Forex trading, just like the stock market and cryptocurrency, has recently surged in popularity due to the current bubble we are in.
As a result, many people are looking into forex trading and how they can use it to make some extra money. Just like with any trading, however, you are going to have to find the right platform to help you achieve your goals. While there isn’t a wrong platform per se, you want to make sure it is easy for you to use and has all the features that you are looking for. Here is everything you need to know about the top forex online trading apps.
Reputation
The first thing you want to look at with these top forex brokers is reputation. Think of these online websites like a bank. You are going to be depositing a good amount of money into them to work with, therefore you are going to want to ensure that it is safe. The last thing you want to happen is for all of it to vanish in the blink of an eye.
There are plenty of forex brokers around the world too, so you can have a platform no matter where you are in the world. For example, there are forex brokers in South Africa that can help you trade if that is where you live. Like we said above, however, make sure that you are taking the time to research them though, as it can be easy to put money into a website only to find out that you have been scammed.
How can you check the reputation of a website? A simple google search asking if the website is reputable should lead you to some results that you can read about. If that isn’t enough, you can often view the website itself and make an educated guess. If it is constructed poorly, it generally is an indicator that something is up. We always recommend researching the platform that you are going to be using beforehand as losing money due to a scam is never a good time.
Fees
When it comes to forex trading websites, there are going to be fees associated with when you deposit money, withdraw money, or even trade between pairs. This is unavoidable in most cases and it is how the websites make money. While it might be frustrating to lose a small percentage of each transaction, there is a reason behind this. The money that the website makes it used to help maintain the quality of the website. They can also look to improve the user experience with the money that they are getting.
The second reason for fees is simply because they are providing you with a service and they too have to make some money. Generally, the more popular websites will have larger fees because they are the best in the business. It is a small price to pay for financial safety and security when making these trades.
Keep in mind, however, that if you are going to be day trading, you are going to have to account for fees and are going to have to beat them in order to make some money trading. This means you are going to have to find the right prices to get in and out of the market. It adds an extra level to your trades and it can be difficult at times to beat the fees, but if you are smart you can find a way to overcome it.
The Features
The next thing you are going to want to look at with your forex trading platform is the features that they are offering towards their users. There are plenty of features out there and you want to ensure that you are getting the best experience overall, especially when trading with forex.
Paper Trading or Demo Accounts
These are practice accounts and they will allow you to get to learn and understand the platform without any risk at all. This is something we recommend if you are new to forex trading as it can take some time to fully understand how currency pairs work and how you can use them to profit. Spending a few days on a demo account can help you understand the market itself and collect some valuable first-hand research.
Futures
Futures have become a very popular trading tool due to the recent GME short squeeze. This popularity has not just stuck to the stock market however as the crypto market and forex market have been booming with this feature. What are futures? Simply put, futures allow you to gamble on the future of a currency pairing in order to make huge profits.
In the future, there are two different options, longing and shorting. Shorting is betting that a stock is going to drop in the future, therefore allowing you to make a quick sell on more money that you possess.
Let’s say for example you borrow your friend’s phone and promise to return it to them in a few days. You expect the price of phones to drop so you immediately sell it for a high price. In a few days, just like you thought, the price of phones drop so you buy a new one to return to your friend. This is how shorting works. You are selling a borrowed asset for the current price of the market, and then rebuying the exact same amount later down the road to return it to them. The opposite works for longing a stock.
These are a great way to generate some cash, but if you aren’t careful, you can end up with your whole account being liquidated.
These are just a few things that you need to know about when it comes to online forex trading. Make sure that you have taken the time to research what you are getting into and that you understand how the platform works as well. Never jump into something without fully knowing if you can trust it or what you are doing, it will burn you in the long run. How do you plan on forex trading?
