What is a Currency Trading Platform
Currency Trading Platforms are independent Forex dealers who have a certain credibility and capability. They provide bid ask prices of currencies to investors 24 hours a day, everyday except holidays. They are also responsible for take the buy sell request of investors. A currency trading platform itself are allowed to trade with other investors with its own capital. When there are scarce transactions in the market, a currency trading platform can act as the counter party to complete a transaction so that customers do not need to wait for a counter investor to appear. And by doing so, currency trading platforms maintain the liquidity of the market by promoting continuous flow of transactions.
How to Pick the Best Currency Trading Platform?
There are countless currency trading platform from different regions or countries existing in the Forex market. On the outside, they are all the same. But in fact, there are subtle differences which can mean a lot to your forex trading career. For forex trading beginners, it is dazzling to pick the best out of all the currency trading platforms. Forex Trading Systems Centre is committed to help forex beginners to succeed in the market. We are going to make it simpler for you to pick the most suitable one.
Common Selection Criteria of Currency Trading Platforms
First of all, let us review how average investors select a platform to work with:
Looking for a Bargain
These investors pick platforms that offer cheap packages and a lot of additional “benefits” like account setup bonuses.
Looking for Convenience
They look for currency trading platforms great support and services. For example, 24 hours free phone support, online forex forums and forex trading advices.
Passive Selection
This group of people pick whatever agents or friends recommend.
Independent Review
No careless blind follows. These investors research and compare different platforms all by themselves.
In a new emerging market, there are more type 1 investors. In Asia, perhaps due to cultural and regional reasons, there are more type 1,2 and 3 investors compared to US. But obviously, these are less wise methods to make an important choice like picking a currency trading platform. Together with the development the market, there are more careful type 4 investors. They do decisions objectively, asking wise questions. In selecting the best currency trading platform, there are two main focuses: First, the credibility of the agency. This is a question concerning the safety of your capital and the execution of your transaction commands. Second, technical capability of the platform. Is the platform stable? Is the currency exchange rates reported real time?
Credibility of a Currency Trading Platform
First, one of the most important evidence of credibility we look for, is whether there are independent regulators in the country of the currency trading platform. If there is, make sure you check the registration of the platform at the official regulator. Usually, the regulator is responsible of making related rules for the forex trading market that aim at controlling the dealers and protecting the rights of investors. Investors can check the condition of the platforms’ registration, customer complains if any or make a complaint on the website of the regulator.
Online Forex business begin in Europe and US around late 90’s. Different government treated the industry differently due to its high risk, highly speculative nature and the complexity of regulations. Some European countries and places like Japan and Hong Kong, began to accept the business and trying to regulate it. These include US, Britain, Australia, Canada, Japan and Hong Kong. The ways they did it are very different, however, they mainly regulate the forex market according to the regulations of securities and futures, adding additional guidelines and provisions when necessary.
Recommended Currency Trading Platforms
Easy-Forex
Full leverage on funds: Enabling 100% use of funds for leverage, no extra collateral
Leverage ratio: 1:50, 1:100, 1:200; plus special tailor-made leverage ratios.
Mini and various scope accounts; Special terms accounts: Yes
Minimum Initial Deposit: US$25.-
Minimum Transaction Size: US$5,000.-
Non-currency Forex products: Gold; Silver; Oil & other energy commodities
Quotes on wide selection of currencies: All main currencies
Fixed Spreads: 2-5pips
Upload account on-line: Yes