How to choose a FX broker

Hello, I am Nikkei OP Boufu, the administrator.

Thank you very much for visiting this blog.

I would like to provide information that can be of help to everyone, so please support me.

Now, the theme this time isFX (foreign exchange margin trading).

Margin trading in currencies can be broadly divided into two types.

The first is currency margin trading conducted in the market.

“Click 365” is its representative.

☆ It is the nickname for exchange-traded foreign exchange margin trading where financial institutions are listed.

☆ The merit is that because it is traded in the market, price formation can be trusted.

☆ Since the financial institutions store all the funds as collateral, the margin is, in principle, secured.

☆ On the other hand, compared with over-the-counter trading, the buying/selling spread is usually larger. In other words, the cost is high.

The second is over-the-counter currency margin trading.

☆ You trade at your FX company’s own buy/sell rates.

☆ Compared with “Click 365,” the buy/sell spread is often smaller. In other words, the cost is lower.

☆ Since the exchange does not manage margins, there remains the financial risk of the counterparty.

Which to choose is your decision.

The administrator’s stance is,

① A company that separates and manages margins (as a trust) in banks or similar institutions

② With small spreads,

③ A firm registered as a Financial Instruments Business Operator

④ With high system stability

I choose.

Note) The above is my personal opinion and is intended solely to improve financial literacy. Therefore, it was not created for investment solicitation purposes. The final investment decision should be made at your own risk.