The Financial Conduct Authority (FCA), UK, holds the responsibility for regulating and approving thousands of operational financial firms in the UK. It helps to maintain integrity by ensuring security through the maintenance of basic human rights in the departments of finance and banking. The FCA aims to authorize Forex Broking Companies, thus helping forex traders to gain trust in brokers and their forex broking platforms.
The FCA however, regulates some of the top forex brokers in UK, which channel and chart various forex trading platforms online. In order to understand the basics of forex trading, you need to learn the know-hows and thus, acknowledge the acquisition of top forex brokers in UK to help you go a long way.
Mentioned below are some of the basics of forex trading that you should know before considering the top forex brokers in UK.
1)RELIABILITY OF FOREX TRADING PLATFORMS:
Most top Forex brokers in UK will allow you to fund a margin-based account on any of their forex trading platforms in order to help you attain remarkable profits through leverage while indulging in currency trades. It is highly recommended to get acquainted with the details of forex trading platforms and the volume generated accordingly.
As compared to revenue of billions of dollars that the stock exchange market generates per day, the Forex Trading Market helps to generate trillions of dollars daily. This proves that forex trading platforms do possess authenticity and the trade of currency pair derivatives is lucrative.
However, for this purpose, there are several forex trading platforms, many of which have no basic as they are established by scammers and fraudulent parties. The FCA however, helps to rule out the basics of forex broking companies, thus, allowing you to get basic knowledge of the affiliated forex trading platforms and the volume generated daily through them.
2)WHY THE SIZE OF TRADING ACCOUNTS MATTER:
The Forex Trading Market faces its ups and downs, with maximum liquidity and volatility than any other business could ever face. The Forex trading market tends to involve simple but competitive currency exchanges, and at times, you might not get reimbursed due to volatility and sudden drops in currency rates. This can be a downside to the situation, which is why it is recommended for forex traders to put forward better and larger prices in order to gain solid financials and thus, better trade volumes.
3)DEALING DESK OR NO DEALING DESK:
If your broker is a Dealing Desk, it simply means that he is the Dealer responsible for completing or executing an order according to his preferred quoted price. There might be a few economic hits during which traders might be required to trade. In addition to invariable spreads, dealing desks tend to place restrictions to trading during specific holidays, occasions or political events as well.
Sure, the broker is involved, but banks are majorly responsible for the placement and execution of orders. Some of the top Forex brokers in UK such as Plus 500 are well known for this. Non Dealing Desks seem ideal since there aren’t any fixed spreads or imposed authority by the brokers themselves.
Most brokers tend to involve an intricate online network graphic system that allows traders to see and thus engage in trading without the time gap.
It might be difficult to understand the basics of forex trading in the hands of an incompetent broker, but in the end, it turns out to be fruitful – even in the light of potential risks – due to the compliance of top Forex brokers in UK. Also, with differences in spreads, margins, commissions and leverages, liquidity of the forex trading market comes into play and has a lot of impact on volumes.