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The Benefits of Having a White Label Cryptocurrency Trading Software for Your Brokerage

When you are planning to invest some of your money into CFDs or forex trading, it is important that you choose a trustworthy and legitimate stockbroker. This means using the services of an approved and regulated company because, in most situations, it is the non-regulated trading firms who will commit fraud. Since there is no independent governing body to monitor the activities of an unregistered online trading firm, the company can use your money however they want and report to you whenever they please. This leaves your investment with these firms vulnerable to fraud. This, combined with the fact that there will be no regulatory body that can help resolve your dispute, means that it’s important to reduce the risk of fraud in the first place. The best way to reduce the likelihood of trading fraud is to take these four factors into consideration when choosing the right CFD and forex trading firm for you:

1- Choose A Regulated Broker

As previously discussed, most fraud cases occur when a customer invests in a non-regulated CFD and forex trader. You can protect your investment by selecting trading firms that are IFSC-affiliated and reading reviews about each of your prospects. These reviews will detail information about your potential CFD and forex broker, providing you with information that you need about their service and most importantly, how legitimate they are.

2- Ensure That The Trading Platform Is Secure

Secure trading platforms will have strong encryption protocols such as SSLs to protect your payment details. They will also utilize advance deposits to ensure that client investments are well-protected. These types of anti-fraud measures will be used by professional and regulated brokers, and you should expect to see them on any legitimate online trading platform. If you are on a platform that lacks these anti-fraud prevention measures, stop using the service immediately.

3- Search The Broker On Blacklists

Find out if your potential broker is on a trading blacklist. Blacklists are a great indication of whether a broker is to be trusted or not. If the broker appears on the list, find someone else. Blacklists often mean the broker is non-regulated or has a record of committing fraud or trading misconduct. If you allow them to look after your investments, you will be at a significantly higher risk of being affected by forex and CFD fraud.

4- Use A Broker Who You Feel Comfortable Leaving Your Investment With

Despite a potential broker being affiliated with a governing body or using trading platforms that are secure, it is still they who will be managing your investments and trading it on the forex and CFD market o your behalf. Therefore, it’s a good idea to meet your broker and talk to them about any concerns that you may have. A good, reputable broker should be able to put you at ease. Observe how they behave and look at their portfolio. You want someone reliable and competent to manage your investments. If anytime you feel the broker is not the right person for you, trust your gut and leave.

These are the four tips to help you find a legitimate CFD and forex trader. Remember to check that they are regulated and use secure trading platforms. Research their company thoroughly and see if they are on a trading blacklist. Finally, if for any reason you don’t trust your potential broker after meeting them, find someone else. This is a lot of money that you will be investing and you need to reduce the likelihood of you becoming a victim of fraud.

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Basics of contracts for Difference – CFD

Defining a Basic Forex Trading Strategy

Contracts for Differences, more commonly known as CFDs, are financial contracts that involve the exchange of physical money rather than the distribution of financial securities or instruments upon the ending of the contract.

Exchange traded futures on stock indices and interest rates were the very first CFDs. They were first thought of because people began to realize that a lot of people who trade in the financial futures markets wouldn’t really want or need delivery of financial securities or instruments.

How does it work?

CFDs often seem confusing to those who have never worked with them before. However, they’re really quite simple. The two different parties involved in a trade essentially pay each other the difference between the opening and closing prices when their contract comes to an end. Take, for instance, a situation where you were holding a long position. You purchased the contract and watched the price go up. You’ll then have a running profit. At the close of the contract, you’d receive the difference between the first price and the closing price for each contract from the other party.

The opposite is true as well. If you purchase a contract and the price goes down, you’ll have a running loss. At the end of the contract, you would then have to pay the difference between the initial and closing prices for each contract.

Why are CFDs so appealing to many people?

Two decades ago, more and more people started to realize how many things CFDs could actually be used for. They could be used in quite a number of other financial instruments such as forex, commodities, and metals, among others. A broker wasn’t required to facilitate the trade. Instead, people could simply directly trade with other traders electronically. This type of trading is referred to as Over The Counter trading.

This was the perfect time for CFDs to emerge because of the growth of the internet. A growing number of people had access to the internet and could engage in CFDs. These securities began being offered as leveraged products. Traders could equip themselves with enough capital with the help of their broker and then trade positions that they otherwise wouldn’t be able to with their account sizes. Long or short positions could be taken.

Traders love the flexibility of not having to think about delivery or settlement of securities or instruments. CFD brokers charged their clients interest, called rollover swaps, on the money they borrowed. The increased leverage that CFDs offered meant greater potential returns – something that a lot of people found incredibly appealing.

What about today?

CFD changed the trading game as it was. In this day and age, private individuals have access to trading software and a good internet connection. With the flexibility of a CFD and plenty of leverage, they can now use the very same information and tools that were previously only accessible to institutional and professional traders.

Retail traders are able to take short and long positions across whichever asset class they see fit, be it forex, equities, commodities, or even metals. The increased leverage means more potential returns.

Of course, it also means more potential losses. As a growing number of people try their hand at trading with CFDs, it’s increasingly crucial for retail investors to get up close and personal with the markets and how they work with each other.

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Forex Trade 101 – What you need to know before getting started

Defining a Basic Forex Trading Strategy

The Forex market is volatile and ever-shifting. To make sure that you’re making a profit, you need to have a clear strategy that you can handle no matter in which direction the market is heading. If you’re new to Forex, this article is perfect for you, as we’ll go through all the considerations that you have to include and how you can optimize your trading strategy.

What is Forex?

The stock is the estimated value of a company, while Forex is the estimated value of an entire country’s economy. The value of their currency will shift according to how the world evaluates their current value. Anything that affects the country’s market will be reflected in its currency value, meaning that there’s quite a lot of things you need to look out for in Forex. You can design either a short-term day trade strategy for or a long-term investment, and they require different tactics and approaches. You need to have a clear goal before you start coming up with a trading strategy so that you can consistently make a profit.

Currency Value Indicators

These are some of the indicators you need to look out for when you’re predicting a market trend.

  • Non-farm Payrolls
  • Purchasing Managers Index (PMI)
  • Consumer Price Index (CPI)
  • Retail Sales
  • Durable Goods

There are more indicators you can look out for, but these are ones that you can use as a starter. They are easy to understand, and they will give you a solid foundation for value analysis going forward. Depending on the trading strategy you’re looking to do, there will be a fundamental difference in how you view the market. Some trade platforms and brokers provide real-time analytics to this information, and this is an incredibly useful tool for any Forex trader. The Forex market, unlike the stock market, is open 24/7, meaning that you can make the necessary changes at any point in time if you have access to this crucial information You need to keep this in mind when choosing a broker, as the added convenience makes a difference when it comes to your profit potential.

Finding Your Forex Trading Strategy

You can’t expect to come up with a strategy that will make you a 100% profit margin overnight. That’s not a realistic goal, and you shouldn’t try to pursue these goals. A reliable and sustainable trading strategy is developed and perfected over time through knowledge gained from research and trials and errors. You’ll hear many experts claim that the combination of both fundamental and technical analysis is the key to long-term projections and trajectory estimation. This will help you determine a more profitable entry and exit points with less stress.

Some Useful Trading Tips

A mock account is great for practicing your new trading strategy. You can see how it will work in the real market without having to involve real money. Spend as much time as you need on it until you’re confident enough to trade with real funds.

Start slow and work your way up. It’s unlikely that you’re going to make a sustainable amount of profit, if at all, in the beginning. As you gain more experience, you’ll learn what works and what doesn’t and that will help you to become a better trader. When you’re just starting off, try to trade with the lowest leverage as possible and make your way up the ladder.

Don’t let emotion get the best of you when you trade. There’s no shame in cutting your losses and quitting when you’re ahead. If you’re clinging on to false hope, you’re going to be stuck in a situation that you can’t pull yourself out of.

Learn how to use the built-in tools like the trend lines and cut-loss point and use them to your advantage.

The Bottom Line

The Forex market is the largest equity trading market in the world. The competition is incredibly brutal, but that doesn’t mean you should shy away from it. FX trader has the potential to make a more consistent profit than any other market. We suggest you sign up for a demo account today and accustom yourself to it. If you dedicate your time and effort to mastering your craft, you will start to see a massive improvement in your trading skills.

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