FOREX PLATFORMS AND THEIR USES
As far as markets go, the Forex market is an interesting one. As the world’s largest financial market, trading at five billion everyday, with millions of people all over the globe buying and selling currencies, it has to be. It is a good start when getting into investments (beginners find that accessibility is top notch and transactions are easy to follow). Transaction costs are low, and brokers get their profits from points in percentages, shortened as “pip”. It is well regulated, yet decentralized, and as a result, it is open 24 hours a day, with rates being moved all week, including on weekends (trading is closed to retail traders on the weekend). Traders can also get edges from leveraging. Leveraging is a process where traders are able to manage and control a higher amount than the capital they put in, usually through borrowing. These are just a few benefits of Forex trading; small details that make the market such an interesting thing to study and invest in. Forex trading is not just all about the traders though. There are other players in the game that make the market as versatile and interesting as it is.
Forex platforms are brokerage companies that offer Forex broker services to traders. They usually stand as a middleman between the large financial institutions, and the small-scale traders. They form a big part of the Forex market. The Forex market is the largest financial market, and consequently, quite naturally, there are tons of brokers out there that offer services to the public. Examples of these brokers include FXD,AvaTrade, Pepperstone, etc.
These platforms have many uses, to traders and the market at large. These uses include
- Price stability
Markets rely on many factors, and these factors control a lot of characteristics of these markets. Forex brokers are factors that greatly bring price stability to the Forex market. They are a balance, ensuring seamless trading, bringing more customers, providing a platform and in essence, making sure things do not get to chaotic and haphazard in the market.
Forex brokers provide much needed accessibility to the market. The Forex market is a global one and as such, traders come from countries miles apart. In a situation without “connectors”, this could greatly affect ease of trade, but with Forex brokers serving as the entities that connect buyers and sellers of currencies, ease of trade is ensured.
- Insurance from scammers
Most online transactions are open to the dregs of society that seek to rid people of their money and assets. Unregulated markets are especially vulnerable to these, but the Forex market is a regulated one, with most of the brokers being credibly licensed by bodies. This ensures that the public is assured of safety when trading with these entities.
- Versatile service
Most trading platforms offer a diverse range of services to their users. HotForex, for instance, offers over 18 trading tools and 6 account types. This broker offers over 10 trading platforms and 15 funding methods. This goes to show how versatile the typical Forex broker is.