FAQ

1. What is trading? Trading is the act of buying and selling financial instruments, such as stocks, bonds, commodities, or currencies, with the aim of making a profit.

2. How does online trading work? Online trading involves using a trading platform to execute buy or sell orders over the internet. Traders can access real-time market data, analyze charts, and manage their portfolios from the convenience of their computer or mobile device.

3. What is the difference between stocks, bonds, and commodities?

  • Stocks represent ownership in a company.
  • Bonds are debt securities issued by governments or corporations.
  • Commodities include physical goods like gold, oil, and agricultural products.

4. What is a trading strategy? A trading strategy is a plan or set of rules that a trader follows to make informed decisions about when to buy or sell assets. Strategies can be based on technical analysis, fundamental analysis, or a combination of both.

5. How much money do I need to start trading? The amount of money needed to start trading varies. Some platforms allow you to start with a small investment, but it’s essential to consider your risk tolerance and financial goals.

6. What is leverage, and how does it work in trading? Leverage allows traders to control a larger position with a smaller amount of capital. While it can amplify profits, it also increases the risk of significant losses. It’s crucial to use leverage cautiously.

7. What is the difference between a market order and a limit order?

  • A market order is an instruction to buy or sell an asset immediately at the current market price.
  • A limit order is an order to buy or sell an asset at a specific price or better. It will only be executed if the market reaches the specified price.

8. How do I manage risk in trading? Risk management involves setting stop-loss orders, diversifying your portfolio, and not investing more than you can afford to lose. It’s essential to have a clear risk-reward ratio for each trade.

9. Are there fees associated with trading? Yes, trading platforms may charge fees such as commissions, spreads, and overnight financing costs. It’s important to be aware of these fees and factor them into your trading decisions.

10. Can I trade 24/7? Some markets, like the foreign exchange (forex) market, operate 24 hours a day, five days a week. However, stock markets have specific trading hours. Check the trading hours for the specific market you are interested in.

11. How do I open a trading account?

You’ll need to fill out a brief questionnaire about your financial knowledge and trading intentions. You’ll also need to provide an ID, and the minimum deposit your trading account institution requires. That’s it. You’re now all set to trade.

12. Is it safe to provide my personal information about me and my income to online broker?

If the broker is regulated and licensed, your personal information is safe.  This information is strictly confidential and accessible only for few people which underlie a strict regulation.

13. What information do I need to provide to complete an application?

All applicants must provide basic identifying information such as name, date of birth, permanent address and, if applicable, valid Social Security or tax ID number. Applicants are also required to provide details of their financial condition and investment experience, such as annual income, total and liquid net worth, source of net worth and funds, and years of trading experience in each asset class. For international clients, a valid passport and address verification dated within the last 60 days are required. Acceptable forms of address verification include utility bills or bank statements.
Depending on the account type and information provided the FCM may request additional information or documents to be provided.

14. Who can see my trading account? Who does have access to my trading account?

Your trading account is accessible only for you. Only you have the access through your password. It`s the same as a classic account in a bank.

15. How can I see my account balance and transfer history?

You have to go to your account of your chosen online broker, there you should see your deposits, withdrawals, trading account balance and lot more. It depends on the chosen broker.

16. What currencies can I send?

To fund your trading account by online broker you can send funds from your bank account in any currency. After the transfer the currency will be converted for free.

17. Are there fees for using online platforms?

There are no download, setup or subscription fees for using online platforms.
Fees and charges apply to trading.

18. Where are my funds held?

Account balances are held in segregated funds at the bank of the clearing firm at which you opened your account.

19. Are my funds insured or protected?

If you opened your account by a licensed and regulated broker your fund is safe and protected. The customers deposits are kept in segregated bank accounts that are designated for the exclusive benefit of our customers.

20. Do I have to worry to send money to a broker which doesn’t have branch in my country?

No. The regulations are very strict for every licensed broker everywhere he operates.