A Review of eForex Trading Platform

Forex or Foreign Exchange is where we exchange our currencies.Like if you are in India you use Rupee but when an American is coming to India he had currencies in dollar.To use his money for buying something in India he has to convert his dollars into rupees.When he do so he is exchanging currencies.Now say he had converted 1 dollar for Rs.46 .When he was returning to America he converted the remaining amount of Rupees into dollars as he will have no use of the rupee in America.Now he converted Rs.46 for $1.2.That means he had earned (1.2-1); $0.2 just for exchanging currencies.If he had exchanged 10000, his profit would be 0.2´10000; $2000.

In forex, people actually buys currencies with their currency and sell them when the exchange rate becomes higher.This simple logic has helped many people to quit their dayjob.As you see physical labour required in this kind of business is minimum.Just a thorough knowledge of forex and some years of experience can make you successful.Before beginning to trade you will need a trading platform.Where you will buy or sell unit of currencies.The rate of each unit in different currencies(dollar : euro etc.) will decide your profit.Say if you buy 1 unit for $1 and sell it for $1.4 then you will make a profit of $0.4.More unit you transact in the market, more profit will you make.The unit of currencies is similar to share or stocks.The only difference is that you have to keep an eye on buying or selling rate of currencies,instead of stocks.

The trading platform here act like a demat account.The trading platforms will help you to buy and sell units in different currencies,show the present exchange rate of exchange,email you suggestions,allow you to practice trade with practice accounts.So that you have no problem trading in the real market.But for this service they will charge you a percentage of your earnings.

eForex is a trading platform which is in business for more than 3 years.Before beginning to review a trading platform like eForex, people must know what is Spread,Margin and PIPs so that they can trade with greater clarity and understanding.

Spread is the amount charged by trading platforms on your profit.It is actually the difference between your bid price for a currency and the asking price running for the currency.Margin is the money you will pay to open an account in a trading platform.If you want to trade for 10000 units you have to fund your account by $25(in case of eForex).The trading platform will offer you a Leverage like 400:1 or 100:1 which means if you fund your account with $50 you will receive 20000 or 5000 units of currencies that you can trade in the forex.The same leverage can be expressed in percentage.So a ratio of 100:1 will imply a percentage or margin of 1%.PIPs or Profit Interest Points is the unit by which you will know how much you have gained or lost in forex trading.The value of PIPs will be decided by the leverage ratio and margin value of your account.Profit will be shown in your trading account in terms of PIPs and the value of PIPs will decide what you can withdraw.The leverage ratio,margin and spread varies with different trading platforms.

Now that you know the technical juggernaut of FOREX let me review the trading platform eForex.eFOREX is an online global trading services provider acting as both an agent and a market maker in over the counter markets including foreign exchange, precious metals, commodity and equity derivatives. eFOREX caters to a broad range of clients including private banks and institutions, speculators and hedgers, money managers, as well as institutional and retail self-directed traders.The eFOREX management team has over 75 years of combined experience in the forex and online trading. (from eForex Website).eForex is based in central of Panama City in Panama which is called as the financial center of Latin America. By this way, eForex offers its customers a tax-friendly environment as well as meeting the security, privacy and safety regulations which is very important for its customers.

A trading platform can be reviewed in terms of service charge,leverage ratio offered,ease of use,availability of practice accounts,uptime and available resources to educate new traders.eForex have a practice account for practice trading which acts just like the real market.The platform also offers to pay you $25 for opening a account and funding it with $25.It also allows traders to trade in nearly all the tradable currencies of the world like dollar,euro,pound,dinar etc.But the problem with eForex lies in it spread ratio.They charge upto 17.1 PIPs for a transaction.Also the process of withdrawal of earnings is little lengthy.The software they ask to download to trade in the forex is relatively easy to use but it can slow down your computer a little bit.If you trade with eForex, remember to ask the customer support about their service charge and withdrawal requirements.Although, this trading platform is never charges any hidden fee.You can trade with full security.You can pay and withdraw money by your credit card, debit card, wire transfer and moneybookers account.http://www.forexpeacearmy.com has a lot of discussions on eForex and you can also ask them for a honest but experienced opinion about eForex.