Living As a Trader

Living As a Trader

As the name suggests, a trader trades securities in place of the assets being handled by a company. They buy, sell, and trade through working under bigger investment management companies or firms.

Thanks to price variations, traders don’t usually hold their stocks for long periods of time; they continuously buy and sell stocks.

Traders do not really interact with their investment assets. Instead, they place selling or purchasing orders for their brokerages to execute without them having to worry about it.

If you are interested about partaking in this way of living, then you’ve come to the right place to get an idea on how it works.

The financial market

The financial market is the working place for traders. Here, people trade financial securities and derivatives.

It is the aggregation of buyers and sellers of stocks and shares. They often represent ownership claims on businesses which tend to be listed securities on a public exchange.

This market can span many different industries like Forex, contracts for difference, stocks, and even cryptocurrencies.

Brokerage Firms.

They are more commonly known as brokers. Brokers are experts in the financial market area, having more financial expertise that let them guide their consumers and execute transactions faster and efficiently.

For a trader to buy and sell or trade successfully, they often go looking for a brokerage firm, or brokerage, which are financial institutions that simplify the process of buying and selling financial securities between a buyer and a seller.

Brokers are not just a man between the trader and the exchange; there’s much more to them. They facilitate the flow of trading and gives a trading platform to buy and sell on the exchange.

By charging a commission for their service, the broker takes the role of a firm acting as an agent for a customer, executing buy and sell orders submitted by an investor and charging a fee for it.

Using a Broker.

Making use of a brokerage agency is a lot simpler than you may think.

All you need to do is choosing a reputable broker that has good reviews. If you are knowledgeable on the subject, you can also look for features like low spreads, leverage amount, and financial instruments available.

Once you have chosen a broker, you gain access to their trading platform, which may be a standard–like MetaTrader–or one developed by them.

In these platforms, you are usually shown a graph with price movement data, where you can then proceed to place your orders. To better visualise the data, you may use indicators that simplify the graph.

Finally, placing an order only requires you to define whether you want to buy or sell, but you may place additional instructions such as when to exit a trade to avoid losses or take specific profits.

Available for everyone

Before discount brokers became a thing, accessing the financial markets through a broker was something that only the wealthy could afford. Internet then came in, triggering an explosive opportunity with discount brokers or online brokers.

Online brokers are firms that charge a relatively small commission by performing automated trades from their clients. Instead of using an actual broker assistant, online brokers make use of computerised trading platforms to make possible its trades.

Their commission goes in a range of $5 to $20 per trade. This low fee structured is based on volume and lower costs. These small fees allow investors to trade at lower cost, and the only thing is that they don’t provide personalised advice like Full-service brokers, but they still give an opportunity that lets anybody afford to invest in any market.

Do I need to use a broker for trading?

Well, yes; investing in financial market without the right amount of knowledge can be quite risky, especially if you don’t know when and how to invest in the market. This problem or inconvenience is the main reason for traders to go for a broker.

They help you make investments move in the right moment. Brokers come in handy when it comes to money and investment management. Where traders have months or years trading, brokers have decades doing it, which is excellent when it comes to finding a path for your inversions.

Making use of a broker is also helpful when it comes to build a portfolio and manage it for such an affordable price.

How Does Forex Regulation Work In Malaysia?

How Does Forex Regulation Work In Malaysia?

The Forex industry is a huge market, moving billions of Dollars every day between hundreds of thousands of traders. However, it is also a fairly dangerous market for reasons besides the currency volatility and skill gap; its mostly-online presence has made it a seeming gold mine for scammers looking to make a quick profit from unsuspecting traders.

As such, it is imperative that you stay informed regarding how your territory regulates this industry, and even if your country has lax regulations, your broker’s country is also important when it comes to its trustworthiness.

So, in this article, we will go over Malaysia’s regulations and how it has changed recently.

Malaysia As A Nation.

Malaysia is a federal nation that has enjoyed a very fast expansion regarding its economic status in the last decade. In fact, many experts place this growth at around 40%.

When we take that into consideration, we can easily expect such a wealthy industry as Forex to gain popularity, and indeed, this has been the case.

This notable increase in wealth and living standards has rapidly placed Malaysia among the largest emerging economies in the Asian continent, and a promising birthplace for many successful Forex traders.

A Relatively Infant Industry.

It is critical to note how the increased economic growth has been a relatively new phenomenon, so it is consequential that the Forex industry is even newer. Therefore, the Malaysian environment can still be seen as a somewhat menacing environment for traders.

That is not only due to the overall dangers of the market but also because of ill-intentioned people.

You see, such an unknown industry lends itself to unscrupulous entities that may look to earn their living off naive newcomers.

However, while that is easily avoidable by simply staying informed, there is another issue regarding the federal constitution of the states.

As each state makes its own legislation, it may be difficult to keep track of which territory is best for business, and Forex may still be illegal in some states, but this only means that you need to be a bit more aware of the laws.

The Relationship Between the Malaysian Central Bank and Forex.

The central bank in Malaysia is Bank Negara Malaysia, and it is responsible for managing the Ringgit.

This is a very important body to keep track of since central banks are a major influence in Forex, due to how they directly affect their currency’s value.

True to this statement, the Malaysian central bank was a huge player back in the 80s. During Jaffar Hussein’s government, the bank quickly earned a substantial influence regarding the overall direction of the market.

In fact, the bank had to receive a request to stop trading, sent by the chairman of the Federal Reserve after realising how the speculation was influencing the economy; this resulted in a significant sale of its currency reserves until 1994, where it pretty much became insolvent.

70 Trades: all you should know before starting

70 Trades: all you should know before starting

Now that you have ventured into forex trading, you need a broker that will act as a medium of exchange with the forex market. You’ve made the best decision by chosen 70trades as your ideal broker. But you shouldn’t wet your feet blindly. You must arm yourself with the right information to climb the investment ladder.

We’ve got a detailed guide to take you through 70trades and know what is expected from both of you. Remember, this is a collaboration, and both parties should play their parts.

How 70trades operate

Unlike other forex brokers on the web, forex uses one of the least popular trading software called PROfit. The platform is straightforward to adapt to and use. That’s why it is the go-to platform for newbies.

The software possesses features like shares, market indices, bonds, built-in currencies, and commodities.

Since trading is a volatile venture, pouncing in it without a plan is unwise. However, most brokers don’t have programs to introduce newbies; hence, they end losing loads of cash. It’s the reason why they allow you to trade with as little as $50. For 70trades, the least amount of money you can start with is $200. Don’t let the figure fool you; they have a way of compensating for this high requirement.

The broker has a demo account for starters. You use the account to practice investing and familiarizing yourself with forex trading. Some of the things you’ll learn with the demo account are making investment decisions and getting acquainted with master techniques. When you are good to go, you can throw in your $200 and practice what you learnt in the demo.

One of the characteristics that make 70trades stand out is having a traders’ protection policy that prevents any negative balance. It’s one of the most common trading challenges that traders face, and you can end up losing more than what you expected to receive.

Forex trade advisers and experts stress on this issue. Not all the forex brokers do this while still allowing you to trade in the platform.

Earning and Withdrawing Money

You ventured into forex trading for money. It doesn’t come easy, and your strategies must be right. Plus, you must know your time to drop down from the business.

The maximum ratio leveraging the risk factor for your transactions is about 1:200. On such immense proportions, you can either make big wins or big losses. Since you don’t know what to expect, you can consider it a high risk.

Once you’ve started earning money, the only thing that remains is withdrawing it. The platform doesn’t have issues here, but you need to get everything right.

For instance, you must have a valid bank account and successfully initiating a withdrawal request. Whether you are using PayPal, WebMoney, skrill, Bitcoin, or credit card, you are good to go.

Summary of 70trades features

You should first know that what 70trade offers is more than what you’ll get from other competitors out there. Why? Here are some features to prove that point.

As much as their platform layout is not the typical MetaTrader 4, it isn’t hard to get the hang of it. You will find this new or strange altogether, but you’ll love the experience of cruising through the platform. The first thread starts at 3 pips which can only work in the USD/EUR pair. When compared to the brokers in the industry, this might sound high, but remember that you already got a free demo and got trained.

The platform also offers professional advice from experts if you want to delve deeper into the forex market. They have divided the class into 3, the beginner intermediate and expert levels. All the classes have different bouquets which grow as you go up the ranks. By the time you’ve set foot on the expert level, you’ve got ideas on risk management, technical forex trade strategies, and analysis.

Bottom-line

Whether you are an expert or beginner in forex trading, 70 trades offer you a good platform to try out your luck. The free guides and tips you will get are golden opportunities that traders using other forex brokers envy. So don’t waste your time, use it while you still can.