Forex trading is complex. FXDD makes it less so. Your success is our ultimate goal, which is why FXDD goes to great lengths to improve your trading. Below, we have answered some common questions to help you understand the benefits of trading with FXDD.
Q: What is the primary benefit of trading with FXDD?
A: One of the biggest reasons to trade with FXDD is our education. We are a leader in investor education, with deep insights into the world’s fastest growing financial marketplace.
Q: What is the Forex market and what is FXDD’s role within it?
A: Forex is the largest market in the world, in which the worldwide exchange of currencies between governments, organizations, and individuals occurs. In fact, it’s much larger than the stock market, with more than $4 trillion in foreign exchange traded each day. FXDD provides retail traders with direct access to the Forex market – the same market that facilitates foreign trade and investment by enabling currency conversion.
Q: What services or tools does FXDD provide to traders?
A: FXDD provides traders with the technology, services, and education needed to navigate the ever-evolving foreign exchange marketplace, including FXDD’s unparalleled customer service.
Q: Is Forex really that much more complex than other asset classes?
A: Similar to other asset classes, the Forex market allows traders to buy or sell an investment product. The difference is that in Forex, you are trading a specific currency pair. With FXDD, you may trade the Euro versus the U.S. Dollar, the Japanese Yen versus the British Pound, or more than 30 other currency combinations offered by FXDD. These various currency combinations simply illustrate the value of one currency compared to the other, denoted with a single price. FXDD warns first-time traders that the price of these pairs constantly fluctuates based on the present and projected state of the two country’s economies and political climates.
Q: Beyond trading pairs of currencies, what separates Forex trading from other asset classes?
A: Unlike stocks, the Forex market cannot be manipulated by “insider” information. It’s simply too big for any one party to gain an unfair advantage. In trading Forex with FXDD, trade positions are not vulnerable to accounting fraud or the risk of corporate scandals present in other markets. According to FXDD, the sheer size of the Forex market, along with the many other factors that impact pricing, make the Forex market unique.
Q: What are some of the benefits that FXDD sees in trading Forex?
A: Forex is the most liquid market in the world due to its volume and importance within the global marketplace. FXDD works with the leading broker dealers worldwide that buy and sell currencies, providing retail traders real-time access that was once only available to large banks and financial institutions. Liquidity provides stability and low spreads. FXDD ensures that traders get the best possible market price when opening or closing a position. In contrast to the stock market, which has a much lower trade volume, trading Forex with FXDD reduces a traders’ vulnerability to liquidity risk.
Q: Okay, beyond liquidity, what other benefits does FXDD see in Forex trading?
A: There are three other areas within the Forex markets that FXDD views as beneficial, including more leverage (although leverage can work for you as well as against you), lower trading fees, and continuous operation. Because the price of currencies remain relatively stable from one day to the next, FXDD, like many other Forex firms, offers up to 50:1 leverage on all Forex trades in the U.S. This allows traders to amplify their positions while utilizing less capital. FXDD points out that the high leverage offered by Forex is considerably more favorable than the 2:1 leverage available in the stock market. FXDD cautions traders that using high leverage simply allows traders to initiate a larger position with less capital, which can have either a positive or negative impact on trades, depending upon the position.
It is typically less expensive to trade Forex with FXDD versus trading other financial products with different brokers. Regardless of trade size, FXDD’s spreads are typically 4 pips or lower for most major currency pairs. FXDD profits from the spread between the bid/ask price. As part of FXDD’s service, the firm offers free research, market information, trading education and state-of-the-art trading platforms.
According to FXDD, another important benefit of trading Forex is the ability to trade virtually anywhere and anytime. The Forex market is one of the most accessible market in the world, and with FXDD, you can trade five days a week, 24 hours a day. At FXDD, and most other Forex brokers, currency market trading hours begin Monday morning in Sydney and continue through Friday evening in New York. FXDD advises first-time Forex traders to familiarize themselves with the time zones of the various countries they are focused on trading.
At FXDD, our goal is to provide you with the tools you need to successfully trade in Forex markets. You can go to http://www.FXDD.com/en/forex-trading-tools.html for additional information and tools.