FOREX trade principles
Don’t expect me to put here any comparisons of brokers’ strengths and weaknesses and advices on who to work with and who not to for it solely your choice is.
Any investment is connected with variety of risks. I underline any for whether you deposit your money to the bank or loan your neighbor there’s always a chance of not getting announced interests or losing the part of money or the whole amount. Surely, in mentioned cases the level and possibility of such risks are different. See, Russian investors already know by experience that trustworthiness is never indicated by fashionable offices, bunch of certificates and even the company relativity to state authorities. In bad times every company would rather lose the money of private investors, i.e. us. So, what could be the risk level indicators? I would name the most important as for me.
1. Basic company goals
2. Mechanisms of achieving goals
3. Company management that is essential for its successful and long-term functioning
4. Availability of own resources to stand the force majors
The rest (company history, office in downtown, etc.) are not so essential. I guess, every company just as a person may be born, mature, get old and eventually die and the life cycle for most of modern enterprises is 3-5 years (proved by statistics). So, if company tells you it’s being on the market over 5 years than its end is near.
FOREX stands apart from other markets for it is out of exchanges. It was created 20 years ago with banks immediately entering it. Thanks to means of communication the banks started trading directly without the mediating exchanges. This market became global and no country was ever able to limit or regulate it by its laws. That’s why the “classical” financial managers hate it so much. Still, for many European and North American banks FOREX speculations are the main benefiting source as they constantly decrease their personnel operating at other markets.
So, FOREX is not regulated by laws of any country and the majority of countries just gets used to its rules. It implies that FOREX broker doesn’t need any licenses or certificates for it is just an organization. Some brokers may provide you with certificates on “Internet financial games organization”. False! There are no certificates like that. You can get a certificate on specific black jack table or slot machine but that’s not that case.
The second important factor is not regulated regardless of all complicated problems and risks connected with price changes in one way or the other. These problems refer to trust, honesty of operations, risk management and FOREX brokers marketing. Please understand that unlike at highly regulated exchange markets the FOREX brokers may not fall under any separate exchange by problems and risks character.
The selection of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.
It is very important that you follow a final piece of advice – today the online technologies give you a really unique chance to choose exactly what you need at the best terms which are available on the market. Funny, but most of the people don’t use this chance. In real life it means that you should use all the tools of today to get any foreign currency trading info that you need.
Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.
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