Forex Trading Explained – Tips from the Pros in 2021

Central banks are at the center of the global economy’s focus at the time of writing, and the RBA has already announced some important decisions, removing the peg on yields as well as signaling a rate hike could occur sooner than 2024.

Trading during high-liquidity periods

Such events can generate volatility across the currency market, but given they don’t occur each day, traders need to consider trading during periods in which liquidity is elevated. That happens around the time when major financial centers are opening their day (London, New York, Sydney, Tokyo, etc.) and it means there is a large accumulation of orders driving prices.

Trade setups showing up on the charts during these periods tend to have a higher accuracy, as the price action is backed by a substantial order flow. Professionals are very active during market opening hours and most FX traders should do just the same.

Price directional bias

Although traders need volatility to seize opportunities, it is also important that the assets they are trading have a price direction bias. That means there is an established trend, corrective moves are mild, and the probability of getting stopped out before the price hits the target is reduced. When the order flow is fairly balanced, timing becomes more important, which is why trading an established trend means traders can afford to get in sooner or later, without having to place very large stop losses.

Choosing a competitive brokerage

Not a lot of attention is given to choosing the right broker, as most retail traders are being persuaded by companies offering too-good-to-be-true promotions in order to convince them to sign up. Nothing is free in the field of trading, which is why traders should have high standards when making this decision.

Especially today, reputed brands like TRADE.com allow the trading of FX with tight spreads, fast execution, and within a multi-jurisdictional regulatory framework. When compared to other, less professional trading brands, this is a reliable CFD provider, regulated by CySEC, FSCA, and FCA – some of the largest agencies in the industry.

With a variety of account types available, traders with different goals can sign up even with a small initial deposit, benefiting from the WebTrader and other trading tools integrated. There’s also an interesting elective professional program at TRADE.com, designed in line with the latest European regulation for CFD trading. Traders able to qualify benefit from enhanced trading conditions.

TRADE.com currently serves more than 100,000 customers from various countries, a fact that serves as proof of its reliability and long track record in the financial industry. If traders want to benefit from professional conditions, they should stick with the largest brands, because that is where they can find features and benefits tailored to their needs.