subject: Differences between Online Forex software Trading and Broker Forex Managed Accounts [print this page] Differences between Online Forex software Trading and Broker Forex Managed Accounts
Broker forex managed accounts are foreign exchange investments being managed by professional brokers. The idea is to profit from buying foreign currencies when their prices are low and selling when their prices are high. The forex market is often characterized by frequent fluctuations in currency prices, making it an excellent place to put for your spare money in. Surely it beats depositing you money in banks where it will earn hardly anything. And you have an excellent option to the broker managed account. You can downloadonline forex software from the internet and do the trading yourself. You will find the challenge of forex trading very satisfying and exhilarating.
Some brokers will try to portray forex trading as a walk in the park. It is not easy, however. You will need all the analytical skills you can muster. You will have to acquire decent skills in identifying forex trends which is the primary basis of every trading parameter. Forex trends simply mean where currency prices are heading in a given time-frame. The ability to spot where prices of currency pairs are headed gives you a good idea what trade position to take. Learning forex trend analysis is made easier with the help of forex indicators and calculators that track and present currency movements into easily comprehensible graphs and charts. You can find at least one indicator integrated into your forex trading software.
At first, you will find forex analysis using indicators and calculators which is known as technical analysis a bit hard. They do not after all provide explanations why and how currency prices fluctuate. It would help a lot if you study fundamental analysis as well. This type of analysis identifies the factors that make prices of currencies fluctuate. These factors include economic events, policies (both economic and political) of countries and a host of others which impact on the values of their currencies. The rule of the thumb is that events and policies that weaken the economy of a country weaken the currency of that country. Fundamental analysis reinforces what your technical analysis skills. Brokers and traders have different opinions about which is better between the two. It's a useless argument. It is better to know both.
Preparing yourself for forex trading is an arduous task. You cannot actually have a firm grasp of the forex market until you have tried it. Your trading software will have a demo trade and it is advisable to spend time on it. Though the pressure accompanying real trades is absent, this should not deter you from taking demo trading seriously. It's your best way of examining the market closely and developing appropriate trading strategies for every market scenario.
Forex trading online offers one very important advantage absent in broker forex managed account. Whether you lose or not depends on you and not anybody else. Succeeding as a forex trader is certainly more satisfying than earning through brokers. You cannot even be sure you will earn from brokers. They are as much liable to get hit by losses as much as you are. You might as well do the trading yourself and get rich in the process.
