How Do I Choose the Best Forex Trading Platform?

The foreign exchange trading platform refers to some independent dealers with certain strength and credibility in the foreign exchange market, which constantly reports to investors the buying and selling prices of currencies (that is, two-way quotations). 24-hour trading except holidays, and accepts investors at this price Buying and selling requirements.

Forex trading platform

1. Strengthen account management and proactively adjust assets and liabilities. To

In 1992-1993

Foreign exchange operation process:

1. First of all, it is necessary to distinguish whether the market is empty or not. The method is very simple. I like to use MA.

Only a formal platform will allow investors to invest and pay. If the platform is not formal, investors will lose confidence in the formal platform, so choosing a formal platform must be regulated such as FSA, NFA, ASIC, FMA, FSP. And so on.

The online foreign exchange trading platform is mainly divided into two types: a processing platform model (Dealing Desk, DD) and a no processing platform model (No Dealing Desk, NDD).

A foreign exchange trading platform with a processing platform model (DD) is also called a market maker (MM).

Forex trading platforms without processing platform mode (NDD) can be subdivided into STP, DMA / STP, and ECN + STP.

A DD-type foreign exchange trading platform, also known as MM, is a market maker. Generally, there is a dealer platform or processing desk (Dealing Desk) for processing orders, and the spread type is set to fixed.

DD or market maker makes a profit through spreads and trades in the opposite direction to the customer when needed. A market maker, as the name suggests, is to "make a market" and "make a market" for customers. Under certain conditions, when a trader wants to buy, the market maker sells to the trader, and when the trader wants to sell , The market maker buys it, that is, when it is needed, the market maker will always be in the opposite position of the trader, contrary to the trader's position, in this way to "make a market." Traders see that the bid and ask prices are not the same as the actual prices in the interbank foreign exchange market. In order to complete the trader's order, the market maker has the opportunity to trade in reverse to control the price when needed. Because the market maker can control the price, if the market maker sets the spread to be fixed, the risk is very small.

NDD-type foreign exchange trading platforms, as the name suggests, have no Dealing Desk, that is, there is no processing platform. Brokers will not trade with counterparties of the trader, but only connect the two sides of the trader and the interbank market. Transaction at the level of the interbank foreign exchange market. The transaction scale of individual traders is too small to refer to foreign exchange transactions in the interbank foreign exchange market. The NDD's foreign exchange trading platform serves as a bridge, directly connecting the two, and giving individual traders the opportunity to trade. The real NDD foreign exchange trading platform will not require a re-quote, and there will be no extra pauses in order confirmation, so there are no restrictions when trading according to the news.

NDD-type foreign exchange brokers can maintain profits by charging commissions or making commissions free but further increase spreads. NDD-type foreign exchange trading platforms are divided into two types, one is STP and DMA / STP, and the other is ECN + STP. ^[1]

stability

How to identify the stability of foreign exchange trading platforms

The stability of a trading system is whether it has stable survivability and stable profitability. The stability of a trading system has the following implications:

1. The trading system of this foreign exchange dealer can survive in various markets, such as the stock market, futures market, and foreign exchange market.

2. The trading system of this foreign exchange dealer can survive in the markets of various countries.

3. The trading system of this foreign exchange dealer can survive various varieties.

4. The trading system of the foreign exchange dealer can survive in various historical periods.

5. The trading system of this foreign exchange dealer can capture all the original fluctuations.

The measurement indicators of the stability of a trading system are: net profit, winning rate, total loss, forced liquidation profit and loss, forced liquidation, total transactions, average per net income, profitable transactions, loss transactions, single Maximum profit, single maximum loss, average loss per loss transaction, average profit per profit transaction, average holding time of profitable transactions, maximum floating loss, average yield per transaction, average holding time of lossy transactions , Average annual transactions, etc.

Amongst the stability metrics, win rate and average return per transaction are the most important. If the probability distribution of the return rate of the trading system in the actual operation is irregular, then this trading system is an unstable system. If it is used to guide the actual investment, it will inevitably lead to the instability of investment performance. Its direct performance is that the investment performance fluctuates greatly. As a professional investor, this is obviously not what we require. The pursuit of long-term, stable and stable profits is a criterion for judging whether an investor is professional or not. The so-called trading system that is popular in the market is only partial, and the local significance represents the generality of the whole, exaggerating investment performance, but once it is guided Investment actual combat will soon expose hidden risks.

National regulations

Recently, according to the monitoring by the financial supervision department and the China Internet Finance Association, it has been found that the activities of illegally engaging in leveraged transactions of various financial products through various network platforms have increased, among which there are major hidden risks of financial and social risks. In order to help the public understand investment risks and protect their legitimate rights and interests, here are some tips on related risk issues:

I. Domestic institutions engage in foreign exchange, precious metals, futures, index and other product transactions (including cross-border) through Internet sites, mobile communication terminals, application software and other network platforms without the approval of China's financial supervision department, and overseas institutions have not It is an illegal act for the regulatory authorities to approve the provision of foreign exchange, precious metals, futures, index and other product transactions to domestic customers through various online platforms such as Internet sites, mobile communication terminals, and application software. At present, online platforms (including cross-borders) engaged in leveraged transactions such as foreign exchange and precious metals have no legal basis for establishment in China. Financial regulatory authorities have never approved them. The online platforms that conduct the above-mentioned transaction business are illegally established. Not protected by law. Therefore, participation in investment activities of such platforms faces greater risks.

All types of financial institutions and payment institutions engaged in Internet financial services shall strictly abide by national financial regulations and shall not provide services for such illegal financial transactions. The Association calls on the public: the public should be aware of the nature of illegal financial transaction activities, consciously resist the temptation of high yields, strengthen self-protection, stay away from illegal and illegal transactions, and beware of the loss of own property due to illegal transactions. The competent department reports or reports to the public security organ.

2. The member units of the China Internet Finance Association should strengthen self-discipline, resist illegal financial transactions and not provide them with services.

China Internet Finance Association

November 10, 2017