A good forex broker is characterized by a large selection of Forex Bonus assets. As a rule of thumb, they should have 50 or more forex pairs on offer, including:
major currency pairs or majors
With so-called majors, there is always the US dollar on one side – either as a trading or price currency. As the name suggests, they are the most commonly traded pairs in the Forex market. Usually the major currencies have the lowest spread and the most liquidity. The most heavily traded pair is USD / EUR with a daily trading volume of 30% of the total forex market.addition to currency pairs and Minors
Currency pairs that do not contain the US dollar are called minors . They are derived from the three most important currencies besides the US dollar: the British pound, the euro and the yen .
Exotic currency pairs are made up of a main currency and another currency of an emerging or strong smaller economy such as Singapore, Hong Kong or a European country outside the euro area.
Because these markets lack liquidity, the cost of trading the Forex Canada pairs is often higher. That is why they are traded less often than the major and minor currency pairs. Nevertheless, they are indispensable as an instrument if, for example, there is little movement in the majors and minors and at the same time the volatility is very high, especially in the exotic.
Forex trading with leverage
When trading forex, leverage plays an essential role. The broker provides you with additional capital, which you can invest in trading. With a leverage of 1:50, you invest an additional $ 50 capital with a dollar of your own stake . This increases your chance of higher profits, but also increases the risk if you make a loss. With some brokers, the leverage is a maximum of 1:50. Other forex brokers, on the other hand, offer significantly higher leverage: At Markets.com you can expect a leverage of 1: 200, with ETX Capital a leverage of 1: 400 can be used for Forex trading. The provider XM.com has the highest leverage in Europe can be used – it is at a maximum of 1: 888.
Additionally: stocks, CFDs and options
Of course, the assets offered by a good forex broker are not just limited to online trading. Popular investment instruments also include stocks – the classic among trading transactions – forex CFDs or contracts for difference and options . Which type of trading you ultimately decide on is entirely up to your individual choice: Would you rather have lower returns and higher security, or are you one of those traders who prefer higher returns, but who also accept a higher risk ?