Forex trading is one of the most lucrative businesses in Australia and other parts of the world. With a good working strategy, forex trading brings in good returns to investments. However, one has to be very careful on what trading platforms to choose from as there are many of them in the market. Finding the right broker and manager are also keys to how successful you become. One of the leading onlineFx trading Australia is Rakuten securities.
For beginners, Fx trading may be daunting at first. To begin with, you need to understand what forex trading is before you even think about the trading platforms and trading brokers. In Australia alone, over six trillion Australian Dollars of foreign exchange currency is traded every day. The exchange of currency takes place either in banks, in airports foreign exchange tellers and by using leverage as trading options. This goes to show that it really is a lucrative business.
Steps to take while trading forex in Australia
· Choose the right platform
If you are a newbie and you do not know anything about forex trading, the first step would be to choose a legit trading platform. The platform you choose must be regulated by the ASIC. Rakuten Securities which is a trading platform legally regulated to trade on behalf of investors is one among many other platforms in Australia. There are three major trading platforms to choose from. These are
- Propriety trading platforms
- cTrader trading platforms
- Meta Trader Trading platforms
The most popular of the three is the Meta Trader trading platform. In Australia, there are two kinds of Meta Trading platforms. These are Meta Trading 4 (MT4) started in 2005 and Meta Trader 5 released in 2010 and a better version of MT4. An example of MT4 trading platform is Rakuten securities.
cTrader is the second largest used platform and involves features like professional charting and analysis, market functionality and its depth, access to historical data and offers solutions hosted by cloud.
The last platform which is the propriety trading platform involves brokers that offer their very own platforms.
· Choose the right trading broker
Choose a trading broker that is licenced to trade by the legal regulation bodies. A broker that will offer you the best deals like commissions with low spreads and high speeds of executions not forgetting high leverage. The broker you choose should be an expert in risk management safeguards and be transparent in all his dealings
· Trading strategy
You need to put into place the best trading strategies in order to succeed. These strategies are technical analysis and fundamental analysis. In fundamental analysis, you need to carefully analyse the market and view the movements of currency base4d on the currency values. In technical analysis, you need to pay close attention to the movement of the price patterns.
Fx trading benefits
Forex trading in Australia gives you the following benefits
- Round the clock trading opportunity which allows you to trade at whatever time youwant.
- Forex trading is the most liquid of all the financial markets in Australia and every where else. You can trade whatever amounts you wish to without any limitations.
- It is also one of the only trading experiences that gives you leverage. Leverage helps to build up your profits within short peri0ds of time. It is also important to note that the same leverage can also cause you losses within short periods of time
- Though many people opt to go with the technical trading, many other Australian currency trading markets also offer diverse opportunities to trade in primary economic changes all over the world.
- Forex trading in Australia offers low costs in trading currencies which is much better than trading stocks
Is forex trading risky?
Like in every other business, forex trading has the following risks too
- Price fluctuations which can sometimes be unpredictable causing losses
- Interest rate risks which involves dramatical decreases and increases of the exchange rate.
- Fraudulent brokers who may not even be regulated by the government
- Change in leverage amounts