Wat is Forex trading? 2023-2024

Table of Contents

It is comparable to the wiping out of currency when travelling abroad. This occurs when a trader purchases one currency and sells another, with the wisselkoers fluctuating over time in response to demand and supply. It is therefore a method of exchanging one currency for another with the intention of retaining profits. There are numerous factors that affect a changed exchange rate. Consider, for instance, the news stories, markets, and market sentiment that are impacted as a result.

The location where currencies are traded is the valutamarkt, a global market operating 24 hours a day. All forex trading is over-the-counter (OTC), which means there is no physical clearing (like with exchanges) and that the market is in a state of flux. worldwide network of banks and other financial institutions. When you are negotiating, you will come across the phrase “forex pairs.” A case in point is EUR/USD. You will now switch to using the euro instead of the dollar. There are 180 currencies overall, making 179 different currency pairs available for forex trading.

Institutional traders, such as those who work for banks or fund managers, are the major participants in this trading product. These traders speculate on or position themselves against upcoming wisselkoersschommelings and have no intention of holding onto this currency for a long time. A trader may, for example, purchase euros and sell dollars if they believe that the euro will increase in value in the future, allowing them to purchase more dollars. Make sure you choose a broker with a modest spread before choosing one.

How does it work?

First and foremost, create an account on a selling site. You have access to unique trading platforms that are solely focused on this method of trading. It works differently than, say, aandelen. So it is gerund by banks from various time zones. These banks can be found in Tokyo, Sydney, New York, and London. This enables you to conduct business 24 hours a day, seven days a week. There are also three types of forex markets in which you can invest. This is what they are:

Spot: The straight conversion between currencies can be found here. You don’t need to wait because the transaction will be completed without difficulty.
Here, contracts where a price is set in motion are being worked. The current leadership has no bearing on this.
Future: The forex futures market is virtually identical to the forex forward market. The only difference is that it is legally binding in the future, making it impossible for buyers and sellers to withdraw from this situation.

You need a broker in order to trade. Obviously, you want to have the greatest broker possible. Finding a broker is actually very difficult for many people. We have compiled a list of the top vendors at the present time in order to assist you. their brokers allow Dutch users, and you can securely save your money on their platforms. We have also written reviews on these suppliers for customers who would like to read more details.

What do we value in forex brokers?

We have carefully aligned the list of the best vendors. We evaluate the platforms using a check list to which we find that a broker must adhere. So, it is pointed out that:

Utilisation friendliness of the platform
Costs (commissions and other costs)
User-Friendliness of the App
Protection

Furthermore, there is a focus on the licences that a company has and how many people use the platform. It is possible that you had other experiences with the brokers in our list. This is why we only recommend the top online forex brokers according to our research.

Gebruiksvriendelijkheid van het platform

Our knowledgeable experts first evaluate the trading platform’s user-friendliness. Metatrader is used by the majority of forex brokers. There is still a difference between Metatrader MT4 and MT5. Here, MT5 is more advanced than MetaTrader 4 and, in addition, is suitable for the novice trader to purchase and sell these financial instruments.

Cost

When you start trading forex in the Netherlands, you want to incur as few costs as possible. To be honest, it’s often not worth it to go for the cheapest options because they aren’t always trustworthy.

Easy To Use Mobile App

Due to the fact that many more people use their mobile devices, there are also ever more people who choose to communicate by phone. Therefore, it is crucial that an online broker has a good app available.

Safety

Naturally, you want to trade foreign exchange entirely carelessly. Therefore, having a secure trading platform is crucial. As a result, research is done to determine which maatregels are applied. A company cannot pass the test if their website is not SSL-secured. The finest forex brokers are also included in the Investor Compensation Fund, protecting you as a trader in the event that a platform fails. We also check to see if it is listed on the official financial markets.