How Do I Become a Currency Dealer?

Foreign exchange dealer means a trading company or individual who buys or sells foreign bills. Foreign exchange dealers use their own funds to buy and sell foreign exchange bills and obtain the bid-ask spread from them. Most foreign exchange dealers are part-time institutions such as trust companies, banks, and companies and individuals that specialize in this type of business.

Forex dealer

Forex traders are an essential element of forex trading. Foreign exchange dealers often determine the safety of investor funds and are directly linked to the interests of investors. China does not currently have its own foreign exchange

First, the trend is that friends are also enemies. Because the trend has stability, it is easy for us to relax our vigilance, so we must keep in mind that the longer the trend runs, the closer it is to the time the trend is broken.
Second, buy (sell) when you hear the news, and sell (buy) when the news is confirmed. Don't investigate the truth of the news, but decisively follow the direction of the fluctuations caused by the news, buy good news, and throw bad news. Once the message is clear, whether it is true or false, it will always be reversed and the profit will be closed. Do not be reluctant to end because the confirmation is true news, because when the news is confirmed, it is the time of market reversal.
Third, buy up but not buy down, sell down but not sell up. Analysts said that when the trend is up, there may be only one mistake, which is to buy at the highest price. When the trend is down, only buying at the lowest point is correct, but maybe your funds have been used up in the previous operation.
Fourth, the "pyramid" is overweight. The rise of the currency exchange rate should follow the principle of "less number of overweights each time than last time", because the higher the price, the more likely it is to approach the peak of the rise, and the greater the danger.
Fifth, don't overweight when losing money. After buying or selling a currency, if the market suddenly advances in the opposite direction, some people will overweight it, which is very dangerous. If the exchange rate never looks back, then the result is undoubtedly a vicious loss.
Sixth, open positions when the game breaks. If the game is a long-term cowhide, there is a greater chance that the position established when the game is broken will be profitable.
Seventh, don't blindly pursue integer points. It was possible to collect money flat, but due to the original goal, I missed the best price while waiting and missed the opportunity.
Eighth, do not participate in uncertain market activities. When you feel that the foreign exchange market is not clear enough and you lack confidence, it is advisable not to enter the market, otherwise it is easy to make wrong judgments.

Initial deposit amount

You should find a foreign exchange dealer with a relatively low initial deposit amount for trading, or a deposit amount that you can bear yourself. If a trader asks you for thousands of initial deposits from the beginning, there may be some problems in it, the ideal initial margin should be between 300 and 500 dollars or less.

Maximum amount

This factor determines what is the maximum amount you can trade with this dealer. Normally this limit is quite large, but if this maximum deposit amount cannot meet your needs, you can go to the dealer to discuss this In general, traders will meet your requirements. For most traders, we don't need to focus too much on this issue.

Payment type

Most traders will support a variety of payment methods, such as: master, paypal, visa. You need to read your payment terms carefully, because they pay different fees and different payment times. You need to find a payment method that works best for you.

Handling fee

Forex dealers provide customers with foreign exchange trading services, and they earn some fees from these services. There are two ways of handling fees. One is the spread, which is the difference between the buying and selling prices of currency pairs. The other is to directly charge a handling fee, and the dealer will provide the customer with the original spread, and charge the corresponding handling fee according to the customer's transaction volume. Therefore, if foreign exchange dealers or trading centers charge you other fees, you must check carefully and consult carefully. Please keep in mind that any fees will have a negative impact on your transaction bill. Generally, if you buy a product for more than one day, the dealer will also charge some overnight interest fees. However, if you are selling a product, the dealer will pay you overnight interest.

Customer service

Since you only trade currencies that you are interested in, and you can trade at any time, the trading time on the foreign exchange market is uncertain. Remember to look for a dealer who has customer service 24 hours a day. The foreign exchange market is available for trading 24 hours a day. Traders generally provide a 24-hour customer service department, ready to help their customers.

One of the best ways to test the customer service capabilities of foreign exchange dealers is to ask them some questions in order to understand how they answer your questions, their attitude, and their relevant knowledge. Only when you feel that their service is attentive, you can safely put money in them.

Trading platform

A professional and simple trading platform is a must for traders. As long as such a trading platform can help you complete the transaction smoothly. Most traders will provide you with a virtual account. The operation of the virtual account is basically the same as that of a real trading account. It will allow you to conduct a full range of trading tests without the pressure of cash.

Trading products

Find a dealer who offers the currency pair you are interested in, or choose a dealer who can provide a large number of trading products. There are many different variations of currency pairs, and it is best for traders to provide you with a rich list of trading products. Many traders also offer other other commodities, such as: energy, commodities, stock indexes, and so on.

Trader's reputation

You need to carefully investigate the reputation of foreign exchange dealers. One of the methods is to use Google to search for their names and add keywords, such as feedback, ratings, etc. Or through other users to understand the service quality of the dealer. It is very important for you to take some time to do some research. Generally, a reputable dealer can provide a healthy trading environment.

Dealer regulator

The foreign exchange market is an unregulated market, which means that there is no central exchange in the foreign exchange market. However, foreign exchange dealers are themselves regulated. In the United States, these dealers must be futures commission dealers (

Many foreign exchange friends have just entered the foreign exchange market as if they had no heads. They do nt know where to start and how to choose a broker that suits them. Here are three ways to choose a broker. E-Forex is a good Chinese service platform.

Quote quality and transaction costs

The useful quotation we need must be a tradable price, which will change rapidly as the market changes rapidly. Traders who react slowly for half a time, definitely cannot choose. Of course, most companies do a good job in this area. However, we still need to pay attention to this issue. Transaction cost, which is what we call "spread", the spread of the main currency pairs of regular traders is generally between 3-5 points. The quality of a dealer's offer is also one of the important considerations.

Customer Service Quality

Domestic exchange friends must find a company with Chinese services, otherwise there will be some communication problems. When there is a problem with the network, you can make free international calls and place transaction instructions or consultations by phone. If your English is not good enough, it is best Find a dealer or agent with good Chinese customer service, otherwise you will only miss the best time to trade when there is a network problem.

Stability of the trading platform

Each dealer company has its own trading platform software, and platform stability is important. If you keep getting out of contact with the server or the server often does not respond, etc., then it is troublesome. How to verify the stability of the trading platform, you can apply for a demo account in the trading software provided by the dealer, and you will know how stable the trading platform is.