What is Forex? Forex is an abbreviation for foreign exchange and it is, quite simply, a decentralized global market where all the world's currencies trade. The foreign exchange market, which is usually known as “forex” or “FX,” is the largest and most liquid financial market in the world, having a $5 trillion-dollar daily turnover. Forex trade follows the same principle as the share market; if it is thought that the company’s share price will rise or that the currency will strengthen, then the forex traders buy it. And vice versa, if a trader believes that the share price will fall or the currency will devalue, then they will sell it.
However, unlike the stock or bond markets, the forex market does not close at the end of each business day. Instead, trading just shifts to different financial centers around the world. The business day starts where the sun rises first - in Australia. Australia has a thriving Forex market, thanks to its powerful financial centers. One of these is Melbourne, where ForexCT, a Forex Forex and CFD provider that provides Forex and CFD (Contract for Difference) trading services, is located.
CFD is a popular form of derivative trading that allow traders to take advantage of price movement. CFD traders never actually own the underlying asset itself but instead speculate on the movements of its price. Advantages to CFD trading include lower margin requirements, easy access to global markets, no shorting or day trading rules and little or no fees.
Why should you choose ForexCT as your forex Forex and CFD provider and what is it that makes the firm stand out?
Customer service policy
Customer engagement depends on how good the customer service policy is and how much focus there is on customer care. ForexCT has a customer-oriented policy, which means that they provide the client with the necessary support and assistance so as to ease and simplify the trading experience.
Security of Funds
A brokerage firm’s credibility is built mainly on how well they are able to protect their customers' money. In this regard, ForexCT is a trustworthy firm. It is regulated by ASIC (the Australian Securities Investment Commission). ASIC requires licensed companies to meet certain requirements and to comply with various rules. This means that ForexCT complies with industry regulations and that is has taken the necessary safeguards in order to guarantee the security of the customer’s funds. The money is kept in segregated trust accounts and is never used to hedge ForexCT’s proprietary positions.
Guaranteed Stop Loss
Speaking about the security of funds, this brokerage firm also provides customers with a risk-management tool called guaranteed stop loss. It is basically a trader's insurance against price gaps and unexpected market behavior and it is used mainly by those who use high leverage or trade against a dominant trend.
Fixed spreads
ForexCT offers fixed spreads, which means that they stay constant regardless of market conditions. This means that you can plan transaction costs more effectively. Fixed spreads are especially advantageous for beginners because they provide a safe and predictable trading environment. Fixed spreads are slightly more expensive than the variable ones, but they are free of commission.
Trading platforms
When trading with ForexCT, you have their in-house solution, WebPROfit.
The WebPROfit platform has all the necessary trading tools and features: charts, news feed, market updates, economic calendar, trading trends and learning center. It is available on desktop, web and mobile.
High leverage levels
Leverage basically refers to the ratio between the position value and the investment needed, whereas Margin is basically a security deposit for each lot size traded. ForexCT has a high leverage ratio (1:400) and requires a low margin. This means that you can get much more exposure and enjoy the benefits of leverage trading with fewer margins.
Accepted payment methods
ForexCT offers its clients the following deposit/withdrawal methods: via credit/debit cards (Visa, MasterCard, JCB), bank wire transfer, International Telegraphic Transfer and BPay. Also, by using the in-house platform, you can withdraw funds directly from it within 3 to 4 business days.
The cons of trading with ForexCT
Trading with ForexTC has some cons as well and you have to take them into account. For example, the high leverage ratio can be considered both a pro and a con. It can be a con because involves a higher risk of losses in excess of initial investments.
The minimum initial deposit for opening an account with ForexCT is 500 AUD, which is a fairly high price.
ForexCT offers its clients a single account type, which can be disadvantageous because multiple accounts allow more flexibility in a changing market. Multiple trading accounts give leverage to the trader or the stockbroker that is normally not available with a single account. Also, investments can be diversified, because each investment has a separate account.
Overall, trading with ForexCT is more advantageous than disadvantageous. It is a brokerage firm with 13 years of experience in this industry and it is considered a reliable and trustworthy trade service provider.
As a new trader or even as an experienced trader, there are a lot of questions that you will face, such as What amount should I risk? What are some things I should look out for? or What trading platform should I use? Luckily, ForexCT will provide you with a secure online trading platform with all the necessary tools and a dedicated customer service which offers all the necessary assistance and guidance.