How to Trade Forex Better

There are trillions of dollars exchanged on the forex market every day, which underlines its position as the biggest financial market in the world. More and more private investors are looking to apply their aptitude to the market. In order to be a success, there are a number of things to consider before making a forex trade.

This article will help guide you into a few of the factors that can help you successfully trade forex.

Domestic Economic Factors

One of the most direct ways in which a forex currency could be affected is through a domestic economic announcement. For example, one thing that might affect the strength of the Australian Dollar (AUD) is the interest rate decision, released by the Reserve Bank of Australia (RBA). If the interest rate was to increase or decrease, that might trigger volatility in any AUD currency pairs, which would be of interest to people who were looking to trade forex.

Global Economic Factors

Other factors of interest to those who trade forex include announcements made by other countries. China’s economic performance, for example, is of significant interest to those traders involved with AUD currency pairs. This is due to the fact that Australia and China share a trade pact worth A$105 billion. China’s release of its GDP growth figures for Q1 2012 preceded a lot of volatility in AUD currency pairs, as the performance of its economy influences the trade pact with Australia.

Your Forex Provider

Being in a position to successfully trade forex can be dependent on the standard of your FX provider. A provider that is worth your business should provide you with a fast and reliable trading platform that is capable of giving you consistently accurate prices. Direct Market Access can be a big factor in a provider’s ability to do this. Furthermore, their pricing will need to be competitive, which can be achieved by offering tight FX spreads and commission-free trades.

IG Markets offers Direct Market Access via an award-winning trading platform, along with spreads starting from as low as 0.8 pips. They also offer you the chance to further your knowledge of the markets through free educational resources, such as seminars and market analysis, in order to help you trade forex better.

Please consider the Product Disclosure Statement available from IG Markets. CFD trading can result in losses that exceed your initial deposit and you do not own or have any interest in the underlying asset. The aforementioned information should not be seen as investment advice.

Author's Bio: 

James Paxton is a financial writer who specialises in CFD trading. He has years of experience writing about CFDs being used for shares, stocks, forex, commodities and bonds.