Forex Investment, Tips And Advice

Forex investment

When you invest in Forex, you can never take too many precautions. We invite you to read our advice, coming out of direct experience and verification/proof/knowledge of how much this sector can bring large winnings and substantial losses in a few minutes. The important thing is to be patient, to want to learn and maybe be lucky enough to fall in with some serious professional.

Thanks to our long-term experience in the sector of private investment on trading platforms, we have reached a series of rules in the world of Forex. You can find below some tips on the best approach to follow when you want to invest in the Forex market.

Education

Education is the fundamental way of preventing losses. Statistics speak for themselves; a very high percentage of traders fail because they lack understanding in the rules and basic concepts that absolutely must be respected when investing.

The choice of the intermediary

The first trade that a private party or company carries out in order to begin investing is the choice and opening of the account with a broker. Through our experience, we have found ways of evaluating investments carried out on many platforms, both national and foreign, regulated and un-regulated ones, reaching some conclusions on how to choose the best intermediary.

The first evaluation to be made is certainly to make sure that the broker is regulated, in this document we will not suffer through the details of regulations, but below you can find a list of supervisory bodies for financial markets concerning the countries that the brokers themselves belong to: the CONSOB in Italy, the FCA in England, the ASIC in Australia or CySEC in Cyprus.

Beyond being regulated, it is important to make sure that funds are deposited on separate accounts, that is to say that they are deposited on a current account of an Independent Bank for the broker's assets. This will prevent, in case of problems, potential creditors taking advantage of assets.

Dealing Desk Broker or Not

Another evaluation concerns the procedure by which the broker operates. We can largely divide them into two categories:

Dealing Desk (DD) broker No Dealing Desk (NDD) broker. The first ones, the DDs, are normally called Marker Makers (MM) and the second ones, NDD, are also named STP (Straight Through Processing) or ECN (Electronic Communications Network) brokers. Without dwelling on the more technical parts regarding the differences between an intermediary STP or ECN, we...