If you want to know everything about Forex, then this article should give you the answers you are looking for.
What is Forex?
The forex market (Forex, FX, or currency market) is a decentralized world of over-the-counter financial market for trading currencies. Financial centers around the world function as anchor points for exchanges between a wide range of different types of buyers and sellers around the clock, with the exception of weekends.The purpose of the “Forex” foreign exchange market is to aid international trade and investment. The foreign exchange market allows companies to convert one currency to another foreign currency. For example, it allows an American company to import European products and pay Euros, even if the company’s income is in US dollars. This carry trade can also lead to a loss of competitiveness in certain countries.
In a typical foreign exchange transaction one buys part of an amount of one currency by paying an amount of another currency. The modern foreign exchange market began to form in the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The forex market is unique because of
* The results volume of transactions in the liquidity market
* Geographical dispersion
* Continuous operation: 24 hours a day except weekends, trade either from 20:15 UTC on Sunday to 22:00 UTC on Friday
- The diversity of factors that influence exchange rates
- Low relative profit margins compared to other fixed income markets
- Using leverage to improve profit margins relative to account size
As such, it has been referred to as the closest as the perfect ideal competitive market, despite market manipulation by central banks. According to the Bank for International Settlements, the average daily turnover in global currency markets is estimated at $ 3.98 trillion, as of April 2007. $ 3.21 trillion represented in major global financial markets.
Investing in forex using brokers
There are two main types of retail FX brokers offering the possibility of speculative currency trading: brokers (or broker) and brokers or market makers. Brokers serve as the client’s agent in the larger forex market, seeking the best market price for a retail order and dealing on behalf of the retail client. Professionals or market makers, on the other hand, generally act as the principal in the transaction versus the retail customer, and quote a price that they are willing to face – The customer has a choice whether or not to trade. at this price.
In evaluating the desirability of a currency brokerage service, the client should consider the ramifications of whether the provider is as the principal or the agent. When the service provider acts as an agent, the customer is usually secured by a mostly known cost the best exchange rate between operators. When the service provider acts as principal, no commission is paid, but the price offered may not be the best available in the market, since the service provider takes on the other side of the transaction, a conflict of interest. may occur.
In conclusion, to invest in Forex you need a solid knowledge of finance and not to take Forex as an easy way to make money. It is an investment that must be considered as such with the risks that this entails.
A booming market
More than 500,000 American people invest daily online in the stock market according to a study of the echoes of 2017 which even announces an increase of 11% among French stock marketers. If the figure remains low compared to other countries in the world, this represents a significant number of potential clients for online brokers. And this is precisely where everything becomes more complex for French online stock market players: choose your online broker!
With more than 50 companies offering brokerage services it becomes very difficult to see clearly. In addition to the banking institutions that we all know (and which do not necessarily offer the best services), we are seeing more and more emerging players and pureplayers. So how do you choose? To make no mistake, it would seem that the answer is as complex as the question. First element to look at: your investor profile.
Future trader? Do your self-assessment
Choosing a broker must start from a good assessment of your needs. Here is a non-exhaustive questions to ask yourself:
- How much are you going to invest in the stock market?
- How often will your orders be? Will you be a trader or an investor?
- Which market do you want to invest in? (derivative, fr shares, etc.)
- Do you plan to invest in SICAV or FCP?
- Is it important for me to be able to place orders by text message? Or on a mobile application?
- Do I need investment advice or do I prefer to do everything on my own?
- Do I need access to fundamental data?
- Having physical contacts is essential?
Once armed with these answers you can then assess the type of account needed and start thinking about your future stock broker. We advise you to read the account descriptions, in particular the PEA.
Online brokerage rate
Now let’s talk about the subject that really interests you: the costs! One thing is certain, online brokers have killed banks at this level. An online broker will offer you costs 4 times cheaper on average than that of your bank for current stock market transactions. Thus a bank will be able to debit you on average more than 50 euros for 3 orders in the year on around 500 € of shares while the online broker will generally be rather below the bar of 15 €.
What you need to watch closely are the brokerage fees but also the custody fees. Where it becomes magic with new brokers is that some offer custody fees outright. So we end up on a model where you only pay for what you consume. Enough to dust off and revolutionize the market and open up prospects even for the smallest portfolios!
This introduction would not be enough and you now have to arm yourself with patience and concentration to go and analyze each broker (with a precise description of your needs.) But since we are really too nice at Gagneargent, we recommend the comparator. of online stock exchange brokers for dwarves. By far the best site to find unique, unmoderated reviews of current stock brokers. The exhaustive list of brokers and the age of this site (10 years already) offers you no less than 500 stock market opinions distributed among all the brokers on the market with a number of important criteria: Ease and speed of placing orders, Tools offered , Databases, Competitiveness of the tariff or the availability of customer service. May the best win !
Are binary options a scam?
For a few years now, there have been advertisements on the internet which promote what is called binary options. You who go on the internet regularly, you have probably already seen one of these advertisements that promise you easy money and in particular hundreds of euros in a few minutes. At LimaForLife.club, we have studied this concept of binary options a lot and we will show you in this article that it is a false good idea to make money and that it can be compared to a scam.
What are binary options?
Binary options is the act of betting on the trend of a price of a stock or a currency. So you are going to bet that the price is going to go up or down, and if you just fall you will multiply your stake. But if you get it wrong, you lose your entire stake. Advertisers therefore put forward this seemingly simple concept to make Internet users believe that it is easy to make money through binary options . But the reality is quite different.
Why are binary options a scam?
Well, the advertisements that promise easy gains are primarily aimed at people who have no knowledge of stock market investing, and therefore who do not know the financial market and therefore cannot analyze it properly. So these people in the medium / long term are losers and lose a lot of money. You should know that only 15% of binary options bettors are profitable in the long term, and that therefore 85% of them lose their investment, which often represents savings of several years.
The other thing that makes us think binary options is more of a scam than anything else is the brokers themselves. A large part of them are not AMF regulated , i.e. they do not comply with financial standards and are located in tax havens (Cyprus, Liechtenstein, etc.), making legal proceedings more complicated. Because if you earn money with certain brokers, you may have trouble recovering your earnings.
The other element is how this concept is presented by advertisers. They say that in order to be able to win with binary options, you just need to bet according to the trend of a price and 8 out of 10 times you will get it right. This is totally false, as the financial market is volatile and subject to reversals . Unless you have solid investment knowledge, follow stock market news, and have a little intuition, binary options are anything but a serious method to consider.
You will find on the internet people who prove their earnings, but be aware that very often these proofs are faked and have the sole objective of taking your money by promising you easy money. In general, tell yourself that if binary options really worked, many would have already stopped working and there would not be much poverty. The truth is, binary options are a dream and many fall into them when in reality it is a nightmare.. You only have to do a Google search by typing in the name of certain brokers to realize that many have been fooled and have lost all their savings. Know that money is precious, especially in times of economic crisis. Money is hard to earn, so don’t waste it on scams.
It is strongly recommended that you stay away from binary options. Know that in the stock market there are more serious investments that will really bring you money. Binary options represent too high a risk for your savings and the few expected gains are clearly not worth the candle. Do not hesitate to write in comments your experience with binary options, in order to share your opinions with LimaForLife.club visitors.