Nowadays, trading is no more a closed and inaccessible activity for everyone. It is open and clear as never before and finding proper materials, books and tutorials on trading is easy as a pie.
Many people are involved in trading, according to the statistics. Moreover, trading popularity spread on individuals as much as on large companies and financial corporations. This trend has become popular within Britain. Due to a number of the best trading platforms in the UK and Internet proliferation, freelance traders make deals even not leaving their homes. Let`s consider the main issues of trading platforms in the UK, hence it is easier to understand how it works.
Trading Principle in Short
Currencies trading on Forex is two-side comparison: you have Pound (UK)/Dollar (US) and its rate, for example 1.07, which means this amount of US dollars is needed to buy £1 or visa versa (depends on the currency order). In this case, £/$, pound – is a ‘base currency’ while dollar – is a ‘quote’ one. Selling GBP/USD means buying dollars and selling pounds. In case of buying GBP/USD, dollars are sold and pounds bought.
Trading Platforms Available
Platforms allocations is more or less balanced in the U.S. and UK, but online platforms made those tight borders wider. Until you have decided to start trading online, search for the firm platform among existing. The following tips will help you to find a good trading platform:
- Legal Status
This is an obvious option, which comes together with such notions as leverage, spread and currency pairs. Vast variety of currency options is a good sign (standard pound/dollar or euro/dollar ratios are usually used by default). Taking a solid profit from less popular currencies is more possible, if you know the market of those pairs.
- Leverage limit
In spite of US, trading platforms in the UK are more likely to offer higher leverage limit (up to 1000:1, which means you can start from a small sum like 100 pounds and earn up to 100,000 pounds). US platform usually have a leverage restriction and rarely reach the limit more than 50:1 (according to the regulation) on default currencies and 20:1 specific ones.
- Licence and Security
Platform in the UK should be authorised by the FCA (Financial Conduct Authority). Only a certified platform can be assumed as a secure place for money transactions.
Funds segregation and own bank account is required for individuals who register for the trading platform.
FX Calendar
Monitoring and analysing the market, upcoming events, rate updates and other important issues that can influence on the currency change is a careful and brainy work of a trader. Pay attention on the online calendar of the platform, whether it has some live translations and daily data updates, as far as it will be useful.
Conclusion
All in all, If you want to become a good trader, it’s of great significance that you take the time to research and plan your trading activity; these are required steps in your overall success as a trader.
