What are Central Banks
Central Banks are authorized banks by governments to regulate the domestic economy and to implement their monetary policies. Central Banks are controlling macroeconomic issues such is the level of interest rates, inflation, unemployment, trade and the level of the domestic money supply.
What is Fed (Federal Reserve)
Fed is the US regulatory body / Central Bank which is responsible to control the economy and implement the federal monetary policy.
What is the European Central Bank (ECB)
European Central Bank is the regulatory body of European Union responsible to regulate monetary policy in the economic zone of euro.
What is the Bundesbank
Bundesbank is the Central Bank of Germany. As Germany is a member of eurozone, Bundesbank is coordinated with the policies of European Central Bank (ECB).
What is the Bank of Canada (BOC)
Bank of Canada is the Central Bank of Canada responsible for the Canadian monetary policy.
What is the Bank of England (BOE)
Bank of England is the Central Bank of England responsible forUK monetary policy.
What is the Bank of Japan (BOJ)
Bank of Japan is the Central Bank of Japan responsible for Japanese monetary policy.
What is a Forex Trading Account?
A Forex Trading Account is an account owned by a person or by a legal entity (company) which it is used in order to trade and hold foreign currencies. That means that you deposit money on your local currency and use them to trade other currencies. You can buy or you can sell a currency at the current price and speculate towards future market developments and conditions. Generally speaking a Forex Trading Account is working like a common bank account.
If you start trading currencies, the total value of your account will fluctuate according to the sum of your trading positions. At any given time your account holds:
(1) Your Trading Positions
(2) Your Unused Funds (cash)
Forex Account FAQ Questions
Here are some common questions and answres regarding opening a new Forex Account
Who can open a trading account?
Anyone can open a trading account as long as his country is not excluded from the Forex Broker’s policy. US traders for example are accepted by only a few Forex Brokers, because of the strict online trading US legislation after 2008.
What is the minimum amount of deposit required?
Usually the minimum deposit is about $100-$500. If you are a beginner, make sure your broker offers a mini-lot account so that you will be able to trade small currency sizes.
How can a Forex account be funded?
The most popular fund methods are supported by most brokers including Debit / Credit Cards, Bank Wire, MoneyBookers and Paypal.
Will I pay Deposit or Withdrawal Commissions?
No broker charges deposit commissions but some brokers (about 1/3) are charging withdrawal commissions. You can use the Live Chat support to learn about any broker’s fund policy.
How a Forex Broker is paid?
A Forex brokerage company can make profits:
1. by charging a spread between the bid & ask price,
2. by charging trading commissions (usually $15-$30 per 100,000 USD).
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