Overview of Trading Forex Online

[GlassOnion 12]

How a Forex system operates in real time

Online foreign exchange trading occurs in real time. Exchange rates are

constantly changing, in intervals of seconds. Quotes are accurate for the time

they are displayed only. At any moment, a different rate may be quoted.

When a trader locks in a rate and executes a transaction, that transaction is

immediately processed; the trade has been executed.

Up-to-date exchange rates

As rates change so rapidly, any Forex software must display the most up-todate

rates. To accomplish this, the Forex software is continuously

communicating with a remote server that provides the most current exchange

rates. The rates quoted, unlike traditional bank exchange rates, are actual

tradable rates. A trader may choose to “lock in” to a rate (called the “freeze

rate”) only as long as it is displayed.

Trading online on Forex platforms

The internet revolution caused a major change in the way Forex trading is

conducted throughout the world.

Until the advent of the internet-Forex age at the end of the 1990’s, Forex

trading was conducted via phone orders (or fax, or in-person), posted to

brokers or banks. Most of the trading could be executed only during business

hours. The same was true for most activities related to Forex, such as making

the deposits necessary for trading, not to mention profit taking. The internet

has radically altered the Forex market, enabling around the clock trading and

conveniences such as the use of credit cards for fund deposits.

Forex on the internet: basic steps

In general, the individual Forex trader is required to fulfill two steps prior to

trading:

• Register at the trading platform

• Deposit funds to facilitate trading

Requirements vary with each trading platform, but these steps bear further

discussion:

Registering

Registration is done online by the individual trader. There are various forms

used in the industry. Some are quite simple, where others are longer and

more time-consuming. In part, this can be attributed to governmental or

other authorities’ requirements, though some Forex platforms require more

information than is actually needed. Some even require a face-to-face

meeting, or to obtain hard copies of required documents such as a passport,

or driver’s license.

The key requirements for registration are the trader’s full name, telephone,

e-mail address, residence, and sometimes also the trader’s yearly income or

capital (equity) and an ID number (passport / driver’s license / SSN / etc.).

Typically, the Forex platform is not required to run a thorough check, but rely

on the registrant to be truthful. Nevertheless, each Forex platform conducts

certain routines, in order to check and verify the authenticity of the details

provided.

Registrants are required to declare that funds used for trading are not in

question, and are not the result of any criminal act or money laundering

activity. This is mandatory as part of a global anti-money laundering effort .

[henryduncan12 10]

Thanks GlassOnion to share detailed information about online forex trading. Can you suggest me a good broker for forex and stock trading?