Pip Forex is the simplest way to trade currencies, but we want you to know everything you need before you trade with us.
So, let's get started:
Currency trading is the backbone of international finance, and it is the act of simultaneously buying or selling one currency with another. Many of the world's currencies are traded on exchanges from Hong Kong to New York, 24 hours a day, five days a week. Currencies are traded on a floating exchange rate in pairs, such as Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).
Currency trading has many market names. It is known as the foreign exchange market, the "Forex" or "FX" market and is the largest financial market in the world, with average daily turnover of around USD2 trillion.
You may have read that before, but what does so much liquidity (money) in the market mean for you as a currency trader?
With such a huge amount of money being traded everyday, there is always a buyer for someone selling - unlike almost any other market in the world. Also, the market prices change hundreds, sometimes thousands of times each day. This fluctuation in prices means that there are thousands of potential opportunities for profits or losses to be made, everyday.
As a truly 24-hour marketplace, you can buy and sell the currency pairs you want, when you want, regardless of where you are in the world. Unlike most traditional markets, as well as gambling sites, forex offers you more freedom to speculatively trade how and when you want to.
Pip Trader takes the mystery and confusion out of traditional currency trading. As a rule, most forex brokers trade currencies on margin, which means that you open an account, typically for a minimum of USD10,000, and gear each of your trades by up to 100 times. This complexity frightens many potential traders as they ask themselves, how can I trade for USD100,000 when I only have USD10,000 in my account?
With Pip Forex, you simply decide how much you want to pay for each pip movement. So, for example, if you decide to pay USD30 for each pip movement when you buy EUR/USD at 1.2212, and the sell price goes up to 1.2242, you make 30 pips x USD30 = USD900 profit.
You can open a Pip Forex trading account for as little as USD200, although you should probably invest more than this so you can withstand sudden movements in the market. You can open your account and continue to fund it by bank transfer or by credit card. See more on opening an account, Cashing In and Cashing Out.
Since currencies are traded worldwide, the market operates 24 hours a day from Sunday evening to Friday evening. This means that you can basically choose when you wish to trade - you don't have to wait for an exchange to open. The buyers and sellers are there waiting to do business.
A currency trade involves selling or buying one currency with another.
You can make or lose money just as easily in falling markets as in rising ones. This is because you can both buy a currency, EUR/USD for example, or you can sell it.
Although this may sound strange, you can sell a currency that you don't actually own yet. This is because to balance the accounts, you will have to buy it back later.
Currencies can be traded online anywhere in the world from a laptop, a standard PC, an internet café or anywhere there's an internet connection. All you need to do is to download Pip Trader to your computer. If you are on the move a lot, you can also place a copy of the installation file on a USB stick and you can then install Pip Trader on other PCs.
The only cost you have when you trade currencies with Pip Forex is when you keep a position open overnight. In this event, you will be charged the equivalent of the price you paid for one pip in your open trades. See our FAQ for more about overnight fees.
The backbone of the currency trading market still consists of a global network of dealers (mainly major commercial banks) that communicate and trade with one another and with their clients through electronic networks and telephones. There are no exchanges to serve as central locations for facilitating transactions the way stock exchanges serve the equity markets.
No one can corner this market. The online currency trading market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks, as well as large market orders, are becoming increasingly ineffectual and short-lived, and thus central banks are becoming less and less inclined to try to intervene in order to manipulate market prices.
This means that the currency markets are truly independent - no one institution has control over the direction of the market. It's the purest form of trading there is - it's just you against the market.
More than 85% of all transactions involve trading the major currency pairs (also known as the Majors) which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
Contrary to popular belief, the unification of many European currencies into one single currency (the Euro) has only strengthened and further popularised the use of currencies as investments, hedging instruments, and as tools for speculative investment. The most marked developments have been the democratisation of foreign exchange in the retail market and the dramatic improvement of trading conditions for small traders.
A variety of economic and political conditions affect currency prices, but probably the most important ones are interest rates, inflation, and political stability. Sometimes governments actually participate in the market, either by flooding the market with their domestic currencies in an attempt to lower their prices, or, conversely, by buying in order to raise their domestic prices.
In the stock market it is almost impossible to know which shares you should monitor. There are thousands of corporations, so how on earth do you sift through all of them to find one or two great stocks to trade? The currency market is excellent in this sense, as there are only a handful of different currencies to keep your eye on, and generally you only need to monitor two or three at any given time. This makes currency trading more simple than almost any other form of speculative investment.
As a part of the Simray Group of companies, Pip Forex provides you with the same kind of encryption, authentication protocols, and firewall protection that you'd find at your local bank. We do this to make sure that every transaction and customer record is completely authenticated and secure.
Simray Holdings LLC employs backup systems and contingency plans to minimise the possibility of system failure. If there is a problem with our server, all open trades, exit orders, and trading histories are saved on our backup files. So you can rest assured, all your trading activity and account information is secure with Pip Forex.
Your money is kept in a separate client account with the Union Bank of Norway and with our clearing houses. This means that your money is held separately from our company funds and cannot be used by Simray Holdings LLC except as you direct us when you trade on Pip Trader.
The most common risk management tools in currency trading are the Minimum Exit and Maximum Exit orders you can see on Pip Trader. These orders enable you to limit your losses or take your profit - exactly when and how you specify. Read more about how these easy-to-use risk management tools work on how to trade Pip Forex.
You can earn a lot of money in a matter of minutes or hours when you trade Pip Forex, but you can always lose as well. However, we limit your risk so that you can never lose more than what in your trading account. There will never be additional fees as is common when an account is forcibly closed.
If a currency pair, say EUR/USD, moves so much against you that the money in your account is insufficient to maintain your open trades, the Pip Forex system will automatically close out your position(s), guaranteeing you no further losses.
When you can successfully manage the high level of risk involved in currency trading, the profits are potentially enormous. It is not uncommon for traders to double their initial investment in a week or two when the actual trading process is as simple and transparent as it is with Pip Forex.
Your Pip Forex Practice Account gives you the exact same trading system as
you will use for your Live Account so you can test your trading strategies in
a risk-free environment for as long as you want to use it.
You also get the full experience of trading with Pip Forex because you can
also add and withdraw practice funds to your account in exactly the same way
as you do with a Live Account, minus the transfer of real funds.
To open your Practice Account, click
here.
Pip Forex is owned by Simray Holdings LLC, a company regulated by Norwegian law.
Risk Warning:
Forex trading (also known as foreign exchange or currency trading) contains risk. However, your risk is strictly limited to how much you have in your account. As a rule, you should only trade forex with money that you can afford to live without. Some people will be successful in their forex trading and some will not. So, you should consider your trading options and your budget before you start trading.
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