Should a US Forex Trader Open Account in GBP?
If you re a US forex trader, you might be wondering whether it s better to open an account in a foreign currency. If so, you should make sure that the broker you re working with is licensed by the Financial Conduct Authority FCA. You can look for a regulated broker on the FCA s online register. A broker that s not listed there is probably a fraudulent firm. Currency pairs are exchanged in forex and include GBP and USD. Major currency pairs are the ones that involve the US Dollar, while minor currency pairs include currencies that don t. The latter pair is sometimes referred to as cross-currency pairs.
Before you can start trading, you should learn about currency quoting conventions and how currency exchange works. You should also learn about forex transactions and mathematical formulas. Once you understand these basics, you can choose which currency to trade. The more you learn about currencies, the better prepared you ll be for the challenges of foreign exchange trading. However, the process is faster and easier than ever before.