Currency Trading has become a n interest for thousands of professional and beginners entering this capital market. With so many avenues to chose from its important to start correctly.
The Capital Markets grew immensely in 2009 when Trading Forex became fashionable. Yet many had to deposit a minimum of £40,000 to even start. So the market between the banks and the forex brokers opened up and the Brokers contracted price feeds from the big banks in order to be able to sell sub accounts to the retail market; This way anyone wanting to trade forex with as little as £100 could do so.
Introduction to Forex Trading Basics
The Forex Market has seen many different Brokers come and go globally. The main focus of a forex broker staying alive is the dealing room. The STP we call room. The one room that should be on AUTO PILOT covering all clients trades. When a client makes a trade the broker dealing room should be covering the forex trade automatically using the designed manager platform or as commonly used metatrader manager platform.
To differentiate from the honest broker and the corrupt brokers. The honest broker makes agreements between themselves and the liquidation firms known as the big banks on markup spread. This is the profit a broker makes. However the corrupt not only keep this markup price but also shift the prices against their clients on the platforms in order to gain more pips or profit from each trade.
In 2015 we all saw the CHF drop +1000 pips ( points ). did anyone notice in that month how many forex brokers closed down???? Let me explain, a Dealing room manager get a Profit and Loss target every day. ( illegal yes) . This target is based on shifting prices against client trades. Sometimes the client srecognises this issue as he or she gets a REQUOTE in trading. Many brokers will tell them the excuse of internet connection speed. Don’t let this fool you.
Corrupt Forex Brokers
Going back to the situation with the CHF. Many broker dealing rooms see the currencies going up and down give or take 50 – 100 pips per day. However nobody in the Capital Market was expecting a 1000 pip movement on CHF. When this happened the LEGITIMATE forex brokers were covering trades on autopilot. Thus the Broker stayed financial safe.
Safe Forex Brokers
FxPremiere Group work extremely close to each broker they make contracts with. They monitor their trading styles and dealing room reputations before offering the services to the general public. Hence why FxPremiere.com and MT4-indicators.com reputation stand strong for almost a decade.