Everything you should know about Forex com can be found in our Forex.com review . Thanks to its high liquidity, 24/7 schedule, and easy access, trading have become a popular profession, especially for people who know how to handle finance. The prospects are tempting – who doesn’t want to be their own boss and make money with a laptop.
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However, Forex trading is an activity full of its drawbacks and pitfalls. According to statistics, 80% of newbies merge precisely because of poor knowledge of the principles of Forex and because of the wrong choice of the best stock broker app. Let’s not repeat their bad example and explore everything in detail in this Forex.com review.
What is Forex.com review 2020?
Let’s start the Forex.com review 2020 by describing what this site is. Forex is a global market in which currencies are traded, exchanging one for another at a free market rate. Currencies are traded against each other in pairs in which one currency (base) is bought for another (quoted).
The market is traded by private traders who want to make money on speculation, business (it simplifies settlement with foreign partners), and even entire states represented by National central banks.
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How does it work?
Forex.com works quite simply: the foreign exchange market is the place where currencies are traded. More precisely, they trade currency pairs, buying one currency for another. Usually, the best brokers app is used for this. Currency exchange is important to most people around the world, whether they realize it or not.
For example, to buy champagne from France, a supermarket from China must make an international currency exchange. After all, he needs to pay the French in euros. The same goes for travel. An American tourist in Russia cannot pay in dollars for a tour of Moscow, because this is not the local currency. Thus, the tourist must exchange the dollar for the local currency, in this case, rubles, at the current exchange rate.
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One of the unique aspects of this international market is that Forex is completely free and decentralized. There is no single exchange that sets the trading schedule and rules. All transactions take place through the best mobile trading platform as well as through computer networks between traders around the world. The market is open 24 hours a day, five days a week, currencies are traded all over the world.
Best Forex trading app 2020
Forex exchange from the position of a trader
For a Forex trader, it is both the main means of earning money and a field for creative activity. Traders pursue a pragmatic interest, seeking to profit from fluctuations in exchange rates, but for this, they need observation, imagination, as well as the ability to analyze and find causal relationships. We can say that Forex is just a huge field for personal and professional growth.
Numerous software packages greatly simplify the trading process. So, one of the best Forex trading app 2020, according to traders’ feedback, is Libertex and the etoro app, developed by Forex Cub.
Geography of the foreign exchange market
The Forex market is the largest financial market in the world. Trading is carried out not in one place, but between all participants simultaneously through intermediary brokers. The market is open 24 hours a day in different parts of the world. The very essence of Forex.com was originally such that traders could instantly satisfy their needs in currency at any time.
Differences from other exchange markets
A Forex.com review 2020 would not be complete without describing the main differences from other foreign exchange markets. These include:
– Forex structure. Stock markets are traded on stock exchanges such as the New York Stock Exchange (NYSE). In Forex, participants trade directly with each other through intermediaries – brokers.
– Entry threshold. There is no leverage to trade stocks or bonds, so a lot more money is usually required to start. Forex uses leverage. It is both beneficial and unprofitable. It is profitable, because with a leverage of 1000: 1, every dollar you deposit allows you to buy currencies for $ 1000. Not profitable because with such leverage, even a couple of pips of drawdown will empty the balance.
– Trading method. In the stock market, you make a trade by selling or buying an asset. In Forex, you buy and sell at the same time. Currency pairs form an instrument. Speculation occurs when we correctly predict when one currency will rise or fall.
Why is Forex trading in demand?
Why does forex trading continue to gain popularity in 2020? It’s easy to explain. More and more people are showing interest in trading. Especially young people. For most of them, the main motivation is the prospect of quick and big earnings. Forex in theory can give it. Here you can earn as much in a week as on stocks in 10 years.
But that’s in theory. Let’s face it: 90% of people will not become brilliant scientists, actors, doctors, and so on. Not everyone can become a talented trader. There is a height in Forex that can be taken with persistence and hard work. And you need to focus on it! More informations you find also in our articles about best stocker broker app and trading apps for beginners as well.
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