Monthly Archives

2 Articles

How to choose the right broker for forex trading

How to choose the right broker for forex trading

Online trading is becoming vogue as trading platforms are easily available and accessible to one and all. One interesting field of trade is cryptocurrencies and there are several automated trading robots like the Crypto Code which are designed to help the experienced and the newbies in the field of trading. With simple preprogrammed algorithms much of the complexity of regular trades is taken away from these programs providing a seamless experience to the user.

But in case you want to understand more about the trading world and are looking for a good broker for day trading especially in the forex market read on.

What makes forex trading so interesting and exciting is that it is the single largest financial market without a central marketplace. As a result, if you wish to trade in foreign exchange you must necessarily use the services of a broker who is reliable and genuine. Here are a few tips to guide you.

  1. Must have the right licenses: If you are looking for a broker in the US then ensure that the company is registered with the US Commodity Futures Trading Commission as a Forex dealer. The broker must be a member of the National Futures Association. The association has a set of rules and guidelines that have been designed to protect the interests of all involved which includes the investors and the traders. Whichever country you belong to ensure that the broker has the right credentials and is a registered entity to protect your deposits.
  2. Commission: Brokers make money from the commission they charge which is typically a percentage of the trade. Some of them calculate their charges based on the spread and claim to take zero commission. If the spread is too wide then your chances of profit diminish drastically. Hence, weigh the benefits and losses before finalizing anything.
  3. Initial deposit and withdrawal: You can open an account with as little as $50. Many brokerages offer mini, micro, and standard account. What makes forex so attractive is that the leverage is often large increasing your buying power even with micro accounts. The withdrawal and deposit policies may differ between brokers; consider one that offers more flexibility and greater options like wire transfer, credit card, ACH or even PayPal.
  4. Currency pairs: Look for currency pairs with the greatest liquidity. The major currency pairs are USD/JPY, EUR/USD, GBP/USD and USD/CHF. Most brokers offer several other pairs too, but you must select the currencies that you are interested in.

The right brokerage goes a long way in your success story so choose wisely.

Cryptocurrency wallets – Are they secure?

Cryptocurrency wallets – Are they secure?

Cryptocurrency wallets are of varying types and each one provides different methods to access and store your digital currency. Security options for wallets are of varying degrees. Based on the type of wallet one uses and the service provider, the level of security differs. Web servers are riskier environments to maintain your assets compared to offline wallets.

Online wallets may pose digital investors with various potential vulnerabilities which may be exploited by cyber attackers to rob your digital funds. Whereas the Offline wallets are not easily hackable because they are connected to an offline network and do not depend on any third party for their security.

Even though online wallets prove to be more vulnerable and prone to attack by hackers, diligent security measures have to be implemented and practiced while using any cryptocurrency wallet. A point to remember is that no matter whichever wallet you choose, losing your private keys will eventually result in the loose of your digital money.  You have to take necessary precautions and continue reading further on how to be careful.

Backing up your wallet

Similar to your everyday pocket wallet, storing a small quantity of cryptocurrency for daily use online in your mobile or system and safekeeping the majority of your funds in a safe and secure environment will be advisable. Backing up on offline storage options like USB or Ledger Nano or paper will help protect against any computer system failures and allows you to retrieve your wallet in case it gets stolen or lost by any chance.

Software updates

Always keeping your software up to date and installing system updates provides you with the latest security options that are available in the digital market. Regular update is necessary not only for your wallet software but also for the software installed on your mobile or computer system.

Providing extra security layers

Multiple layers of security protection are an added benefit. Setting up complex and long password protections and securing any withdrawal of funds with a password is a must right at the start itself. It’s best to use wallets that hold a good reputation, provide additional security layers such as two-factor authentication and request pin code details each time the wallet software is operated.

One might also consider using cryptocurrency wallets that require multi-signature transactions such as CoPay or Armory. Multi-signature or multi-sig wallets are digital wallets that require the approval of multiple users or another user before any transaction can be successful, thus ensuring the authenticity of the digital transaction made.