Читать книгу Available about Forex trading in Russia - Oleg Papkov - Страница 6

A good broker, Forex brokerage office (Forex) is 50% of success in trading on the market. Explains what to follow when choosing. Who are brokers and how to work with them?

For those in a hurry, you can take a look at —https://brokers.ru/brokers

Explanations on the regulators and types of broker work and account types are just below.

Work in the Forex market (Forex) is not directly possible, and it is useless and meaningless. You will have to work remotely via the Internet, and this is more convenient, through brokerage offices or brokers.

Forex brokers are firms that specialize in transactions in the foreign exchange market, sometimes stock, futures, etc., which, in theory, must have a Forex license for this activity, for example, from the Central Bank of the Russian Federation in Russia. The presence of a license, and this can be checked in the specialized sections on the website of the Central Bank of the Russian Federation, is like a “quality mark” for a brokerage office. Because in order to get a license in Russia, for example, a broker needs to fulfill a phantasmagoric number of requirements in accordance with Russian legislation. Not like over the Hill. Russian brokers licensed by the Central Bank of the Russian Federation are preferable. Finam Forex currently has such a license.

So why do we need them? But why? To work in the Forex market, first, we must have a working amount in the currency, or ruble equivalent. And this amount we will have to give to save and for our work to our chosen broker. This is, as it were, a banking structure. But its duty is to enter into a contract with us, to act on the open market, in accordance with the contract concluded with us and with our orders to open or close transactions. They do this not for free, but for a fee. Or it is income from the spread. We have already learned what this spread is. Or with a commission on each of our transactions.

As elsewhere, there are responsible brokerages whose goal is stable and leading work in the market and a stable legal income. There are also “sharashkin offices”, the so-called” kitchens”, the purpose of which is to” cut down your loot” and dissolve.

Normal brokers do not make noise, do not bother you, like gypsies sometimes. They simply exist, work, and advertise their activities in the usual way. “Kitchens”, as a rule, call on phones and brazenly impose themselves, hunting for your money.

Let’s see what a simple speculative trade looks like in the Forex market. Let’s say you opened an account with a broker, the parameters of which suit you, and deposited a certain amount to it. Now you can act with a fraction of this amount, called a Lot or lot share. For example, with Lot A, we ask the broker to open a deal to buy some currency at the price of X. Based on the subsequent price increase. And after some time, if the growth assumption was correct, you give the broker the opposite order to the previous one. About the sale of the same Lot A at price Y. Price Y is greater than price X. The sale of the Lot And you helped out a greater amount of original currency than you invested. The difference is yours.

Leverage is the ratio between the amount of collateral and the borrowed funds allocated for it by the broker. Leverage of 1: 100 means that you need to have an amount 100 times less than the amount of the transaction on your broker’s trading account in order to make a trade.

Well, if you are at least a ruble millionaire. You can invest a significant amount for the Forex market. Accordingly, you can get a significant profit on the difference. But, if you do not have a significant amount. In this case, the broker gives you the opportunity to use leverage. What is leverage? For example, a leverage of 1: 100 means that the broker increases your invested amount by 100 times. Thus, it gives you the opportunity to work on the open market for a much larger amount. For example, when buying a currency, it increased your amount 100 times. You have worked a large amount and your profit is calculated from the increased amounts. The danger is that if you choose the wrong direction of the transaction, your losses are also calculated from large amounts. Therefore, you need to be very careful in using the amount of leverage.

A demo account with a broker is a great opportunity to practice trading with virtual money. You need to start with it.

Previously, the broker was contacted by phone. Now all this happens through a trading platform (software package) on a computer, tablet, or smartphone.

The so-called brokerage “kitchens” are not set up for you to make a profit. Rather, you can say that they are determined to appropriate your deposit with various organizational and technical tricks.

For example, it is not timely to execute your order about the beginning or end of the transaction, or to execute your orders not at your ordered price. There may be input and temporary distortions of quotes.

Therefore, the conclusion suggests itself. When choosing a broker, it is necessary to check the license. In the case that no license has been to look carefully at the reviews about this broker. The essential question is how many years this broker has been working in the Forex market. Well-known, long-established brokerages are not interested in deceiving you. And they spend a lot of time maintaining their reputation.

A very important issue is the resolution of legal conflicts that may arise during trading. For example, if a broker has its head office outside the Russian Federation, the solution of many legal issues can be very complicated. On the contrary, if the broker is located within the Russian Federation, and even more so has an extensive network of offices in cities, then interaction with it in case of legal conflicts is much easier.

I can’t recommend a specific broker to you. Each has its own set of services and trading accounts. I can only speak for myself. I studied with a Forex Club broker. I work with the RoboForex broker. You have to choose a broker yourself, having found it through the search engines Google and Yandex, expending great efforts on the evaluation of the terms, read the reviews or search data on the license. I’m not going to point the finger at anyone here. Like a good one. This one’s bad. Everything changes all the time. In short, the broker who can safely pay you the money you earned, and choose. This is almost the most important thing in all trading on the Forex market. I.e., the contract-offer or whatever you need to read very carefully not only before the first transaction, but even before making money on your deposit.

On many sites, the name of the regulator for the broker is placed opposite the name of the broker.

Regulators for brokers:

IFSC – (International Financial Services Commission, International Financial Services Commission of Belize) is part of a group of organizations that fight money laundering in the Caribbean region, but the main activity of this formation is to provide licenses for the right to conduct financial, brokerage or investment activities in the offshore territory of Belize. The IFSC license can be seen from both reliable and dubious brokers.

NAFD – National Association of Forex Dealers. This organization acts as the legal successor of the CRFIN. The task of the organization is to protect the rights of all trading participants in the foreign exchange market. The regulator works closely with government agencies and lobbies for the interests of financial market participants.

FSA-FCA (Financial Conduct Authority) – The Financial Conduct Authority of the United Kingdom, which is a non-governmental independent body that regulates the activities of investment, banking and financial companies, acts in accordance with the"Financial Services and Rinks Act 2000”.

CySEC is the Cyprus Securities and Exchange Commission, which serves as the state regulator in Cyprus. The main mission of the Commission is to control the activities of financial and foreign exchange companies located in the Republic.

CBR – Central Bank of the Russian Federation;

ASIC – (Australian Securities and Investments Commission) – the state Securities and Investments Commission of Australia is the main and only financial regulator in the country.

SEBI-The Securities and Exchange Board of India (SEBI) is the regulator of the securities market in India.

BVI FSC – — Financial Services Commission of the British Virgin Islands. The financial regulator was established in 2001.

RAUFR-Russian Association of Financial Market Participants (RAUFR) is a non-profit organization that unites responsible participants of the financial markets of the Russian Federation on voluntary terms.

CNMV-The National Commission for the Spanish Stock Market (The Comision Nacional del Mercado de Valores, CNMV) is the state financial regulator of Spain.

FCMC-Finanšu un kapitāla tirgus komisijas (FKTK, in English Financial and Capital Market Commission, FCMC) The Financial and Capital Markets Commission of Latvia is the state financial regulator of Latvia.

FINMA – (Swiss Financial Markets Authority) is the Swiss financial market surveillance service, which is a public authority.

The Commission for Regulation of Relations between Financial Market Participants is a non-profit organization whose activities are aimed at developing services and regulating relations between Russian participants in international financial markets.

BNB-Bulgarian People’s Bank (bolg. Bilgarska Narodna Bank) is the central bank of Bulgaria.

SIBA-Seychelles International Business Administration.

VFSC-VFSC is the Vanuatu Financial Services Commission, established in 1993. The duties of the regulator include: issuing licenses for financial activities on the territory of Vanuatu, monitoring the work of licensees, consulting the population.

CFTC-The CFTC (Commodity Futures Trading Committee) is one of the most authoritative forex and futures brokers in the world – the Commodity Futures Trading Commission, established by the US Congress in 1974. It is an independent government agency that is granted the right to regulate the options and futures markets.

MFSA-The Maltese Financial Services Authority is the government body of the Republic of Malta that regulates and supervises the financial and credit sector.

IIROC – Investment Industry Regulatory Organization of Canada. Investment Regulatory Organization of Canada.

MAS-Monetary Authority of Singapore. The Monetary Authority of Singapore (MAS) is the central bank and state financial regulator of Singapore.

And also against the name can be the method of bringing your transaction to the open market, i.e. the types of accounts used by the broker.

Types of the broker and the account types

MM – Market Maker;

NDD – No Dealing Desk. Trading without the participation of a brokerage company. Withdrawal of clients ' orders to the open market automatically and execution on the side of the liquidity provider.

ECN – Electronic Communication Network. Electronic communication network for the implementation of transactions for the purchase/sale of a financial asset (currency pairs), which eliminates the role of intermediaries from the information exchange chain.

STP – Straight Through Processing. A system that allows a Forex broker to send client orders for execution directly to liquidity providers – banks that trade directly on the interbank market. The more liquidity providers there are, the better execution for customers. The fact that traders have access to the real market and the possibility of instant execution of orders without the participation of a dealer makes this system extremely attractive for most traders.

DMA – Direct Market Access. The technology of accessing the market directly, bypassing the broker.

We have dealt with brokers and their real trading accounts.

Now let’s look at the demo account and its advantages. Any Forex broker must have a demo account.