Going into online forex trading isn’t as scary and as daunting as it used to be. In the past, people had to have a good knowledge of finance, currencies, and the international money markets in order to do well in the currency trade. Well, that no longer applies today. In these modern times, there are software and tools that can help a newbie start in the forex trade. Alternatively, it is also of big help to seasoned traders who just want to manage multiple accounts.
Why You Need Online Trading Tools
One of the most popular tools in online forex trading is FXCM. Along with Xtrade and iFOREX, these tools are now considered as indispensable by forex trading experts as well as their team of employees. FXCM did not start off big though. In fact, it had rocky beginnings because of its initial association with a company named Refco.
Refco was then a big company with an estimated value of GBP 45 Billion. That huge amount was used to buy up a lot of stocks at FXCM way back in 2005. However, when Refco was racked with a huge financial scandal, it was revealed that the company had more than GBP 260 million in debt. Refco came crashing down and adversely affected FXCM; but they were able to bounce back immediately to become one of the leading online brokers in the industry.
What Makes FXCM Recognizable?
FXCM is considered a success based on the strength of its post-refco transactions which is backed up by solid financial assets. FXCM is also active in its global campaign promotions and are very visible online. You will find them in Google AdSense and have corporate presence in different regions, including South East Asia.
The company also has micro accounts which offer the lowest spreads online. For example, their 1 pound versus yen spread is as low as four pips. Now, that is something that you cannot find anywhere else. They also have low spread on currency pairs; however these are not fixed spreads since they are prone to fluctuation and volatility.
Extremely Low Minimum Deposit
Part of the efforts of FXCM is in increasing awareness about online trading and currencies. To encourage more people to try it out, they offer an extremely low deposit for any of their micro accounts. Image, going into foreign currency trading with only $25 as capital! That sound insane, right? But it is true. This system also boasts of ease of use, and this is how they are able to convince more and more people to give currency trading a try.
If you’re a first timer and you’re hesitant to spend money you don’t have; investing as little as $25 is a good gamble. Whether or not you make a profit and learn something out of it, it will just be the equivalent of losing your lunch money. If on the other hand, you find that the system works for you, it will be easy to add more money in the days to come.