It’s an uncertain age we live in. Between Trump, Brexit and everything in between, the markets have been volatile – to say the least. Given the fearsome reputation for riches or ruin it holds, the forex market is understandably being approached even more cautiously than in the past, especially by investors with particularly long-term views.
But, with over $4tn of daily turnover, forex trading is an incredibly attractive proposition. Additionally, the fact it’s a 24 hour market has proved lucrative to lone wolf internet traders. The market knows this, but it also realises those users are intimidated by the perfect storm of a volatile market and volatile world, too. So what’s the solution for forex?
Stockbrokers have been used since Roman times. They’re certainly nothing new. Many day traders and investors, from large funds to low-level individuals looking to grow their wealth, turn to brokerage in order to secure expertise and ensure the safety of their investments.
With the advent of global forex markets came forex brokers. Arguably, however, the agency given to low-level traders by the internet has reduced their importance.
People tend to be very busy in their day-to-day lives and the volatility and precision demanded by personal forex trading can be chastening when registering an impact in the market. However, as even the biggest companies have demonstrated, diversification of investments is essential to growing wealth and protecting yourself from risk. Forex offers an instantly accessible and, crucially, highly liquid market. Brokers can help to bridge that gap between the lucrative nature of investing in forex and having the time to focus on doing it well.
A common problem is choice. An opinion expressed by ConnectFX.org is that there are countless hundreds of potential brokers out there and, to the layman, there are precious few ways of identifying what factors need to be considered when making the decision of who to place your trust in and, ultimately, hand over control of your investments.
Especially in todays economic climate, trust is key. So, how do you identify a broker with an emphasis on protecting your hand whilst sustainability and effectively growing your wealth?
The key factor before even exploring the benefits of a broker is to check that they are accredited by the relative regulatory body. Here in the UK, that’s the FCA. Even at a basic level, regulators provide the tools required to do basic checks on who you’d seek to do business with.
Another crucial aspect, especially in the age of the internet, is your selected broker’s track record on data protection. This should be nothing less than perfect, and backed up by excellent security features like 256-bit encryption and two-factor authentication on your end.
Forex trading does not have to be scary. Even when presented with reams of data, conflicting opinions and jargon-loaded reports, effective use of a broker and a little mindfulness towards data security can help you to effectively grow your wealth and diversify your portfolio.