In the foreign exchange market, there are thousands of novice investors pouring in every day, and there are many investors who are on the sidelines want to try trading. No matter what category everyone belongs to, some preparations are indispensable before starting to trade, such as understanding the market. How to choose a trading platform, how to trade, etc.
Foreign exchange margin trading is now hot in the world, and more and more domestic friends have begun to contact foreign exchange trading. At present, China does not allow domestic companies to open foreign exchange margin trading business. If you want to conduct foreign exchange margin trading, you must find a foreign dealer to open a trading account. Therefore, the safety of your funds abroad has become the most important issue! Moreover, how to choose a good foreign exchange dealer to open an account may give many friends a headache. The following will teach you how to protect your own financial security and how to choose a dealer that suits you.
How to open an account for foreign exchange margin trading
I will also give you a detailed introduction to the specific operations of opening an account and trading on the foreign exchange trading platform, and novice friends can use it as a reference.
- Fund security issues
I hope everyone will find a regulated dealer to open an account.
Therefore, if you are a foreign exchange dealer regulated by an institution, your funds are safe and you can open an account and trade with confidence. Everyone should pay attention to the following two points when choosing foreign exchange margin dealers to open an account:
- The dealer must be supervised (can be queried by supervising ID number), and in its filing, there is no bad history record.
- The funds must be transferred from the bank to the bank account specified in the dealer’s contract. You cannot entrust a third party to handle it.
Special reminder: The following are some of the characteristics of domestic unfair foreign exchange agency companies. It is recommended that these customers be cautious:
- Accept RMB remittance. RMB is not a freely convertible currency, and regular overseas dealers will not accept RMB remittances.
- Use a personal account to receive funds to open an account, and the deposit account is a private account. This is absolutely undesirable. Regular dealers will never use private accounts to accept deposits and remittances.
- Accept third-party remittances. Since regular dealers are subject to the supervision of local regulatory authorities, in order to prevent money laundering and transfer of funds, third-party remittances are not accepted.
- Traders are not regulated. This point can be divided into two parts. Unregulated not only refers to traders who are not supervised by regulatory authorities, but also includes foreign exchange dealers in some countries or regions whose supervision is very loose.
- The funds are not remitted abroad. On the one hand, since it is a regular foreign dealer, it should only accept the investor’s own remittance, and it must be directly remitted to the dealer’s account; on the other hand, if the agency company says to first remit the funds to a bank in China or Hong Kong , And then remittance to the account of foreign dealers, then there is a risk of investor funds being misappropriated.
- The Hong Kong Foreign Exchange Margin Company claims that it can do 1:100 leverage. Note: Hong Kong law stipulates that the local foreign exchange margin leverage cannot exceed 1:20. Any company that claims to be a Hong Kong regular company but allows transactions with a leverage above 1:20 is definitely not a company under Hong Kong law.
Foreign exchange margin account opening process
First: Choose a platform with regulatory filing
Now friends who are a little bit risk-conscious know that when choosing a trading platform for foreign exchange speculation, the formal security of the platform must first be considered, and whether the platform is formal and safe is determined by the supervision of the platform.
At present, the reputable and powerful platforms in the foreign exchange market are mainly subject to the regulatory certification of international authorities such as the United States NFA, the United Kingdom FCA, Australia ASIC, and New Zealand FSP. Choosing such platforms can basically guarantee the safety of funds and transactions.
Second: Open a real trading account on the platform
Choose a good platform, and then you must register your account. Now it’s easy to open a foreign exchange trading account. It can be done in a few minutes online, and the threshold for opening an account is relatively low. Generally, you only need to fill in the application on the official website of the platform. After the account is approved, the minimum deposit can activate the account.
Third: choose your own trading leverage
In order to meet the investment needs of investors at different stages, many foreign exchange trading platforms will provide a variety of account types and trading leverage options. Novice investors must choose a suitable leverage ratio for foreign exchange transactions, not too low or not Too high.
The industry believes that the best leverage ratio is 100 times to 200 times, which can increase the utilization rate of funds, expand returns, and minimize transaction risks.
The most important thing in foreign exchange is not to open an account, but to choose a platform
Black platform logo: 1. The platform is not supervised, 2. The supervision number is blindly compiled, 3. The funds are returned to the domestic private account, 4. The RMB deposit is supported, etc.) I hope to help friends who do foreign exchange and not be deceived by the black platform!
The longer you do foreign exchange, the more you feel the importance of formal and regulated platforms. Only formal platforms and regulated ones can further protect the safety of investors’ funds. Of course, platforms that have stable spreads can only do so.