The foreign exchange market, also referred to as the Forex market, is one of the largest markets globally, with a turnover of trillions of US dollars each year.

Investors or traders analyze various currencies in the market and trade currencies to gain profit from the rise or fall in currency values. If the trader’s speculation on a currency’s future value is correct, he’ll make a profit. However, if the currency’s price goes in the opposite direction, the investor has to bear the loss.

What does that mean for traders?

Here’s an example; imagine you have 200 GBP in your trading account, and you see that the conversion rate of that money to USD is 278.30. You analyze the market and speculate that USD’s price will go up shortly, so you trade GBP for USD. Now, if USD does go up in value, you’re in for a profit. However, if your speculation is incorrect, you’ll have to bear the loss.

Yes, trading Forex comes with a significant level of risk because numerous external factors can affect a currency’s value. These include environmental factors, political factors, and often the motives of financial institutions.

Luckily though, there are several ways to manage the risk that tags along with Forex trades.

Do your homework!

First and most importantly, do your homework before investing in any currency. Forex isn’t the most complex  instrument, but you must know the factors that may affect a currency’s value.You should also focus on finding the best Forex broker with the lowest spread.

Understand your strategy

Learn strategies that are applied by expert traders, such as the buy and hold strategy, where you make a long term investment by speculating on long term value shifts in a currency. If you prefer short-term trading with CFDs, there are many strategies that you can also explore and try on our demo account, which leads us to the next point.

Learn on a Demo account

Last but not least, practice your trades on a Forex demo account feature. Knowing where you stand in terms of trading knowledge and building onto that through ongoing learning and practise is highly beneficial. This is a great opportunity to try Forex trading indicators.

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INTRODUCTION TO FOREX

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13:20

FOREX INDICATORS

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13:20

FOREX CANDLESTICK GUIDE

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14:38

UNDERSTANDING AND USING FIBONACCI

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04:20

FOREX CHART FORMATIONS PATTERNS

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14:27

TIMING IN FOREX

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06:20

CRYPTOCURRENCIES

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82:25

First, it is important to understand what are bid and ask prices, since Forex spreads simply refer to the difference in a broker’s sell/bid rate and buy/ask rate when trading a currency. The bid price simply refers to the price on which you can buy any chosen currency, whereas the asking price is the price you pay in return for a currency. A Forex trade is initiated with a bid price and an ask price, and the buy price is always higher in comparison.

Forex currencies are usually traded without commission; however, they do come with a spread cost. Forex brokers tend to avoid commissions in leveraged trades and instead opt for incorporating spreads into the cost of the trade. Similarly, there are numerous factors that influence the size of the spread, for instance, the type of currency pair you’ve chosen, the size of the trade you’re indulging in, and most importantly, the platform you choose to trade on.

Here at CAPEX, we are recognized for being the best Forex broker with low spread. Above everything else, our focus is to ensure users on our platform get to trade with the utmost convenience and the least charge/costs.

How low are spreads at CAPEX?

A few of our spreads on currency pairs are as low as:

• AUD/CAD: 8 (CAD)
• AUD/CHF: 7 (CHF)
• EUR/GBP: 3 (GBP)
• EUR/USD: 1.8 (USD)
• GBP/USD: 1.8 (USD)
• USD/CAD: 3 (CAD)
• GBP/AUD: 7 (AUD)

This is just to give you an idea of how low our spreads are. Given the wide range of currency pairs we offer for trading on our platform, we’d suggest that you visit our website to see the current spread for whichever currency pair you’re interested in.

Note: Spreads are subject to change as a result of special events that may increase volatility in the market or limit liquidity.

There are a number of qualities to look for in a trading platform; after all, the platform you choose plays an immense role in the success or failure of your trading journey. Here is a list of factors that determine that a broker is worth registering with.

User-friendly trading platform

If you’re someone who’s keen about investing in financial instruments, there’s a high chance that you’ll spend a lot of time on the trading platform that you’ll register with. A user-friendly platform will make it easy for you to enter trades, exit trades, and conveniently carry out all related functions.

Since Forex traders need to stay in touch with market conditions and are required to follow the market frequently, they need a platform that is extremely easy and smooth to use. Here at CAPEX, both our platforms, including the MT5 and CAPEX trading platform, offer an excellent trading experience and are highly intuitive. To see for yourself, register now and give our demo account feature a try.

Regulation and license

The first sign of a broker being low-risk or secure is the regulation and license it’s practising under. Being under the regulation of a tier-1 financial authority makes it essential for a broker to adhere to strict rules and guidelines. For instance, keeping client funds in separate accounts than the company and opening bank accounts with tier-1 banks. CAPEXis registered and licensed by CySEC (Cyprus Securities & Exchange Commission), which is a tier-1 regulator. On top of that, we are registered with numerous financial authorities across the world.

Customer support

Being able to access a customer support team and get a relevant answer when you need it can enhance your trading experience. Likewise, not having proper available support can lead to a poor trading experience. Here at CAPEX, we offer our users customer support through live chat, email, and phone. Our customer support team is actively responding to incoming queries, seven days a week. If you want an even faster response to your queries, we’d highly recommend that you visit our FAQs page where we present elaborative answers to any potential questions our users may have.

Low trading costs and spreads

It’s no secret that trading financial instruments is a high-risk activity. On top of that, having to pay high spreads and trading fees can be stressful, so you should focus on trading with a low-commission or low-spreads broker. CAPEX is known for being the top online broker with low spreads, despite the fact that we offer our users a massive range of Forex pairs to trade. Our users’ trading experience matters the most to us. Hop on to our trading platform and give our demo account feature a try to get a clearer picture of the numerous features and tools we offer.

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