SINCE 1982
Investment and trading options are being offered in both these categories for a few decades now.
Why Forex?
When looking for the reason to opt for Forex, it is the tax-free
form of trading that stands out as the greatest feature.
History
Ancient times also had currency trading, which passed on to the medieval ages to the early modern years after going through multiple amendments.
Market
Of all the financial markets, Forex has the highest liquidity, and it has traders from all over the world.
Value
The value of Forex is dependent on the currency pair. A synergy is formed with these pairs that people can make money as the volatility increases.
Meet the Team
Join us to collaborate with our team of experts and dive deeper into the world of Forex and CFD trading.
Jaime T Henley
Barry N Archey
William A Vargas
What Is CFD
It is essentially an agreement between a CFD broker and an investor to settle the differences between the prices.
CFD Benefits
CFDs offer higher leverage, various trading opportunities, and professional support without being charged for.
CFD Risks
The lack of liquidity and industry regulations in CFD can cause trouble when you don’t make the right trading decisions.
Latest From Blog
Did you know that forex is a portmanteau of foreign currency and all kinds of foreign exchange? Foreign exchange is a very well-known process of changing one currency into another currency for a wide variety of reasons; these reasons usually include tourism, commerce or trading. Exchange of currency is required. Even if the pandemic is going on, continues to be exchanged for all kinds of activities. Trading is one of the most important things to happen every single day in the world, and if trading needs to go on, the exchange of currency needs to go on as well. Foreign exchange markets make this a reality. Almost $5 trillion is traded on average, daily. According to a very recent try annual report from the bank for all kinds of international settlements, which happens to be a global bank for national central banks, the average trade was more than $5.1 trillion a day. Here are some very important key takeaways. The foreign exchange, also known as the forex market, happens to be a global marketplace for all kinds of exchanging of national currencies, against one another. For example, the international exchange rate between one US dollar and one Indian rupee is: 1US dollar equals 73 Indian rupees, currently. 1GBP is equal to 95 Indian rupees. Because of a global reach of commerce, finance, trade and more, forex markets have been known to be the largest and also very liquid, when it comes to asset markets. It has famously been called the most liquid market in the world, which is ironic, because it is also an intangible market. It does not need a physical market to function. Did you know that most of the currencies are traded against each other as exchange rate pairs? A prevalent example would EUR/USD. All kinds of market participants have been known to make use of forex to hedge against other international currency and the interest-rate risk, in order to speculate on all kinds of geopolitical events and also to diversify some portfolios. Unlike the stock markets, which can be traced to the roots, even centuries, the forex market as we understand it to this day is a very new market. In a very basic sense, people convert one currency to another, for a financial advantage. Forex has been around since nations actually began minting currencies. The modern forex market happens to be a modern invention. Ever since the year 1971, most of the major currencies in the world were allowed to float freely against each other. The values of all the individual currencies very every single day and they rise and fall, without any indications. Most of the commercial and investment banks have been known to conduct trading in forex markets. To have the best form of trading options is important to direct your funds in the right way. Income isn’t just to be spent and dissipated over time; you need to invest in the most profitable areas to reap the benefits. When you have a steady inflow of money, it is quite hard to choose an investment option in order to make profits since some can go askew despite having the promises of massive returns. One can never be too sure about the profits of an investment. CFD trading is one of the most popular investment options people have been relying on for a long time. Although it has been around for some time, the working classes are yet to explore the advantages of putting money into it. Let us look at CFD trading in detail. CFD means ‘Contract for Difference,’ and it is the buying and selling of these entities. Since you are speculating on the financial markets such as indices, shares, and forex with the CFD, it is considered a derivative product that requires no ownership of the assets. You are on an agreement with the buyer or seller to exchange the difference in the price of an asset when you make a contract. The time allowed for the payment is from when the contract is opened to when it is closed. Price movements are speculated on for the various directions to find the related possible losses or profits. Selling is different from buying, and so are short and long CFD trading. You can earn profits even by opening a position in a market that decreases in price. All of this possible only if you make timely decisions. The difference in price between when your position was opened and when it is closed can be exchanged even if the prices fall. Every trader must keep in mind that they shouldn’t wait for the prices to drop and hit the bottommost state. In both short and long trades, the profits will only be released when the position is closed. Losses can also be realized only after this closure. One of CFD trading’s greatest benefits is that it is leveraged, meaning you get exposure to a larger position. When you plan to open a position in any company’s shares, you don’t always need to pay the full cost of the shares upfront. You will only have to pay a certain percentage of the money with the contract for difference. Spreading the capital is possible with the leverage in CFD, but you also need to understand the fact that the losses and profits are calculated based on the complete size of the position you buy. The outlay can influence the profits and losses, meaning the losses could go on to exceed the deposits in some cases. So, you need to check the leverage ratio before starting your trade. The contract for differences (CFD) has been known to offer the European traders and the investors a great opportunity to gain a profit from the price movement without owning any of the underlying assets. It also happens to be a relatively simple security calculated by the movement of assets between a trade entry and exit. You will be completing only the price changes without considering any of the underlying values of the assets. This is done to accomplish through a contract between the client and the broker, and it does not exactly utilise any of the stock, commodity, future exchanges or forex. Trading CFDs will offer a lot of advantages which will increase the huge popularity in the entire decade. In this guide, I will be giving you a proper introduction to contact for differences. A contract for differences, a CFD happens to be an agreement between an investor and a CFD broker to fully exchange the difference in the value of a product between the open and close contract periods. An investor in CFD never actually owns any of the underlying assets, but instead, he receives revenue which is completely based on the price change of the assets in question. There are so many advantages of CFD is, and they include the access to the underlying asset at a much lower cost than actually purchasing the asset outright, it also eases execution, and it gives you the ability to go long or short as well. There are some disadvantages. A disadvantage of CFT that I would like to mention is the immediate decrease of the initial position of the investor, which is completely reduced by the size of the spread when entering the CFD. There are some other risks, as well. Other CFD risks will include weak regulation of the industry, a lack of liquidity, and also a decent need to maintain a proper margin. If a stock is at an asking price of $30 and the trader buys 100 shares, the cost of the transaction would be $3000, plus commission and taxes. This tree it will require some amount in free cash, with a traditional broker, and 50% in the margin account, while a CFD broker will require only a 5% margin. CFD trade show will actually show a loss, equal to the size of the entire spread at the time of this particular transaction. It will also give you a position to break even. You will have also paid a commission, and you have and have incurred a more considerable capital when it comes to the outlay. If the job is done right, CFD trader will end up with more money in his pocket. There has been a lot of growth when it comes to trading opportunities in the past couple of decades in the financial markets, and they have become very accessible to millions of individuals. There is one single reason why trading has become very accessible. The internet has made everything very easy. Now that the coronavirus pandemic has confined people to their own homes, people have been active on the internet, because they have high-speed internet connections and also because they have devices. They have been doing a lot of trading activities. It has been happening smoothly, because trading does not require a tangible place. These financial markets are all existing without the help of any physical markets. People who are interested in trading, will actually face the challenge of choosing the markets which are suitable to them. A lot of people actually trade in multiple markets. Any trader must take into proper consideration all of the advantages and disadvantages of all of the financial markets, before they go ahead and commit all of the time and all of the resources into one or multiple markets. When it comes to the reading of currencies, the resources which are required by a beginner to even get started or very low, and it is very flexible when it comes to a time commitment. That is why, foreign exchange markets are often the markets of choice when it comes to novices and pro-individuals alike. In this guide, I will be mentioning some benefits of working in a forex trading market. It happens to be one of the biggest financial markets in the world. It also has no physical form. The foreign exchange market is known all over the world, and it is not exactly hard to see why the forex market is used as a proper snapshot of global economic trade activity. On average, you see a trade of $4 to $5 trillion, every single day. That means that $200 billion is traded every single hour. $3 billion is traded every single minute. $50 million is traded every single second. Traders participate from all around the world, and you can access it from anywhere and everywhere. Forex trading is not exactly only for the big shots. You can get started as a forex trader, and it does not exactly cost you a lot of money, especially when it comes to trading options or even stocks. It is all a part of the appeal. You should know that you will not be a good trader right away, if you are just starting out, you will need years of experience, to be a decent trader. One of the most significant advantages is that nobody owns the entire market. The sheer size makes it independent. Did you know that the foreign exchange market is a market where you can buy and sell foreign currencies? It is very straightforward. If you want to go to another country, you will have to use their currency. You will have to exchange your country’s currency to the currency of the country that you are visiting. There are many places where you can do this. The foreign exchange market will determine the exchange rate for currencies, all across the planet. For example, 1 US dollar can be Rs.70 today, but it can be Rs.72 tomorrow. It keeps changing every single day, and you should keep track of it if you are a trader. I remember when I was about to go to the United Kingdom, I exchanged Rs.30,000, to GBP. I remember looking at the forex rates. This particular market is also known to be termed as currency, FX or the forex market. The structure of this market is comprised of individuals, commercial banks, central banks, firms, exporters, importers, brokers, immigrants, tourists and investors. It cannot function without the above. It highly depends on all of the above to properly function. The foreign exchange market is also a system that does not have any physical location. It is completely done with the help of the Internet. As I am writing this particular guide, 1GBP is equal to 95 Indian rupees. I got to know about this, with the help of the Internet. It keeps updating every single day. Did you know that this market operates 24 hours, every single day? It operates from 5 PM EST, every Sunday to 4 PM EST, every Friday. It also happens to be the worlds most liquid financial market, because it has tradings of trillions of dollars. The trading currencies in the foreign exchange market will always take place in pairs, so that the value of one of the currencies in the bear is relative to the value of the other. The global market also has to tiers. The very first one is also known as an interbank market, and the second one happens to be known as the over-the-counter market. Did you know that the interbank market is one of the bigger banks when it comes to exchange and trade of currencies? The over-the-counter market is the one where people and companies trade, and it is also very popular because there are many companies that provide you with online trading platforms. Here are some quick points about the foreign exchange market. It has excellent market transparency. Keep in mind that there is enormous growth potential and also some vast trading opportunities for you in foreign exchange markets. There has been a lot of this that has been going on over the past two decades, and the financial markets have become very accessible to a lot more people who are facing the same challenge of choosing which market which is suitable to them. The foreign exchange market is one of the most accessible ones out there. I would also like to add that it happens to be one of the most suitable options for the majority of individuals. A potential trader must actually take into consideration all of the advantages and disadvantages of the financial market, before they go ahead and commit all of their resources and time into it. If you happened to be a potential trader, you should know all of the features of the foreign exchange markets. That is why I have listed some of them below. It also provides a very low trading cost. The foreign exchange market is famous for having a low trading cost. In these markets, there are absolutely no commissions, when compared to other investments. Any of the differences between the selling and buying prices of any of the currencies will be the only cost of trading. That is why, it is possible for small-time investors to make a decent profit, from trading. Forex and contracts for differences (CFD) actually have some very important differences and similarities which the traders should all be aware of. You cannot exactly be ignorant and be a trader. You need to have all of the information, before you start trading. Both of these can actually be very helpful for the purpose of speculation, and also by learning more about these two, the investors can properly decide which one will suit them for their objectives. They should know which is the best for their intentions. In a lot of cases, traders may actually end up using both of them, depending on what kind of situation they are in. It all depends on what use it has. Both of them are very popular and are very useful. Let me start off by saying some of the basics. Did you know that CFDs happened to be contracts between the traders and brokers, in which they agree to exchange the differences between the exit and the entry price of an underlying asset? While the contracts can actually be used to speculate on any of the foreign exchange markets, they can also be used to bet on the assets like oil or even precious metals, in addition to the factors. They also happened to have a lot of flexibility when it comes to choosing both the currencies which they trade and also the increment values which they want to use. The losses or the profits that the investors receive from any of these arrangements is accurately calculated by taking the proper differences between the exit and entry prices and also multiplying that particular figure by the number of the CFD units. Did you know that CFD may be complex and sophisticated? Forex, involves the trading of different currencies against each other and is a little bit more straightforward when compared to CFD. The market also happens to be one of the largest available to the investors, and it has a daily trading volume of more than US$5 trillion. Do you have any idea how significant this amount is? Both of them have been known to avoid the transfer of any physical assets. They trade over the counter, OTC, which means that all the transactions happened to be decentralised and they take place through a proper network of different financial institutions. Most of the trades are actually executed in the very same way. They also trade through very similar platforms, and they have prompted some service providers so that both of them can be used on the same platforms. When it comes to access to leverage, CFD and forex will both offer an access to margin. Investors should know about these two, so that they can make informed decisions. In this guide, I will talk about some similarities and some differences between forex and CFD. These two happen to be one of the most popular choices among traders. Both of them have some very important similarities and differences that you should be keeping in mind. CFD trading and forex have a very similar trade execution process, which means that both the processes, when it comes to execution or similar. The traders can very easily enter or exit the market when we are talking about the falling market and the rising markets. Secondly, both CFD trades and forex trades have been known to be executed on the same platform, utilising a very similar looking chart and very similar pricing methods. In both the cases, the trades are actually executed in the OTC market, which is also called “over the counter” market, and it is entirely run electronically with a proper network of banks. There is absolutely no physical location or even a central exchange, if you wanted to see one. Another similarity that I would like to focus on would be that CFD trading and forex trading is the cost of the trade is spread, when compare to other types of training instruments which charge proper commissions and all kinds of financial fees. One of the most primary similarities between these two is that the trader does not actually have any ownership of any of the underlying assets. When a person buys EURAUD, for example, one is not exactly purchasing euros and selling them in Australian dollars; rather, the trader is just speculating on the exchange rate. When a trader purchases a CFD contract, a trader does not exactly own the stocks, but he is speculating on the underlying price. In these ways, forex and CFD are very similar to one another. I will now mention some of the differences between the two. One of the main differences between CFD trading and forex trading that I would like to focus on is that CFD trading will involve some different types of contracts which will cover a very diverse set of markets like indices, metals, energy. Whereas, forex would offer pure trading when it comes to currency. When you happen to trade CFD is, you will have the opportunity to select some different contracts which will vary in the increment and currency value and type, which will completely depend on the currency in which the asset originates from. You should also know that forex trading is all about trading one currency against another currency, and it will always involve trading lot sizes in uniform. Another difference that I would like to focus on is that it tends to influence very different markets. Financial markets have become accessible to more people over the past two decades as the number of investment options increased. With trading opportunities on the rise, the people are being provided the multiple avenues to earn profits from the fairly low amount of money they invest. One of the biggest issues every potential trader face is the confusion arising from the overwhelming number of options. Upon considering the drawbacks and benefits of every trading, experts have drawn conclusions about every available option. Forex is one of the most highly appreciated and accepted forms of trading, and it requires you to commit quite some time and resources to handling finances. As a beginner, you could be confused as to how the trading functions. Forex is the market that most traders choose over the other options because of its wide range of benefits. Here are some of the advantages of opting for forex trading. Forex isn’t just huge but is the largest financial market in the world. Massive economic activity has been brought on by foreign exchange, and the highest recorded trade is around $5 trillion per day. With traders from all over the world participating, the forex market doesn’t look to have a crack or downfall. Instead, it only seems to be growing with every passing day. It is now the most accessible global trading market. The next best thing about forex is that no one is restricted in the trade. Anyone interested in investing money into purchasing a currency pair can make a move to buy or sell assets from anywhere in the world. No other market offers the same level of liberty and size in the trading options. Also, since the trade doesn’t cost much money, even the normal working classes can attempt to sell their currency against a pair. An average individual can access forex trading without much start-up capital. You will surely need to spend some time to learn and try every possible trading option within the market to become an expert. The enormity of the market reflects in the liquidity, which is the trade’s ability to be completed in a few seconds. Under normal market conditions, no trade will have to wait for long; it is almost always only a click away. Automation of trading is also possible these days, helping you complete a trade even during the sleeping hours. Since the whole world is on the network, the different time zones may affect your slumber. Technology has been developed to such a great extent that you don’t need to worry about that either. The market may have quiet hours, but it is almost always active, especially when pairs like USD /EUR are being traded.What Exactly Is CFD Trading And How Does All Of It Work?
When you trade a CFD, you are actually agreeing for the exchange of the price of an asset from the point at which the contract is going to open and close. One of the main advantages of CFD trading is that you can actually speculate all of the price movements in either of the directions, which means that you can speculate a loss or even a profit.
I will now explain short and long trading of CFD. It enables you to speculate the price movements, like I have mentioned above and you can also mimic a traditional trade which will profit you when the price rises. You can also open a CFD position that will end of profiting you as the market will decrease in price. This is also referred to as selling or even going short. The opposite would be going along or buying.
Here is an example. If you think that the shares of Apple Inc are going to be falling in price, you could actually sell a share CFD. You will still be exchanging the difference in prices between your positions, when it is opened and when it is closed, but you may actually earn a profit if the shares happened to drop in price and you may face a loss, if the price increases.
I will now talk about leverage, when it comes to CFD trading.
A Beginners Guide To Forex Trading
A Comprehensive Guide on CFD Trading
What is CFD Trading?
Short and Long CFD Trading
Leverage in CFD
A Good Introduction To CFD (Contract For Differences)
Benefits Of Forex Trading
Forex: Foreign Exchange Markets
Some Features Of Foreign Exchange Markets
Some Similarities And Differences: Forex And CFDs
Forex VS CFD: The Truth
The Three Major Advantages of Trading Forex
1. Huge Market
2. Everyone Can Trade
3. High Volume and Liquidity