How To Choose The Right Forex Trading Platform When Trading In Australia?
What is Forex Trading
Lately, a lot of people have found that instead of keeping their savings in a savings account, they can put the money to great use by liquidating them. One way of doing this is by Forex trading.
Forex trading is when people take advantage of daily fluctuations in foreign exchange rates. So, when dealing with Forex, traders are required to open an online account through a regulated platform and start trading with foreign currency pairs.
Each trader will have to choose the currency of their account and, afterward, purchase or invest in a pair of foreign currencies. The trader will only be able to trade with the currency pair that they have. To further illustrate, when a trader purchases a currency pair of EURO and Pound Sterling (GBP), they can only profit whenever there is a fluctuation in either of the rates by selling the higher one.
On the other hand, Forex trading requires a trader to commit to a Forex Broker. A Forex Broker is the middleman or the financial institution that provides trading services to a trader. To open a trading account, a trader must find the most applicable Forex Broker. The location plays a huge role in determining whether a certain Broker is the right choice. For instance, people in Australia need to be aware of the many brokers in their area and see whether the broker's fees and minimum deposits fit their budgets – the Australian Forex brokers list here will guide beginners in finding the best broker.
Thus, ensure to do some research and only afterward open an account on a certain broker's platform.
What is a Forex Trading Platform and how to choose the right one in Australia
As mentioned above, a Forex trader will inevitably need an account, and the Forex Broker will be the one to provide it to the trades. However, the Forex Trading Platform is not only used to help people trade foreign currency pairs.
A good Forex platform should provide its clients with numerous sources; educational, research, analytical, etc.
Here are some things that every trader should consider before choosing a Forex broker:
Regulations of the Forex Brokers
Forex trading requires clients to insert personal information such as bank accounts, financial statements, and possibly personal addresses. Providing confidential information to an online account can be risky; thus, the Forex market has introduced regulatory bodies to make the process easier.
When a Forex broker is regulated, a trader will be ensured that their information will be kept safe. On the other hand, the regulations guarantee that users will receive their profits.
For instance, most Australian Forex Brokers – such as Ava Trade and CMC Markets – are regulated by the Australian Securities & Investment Commission (ASIC)
Offered spread and commissions rates
Commission rates and spreads are the way that Forex Brokers make their profits. When opening a trading account, a trader only pays for the margin. However, for brokers to earn money, they provide their clients with a minimum commission and spread rates. Considering these rates should be a consideration when choosing the broker, as they will impact one's overall profits.
Available educational tools and analytical graphs
The Forex industry is constantly changing, and traders need to always keep up with the updates to ensure earning profits. Some brokers do not offer their clients educational tools and analytical data, which can negatively affect the trader's performance during a currency trade.
Hence, confirming that a broker has installed educational tools and analytical data into their platforms ensures traders have accurate updates and can analyze graphs and data to know when it is best for them to trade.
Ability to withdraw and deposit
A Forex Broker is also the middleman between a trader's bank account and a Forex account. In other words, to use the profits earned from a trade, one needs to withdraw the profit to their personal bank account.
Some brokers tend to assign really low commission rates for their clients; however, they assign high withdrawal rates.
Thus, before opening an account, ensure that the commission, withdrawal, and deposit rates are logical.
Provided customer service
Finally, it is important to have active customer service when dealing with financial transactions. A transaction might fail, or a technical issue might arise during a transaction or a trade, which could not show on a client's account. So, providing the fastest response and solution is important to satisfy traders.
To conclude, Forex trading is a great way to liquidate cash and make better use of it instead of living it in a savings account.
However, it is important to commit and work with a reliable and trustworthy Forex Broker who is regulated and able to provide all the necessary data, logical commission and withdrawal rates, and good customer service to its clients.