Products & Services
Products and services in the foreign exchange market are rather different to how we might understand the terms in our day to day lives.
The services you may call upon from your broker will include research and the provision of a robust trading platform that enables you to work in the way you wish to.
The fundamental analysis you’ll receive from your broker may include areas such as
balance of trade data for the currencies you’re interested in. Exporting economies will want to retain a relatively weak currency against their key markets to retain favourable prices, while an importing economy with a strong service sector may allow its currency to grow stronger. Similarly you may gain information on gross domestic product, the ever important housing market, consumer price index and employment statistics for the countries that interest you.
The technical analysis you’ll receive is based on statistics such as support and resistance levels, moving averages and trend lines, even retracements. Retracement is the term applied to the phenomenon where a market is moving swiftly in a particular direction and suddenly seems to stop as participants take their cuts. Spotting this may give you the opportunity to get into the action before it kicks off again.
Other services may be considered to include the multifeed liquidity whereby your broker sources liquidity from a panel of banks, offering you transparent pricing at pre agreed levels. As you grow in the size and success of your trades so you will be able to negotiate better liquidity rates and leverage.
Many of the bigger brokers will give you a free demonstration account for a fixed period, usually 30 days. This in itself is a service that helps you get off the ground with your education and understanding.