Online FX Trading 2018
AvaTrade offers our traders first class access to forex trading on a range of intuitive trading platforms. You too can trade a variety of major, minor and exotic currency pairs in our safe, secure and all-inclusive trading environment. Select the currency pair of your choice and make your trade!
AvaTrade it’s your ultimate choice.
Foreign exchange trading, or forex, has grown in popularity over the last few years and traders worldwide are taking advantage of the many trading opportunities that this market offers. The foreign exchange market involves the trading of currencies, including selling, buying and exchanging these currencies. As a result of its huge trading volume, the forex market represents the largest asset class in the world, making it the world’s most active financial market.
Did you know that the heart and soul of the currency market is right here in the United Kingdom? Luckily for the retail trader, forex trading in the UK is no longer the domain of only institutional brokerages and financial trading professionals. Today, anyone in the United Kingdom can trade confidently in the online FX markets, and all that is needed to get into this trading action, are internet connection and trading capital. With the development of advanced technology, the intuitive trading platforms, such as those provided by AvaTrade, provide the platform on which FX trading can take place and it is accessible to novice, intermediate and professional forex traders globally. You too can get in on the FX trading action today by simply joining the AvaTrade family!
Forex Trading – A Wealth of Trading Opportunities
When you trade FX online, you are able to enjoy the benefit of 24/5 trading activity, massive liquidity, and a multitude of lucrative opportunities as the markets generate so much in the way of volume. To put it into perspective, it has been estimated that the FX market generates well over $5 trillion a day, and at that level, currency markets dwarf all other markets combined. What this means is that the forex trading market offers traders a wealth of trading opportunities, no matter what type of trader you are.
Why Should You Trade Forex with AvaTrade UK?
- Regulated, Safe and Secure – AvaTrade is regulated internationally to offer you transparent and credible trading at your leisure. You can also trade with complete confidence as our systems are secure, and constantly monitored.
- Powerful Forex Trading Platforms – We offer our traders access to both fully automated and manual trading platforms, that are easy to use and to navigate.
- Access to a Choice of Currency Pairs – We provide our traders with direct access to over 50+ currency pairs, including major, minor and exotic pairs. For example, USD/EUR, GBP/USD, USD/JPY, GBP/EUR, USD/CAD, GBP/ZAR, and many others.
- Competitive Spreads – Enjoy competitive spreads at AvaTrade, starting at only 0.8 pips per trade.
- Maximum Leverage on Forex Trades – With AvaTrade, you are able to get maximum leverage on your forex trades, giving you the ability to use small margin.
- Access to a Wealth of Educational Resources – Enhance and fine-tune your trading skills and strategies on our platforms. Gain access to our comprehensive educational centre and make use of the resources, including our daily market analysis and expert guides.
- Professional Support – At AvaTrade, we offer 24/5 multilingual live customer support from a dedicated team of professionals who are responsive and ready to assist you in any way.
How to Trade FX – Forex Trading in a Nutshell
When we talk about forex or FX trading, we are referring to the purchase of one currency, such as the US dollar (USD), with another currency, such as the euro (EUR). Put in another way, when you trade forex, you are buying one currency and selling the other currency in a pair. As a forex trader, you are trading currency pairs and not individual currencies. For example, the EUR/USD pair being bought means that you are selling USD and buying EUR. If you sell the EUR/USD pair, you are selling the EUR and using those proceeds to buy the USD. When it comes to trading FX, you are speculating as to which currency is going to rise in value against the other – this is the basis of FX trading.
Foreign Exchange Rates
In forex trading, currency pairs, such as the EUR/USD, are quoted as rates. This exchange rate is the rate at which one currency will be exchanged for another. This rate is also regarded as the value of one country’s currency in relation to another currency. For example, if the rate of the EUR/USD currency pair is 1.31, this means that $1.31 is needed to buy €1. In another example, if the GBP/JPY rate is 146.12, this means that £1 can purchase ¥146.12.
FX Pairs Groups
In order to make it easier for you to understand which forex pairs are similar to one another, they are grouped together. In the FX world, there are three major categories of currency pairs which include:
- Major currency pairs.
- Minor currency pairs.
- Exotic currency pairs.
The biggest difference between these categories is the liquidity involved in each market.
The most liquid forex pairs, of course, are the major pairs, as they are the most heavily traded pairs in the world. They include the GBP/USD, USD/CAD, USD/JPY, AUD/USD, USD/CHF, EUR/USD, and NZD/USD pairs. You might notice that in each currency pair listed, the US dollar (USD) is included as one of the forex pairs. This is because the US dollar is considered to be the world’s reserve currency.
The minor currency pairs include markets that, while not quite as liquid as the major forex pairs, are still very liquid. For example, the most traded minor currency pairs include the JPY, GBP, and EUR currencies. The US dollar is not included in the minor currencies. Examples of minor currency pairs include the EUR/JPY, EUR/GBP, CHF/JPY, GBP/CAD and many more. You will quite often see less liquidity in these markets than the major pairs, but for the retail trader, trading these FX pairs offer many trading opportunities.
Finally, the exotic currency pairs include currencies such as the ZAR (South African rand) and the MXN (Mexican peso). These pairs tend to be much less liquid, meaning there isn’t much trade volume, and are more often than not, traded as long-term investments. With the lack of volume, these pairs quite often have very large spreads. You might also find that exotic currency pairs do not see much volume during certain times of the day. For example, the USD/MXN pair sees most of its trading during North America hours, which of course makes sense as corporations doing business between the United States and Mexico, will be driving most of the transactions during this time.
Our FX Trading Platforms
At AvaTrade UK, we provide you with access to several different trading platforms. These are great for both manual and automated trading, depending on your trading needs. Beyond our intuitive trading platforms, we offer many unique tools and features to bolster your trading activity. This allows you to benefit from optimizing your FX trading and maximizing your overall trading experience.
With our auto trading options, you may want to simply copy the trades of other traders in order to diversify your trading portfolios, or to boost your trading skills. You may also be interested in trading on your own, using your own strategy and analysis to enter the markets. Either way, AvaTrade has ensured that you have right tools and services available and we offer a complete set of possibilities for you to choose from.
Our UK traders find tremendous benefit in the demo account that is also available on each platform, allowing you to maximize your strategies before putting any trading capital at risk. Once you master the skills, you can then move your trading to the next level by opening a real money account with the UK’s #1 regulated forex broker.
Leverage is a benefit of forex trading, but it is also something that should be approached with caution. When you trade currencies online, leverage allows you to take out a much larger position than you would otherwise be able to afford with your own cash resources. At AvaTrade, we will teach you everything you need to know about leverage, both the benefits and pitfalls, and how you can maximize your use of it when trading forex. We offer a maximum leverage of 400:1 on many of the currency pairs we offer. In other words, you only need to put down 0.25% of the position size in margin.
As an example, you may be interested in trading the GBP/USD pair. If the current price is 1.2200 and you open a position of 100,000 units of this market, you will need $122,000 or £81,967.21. However, with leverage trading, you would require only 0.25% of this position size. This amounts to $305, or £204.91. The benefit of leverage is clearly evident! By taking on a much larger position than your available cash reserves, you can enjoy forex trading instantly, but please bear in mind that if the trade moves against you, your losses will be just as amplified as your gains. It is because of this that you are advised to use margin wisely, and since the forex markets can be volatile at times, it makes a lot of sense to practice your strategy on a demo platform before leveraging your trading capital.
Trade FX Anytime, Anywhere
One of the biggest benefits of trading currency markets is that they trade 24 hours a day. This allows you the ability to trade regardless of what your work schedule is. As the different exchanges open around the world at different times, this present forex traders with different trading opportunities. With the forex markets open 24 hours a day, you are able to trade the markets at your leisure, and when it is convenient for you.
Also, as long as you have an Internet connection, you have the ability to trade currencies. A mobile application on your phone works just as well as a desktop platform does and AvaTrade offers a mobile version of our platform to ensure that our traders have the flexibility and convenience to trade from anywhere and at any time.
How Do I Calculate the Cost of a Forex Trading Position?
AvaTrade UK does not charge you any commission beyond the spread. The spread indicates the difference between the quoted buy/sell prices, which is designated by a pip. A pip is the fourth decimal in a currency pair. For example, if the GBP/USD pair is trading at 1.2215, if you were to buy the GBP/USD at 1.2215 and you sell it at 1.2219, there is a movement of 4 pips.
With this in mind, the difference between the buy/sell prices quoted is in those same pips. For example, if you see the USD/CAD quoted as 1.2100/1.2103, it would be a three-pip spread. This means that the bid, or the price that people are willing to buy the currency pair for is at 1.2100. The offer, or the sell price, is three pips above there at 1.2103. This is the only commission or charge that you will pay for placing a trade in that market.
With every forex position that you open, the spread will be multiplied by the size of your position. This means that you multiply the amount of pips (such as, 0002), times the value of the trade itself. Here at AvaTrade, you are able to trade currencies online with competitive spreads and our spreads begin from as little as 0.8 pips.
Range of Forex Markets
AvaTrade UK traders enjoy a wide variety of currency pairs to trade from. We offer access to over 50+ forex pairs, including exotic pairs, minor pairs, and of course, major pairs. We also offer crypto trading, offering exposure to Bitcoin and other popular digital currencies including Ripple, Litecoin and Ethereum. You can now, for example, speculate on the price movements in Bitcoin against the US dollar, trading in both directions.
Beyond currencies and digital currencies, we also offer multiple CFD markets, allowing you to speculate on the price of bonds, commodities, indices, and the stocks of major corporations globally. By being exposed to so many different market opportunities, you can diversify your trading portfolio in a way that, until recently, was only dreamed of by retail traders. In order to benefit in the global economy, you need to trade like the professionals do, taking advantage of market opportunities where they present themselves, regardless of geographical boundaries.
Start Trading FX with AvaTrade UK
At AvaTrade UK, we offer an all-inclusive trading environment that will enable you to access the forex markets with ease. You will also be able to enjoy trading on a risk-free demo account or you can open a real money account and take advantage of the many trading opportunities in the FX market. With AvaTrade, you can also choose to trade manually or automatically, it is entirely up to you. We offer a wealth of platforms and tools to enhance your trading experience and to assist you on your trading journey.