I know this is a stupid question but bare with me, i’am yet a student.
So i was just done with “When You Can Trade Forex” Topic but i don’t understand these markets, it means when i’am trading with, for example, EUR/USD pair am i investing in London market or did i join the New York market or what’s happening ?
Or what i think is that the stock exchange is 24 hours but these are the timings of when work starts on these timezones. I need someone to clarify please.
Your trade is with your broker, not the currency markets as such.
Be aware that the London trading day sees the largest volume of currency trading of any currency trading location, New York adds to this, while the Asian markets are very small in comparison. Very few traders trade the Asian session as spreads are wider and price movements very restrained.
So in order to trade in the New York market i should be using a broker that’s located in the US or brokers can join any market anywhere in the world ?
No, you can use a broker anywhere in the world as long as your government allows them to offer accounts in your country.
Note - some brokers register their HQ in very small countries like St. Vincent & The Grenadines which have tiny and loose regulators - additional risk to your deposited funds.
Whatever broker you use, your trade is with them, they’re not actually going to buy or sell currency direct in the forex market when you open a trade.
No, any broker would do, as long as they accept traders from the country you reside in.
But what i’am using something that has a good reputation such as admiral markets or fxpro, is there a risk associated with these two too ?
Much less with these well known firms than a broker who just set up 3 months ago with a registered office in a tiny island country which doesn’t even have its own stock market. Nothing is zero risk, nothing is 100% risk, but you are going the right way to managing your risk.