How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
What Is Forex
Forex (FX) or foreign exchange is the marketplace for buying and selling currencies of different countries against each other. Forex is one of the largest global financial markets for trading various currencies.
The Forex market provides services 24 hours a day. It opens five days a week and operates around the world online. It simply means that any person around the globe has access to currency trading — he or she can buy and sell positions at any time of the workweek.
The point is that there is no need for physical presence while currency exchange. Nowadays it is the time of electronic markets. Thus, buying and selling currencies of a particular country against the relative currency of the other country is happening on the Internet. Traders open a specific currency position and hope for some strengthening of the desirable currencies if the aim is buying or for some weakening if the aim is selling. Due to such price movements, traders can make a profit.
There is no way to trade a currency one-sidedly. Trading is a relative process — when someone buys, someone sells. Thanks to the difference between these transactions, traders benefit.
How FX Works
One of the most important things worth understanding is the fact that the Forex market operates as a decentralized structure. In other words, it can be explained like that: there is no physical location where investors go to trade currencies.
Market players are located all over the world. The Internet helps them to check the quotes of various currency pairs from different dealers. The main global financial centers accumulate the largest foreign exchange markets. Major cities where these centers placed are London, New York, Singapore, Tokyo, Frankfurt, Hong Kong, and Sydney. All of them perform like so-called milestones for traders. The access to the interbank currency market, traders choose a Forex broker who connects them with the international flows.
Who the Major Forex Players are
Forex trading involves many people and organizations. Some of them trade to make profits. Others trade to hedge their risks. Moreover, some traders use foreign currencies to pay for needful goods and services.
The main FX players are super banks like Citi, UBS, Barclays, Deutsche Bank, Goldman Sachs, and Bank of America. These banks, collectively known as the interbank market, collect an enormous amount of financial transactions daily.
Large commercial companies are also taking part in the foreign exchange for the purpose of business. Examples of such companies are Apple, Facebook, and Microsoft. Mergers and acquisitions between these companies can create fluctuations in the currency exchange rate. Due to this international cross-border mergers and acquisitions, many currency conversions happen and move the prices.
Apart from super banks and large commercial companies, constant Forex market participants are governments and central banks such as the ECB (European Central Bank), the BoE (Bank of England), and the Federal Reserve.
National governments participate in the Forex market to handle foreign exchange reserves and provide different trading operations. Central banks affect the market with their policy and statements. They can control inflation and use interest rates for this purpose.
Besides a grand variety of banks, multinational companies, and governments, there are also many risk-seeking investors who are always ready to engage in different sorts of speculations.
It is better to concentrate on the purpose of speculations in the market to clear up what speculation is. This action involves the buying and selling of currencies with the intention to make a profit.
Among a wide range of risk-seekers, are typical retail traders. This group includes individuals, who trade on a daily or weekly basis to earn as much money as possible. Many of them study economic and political news, bank statements, statistical releases, and public announcements, which influence the market mostly, to predict the possible future trend in currencies’ price movements. Other traders prefer to rely on technical indicators paying less attention to what is happening in the world of economics and finances. You can also join this club of people with the aim to profit on price fluctuation and dive deep into the network of different financial institutions.
How to Operate on Forex
As it was said before, a broker gives traders access to the Forex market. Brokers are the companies, which connect people and the interbank market where all the trading processes happen. To make a long story short, any person can trade in the markets with the help of the Forex broker.
Brokers provide services for secure and safe trading and software programs, where traders are able to see real-time currency quotes as well as place orders for buying or selling positions (currencies) just in a few clicks.
To start a trading career, it is enough to open an account with the Forex broker of your preferences. The spread or commission is the reward for the services of the broker.
How to Choose the Right Forex Broker
A trader should pay attention when choosing a broker on three main parameters — reputation, years of expertise, and regulations. Why are these characteristics reliable? The answer is simple — all of them prove that a broker is trustworthy enough to provide financial services. Reputation is responsible for the goodwill of the company and the general outlook. It asserts how friendly and supportive a broker is with the clients. Experience in the market means that a broker is qualified enough to organize the trading process with all its peculiarities. As for regulations, this parameter is aimed to make the workflow transparent and secure for the company and its clients. Licensed brokers guarantee protection for traders and their funds.
FBS is a licensed broker, providing high-quality services to its clients since 2009 and is widely recognized as one of the market leaders. The company is awarded numerous international recognitions. For more than 11 years of market expertise company has been showing extremely customer-oriented policy. Despite its worldwide success, FBS meets the needs of every single trades. The team is always ready to help — the support chat is available 24/7.
Moreover, the variety of trading conditions plays one of the leading parts in the process of choosing a broker. Look at the executions, spreads, and commissions that a broker offers. Check whether there is a swap-free option. FBS is famous for its split-second execution, starting from 0 pip spreads in many cases, a 100% deposit bonus for trading, and many other pleasant services for good trading. Our aim is to give traders the best of Forex!
This tutorial gives you some central points of the Forex itself and foreign exchange trading and may help you to become a successful trader. Please check our next courses out and improve your trading skills.
2023-06-27 • Updated
Other articles in this section
- Economic Calendar: How to Read and Use
- How to open and close a trade in MetaTrader?
- How Much Do You Need to Start Trading Forex
- Forex Demo Account
- How to determine position size?
- Leverage and Margin: How Can You Use Them in Forex Trading?
- What Are Rollover and Swap and How to Use Them When Trading?
- Types of Trading Orders: Market, Limit, Stop, Trailing Stop, Stop-Limit
- When is the Forex Market Open?
- Bid-Ask Spread
- Calculating profits
- What are Lots, Points, and Leverage
- How to trade?
- Currency Pairs in Forex Trading
- What Software Do You Need for Trading?
- The Advantages and Risks of Trading Forex