In online trading, a rather profitable sector is represented by Forex trading (or currency market) where you do not trade shares, but through the so-called financial brokers you sell and buy currencies. Currency "crosses" are always in pairs: Us$/€, £/€, and so on.
The most traded currency pairs - also called "majors" - represent about 85% of daily Forex transactions and are as follows:
One of the strong points of this type of market is the profit margin, which can be quite high and independent of the currency trend; the important thing is to follow its trend. Other estimated advantages of forex trading are
Although online trading allows you to trade directly in the market on your own account, thanks to a series of assisted platforms and ad hoc software you can't improvise. The "non-trader" who wants to engage in forex trading alone has the tools to do so today, provided that you already have a knowledge base of the subject. The beginner DIY broker cannot and should not expect big gains in the short term; the secret is to be able to make a constant profit over time with small investments. For those who want to earn money now, investing a minimum amount of capital must rely on an experienced forex broker or study how to become a financial broker.
It is nothing more than a financial operator who places orders to trade on the forex market - on our behalf - that is, who collects our requests to buy and/or sell and executes the orders by placing them on the market.
As an intermediary, our financial operator (or the brokerage firm we have relied on) must earn a profit from/pend from the service it offers. The gain is derived from the spread between the buying and selling prices. This is explained more clearly with an example: if I decide to bet on the prices of the currency pair € (euro) $ (US dollar), the broker on our behalf follows the trend. If we buy €/$ it means that we buy € and sell $, so if the euro strengthens against the dollar, the price rises. If the €/$ price is 1.40 it means that the € is worth almost 1.5 dollars.
When he buys on our behalf he makes an "ASK", when he sells the price he is a "BID". What does this mean? Find your margin in a slight increase on the actual price usually up to 4-5 decimal places: on a real €/$ price of 1.4056, we will actually pay 1.4058 (1.4056+0.0002). The surcharge is called PIP (Percentage in point) and is the smallest unit of measurement of a Forex price and varies between 1 and 2. In the example above, the broker's differential is 2 pips, its profit margin has a minimal impact on our earnings. It is therefore essential to choose a professional to whom we entrust our capital, with whom we make currency trades.
Regardless of nationality, the broker must be supervised and regulated at forex trading institutions, must provide clear guarantees and declare whether the differential he applies is fixed or variable and to what extent. Let us take a look at the world:
The monitoring bodies in the United States are:
Brokerage in Australia is regulated by the ASIC (Australian Securities and Investment Commission) which requires the registration of brokers and the licensing of Australian Financial Services.
In the UK, financial brokers are regulated by the Financial Services Authority (FSA) which monitors and controls and protects the trader (the client) by obliging them to separate client deposits from those of the company they are operating for (segregated accounts), so that in the event of bankruptcy, client funds are not damaged.
Swiss consultants are regulated by the Swiss Federal Banking Commission (SFBC), but the rules are very relaxed and the risk of fraud, money laundering and poor customer protection is easy.
As far as the rest of Europe is concerned, forex trading is regulated by the authorities of individual nations because there is no central regulatory body and therefore the rules change from country to country. In Italy, therefore, reference should be made to Consob, which registers financial intermediaries. You should ensure that the broker is actually registered, controlled, has no criminal record and has good experience of success in the industry.
Other selection criteria are:
This information is even more important to collect if you are oriented to be very active on the market with more than 200 "executed".
Trading on forex does not only mean analyzing charts and exploiting market trends, but also knowing how to choose a good platform. Brokers play a key role in successful investments in the currency industry, which has always been considered one of the richest in the world. What was once the exclusive territory of central banks and large investment funds is now accessible to everyone thanks to online trading platforms.
Brokers have developed more and more professional but at the same time easier to use tools over time so that even a beginner can trade without the need to study years before placing an order. This has led to a change in the forex market. Let's see how this fundamental area of online trading has evolved and which brokers we can choose to invest in.
As we said choosing the wrong forex broker could result in a trader's defeat, especially if he is a novice trader. Just go to some financial forums to read the testimonies of traders to understand how many, having taken the choice of platform under the leg, ended up choosing a broker not recommended (perhaps coupled with the promise of who knows what advantages) and then lose all their money. What does it mean that a broker is regulated? It means that it has received the green light from an officially recognised supervisory body because it meets certain criteria of reliability and quality. And since the security of your capital comes first of all choose a really valid broker is the first step to take to avoid seeing your dream of becoming a professional trader fail.
On the web there are several updated lists with the best brokers, but we also wanted to create one by choosing the trading platforms that we believe to be more reliable. Here they are:
These are our favorite platforms for investing in forex. These are serious and reliable brokers as you can easily verify by doing some small research on major financial forums or on all blogs in the industry.
The Plus500 platform is the one we prefer for a variety of reasons, first of all the possibility to trade perfectly safely and not only in the online forex, there is also the possibility to navigate through the various stock markets as well as in those of commodities. It has an enviable service regarding the CFD trading system, which among other things is very recently available in Italian. Plus500 also has, as a small welcome bonus, a start-up fund of 25 dollars.
The XTrade website is also an excellent portal, with a small welcome bonus and the possibility of being followed by a customer service decidedly professional, reliable and the certainty that an Italian correspondent will respond, having them available to different regions of the world. It is authorised by the Cyprus Securities and Exchanges Commission, known as CySEC. The forex platform also manages the exclusive and proprietary platforms to help customers who need to complete transactions as much as possible. Use the Web Trader, available for all browsers, and the app on Android and iOS.
Obviously, when you talk about this particular topic, mentioning the 24Options is mandatory. Virtually all people trading with digital transactions have got their hands on the platform or, at least, have heard about it. We are talking about the most important and used forex broker platform of all, but why?
For those who want to navigate forex trading, XM.com, you can rely on this site, it is a competent company and professional in what it does, founded in 2009 with the experience gained from the business sector of the Trading Point of Financial Instruments. It was recently included in the WF100 ranking, which is essentially a list of the best financial companies in the world, a kind of financial excellence. In commodities and throughout the stock market, they offer comprehensive CFD trading services.
Among all the brokers who deal with online forex in Italy, eToro, this is certainly the one best known and appreciated by all users who use it regularly. In fact, what we are talking about is actually an excellent broker, with a particular attention to all those who approach trading for the first time or who are not experts in the field and who want to take advantage of trading as a second entry. The user interface is very simple and guided so that no user is left out of sight.
Recently the 24Fx portal was born, an interesting, innovative and among the best platform now on the Internet, was made available by the same creators of the 24option binary options broker, which we talked about earlier. 24Fx uses the knowledge gained from previous machining in the industry, giving the user a truly unique experience. The goal of the entire platform, is not to imitate the 24Options as you might think, but to become what could not be the other platform. Therefore, the mission set by the portal is to become the leader of the Italian market regarding online forex.
When you look at this market you will be pleased to notice a simplification that will facilitate (hopefully) your profits: the book. We are talking about a control panel that will allow you to place purchase or sale orders in an extremely simple and linear way. Describing in a superficial way the characteristics of this panel we can certainly affirm that it presents in the case in point only one level of price in purchase and sale and it does not have precise indications on the measures that concern the amount of money that crosses every transaction.
After signing a contract with a broker, we will be faced with the possibility of operating a panel (the book precisely) that shows some very important data such as: the currency pairs to be exchanged, the amount of investment and the multiplier of leverage.
Often there is also the concrete possibility to send to the market some orders of conditioned type, that are active only to the realization of determined conditions of market (but this possibility depends on the broker to whom you entrust; if you think that it is a possibility not to be missed then think carefully when you will be in the window to search for your broker).
Infime seems right to us to spend 2 words about automatic trading. According to recent statistics, almost 50% of orders placed on forex are managed by software. In essence, the large brokers and agencies have developed computer systems capable of handling very complex mathematical calculations on the basis of which trading operations are carried out. Recently, systems have been created on the market that allow even amateur traders or small professional investors to trade automatically. Needless to say, these are very complex instruments which, in our opinion, should only be evaluated by those who have a solid financial basis and a good propensity to risk. And you, as a broker, have chosen to invest in the financial markets?
One of the financial instruments that is having a successful escalation is that of binary options. This is a type of transaction that allows an investor to make a gain based on the accuracy of the forecasts made on the price movements of certain shares over a set period of time.
The opportunity to make high gains can be facilitated by using a binary options broker. So let's see what kind of features the best technicians need to have to ensure investors get high returns in a short time thanks to binary options.
Before talking about brokers, however, let us remember the fundamental elements to consider when we want to invest:
Let's first clarify the terminology: we refer by the term trader to the person who makes the investment through binary options, while the technician is a tool that allows the trader to access information about binary shares to make the investment more securely, thanks to the precise knowledge of the data on which to make their speculations. A broker must therefore present itself as a service that can guarantee the trader the maximum reliability and security. These two qualities are fundamental to the success of trading operations.
When making the choice, it will be appropriate to carry out a series of performance assessments of each type of operation to be carried out. To consider a yield worthy of the name, a binary operations technician must guarantee a minimum of 70% but thanks to special promotions limited in time, you can be made an offer of yield even more than 300%.
As we have underlined, the possibilities offered by this type of broker are those of being able to open accounts to manage trading and the platform, going, through the analysis of the trends of the various operations, to understand in the best way the type of investments to be made in time.
There are (and continue to increase month by month) several online "brokerage" services (at least pass the term for this time!) to be able to make the most of: let's look at the best, not so much to understand who to entrust ourselves completely, but to know what are the complete features that such a service must provide to its customers. It is important to know all the main elements to go and invest in the best way possible, and to check that they follow all the most important rules specific to this type of activity.
First, brokers must be financial professionals who care about investments and ensure optimal management of the shares of the various assets to be invested in. In the case of online trading, it is important that these services concern the possibility of accessing platforms in order to check via web and in real time the daily trend of investments and financial movements, and therefore to be able to work as a financial broker.
Obviously, correct investment is the first objective to be achieved, and for this reason all traders registered in the service have at their disposal study tools (training ebooks on trading and video tutorials for beginners and experts), as well as analysis systems to understand where and how to go to make targeted investments (graphics, candlestick, binary options strategies).
Just open a demo account to become aware of your means, and become a professional trader in no time at all.
When you first enter the world, it is important to make sure that the service you are choosing provides demonstrations and practical tutorials so that newcomers to the industry can quickly take ownership of the main investment methodologies. It would be advisable to choose a binary options broker with top customer service, perhaps with the possibility of chatting live with experts and assistants at any time of day.
Beware of bonuses offered to new customers: use them above all to carry out tests and trials, so as not to lose directly your "co-ins" which, although digital, are still the result of your work.
Most professions are known to everyone, we all know the path to becoming doctors, teachers, lawyers. We have a perfect knowledge of the professional aspects, that is, when to use him and his services.
There are jobs that we do not know about, or even do not know what they are.
Often television, cinema, literature come to our aid and make us know these professions or explain to us what they consist of: this is the example of the broker. "In search of happiness" or "The wolf of Wall Street" introduced us to this profession. Perhaps they also made us want to take up this profession. But while this has certainly helped us to open up previously unknown paths, there are a lot of myths to dispel about it.
The Italian stock exchange, the Milan stock exchange, is certainly not as big and influential as the Wall Street stock exchange. If you are committed, you can carve out a space here too and earn a respectable salary.
The financial broker is a professional financial broker who deals with selling and buying on behalf of other people. Identifies the best product for the customer and that is more convenient and profitable.
It is certainly a job in which a thorough knowledge of the financial markets, in terms of structure and functioning, is necessary. This must be accompanied by a certain "instinct" for business and therefore the ability to project forward to understand market trends. Good management skills are required to complete the profile, both for the client portfolio and for financial assets.
To start the profession, you do not need to hold a degree, although a degree in academic study focused on, economics and a Master in Business Administration will surely qualify you in the eyes of clients and certainly give you all the theoretical tools to embark on this career. Without the classic "business nose", however, you will not get anywhere. In addition, to do business on a non one-off basis and continuously, you will also need to have great communication skills and be able to maintain your clientele over time, which is not easy. Furthermore, if you want to increase your business and earnings, you will have to increase your turnover by procuring new customers.
There are many challenges, but if you want to study and commit yourself, no obstacle will be too great.
You can decide to carry out this activity as a professional hybrid, alone, or you can decide to rely on large agencies and send the tour in your curriculum. If you already have some customers, certainly bring with you your, though small, wallets can only give you an 'eye on the matter. The advice is to try to practice your savings and take charge of some cases, perhaps starting with a friend of yours.
The profit of a broker depends on many things. First of all, we repeat, Milan is not New York or Tokyo. Don't be influenced by the films and try to be realistic. The profit of a broker depends on how much money his client has to invest and, on his ability, to convert investments into profit. If he is a very capable broker, he will earn on average around 100-120 thousand dollars per year, on ten thousand dollars per month. But don't expect these figures right now, it takes a lot of practice. However, it is not impossible to achieve this goal and it is due to your abilities alone.
Are you ready to open books and try in the big world of trading? There are plenty of opportunities just waiting to be seized!
Apps for online trading are many, and it is difficult to find the ideal solution without wasting time with non-functional applications. So, we try to make it clear by recommending a range of trader applications to download and test directly with your strategies.
Investing online represents a risk that many Italians are still pale pale on. Certain of their work, expenses and earnings, most of us are unnaturally afraid to confront the world of trading. How can this be remedied? Today we recommend a series of options that ultimately concern a very clear password: simulation.
It is much easier to analyze some data through the reading of graphs than the discussion that can arise around simple numerical inputs. Through the graphs it will be possible to monitor information related to volumes and other technical indicators (they are displayed at the base of the graph characterizing the time axis). To give a concrete example, the bands of Bollinger are directly represented on the price graph.
Continue our journey around some of the best known advanced trading strategies. In this case, we will analyze Bull Spread, a technique that is usually used if you have the feeling that the market is taking on bullish traits.