Forex trading USA 2022-Best forex broker in 2022 for Forex traders
Which forex broker is best for Forex trading USA 2022. A good broker can increase your earnings, 2022 is just around the corner if you're looking to trade a lot more let's choose the broker that has not only spreads but also very low spreads on multiple instruments.
What is Forex trading?
Forex stands for FOREX = FOR(Means Foreign) EX(means Exchange) Foreign Exchange.
Forex trading is nothing but Trading one currency to another, We can sell our own domestic currency into foreign currency which you visit. This is one form of Forex trading.
Who Trades Forex and why?
Forex is lastly traded by banks like Central banks, Banks, Corporations, Retail traders.
Central Bank Innervating the Fx market, Banks trade Forex as a form of market-making providing liquidity to Corporations, Banks, and corporations have close working relations.
For Corporations typically we can sell our domestic currency in exchange for foreign currency to buy whatever spare parts or raw materials you want.
Retail Traders, you can see the above Map and you can understand how it works. Let's see the Central bank is the largest bank and followed by all major banks. So, all the major banks have a relationship with all the Investment funds, Commercial companies, and Large Speculators. And also a connection with Market makers and ECN brokers your own broker has the connection to you direct the trading platform. As a retail trader, you have only a connection with the market maker who might have the order to pass on how your broker established the trading system. So this is the ecosystem.
Forex Market hierarchy
Major Banks
Electronic broking service EBS/ Reuter dealing 3000 spot Matching
Medium-sized and small banks
Retail Market Maker - Retail ECNs - Hedge Funds Commercial Companies
Retail Traders
We can consider the above as a Food chain of Forex Market
What are the advantages of Forex trading
High liquidity no need to worry about poor prices, Slippages, there is a huge amount of liquidity. So, there is a pretty close price which you see on the screen.
Low barrier entry anyone can join forex market unless your countries ban for forex they will stop you to open an account
Better risk Management because forex allows you to trade very Small large sizes. You can trade micro level really very small sizes are a big advantage.
Trade anytime you want 24/5 you can trade London sessions, New York sessions, it's pretty much trading at any time unless the stock market opens.
Low transaction cost at forex trading
Key points on Forex Trading
Forex trading is the exchange of currencies
Trade by banks, Corporate, Retail traders
Advantages: High liquidity, low barrier to entry, better risk management, trade anytime, Low transaction cost.
Best Forex broker in 2022 for Forex traders
Tradiso
Tradiso Trade CFDs on Forex, Cryptos, Global Shares, and more
Tradisco offers Forex, Cryptocurrency, Commodities, Indices, and shares.
It allows users to achieve their goals by combining fast execution speeds, raw spreads, and low commissions with a genuine commitment.
Number One Capital Markets
Specifically, offering a small contract size allows you to do a much smaller account with much lower risk. So this broker allows you to scale down a pip value 0.01cents/1cent
Liquidity providers
Bank of America, UBS, Barclays, BNP Paribas
And thereby regulated by VFSC
LMFX
They offer a 100% credit bonus which means whatever amount you deposit they will match you.LMFX offers Forex, Indices, commodities, Metal and oil, and shares.
Everyone should first check the Brokers website and their reputation before starting Forex trading USA 2022.
All the above broker's Forex trading platforms are my personal option, you can choose your own personal broker for Forex trading USA 2022 to rock the show.