Sun

Mr. SUN Yu (Elic) VP Client Relations China – Manages Chinese business relations for the brand.
Elic provides market commentary for well-known media in China, including: People.cn, Financial News and China Finance Information Network. Elic serves as a special guest analyst on the CCTV Financial Channel to provide real-time analysis on the foreign exchange market.

Are My Funds Secure?

One of the first things you will want to check is whether or not you are registering with an exchange centre that is publically listed in the US or UK, or licensed and regulated with the China Banking Commission.

All local financial institutions must be licensed under such a committee otherwise they cannot legally carry out business within China.

How Much Does it Cost to Trade?

The two main costs you can expect to incur when trading forex are spreads and commissions.

A spread is the difference between the ask price and bid price immediately after you open a position.

For example, if the ask price of the USD is 0.9546 and the bid price is 0.9540, we would describe this as a spread of 0.0006. In this example you would need to gain 6 pips before breaking even.

Commissions appear to be less common these days, with most trading centres making their money through the use of spreads. You may, however, be expected to pay a fixed fee to open a trade, and this is what we would describe as paying a commission.

What is the Background of the Company?

Checking that the company you choose is regulated by a relevant governing body is the first step you may need to take; however, this does not guarantee that your funds will be secure.

To enjoy further peace of mind you may need to take a moment to compare the backgrounds and histories of each trading company you are considering conducting your trades with.

Look for feedback from previous and existing users, as well as possible reviews from independent organisations and watchdogs.

How Do I Deposit and Withdraw My Funds?

Each trading centre will use a slightly different method for managing your funds.

Having said this, it is common practice to register your personal details with your chosen company and deposit your funds via a wire transfer.

The method through which you withdraw your funds will usually be the same one you used to deposit them in the first instance.

How Do I Use the Trading Platform?

The most commonly used trading platform is the software known as MetaTrader 4.

The most commonly used trading platform is the software known as MetaTrader 4.

There are many nuances associated with the various tools at your disposal when using a trading platform, but it may be better to start off by using virtual currency so that you can get some practice trades under your belt before using real money.

Which Instruments and Assets are Available for Trading?

When trading forex you will be trading currency pairs, the most popular of which are:

  • EUR / USD
  • USD / JPY
  • GBP / USD
  • USD / CHF

Other commonly traded currencies include the Canadian Dollar (CAD), Australian Dollar (AUD), and of course the Chinese Yuan (CNY).

Many trading platforms will also allow for the trading of other assets.

These may include precious metals such as gold, silver, and palladium, as well as crude oil, and even company stocks and shares.

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