you will open up in equity market account, giving you the ability to have leverage to control enormous volumes of capital with a small investment. The type of leverage you will have could be a 250:1 ratio, which is very similar to how futures contracts are also controlled by investors. For example, if you had $1000 in your account, the broker that you are working with could lend you $50,000 to trade in this market, which means your margin, the amount that you have in your trading account, can be very low yet you can control so much. Most accounts will require you to deposit a minimum of a few hundred dollars, although it is better to have a couple thousand dollars to start off with. Once done, you can go through the tutorial training that are available, and get ready for the day when you finally decide to trade forex currency pairs for profit.
How To Open Up An XTrade Account
It begins by going to XTrade, a platform which offers you the ability to sign up and start trading in the Forex market place. Most of the providers will offer you with a practice account so that you can follow actual signals, make trades, and yet you will not be using any of your money. This allows you to fund your account with very little money, and begin to practice how you will use that money to start making more. Your evaluation of these companies will be based upon testimonials that people have posted online, leading you to the best choice.
Commissions And Fees
One thing that should be noted about having a Forex trading account and trading in the market is that unlike working with a broker where you are trading stocks, bonds, or commodities, there are no commission fees to pay. This is what sets it apart yet again from a typical equity marketing account where you are required to pay your broker for every trade that you do. This allows you the freedom to deal directly with the market makers themselves, and not lose money to a broker every time that you do a trade. Money is still being made with every trade that you make, allowing the market makers to earn revenue via the spread between the two currencies that you are trading.
Different Types Of Accounts Available
Every company that you find will have different levels of service that are available, fees that will be charged, so make sure that you are working with a reputable company. The Forex market place is less regulated, so make sure that you are doing your due diligence before signing up to make sure you are with the best one. Once you have your account set up, you can then participate with the free programs that they have available to get used to trading pairs of currencies. You can learn about the different types of orders that you can place, the different currency pairs that you can trade, as well as how to position a stoploss order.
Online Forex trading at XTrade does not have to be a difficult or frightening experience. When people start thinking about how much money is being traded, and how volatile this market can be, they may actually hesitate in setting up an account. Once you have gone through a couple of courses on FX, and you have narrowed down your final choice for when you open up a Forex trading account, you will certainly have the confidence to begin trading once you have practiced on the platform that you have signed up with to do trades.