As recent as a few decades back, only the elite were expected to be well-versed in foreign currency trading as well as stock market trading. There seemed to be a wall between the rich and educated that the average person could not knock down; and this seemed to make the gap between the rich and the poor even wider. When it came to trading and investing, the elite had the upper hand; they could hire the brightest consultants and brokers to take care of their money for them and make what was already a big amount even bigger.
Using the Latest Software and Tools
Enter the age of computer software and tools. Nowadays people who know nothing about foreign currency trading and stocks can dive right ahead with as little as $25 or $100 in their pockets. While this may sound absurd, it is true. This has been made possible by the creation of foreign currency trading softwares such as Xtrade, FXCM and Plus500.
These three may have some similarities, but they also address the market in very different ways. They are not three versions of the same thing, rather they give beginners a unique way of starting to build their investment portfolio.
What is Xtrade?
Xtrade deals in the contracts for differences or CFDs which is one of the fastest ways to trade. Xtrade has been around for more than six years now and concentrates on the spin off from CFD investments. This simply means that you buy a contract with your broker which you think will pay off in the long run. This happens when the market shifts in your favor. The reward is determined based on the difference between where you were when trading closed and where you started. Other factors considered are how many units you have bought, as well as the leverage you have picked. The software offers flexibility and this is why forex brokers who use Xtrade can add stocks, indices, as well as other commodities to widen your investment portfolio.
XTrade has regulated entities in a number of different locations, including its XTrade Europe branch that caters to EU citizens.
What Can FXCM offer?
FXCM, on the other hand, is also a trading software. It starts with a low investment and allows investors to play with currency pairs that would normally be too expensive for a beginner. After a while, traders can move on to the more advanced game and invest larger amounts of money for trading. This is good because people who aren’t comfortable with investing big amounts of cash all at once will be able to have a try at foreign currency exchange and see if this kind of investment will be of interest to them.
Foreign currency trading has advanced by leaps and bounds thanks to modern software and tools. The big advantage here is that the small people, or ordinary folk, can also try their luck at investing without burning a hole through their life’s savings or retirement fund.