Having so many options in the world of trading today is a huge advantage. Regardless of your trading background or preference, you now have more choices than ever when it comes to choosing the most suitable company to meet your trading needs and goals. However, there are two sides to every coin, and sometimes, having a lot of options can be a downside. Let us explain.
In the trading industry today, so many new companies are emerging. Their main goal is to help you achieve your trading dreams, no matter what they are. That is a great thing, isn’t it? However, there are a lot of those companies who are just here to mislead you and abuse your information, funds and eagerness to their own advantage. How do these companies get away with this? You would be surprised. Namely, the first thing that makes it easy for them is the fact that the majority of the clients do not do their research properly. And that is a real shame since that could save them a lot of trouble and losses.
However, this is why we created this RichmondSuper.com review - to help you make a clear distinction between the companies on the trading market that you can trust, and the ones you should steer clear of. So, sit back and relax while we list all the ways that the companies on the market are able to trick you, and how to get away from them without looking back.
Regulation of the Trading Market
A regulated market is usually controlled by a government of a certain country or other relevant authority for this area of investing. However, how does that apply to the global markets, such as Forex?
Things work a bit differently here since the trading market transcends the country lines and is welcoming to all the clients, no matter where they come from or which time-zone they are currently in. This is the beauty of the Forex market - it is the only market in the world that is always open. Also, it is the most liquid market on the globe - with a daily turnover of over $5 trillion! We can’t even imagine how much money is that, or how is it possible to regulate all the operations and activities that are taking place there.
So, a regulated market is a place where all the trading activities are going on without a hitch, thanks to the set of rules, guidelines and regulations that are imposed by the government or other regulatory authority. Since Forex is based on the market that we call over-the-counter (OTC), there are some specific rules and lists of guidelines to follow here. The first thing you should know here is that this type of market allows you pretty easy access, which is crucial especially during a hectic trading day. That’s why RichmondSuper has created different account types - so you can have a priority access to the trading market according to your trading preferences.
The main source of trading at this type of platform is usually known as speculative trading. With speculative trading, there are a lot of advantages, especially for the clients who are visiting the platform for the first time. Speculative trading is best known for its high leverages, which gives you that much more opportunities for higher profits with each position that you open. Then, it is also a lot smoother with each trading activity, considering that it is available in both mobile and desktop modes, regardless of the operating system. Check it out for yourself, and see how easy it is to scroll through the RichmondSuper trading platform no matter where you are!
US Regulation of the Forex Broker Companies
The United States are some of the strictest market participants in this area, which is why we believe we should list them as an example in this RichmondSuper review. This country has historically been quite sceptical about the entire trading industry, which makes it natural for them to create an additional level or rules and regulations for all the companies on the US soil that wish to provide trading services here. The crown of this regulatory frame is the National Futures Association or NFA for short. Some of the NFA’s activities include:
- Doing extensive and in-depth research of all Forex and other trading companies who are attempting to provide trading services in the United States
- Fight fraud, scam, identity theft and other types of malicious and damaging activities that are attempting to disrupt the fair-play rules of the trading game
- Keep detailed records of all transactions, including deposits and withdrawals for each client in this area, as well to keep them protected from the cybercrime activities.
From then on, the NFA may delegate parts of these activities to other trusted regulatory bodies, who are in charge of making sure that these regulatory frames are being introduced and applied within every trading company that wants to provide services for the US clients. They follow a unique set of rules that define the customer, the leverage and other key factors of your trading:
- A customer is an individual with the combined asset value of under $10 million. In case their assets surpass this amount, they would have to register as a small business or another type of organizational structure
- The leverage cannot be higher than 50:1 for this area, considering that this is the safest and the most prominent amount that is appealing for both the individual clients and the companies providing services
- The main currencies that are available for trading on the Forex market, as well as the RichmondSuper platform, include the American dollar, the British pound, the European euro, the Japanese yen, the Chinese Yuan, and the Swiss franc
- These currencies are displayed in pairs, and they can be traded separately from each other as well. They can also be displayed both ways - for example, the EUR/USD pair and the USD/EUR pair
- Lastly, the money that the broker company owes to the client is always kept in a relevant financial institution in the United States, where it can be protected and guaranteed for regardless of the amount.
A Brief History of the Foreign Exchange Market
What is it about the Forex market that is so appealing to the clients across the globe? RichmondSuper.com has made sure to include the best from this market, as well as the other sectors of investing to create the ultimate trading experience for everyone. You would probably be surprised to learn that the Forex market goes way back to ancient times, where currencies looked a bit different from what they are today.
Back then, people were exchanging goods and services for one another, and that way the different values were formed. However, it is important to note that as time passed, the trading market was mainly available only for the wealthy market participants. However, in the past couple of decades, people have started to realize that it would be much more beneficial for everyone if the market was open to all. As a result, today you can access the trading market with RichmondSuper regardless of your trading proficiency, your background or the goals you wish to achieve by trading currency pairs and other assets.
The most important step in the entire trading world that has marked the “before and after” of this industry was the introduction of the Bretton-Woods financial agreement. Namely, with this system, the currencies were allowed for the first time to flow freely between the countries, with a lot fewer restrictions and more liberty to regulate themselves through these processes.
Today, it is important to note that there are mediators who conduct trading activities on behalf of their clients. From the investment banks to the trading companies such as RichmondSuper, these are the leaders of the trading processes that make sure everything goes smoothly to the smallest detail. There are a lot of things going on behind the scenes, so it is crucial for you to know that your finances and trading is being handled by the champions in this industry.
Different Types of Trading Markets
Did you know that there are different types of structure within the Forex market? That’s right! Let’s review each one of them in the following passages. These are just some of the bits that you can pick up within the RichmondSuper educational section:
Spot market is typically the largest market where you can trade assets. For example, this is the market where you can speculate on the value of the underlying asset without actually owning it, which is known as CFDs trading. Also, this market particularly stands out because of its liquidity. For this, of course, we can give our thanks to the Forex market, which is the most liquid market on the globe. The spot market is definitely the market type that marks the largest and most fluid activities when it comes to trading. It is especially popular with the Forex traders, since it offers them the best options for this type of trading activity.
Spot market is the top spot to be if you wish to trade currencies and currency pairs. Namely, this market is regularly updating the prices and the values of all assets that are up for trading. That value represents a culmination of so many things. From supply and demand to other factors that contribute to country’s currency value such as the geopolitical situation and monetary policies, you name it. The big part of this experience is your own viewing and projections for the future state of this market. This is known as the market psychology, and it is one of the most influential factors when it comes to asset value and price.
This type of market is not the place where the actual purchase of the currencies goes on. Namely, this is the market where you can deal with the technicalities that are attached to these trading activities, including currency types, prices, and future dates of settlements.
The forwards market is a place where two parties can represent themselves and their desires on the market a lot more independently. This is the place where they can determine the conditions of the contracts on their own, depending on their trading goals.
On the futures market, things work a bit differently. The conditions are previously determined by the wider regulatory frames and guidelines of the stock exchange or other relevant authority. These types of contracts have specific details panned out before the actual exchange happens, which makes it a lot safer and easier for the clients.
Both of these contract types are legally binding, and they are precisely determining all the details that are surrounding your exchange. This includes numerous things that you may not have even thought of - such as the number of units being traded, the delivery and settlement dates, the minimum price increments and many more factors that can make or break your trading experience.
In this RichmondSuper review, we have listed some of the most important things that you should pay attention to when choosing the perfect broker company to suit your needs. It is imperative for you to decide on your own what you want to achieve on the trading market. From then on, it will be a lot easier for you to find your perfect match. After all, with all these options, one can only hope not to get lost on the way, right?
RichmondSuper is the name that definitely stands out from the crowd of others, and for a number of good reasons. The stability and safety of your trading journey is just some of the many that we can think of on the first try. As we researched deeper into this broker company, we learned that there is so much more than meets the eye.