How much do you know about the Internet? Are you like most who know it is there and that a plethora of fun tools and resources are now available with ease? Perhaps you understand how regulations have changed for the Internet in your respective country now that it is two decades old? There are definitely some points about foreign exchange Sydney you need to be aware of because it has a direct effect on how you trade today and will trade in the future.
Being Wary of Foreign Exchange Sydney
At the beginning of the Internet when most USA households started obtaining dial up connections, it was 1994. Not every household had a computer let alone the understanding of the new Internet hitting the market. Those in the technical “know” were already considering ways they could use the Internet to make money. In a few short years the Internet bloomed with possibilities like dot coms making some very intelligent people millions. It did not last.
The late 90s offered foreign exchange Sydney to traders. The USA was first to start with numerous brokers hitting the market. Suddenly almost anyone could be a broker trading forex and offering retail forex trading to you. Despite this plethora of brokers, governments were still keeping a very watchful eye on the forex market with fairly high transactions costs and ensuring all exchanges were restricting online trades.
Unlike the unregulated online casinos, which became highly regulated and even got banned in the USA, the only forex market took a different turn.
The Commodity Exchange Act and Commodity Futures Modernisation Act were passed by the CFTC, opening up the possibilities for forex brokers and thus for foreign exchange Sydney. The world went from fairly regulated with online brokers to an explosion of online brokers. With the change in regulations even more brokers started popping up online. It became a little harder to separate out the scams for the real brokers.
Now each country has their regulatory agency like the ASIC that will watch all brokers. If a broker is not regulated at all by any agency it is considered a scam. If there are regulatory agencies, but not in one’s country, there are cautions thrown out to ensure a trader understands the level of security in trading is not as much as it would be with a national regulatory agency behind the broker.
Foreign Exchange Sydney Broker Types
Changes have made it essential to provide more than one kind of broker type. There are two options: dealing desk or no dealing desk. If there is a dealing desk it means the broker is a market maker. If you have yet to read up on what a market maker is you will want to do so. It will help as you decide on the broker for your foreign exchange Sydney trades.
When you have no dealing desk it can be an STP or ECN and STP combined. Again, you want to learn the difference of these two types.