Trade foreign currency pairs with a forex trading platform. Compare various accounts and find the one you feel has the greatest potential for making profits.
Compare forex trading options
What does forex mean?
‘Forex’ is short for foreign exchange. The foreign exchange uses exchange rates to calculate the value of one currency against another.
For example, the exchange rate between GBP and USD isLoading GBPUSD rate
. This means that for every £1 you can get $Loading GBPUSD rate
. This also shows that the pound is worth more than the US dollar.
What is forex trading?
Forex trading pairs two currencies together, with the trader predicting which will be worth more after a given period. The two currencies are referred to as the base currency and the counter currency.
After you’ve set up an account you’ll be able to browse for shares to buy. You can select to purchase shares based on quantity, or based on value. Once you’ve purchased your shares, they will appear in your portfolio.
It goes without saying that online share trading platforms need to make money. The main way they do this is through various fees and charges.
Here’s a list of some of the ones to look for:
- Account fee: This charge might be monthly or annually.
- Inactivity fee: Some platforms will charge you if you stop trading, but this is a decreasing trend as more providers compete for customers.
- Price per trade: This is what it sounds like. The more often you trade, the more likely you’ll get a discount on this.
- Stamp duty: UK shares incur 0.5% stamp duty.
How do I choose the right platform?
When deciding on a share dealing broker/platform, keep in mind the following:
- How regularly you plan on buying and selling shares
- How much you want to spend on shares
Frequently asked questions
Warning: Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.
Charlie is a publisher at Finder. He specialises in Banking and Investments products, including banking apps, current accounts, share dealing platforms and stocks and shares ISAs. Charlie has a first-class degree from the London School of Economics, and in his spare time enjoys long walks on the beach.