If you look at the global, $6.6 per day trillion forex market, you’ll notice that the incremental growth in daily trading volumes has been largely driven by technological advancement and increased accessibility.The same principle can be observed in different areas of the world, with even developing economies such as Africa having witnessed a significant increase in forex trading activity through 2020.
But what are the benefits offered by online trading platforms, and how are they bridging the gap between retail and institutional investors?
- Access Expert Advisors
You can access online trading platforms through your chosen forex broker, with these tools serving as one-stop solutions from which investors can analyse data, view technical indicators and execute orders in real-time.
If you use platforms like the MT4 (which is compatible with most brokerage sites), you can also benefit from customised charts and graphics, enabling you to quickly analyse data in an easy to understand manner.
What’s more, the MetaTrader 4 platform is home to an advanced Expert Advisor (EA) program. EAs are essentially forex robots that can help with automated trades, allowing you to optimise the volume of orders that you execute without compromising on accuracy.
When used in conjunction with risk management tools such as stop-losses, EAs can really boost your trading activity and bottom line profit over time.
- Benefit From Greater Transparency
The forex market has been besieged by market manipulation and rigging scandals through the years, but this risk is becoming increasingly minimal in the age of online forex brokers.
The reason for this is simple; as reputable brokers are legally required to publish their trading operations and create a tangible sense of transparency for investors.There’s also legislation which compels brokers to maintain a constant sense of transparency without altering the course of the forex market, creating a climate for safe, assured and ultimately fair trading.
To this end, brokers must also publish the past financial reports, and those that don’t shouldn’t be considered as viable options.
- Trade in a Regulated Marketplace
On a similar note, reputable brokers are also fully licensed and regulated by the relevant financial authorities within their jurisdiction
In the case of African brokerage sites, for example, this body is The Financial Sector Conduct Authority (FSCA), which ensures that brokers operate transparently at all times and adequately protect traders from the threat of fraud.
This threat comes in many forms, from market manipulators and influential traders to rogue brokers, so it’s crucial that your chosen site displays the relevant licensing information.Make no mistake; so long as your broker is regulated, you can rest-assured that your capital is safe and being looked after.