Foreign exchange, or forex, has been around for many generations. Starting from trading spices to money, humanity’s technology and standard has evolved significantly to enhance our living standards and make trading materials between foreign countries much easier. Today, forex has become the biggest largest financial market in the world. Many business companies are trading in the forex market to generate more money to keep their companies afloat.
Thanks to the advancement of technology, forex trading has been made much easier and more accessible to many others around the world thanks to the power of the internet. Most traders would trade a high value currency to another currency in the form of pairs. In order to be eligible to trade, a forex trader must apply for a license with their local forex brokers. These brokers act as a middleman for their traders to process their money and ensure that the traders will receive their money securely. However, there are many forex brokers that have their own specialization to fit all kinds of trading styles.
eToro is the best forex broker for copy trading as their business is focused mainly on providing copy trading accounts to traders. Copy trading is a common trading strategy among beginner forex traders as they are able to create an account and copy existing accounts to imitate their activities. This provides an opportunity for copy traders to learn more about the forex market and understand the decision made by the account they copied while generating income. However, it has a few downsides that beginner traders must not invest into copy trading for the long run. Because they are copying an account, traders are not able to make changes whenever they desire unless they decide to open their own account. Additionally, there is also a risk traders might run into when they copy an account that is ill-suited to their current financial tradings. If they do not perform a background check, they might copy an account that would cause them to lose all of their money in a single day or have little to no progression. And lastly, the minimum deposit a trader needs to put into their account before they can start trading is extremely high which is USD1000. This could discourage beginner traders from copy trading and seek cheaper alternatives instead as other brokers offer educational methods and demo accounts for them to get their trading career started at a much lower price as well.
Once they are comfortable and experienced enough, forex traders can approach other forex brokers such as FXTM, Avatrade or IG to further pursue their trading career. What makes these brokers different from eToro is the ability to create accounts with the latest MetaTrader (MT) softwares, which provides a platform for traders to observe the market much easily. However, the forex market is a volatile market as the changes can be influenced by any external factor which could cause traders to lose all of their capitals.
Click here for more content.