Pros and Cons of Managed Forex Accounts for Investors
Pros and Cons of Managed Forex Accounts for Investors This was demonstrated by the repeated need for the British government to intervene in propping up the pound. Even if his trade had gone wrong, and Britain had managed to stay in the ERM, the state of inertia would have more likely prevailed, and have led to a large appreciation in the pound. When the BoE began buying billions of pounds on that Wednesday morning, it was found that the price of the pound had hardly moved. This is not visible for you, but it has a fee, called the rollover or financing fee. The rollover fee is calculated from the interest rate difference between the two currencies you are trading. In some cases, you may also receive a fee from the broker, if the interest rates you trade are in your favor. When you trade forex, you bet on the price change of a currency pair, for example, the EURUSD. The advantage for the beginning trader is that you can open an account and begin trading with $100 or less. A Forex Managed...