Simple classification of Forex Trading
Individual Account: When transactions are done only for you, then it is referred as an individual account. This account can be a ‘non-discretionary’ type where only you have the right to make decisions and a broker must get your prior permission or sanction to carry out any transactions, or it can be a ‘discretionary’ account where you give the right to make decisions on your behalf to a broker or any third party.
Subscribing to a Forex trading signal service is very important as they will monitor the market and alert you on the entry and exit points. The quality of the service will depend on the provider. So make sure to take your time in choosing the right service provider. Check their track record, reputation and reliability before subscribing to any particular service. The major benefit of hiring a Forex trading signal provider is that you don’t have to constantly monitor the market for entry and exit points. These providers will analyze the market on your behalf while you can devote your time to other important things in your life.
Commodity Pool: Here the trade is executed on behalf of a group of individuals who trade commodities by means of a ‘commodity pool’. You have to purchase a share in the pool and the transactions are made for the pool as a whole and not based on the interests of an individual. And likewise, the profit or loss is shared by the entire pool.
What is the role of Forex trading signals
? Are they important? Let’s find out. Once you have spend some time getting the feel of the trade with your ‘demo’ account, you will naturally be eager to start implementing your strategies in the Forex market. Unfortunately most of you are not sufficiently trained to make the right decisions necessary for a successful trade.
Before making transactions you should:
• Set your goals and be aware of your capabilities to invest and handle a risk or loss.
• Know the extent of help you need from a trading advisor and signals to make decisions.
• Check the reputation and registration status of the advisor with the National Futures Association.
• Obtain and review the disclosure document before opening a trading account.
• Not hesitate to ask any question regarding trading that you do not understand or have doubts.
So how do you get a proper training? This is achieved with the help of an expert trader, a broker or a market analyst. These professionals offer their service and advice through pager or email alerts and through SMS. Some provide added features and additional alerts. So, before choosing your advisor, make sure to check all the benefits and features offered by the particular service. Depending on the services offered by the broker or the expert trader, you will have to pay a monthly or a quarterly fee. Also these fees will differ from one Forex trading signal
provider to another. You may have to pay as little as $50 to as high as $250 or anywhere in between.