How to Get the Best Trading Conditions When Accessing Global Financial Markets

When trading on the global foreign exchange through online platforms, it is essential to make sure you get the most competitive trading conditions with low fees and enabling you to make profits on trade investments.

We have come up with a guide to how to make sure you get the best possible trading conditions when trading on the foreign exchange.

Loyalty Bonuses

If you are a loyal returning customer, you may benefit from loyalty bonuses on your trading account. RoboMarkets offers Forex trading accounts that have been designed to be appropriate for the user’s level of trading experience. The RoboMarkets ‘Prime’ trading accounts are meant for the most experienced traders and offer the best trading conditions with a floating spread of 0 points. Whereas the popular ‘Pro’ trading account is available to traders of all levels of experience and has a floating spread of 1.3 points.

Look for a ‘Low Spread’

Look out for low spreads and there being a small difference between bids and the asking price. Low spreads in Forex are beneficial and indicate to you as an investor that profits can be made.

Commissions

Does the brokering company cut into your profit margins by charging you excessively high commission or other fees to access global markets and trade? If so, the trading conditions may not be conducive to you being able to generate a profit.

Margins

A margin is the difference between the total value of an investment and the amount of money borrowed from a broker to purchase an investment. When choosing to trade on a margin, those looking to invest should look at the cash the brokerage company stipulates they have to deposit as collateral for the loan. Margin trading can allow investors to gain higher profits than with traditional trading, but it also comes with greater risks too and losses can also be far greater. Be sure to check out the margin requirements with the brokerage firm that you are using when trading.

Stop-Loss

Should you get into trouble and find yourself losing a lot of money after investing a lot in a currency on forex that’s now failing and falling in value, being able to set up a stop-loss order once a currency reaches a particularly low price may manage to limit an investor’s loss. Setting up a stop-loss order for 10% below the price at which you bought the currency will therefore limit your loss to 10%. One of the big benefits of stop-loss orders is that they cost nothing to put in place. The ability for investors to put in stop-loss orders should be a part of any broker firm who claims to offer you good trading conditions along with access to global markets.

Forex can at times seem like its laden with risks. However, if you manage to get yourself a trading account with good trading conditions and regularly do plenty of research into the state of global markets and how different international currencies are performing you should be able to make money.