What is a Forex Broker?

A forex broker, also known as an FX broker, or currency trading broker, in the modern financial world, is an intermediary who buys and sells a particular currency and charges a small commission fee through a bid-ask spread.

How do brokers make money in the industry?

The broker makes money through differences in the relationship between currency pairs you are going to trade and calculated in pips. A pip is measured through the amount of currency value changed according to the exchange rate. When one performs a trade, the forex broker charges for a few more pips before actually fixing the bet.

This means that when the market is trading at 1.8000 EUR/USD as a buying price, the broker will put you in at 1.8002. If the trade is terminated, the broker receives the profit between the market price and the number of transaction fees of this trade.

In broker terms, this is called spread and is described as a price difference between what the trader puts to buy or sell a currency and the broker added fee or pip.

A simple question is why would a broker make money this way? Well, this is related to how the forex market works in common and the forex leverage. Forex leverage defines borrowing a set amount of money to invest in something. Forex, in general, offers high leverage and the trader can control a much higher amount of money than they first invest.

What are an FX broker’s functions?

The importance of a forex broker is providing access to trading on the interbank currency market to everyone who wants to buy and sell it. Their functions include:

  • Providing a safe trading journey from opening to ending sections.
  • Providing them with the leverage value from 1:2 to 1:5000 for trading on their accounts.
  • Providing an online currency pairs rate for all available trading instruments.
  • Providing informational services and forex education.

How to choose your forex broker?

  1. License

A license is a document authorizing the broker to carry out their professional activities in specified locations or anywhere. The licenses are given by the regulators. You may check their official websites if the broker has the license. Almost all countries have their financial regulators system For example, the following US and European regulators are considered reliable and well-known: CFTC (Commodity Futures Trading Commission), FCA (Financial Conduct Authority of Great Britain), CySEC (Cyprus Securities And Exchange Commission).

  1. Spreads, costs, and trading conditions

When preferring any FX broker website, a simple thing you have to consider is pricing or other transaction costs. In a cut-throat competition world, there are a lot of best brokers around the globe, many brokers allow their traders to fix or variable spreads when trading on FX platforms. The ECN-style trading accounts that charge flat-rate commission, round turn-out commission fees allow for ultra-competitive spreads that can be as low as 0.0 pips, while standard accounts offer wider spreads, yet traders have no commission fees.

Account types

  1. Variable spread account types – varies with market conditions
  2. Commission accounts – ECN-style account type that has low spreads with flat-rate commission fees.
  3. No-commission standard accounts – no commission fees are charged.
  4. Fixed-spread accounts (micro accounts) – the already fixed spreads remain constant despite market conditions
  1. Currency pairs offered

While there are a lot of currencies available for trading in the forex exchange, only a few pairs are getting the majority that gets them more attention and, therefore, trade with the greatest liquidity volume. In addition to the EUR/USD and GBP/USD currency pairs, the major pairs include USD/JPY and USD/CHF. A broker may offer a huge selection of major, minor, and exotics pairs, but what is most essential is that they allow the pairs which interest you to trade.

  1. Deposit and withdrawal

A reliable FX broker permits you to deposit and withdraw your profits hassle-free. The exchange broker can hold your money aiming to make your trading hassle-free in the most secure way. Before choosing a broker, assure the broker provides a speedy and smooth withdrawal process.

  1. Security

The primary factor to consider is the high-level security an FX broker provides you. Regulatory agencies and regulated FX brokers enforce trustworthy policies that don’t allow money laundering or other fraudulent activities. Each country has a separate law and is responsible for regulating FX broker platforms. It needs to consider checking your country and knowing the right regulatory body.

  1. Transaction costs

When your trading deal is over you will be charged a transaction cost amount. Various FX brokers charge different amounts. So, for you to remember every single trade you will make, you have to pay the spread or the commission. Whether you are a newbie or experienced trader, find FX trading platforms with one of the cheapest rates for its most affordable fees. As a trader, all you need is to balance the low cost of a transaction with security.

IMMFX – A leading STP forex and CFD trading broker

IMMFX is well-known and one of the Best Forex Brokers in Middle East Countries. IMMFX is a highly safe & reliable broker for FX as well as CFDs trading. IMMFX Offers multiple accounts, trading software, and trading tools to trade Forex, Cryptocurrencies, Precious Metals and Energies, Equity Indices, and Individual Stock CFDs (Contracts For Difference) for individuals and institutional clients.

Premium features of the IMMFX platform

IMMFX – An award-winning forex broker platform

  • Best ECN/STP Provider – St. Vincent and the Grenadines 2017
  • Best Rates Platform in 2015
  • Best Execution Broker in 2016
  • Best Sell-side Analysis Contributor in 2017
  • Best Forex Research in 2018

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What is Metatrader 4 and How to use it ?

What is Metatrader 4 and how to use the platform?

The MetaTrader 4 (MT4) forex trading platform is designed for forex and futures trading. It is an automated trading platform with a simple user interface and flexible trading system for ease of analyzing financial markets.

The MT4 platform was developed by MetaQuotes Software and released in 2005. It has become widely used by online foreign exchange platform traders. The software is licensed to forex brokers who are tuned to provide the software to their clients.

The MetaTrader 4 platform can be used to trade a range of commodities including forex, indices, cryptocurrencies, via CFDs (contracts for difference).

Here, let us analyze why the MetaTrader 4 forex trading platform is popular.

Which is the best forex trading platform?

IMMFX is a leading straight-through processing (STP) forex and CFD trading broker offering access to MT4, which is the most popular forex trading platform. It has been the number one trading platform in the forex industry for numerous years.

The MetaTrader 4 platform has a lot of useful wide functionality:

  • Tools for charting and technical analysis
  • Time framing
  • Indicators
  • Terminal
  • Type of orders, and more

Here’s a guide on what MetaTrader 4 is, and how to use it.

  1. Create an account

To use the IMMFX MT4, you are required to create a live IMMFX account. Once you’ve completed that, you can set up a live MetaTrader 4 account.

  1. Download MetaTrader 4

After creating an account, you can download MT4 to your preferred device. Once downloaded, you can log in using your IMMFX credentials.

  1. Open a position

On the MT4 platform, the order window will be open. To be able to place a trade, go to ‘tools’ and click ‘new order’. This will allow up the ‘order’ window. Alternatively, you can press F9 on your keyboard.

  1. Set a Stop Loss

The Stop Loss feature permits you to maximize the possibility of limiting your potential losses when creating an order. You will need to enter the Stop Loss value that you have defined earlier.

  1. Set a Take Profit

Similarly, to place a Take Profit, you can input the value or cost target level at which you would like to lock a profit for your trade.

  1. Set Modifying Orders

Once you have placed an order, there is a need to change it. For example, your Take Profit was incorrectly placed or you would like to modify your Stop Loss. You can modify open orders. Open the trade tab in the terminal window, find the open order that would like to change, and right-click and select “Modify or delete order”.

Next, you will proceed to the next window where you can set your Take Profit and Stop Loss levels either by entering the values immediately or by using the “copy as” buttons.

Then, click the “Modify” button to make the change effective. As an outcome, you should get a confirmation message.

Make sure to verify the order details. Take note of the following fields:

  • Symbol refers to the currency pair that you would like to trade
  • Volume make sure to choose a proper volume according to your money
  • Stop Loss and Take Profit enter the values if you have some pre-decided levels and, if not, analyze the live market price of the currency pairs
  • Comment feel free to add any comment in regards to this particular trade

There are three types of order execution in the platform:

  • Buy or sell via market execution
  • Buy or sell via pending order
  • Modify a trade after it has been entered
  1. Market execution or Instant execution

Trades can sometimes be rejected if prices move suddenly up or down. If you would like to place the trade within a particular price range, check the box and fill out the ‘maximum deviation’ field in pips (from the current price) that you would be ready to accept.

When you place your trade, click “buy” if you think the market will rise in value, or ‘sell’ if you think it will fall.

  1. Pending orders

In pending orders, the traders can buy or sell at a predefined price in the future. This type of order is used to open a trade position presented when the future quotes reach the pre-defined level. 

There are four types of pending orders:

  • Buy limit
  • Buy stop
  • Sell limit
  • Sell stop
  1. Close an order

The way to close your order in MetaTrader 4 is to right-click your order in the terminal section and select the “close order” option. Once the order is closed, you can go to your account history in the section to view the details about the newly closed orders.

Additional features in MT4 Platform

Time frame

The timeframe is a way of grouping prices to display them on the chart in an easier way. There are various types of timeframes, but the following ones are the most popular through different platforms:

  • M1 (one-minute)
  • M5 (five-minute)
  • M15 (fifteen-minute)
  • M30 (thirty-minute)
  • H1 (hourly)
  • H4 (four-hour)
  • D1 (daily)
  • W1 (weekly)
  • MN (monthly)

Trading Signals and Copy Trading

MetaTrader 4 can automatically copy deals of another trader. Select your provider, subscribe to a signal and let your terminal copy the provider’s trades.

Set up a price alert

To set up a price alert, open the ‘terminal’ window then go to the ‘alerts’ tab. Right-click within this window and select the ‘create’ option in the menu. This will bring up the ‘alert editor’ window box where you can customize your price alert.

View your trade history

To view your trade history, open the ‘main’ window and go to the ‘account history’ tab. You can change the date range by right-clicking and selecting one of the following options:

  • All history
  • Last three months
  • Last month
  • Custom period

You can download and save trade reports.

Algorithmic trading

Algorithmic trading (automated trading) is one of the most important features of MT4.  It allows you to develop, test, and apply Expert Advisors and technical indicators, and reduces the time for any analytical and trading activity in the marketplace. You can use the application while trading, and post the code in the free code library or sell in the market. It features:

  • The MQL4 language of trading tactics
  • Meta Editor
  • Tester
  • Library of free trading robots
  • Advanced features in the web platform

Benefits of MT4 on a web platform

  • Trading direct via any browser
  • Adaptability with any platform Windows, macOS, Linux
  • Secure data protection
  • All types of trading orders and execution modes available
  • One-Click Trading
  • 30 indicators and 24 graphical objects for technical analysis
  • 9 time-frames
  • Tracking history of trading orders

Benefits of MT4 on a mobile platform

In smartphones, you can use MetaTrader 4 on iOS and Android devices to trade in the financial markets. It provides the following advantages:

  • Complete authority over a trading account
  • Reach anywhere and anytime
  • All order types and MT4 execution modes
  • Bars, Japanese Candlesticks, and broken line charts
  • 9 time-frames
  • 30 technical indicators
  • 24 analytical
  • Financial market news
  • A free chat for interacting with other traders

Why trade with MT4 at IMMFX?

When you use MetaTrader 4 with IMMFX, you get all of the platform’s functionalities, which are designed with you in mind to significantly improve your trading experience. Users can customize the functionality to match their choices, trading methods, and strategies. As you grow in trust, experience, and skill, you can start to explore more elements to help you benefit.

Start trading now!!!