In the past few years, popularity and growth in the online Forex market has led to an unbelievable amount of saturation in the market, making it harder and harder for customers online to decide on a single Forex broker for all their Forex trading needs. Whether you’re an individual seeking out a way to get into foreign exchange and day trading, or a corporation with trading needs in order to maximize profits and get an even greater return from your bottom line, finding a broker with the right expertise is a tiresome and difficult exercise.
There’s the matter of licensing, customer service, trading technologies available, and a laundry list of other necessary criteria that, despite being advertised everywhere, are rarely ever met.
As experienced brokers themselves, the founders and staff of WesternFX more than understand the frustrating limitations of the general Forex market. A dedicated and global STP Forex broker, they specialize in foreign exchange, precious metal commodities, energy, indices and CFDs. However, to new individuals in the trade of Forex, these terms will all seem quite confusing.
WesternFX isn’t just a plug-and-play online forex broker – they want you, the client, to know what’s going on with your money so you can make the best and most informed financial decisions possible. So to get a grasp of the company, it is first important to understand the market, and its conditions.
What is STP Trading?
Although it could be considered the norm today, an STP Forex broker is typically a high-quality service provider who offers a direct route to a liquidity provider, so clients of the broker can immediately get their trades turned into real hard cash. An STP Forex broker is typically associated with multiple liquidity providers, offering clients the opportunity to pick as per the best price offered by the liquidity providers.
As long-term players in the foreign exchange game, WesternFX is in touch with several reputed and quality liquidity providers with a direct focus on offering hassle-free and profitable trades for clients. They know that a major source for frustration in trading is when, after a long day, the one thing that takes the longest is the withdrawal time. WesternFX prides themselves on fast deposit and withdrawal times – so you can be in and out of the game as quickly as possible, with minimal amounts of risk.
Why Trade CFDs
Most people already grasp what Forex trading basically is – in the simplest sense, the way today’s currencies are valued against each other depends on the strength of their respective nation’s economy, and the value of the currency as per the trading conditions on the global decentralized foreign exchange market. As currencies are constantly fluctuating, an online Forex broker and their traders make money by buying and selling currency on the market in an attempt to make an accumulative sum of slight profits. For people with the right mindset, toolset and level of expertise, it can be a profitable business.
However, WesternFX goes above and beyond the foreign exchange market when it comes to offering traders profitable trades. Part of the company’s offering apart from Forex trading includes commodities – specifically energy and precious metals – and CFDs. But what is a CFD? And how do traders make money with it?
CFD stands for contract for difference, and it’s typically the amount of difference in a trade between when it’s entered and when it’s exited. As almost any movement on the trading floor, CFDs are a tradable instrument that rise in value according to the underlying asset it mirrors. Because this allows the gains (and losses) of the asset to be mirrored in the form of value in difference without actually owning the asset (whether it’s a stock, a commodity, or something else entirely), CFDs are low-risk compared to other trades.
If you buy stock with a 50% margin, which is typically the minimum to buy stock to ensure profit for the company, then whatever your transaction price is (let’s say $500 for 20 shares at $10), you’d have to lay down half that as a trader for the broker.
As a CFD broker, margins can be as low as $5. Gross profit from a CFD trade is typically lower than outright buying stock or commodities, but in exchange, you don’t have to pay higher commission fees and margins – so you end up with more money in the pocket as the value of an asset continues to appreciate.
Aside from Forex trading and CFD trading, WesternFX offers traders access to the best in state-of-the-art trading technology, including the industry-leading MetaTrader4 platform, a 24/7 live chat to answer all trading questions, and up to $2,000 as a new account bonus, under the right circumstances. The broker also offers several easy ways to deposit and withdraw cash, from credit card payments to bank wire transfers and online payment gateways.
– See more at: http://www.datsyn.com/article/5719/2016/05/02/For-Your-Global-Forex-Brokerage-Needs-Use-WesternFX#sthash.GC8vOEW6.dpuf