It’s another commonplace topic. Since everyone wants to make money in foreign exchange, the safety of funds means the formality of the platform is the day before yesterday. It's all floating clouds, there will always be a day when you can't eat enough to go around, and when that day comes, you will ask the prophecy again, how to recover your funds, I really can't do anything, after so many years of foreign exchange, the prophecy dare to say confidently, when you encounter I have experienced losses, but I have never encountered a black platform.
Next, the prophecy will tell you how to judge the safety of a foreign exchange platform and a foreign exchange company. If you have friends who are investing, please help forward and share the article, stay away from black platforms, thank you!
There are two kinds of risks in foreign exchange, one is the risk from the platform, that is, the safety of funds, and the other is the risk of trading strategies. Today we will analyze how to choose a formal foreign exchange platform with safe funds to speculate in foreign exchange!
I have to say, and I have talked about the topic countless times. First of all, foreign exchange in China is neither legal nor illegal, and there is no legislation yet. Therefore, for Chinese citizens, the supervision of foreign exchange companies is your last defense wall when speculating in foreign exchange. !Effective supervision, even if a platform goes bankrupt, it can help you recover funds.
Supervision
As long as they are in the industry, they all agree that the first choice for foreign exchange is the supervision of the United Kingdom, the United States, and Australia. Other regulations are floating clouds, and you can basically buy them with a little money. For example, the supervision in Vanuatu can be done for less than 100,000 RMB. From the website to MT4 to the CRM system to the supervision can be done with no more than 300,000 RMB, so do you still think that it is a very reliable thing for you to invest 1 million in foreign exchange speculation in a foreign exchange company that opened at a cost of 300,000? ? The supervision is weak, and the gods can't save it!
Therefore, the first thing to do in foreign exchange is to check the supervision and check whether the supervision is real and effective, because the supervision of some platforms may be counterfeit or expired supervision, etc., so before doing foreign exchange, the first thing The thing is to seriously inquire about the supervision of foreign exchange companies. The method of inquiry is very simple, that is, to enter the official website of the regulatory agency and enter the supervision number of the company in the search supervision office. The specific process is directly on Baidu. There is a very detailed query process, so I won’t repeat them one by one today!
It is recommended that when you choose a foreign exchange platform, you must choose FCA (UK Financial Market Conduct Authority), NFA/CFTC (National Futures Association), ASIC (Australian Securities and Investments Commission), FINMA (Swiss Financial Market Supervisory Authority) , FSP (New Zealand Financial Service Provider) and other regulated foreign exchange platforms.
The most stringent among them are NFA and FINMA, both of which require tens of millions of US dollars/Swiss francs as mortgage assets, followed by FCA, which requires a registered capital of more than 10 million pounds, and ASIC, which requires a registered capital of several million Australian dollars. The last is FSP, which does not require a capital threshold.
FCA has the FSCS financial service compensation plan. If the company goes bankrupt, investors can get compensation of 50,000 pounds purely by supervision. According to the prediction, it is equivalent to about RMB 450,000, so the investment amount is 65,000 US dollars even if the platform faces bankruptcy. You can also get effective compensation, so you must choose a platform regulated by FCA like Denfoot and Jiekai.
Why is the above regulation the most reliable?
Take FCA's supervision as an example, you need to get FCA's supervision.
First of all, you must have a physical office in London, England. From the day you apply for supervision to the FCA, at least 4 people in your company (CEO, legal affairs, executive director, customer service) must go to the regulatory authority to report information and accept FCA’s various requirements. Such questionnaires and data filling, if money is used to run away, the above-mentioned people will have nowhere to go. The fastest time to apply is about 9 months. When you issue a regulatory license, you must provide a deposit of at least 2 million pounds to the regulatory authority, which is equivalent to about 18 million yuan! This means that if the platform is because of your tens of thousands If you run away with more than 100,000 US dollars, the 18 million deposit will be fully deducted by the FCA supervision and compensated to investors. Therefore, due to the above harsh conditions, there is currently no foreign exchange that is truly under the supervision of the FCA. The company is gone!
In conclusion, Chrysostom's prophecy just said that when doing foreign exchange in China, supervision is your last protective wall. If supervision is not effective, gods can't do anything about it!
deposit and withdrawal
There are usually two ways for foreign exchange companies to deposit and withdraw funds, UnionPay and wire transfer!
1. It takes 30 minutes to 1 working day for a UnionPay card deposit, and 1-5 working days for a withdrawal. Generally speaking, it is relatively normal for the account to arrive within 5 working days, because it needs to be reviewed, funds are purchased and imported, and the bank It takes time to account for money and so on. UnionPay deposits and withdrawals are generally free, only the exchange rate difference between deposits and withdrawals!
The most important thing in investing is the safety of funds, so don't blindly pursue quick withdrawals.
2. It takes about 2-14 working days for wire transfer deposits and withdrawals. Any platform supports this approach. Generally, intermediary banks need to deduct a handling fee of 15-40 US dollars, which has nothing to do with the platform.
Notice:
1) Since there are some third-party payment platforms in China, and most of them have the authority to settle and sell foreign exchange, foreign platforms can also support UnionPay card deposits and withdrawals, regardless of whether they are legal or not.
2) For wire transfer deposits, you must check the information of the payee clearly, whether it is consistent with the requirements of the regulator, if it is not consistent, then there must be a problem. In addition, it depends on which bank to remit to. High-quality platforms deposit funds in high-quality bank trust accounts, such as Barclays, Bank of America, HSBC, BNP Paribas, Commonwealth Bank of Australia and so on. If the remittance is to an unknown bank, be cautious.
MT4, MT5 transaction costs to distinguish
First of all, it is worth mentioning that it does not mean that those who can find the company's server on MT4 and MT5 must be regular companies, but those that cannot be found must be fake platforms in China! I will not explain in detail here, I think To understand, please read the article before the prophecy: God teaches you to identify the authenticity of the MT4 platform!
❶ Slippage
Under normal circumstances, slippage will occur when the market liquidity is insufficient. Slippage refers to the situation where the final transaction price is inconsistent with the entry price or stop loss price set by the trader, including the take profit of the position **, The execution of stop loss, limit order and breakout order. So, slippage also has forward and reverse slippage, but generally speaking, slippage as it is said is a situation that is not good for a trader. That is unscientific. Slippage has both advantages and disadvantages. It is a double-edged sword!
The financial market is a matchmaking transaction. When you buy, there must be another person at the other end of the market who sells. If no one sells when you buy, your investment will be traded at the closest selling price to you. , The stock also adopts this mechanism, and the buy one and sell one next to the price are called prices. Due to the great depth of the foreign exchange market, the trading orders are at the level of hundreds of billions to trillions of dollars. Generally, there will be no shortage of depth, so there will be no slippage.
However, when the market fluctuates violently, such as the central bank meeting minutes, non-agricultural employment data, GDP data, etc., due to the imbalance of the depth of the buying and selling orders in an instant, the price of buying and selling will increase, and buying and selling will be at a distance from the asking price. Slippage occurred in the most recent trading price transaction.
In the past, platforms acted as market makers with the obligation to maintain bilateral quotes, accept all offers from traders, and at the same time hedge in the inter-platform market. However, due to the rapid data market, it is impossible to hedge at the same price, or even fail to hedge, resulting in a huge risk exposure, that is, the platform trades ** at the price set by the trader, but bears the loss caused by the spread expansion . When a large number of traders appear, using this method to trade will cause the platform business to bear a large amount of losses. In the end, a number of platforms closed down because of this, and the later platforms no longer bear this part of the risk, and the customer's investment is sold according to the market price, and common slippage occurs, and at the same time, it appears as a gap on the K-line chart or Tick chart. , The same is true for weekend jumps.
Therefore, slippage will and should occur on any regular platform. The difference between regular platforms and black platforms is the time when slippage occurs. Formal platforms will not slip in ordinary market, slippage should only exist in huge market, and black platform will slip at any time.
❷ Spread
At present, most platforms adopt the spread/commission profit model, that is, based on the bank quote spread, plus a certain spread or commission, and finally form the transaction cost seen by our traders.
In the five-digit platform, a point difference refers to the standard definition, that is, the fluctuation of foreign exchange is 0.0001, the fluctuation of gold is 0.1 US dollars, and the position of 1 standard hand, the fluctuation of 1 point is ± 10 US dollars.
Generally speaking, the mode of floating low spread + commission is mostly the STP/ECN mode, the high fixed spread is mostly the market maker model, and the high floating spread is mostly for agents to add points. (STP/ECN/MM/NDD and other modes will be described below).
See if the point difference is too low. If the point difference is too high, it is likely to be a point difference. In the market, half of the spread on regular platforms is 2-5 points. If the spread is 1 point, it is impossible to maintain the normal operation of a company. Just imagine, if there is no trick, how can such a low spread be provided to investors. There are even some platforms that don’t have a spread. The price you trade is from the interbank market to LP and then to a foreign exchange company. If there is no spread, it is 100% a platform for gambling!
Notice:
Interbank spreads are floating
The floating range of EUR/USD is 0-0.4,
The floating range of GBP to USD is 0-0.6,
The floating range of USD/JPY is 0-0.3,
The floating range of AUD/USD is 0-0.6,
The floating range of New Zealand dollar against US dollar is 0-0.8,
The floating range of gold against the US dollar is 0.11-0.28.
❸ Handling fee
Some Xiaobai will ask if there is any handling fee. The handling fee displayed on MT4/MT5 is actually added by IB. This is the profit earned by the agent, which is the cost that the customer needs to bear. Some add 10 US dollars, Both $20 and $50 are available!
④ Leverage
Many people often ask me, how many times is your leverage? Some platforms have ridiculously high leverage, some 1000 times. When encountering such a platform, it is mostly a black platform. When encountering such a platform, it is necessary to carefully check the supervision , if there is formal and strict supervision, it can be done, but it must be a platform for gambling within the company. Let me declare here that the platform for gambling can also be played. After all, gambling is also formal, but it must be subject to strict and effective supervision If the platform is regulated by an island country, then don’t play it. This kind of platform is okay to play. If some analysts want to be agents and bring a lot of clients to do it, then don’t do it, because it is usually the ones who really sell orders in the international market. The highest leverage is about 100 times.
❺ Trading Restrictions
1. Restrictions on pending orders: Formal STP/ECN platforms will not prohibit the time and location of pending orders. If the platform prohibits pending orders or limits the time and price of pending orders, it means that the platform is unwilling to make profits for customers, so you need to choose carefully.
2. Limitation of the distance between pending orders and stop loss and take profit: ECN platforms will not limit the distance between pending orders and stop loss and take profit. STP platforms have a distance limit of 1-5 points at most, and market maker platforms generally have 5 points- The distance limit of 10 points, if the limit of pending orders and stop loss and profit of the platform is 50-100 points, such a high distance of stop loss and profit, the original intention of the platform is definitely not willing to let customers make profits, and it can be basically determined that it is a black platform up.
3. Restrictions on holding positions. Any formal platform will not have a time limit on holding positions. It will not limit holding positions to more than a few minutes, nor will it limit overnight holdings and data gambling. If there are restrictions, it is likely to be a black platform.
4. Restrictions on scalping: Generally speaking, most formal platforms of any type will not restrict scalping, because most platforms make profits through customer transaction fees, and scalping should be a trading behavior that is beneficial to the platform’s profitability ;If the platform prohibits scalping, then it is likely to be a relatively harsh gambling market maker platform or a black platform.
5. EA restrictions: EA restrictions generally exist on non-MT4/MT5 platforms and MT4/MT5 bridging platforms, which are caused by various technical reasons; most of these platforms require customers to use the platform's self-developed JAVA platform for transactions. However, if a platform uses MT4/MT5 client, is not a bridging platform, but prohibits or restricts EA transactions, then it needs to choose carefully.
profit model
As long as you have done foreign exchange, anyone who understands the essence of foreign exchange trading will understand that no one in this world can guarantee that he will be able to make money with his bets, unless he is not doing foreign exchange trading. Therefore, some platforms now make money every day and make profits every day , and the monthly income is 80%, 100%. If it is really so powerful, do you still need me to invest? It’s not that it’s impossible, it’s just unreliable!
Therefore, real transactions must have profits and losses, and the profits will not be too outrageous!
So when investing, you must first understand where the money you earn comes from? If you only value income, then someone will definitely be watching your principal! Basically, a monthly income of about 10% is still very reliable, but if If the amount of funds is large, the income will be relatively much lower!
Website and domain analysis
In fact, it is difficult to distinguish the legitimacy of a platform from the website and domain name, because now the website and domain name can be bought 5 years ago or even 10 years ago with money. The world has been the same since ancient times, as long as there is demand, there will be Buying and selling, the domain name website designed to deceive Xiaobai 5 years ago is not discussed!
Summary: If you want to do foreign exchange, choose a platform regulated by the United Kingdom, the United States, and Australia!
After the first year of development in 2017, it has become an indisputable fact that 2018 will definitely be the year of the rise of foreign exchange. For the domestic investment market, it must be the wind in the wind, the rising sun in the rising sun, the prophet The friends who have the foresight have already started to act, how about you? Remember to share it with your friends~
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