Online trading has become rampant nowadays that traders are not just trading with their computers or laptops but also with the use of mobile phones and other portable gadgets. This goes to show that Forex trading has become one of the most sought-after forms of online investment. But amidst this popularity are the misconceptions that surround Forex trading for so many years. If you continue to believe in these misconceptions, you will only view the Forex market negatively once these misconceptions are not met. As early as now, you should be able to distinguish the myths from the truths in the foreign exchange market.
It is true that brokerage firms are involved in every trade done by retail traders in the market. But these brokerage firms cannot directly help in the trading process. Customers tend to enter their orders through the trading platform like MetaTrader 4, supported by the broker but they do not have any direct access to the security, therefore, it depends on the brokerage firm if they would execute the trade or not.
Although this service varies from one trading platform to another, there are now a lot of brokerage firms that offer trading platforms that allow live chats and phone centers whenever they want to directly talk to a customer service representative while the trade is live. Most of the time, phone numbers are provided during the making of the trading account and these phone numbers are being contacted by the customer service in case the traders have questions that need to be clarified. In this case, it is important to look for a brokerage firm with very good customer service that can answer chats and calls immediately whenever you need one.
Orders don’t always get executed instantly especially if you have placed a time restriction or a price limit on your orders. For high trading volumes, it is important to remember that there might be unannounced delays. Traders who place market orders should know that market volatility can cause delays in trade execution.
More importantly, it is important to remember that all trading platforms are not created equally. One trading platform is different from another trading platform. Different firms are also offering different levels of access as well as system sophistication.
Risks are always available in Forex trading – no matter if you are using online trading or you are trading through a regular broker and using a reputable trading platform such as MetaTrader 4. Newbies in trading must understand their own risk tolerance as well as their investment goals right before they venture into the financial market. It is very important to acquire basic knowledge before you start trading and do your own research before venturing into the market. Emotions must also be handled properly. If there is an urge to overtrade, think of the consequences that might follow afterward. Is the trade worth it? Do not make impulsive decisions.