Wednesday 21 October 2020 10:24 amFXCM Talk

Don’t get in over your head – trade smart and trade safe

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Having joined FXCM in 2001 just out of college, Brendan has held various positions within the company over the last 15 years and was appointed Global CEO in 2017.

With the shift to at-home working resulting in lockdown boredom, there has been a surge in retail day traders around the world looking to profit from the market volatility. With the growing number of brokers committing to commission-free trading and zero-minimum balances, there are more choices than ever for retail traders. However, one must take care when deciding who to trade with and what to trade, and must ensure their choice of broker is the best fit regarding the trading opportunities and support services that they provide.  

For those that are new to trading and do not have previous experience of a market downturn to guide your decisions, it is important to proceed with care. Retail trading can be an enjoyable and beneficial experience for many participants, but it is important for those embarking to begin their experience as a retail trader that they are fully aware of the risks involved with trading. 

The responsibility of brokers

Brokers have an element of responsibility and a priority for them should be equipping their customers with a foundational level of education and trading tools. Brokers should have these features readily available as well as having staff and services in place to offer support and guidance before they begin trading but also for when the markets get complicated. 

Part of this education is highlighting the different instruments and products that suit different risk profiles and trading strategies and offer more stable investment opportunities.  At FXCM we were recently awarded Best Forex Trading platform in the 2020 Global Forex awards, offers education, heat map widgets, and trading signals to help traders identify trading opportunities. 

Brokers have a responsibility to ensure that they provide accurate customer service tools and educational tips on hand to their customer base. With the myriad of different trading products, leverage opportunities and trade sizes available to today’s trader, it can often become a minefield before you even start. That is why brokers today need to ensure they have disclaimers and accurate descriptions of their trading tools in order to properly educate their customers. 

A further factor brokers can monitor is the products themselves. Offering simple trading opportunities that allow customers to buy This is where alternative instruments, such as asset baskets, or CFDs, come to the fore. It is a convenient option for those seeking to speculate on the performance of a certain sector, but without risking exposure on each individual company or stock.  FXCM, an award broker offers stock and currency baskets, which allow you to trade sectors and themes as opposed to trying to trade individual shares or currency pairs.  

Traders can participate in the market through a simpler tool without the complications of analysing and selecting which singular company to invest in. This offers an attractive advantage for day traders looking to trade as a hobby. 

If there is a drastic turn in the market and an industry is weakened, go short on the entire sector with just one click. If you think the prospects are going up, go long. 

By spreading their investments across a number of companies, stock baskets provide traders with the best chance to hedge their risk while simultaneously benefiting from multiple trading opportunities.

This key is that brokerages prioritise support for their customers in all market conditions. This includes a clear guide to trading whatever the instruments they are promoting as well as round-the-clock customer support and research to inform and guide users.  

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

 75.38 per cent of retail investor accounts lose money when trading CFDs with this provider. 

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

To learn more about FXCM, visit www.fxcm.com/uk 

FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services. Founded in 1999, the company’s mission is to provide global traders with access to the world’s largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools, proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime. FXCM is a Leucadia Company.


Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. The products are intended for retail, professional and eligible counterparty clients. Retail clients who maintain account(s) with Forex Capital Markets Limited (“FXCM LTD”) could sustain a total loss of deposited funds but are not subject to subsequent payment obligations beyond the deposited funds but professional clients and eligible counterparty clients could sustain losses in excess of deposits. Clients who maintain account(s) with FXCM Australia Pty. Limited (“FXCM AU”), FXCM South Africa (PTY) Ltd (“FXCM ZA”) or FXCM Markets Limited (“FXCM Markets”) could sustain losses in excess of deposits. Prior to trading any products offered by FXCM LTD, inclusive of all EU branches, FXCM AUFXCM ZA, any affiliates of aforementioned firms, or other firms within the FXCM group of companies [collectively the “FXCM Group”], carefully consider your financial situation and experience level. If you decide to trade products offered by FXCM AU (AFSL 309763), you must read and understand the Financial Services Guide, Product Disclosure Statement, and Terms of Business. Our FX and CFD prices are set by us, are not made on an Exchange and are not governed under the Financial Advisory and Intermediary Services Act. The FXCM Group may provide general commentary, which is not intended as investment advice and must not be construed as such. Seek advice from a separate financial advisor. The FXCM Group assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. Read and understand the Terms and Conditions on the FXCM Group’s websites prior to taking further action.

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