An Exclusive with Mark Leigh, COO ofXtrade – a leading onlinetrading platform changing the game, one trader at a time.
What is online trading and how is it different from directtrading in stock exchanges and capital markets?
Online trading haschanged the face of traditional trading for the simple reason that it’s just that it isonline. The traditional method of your broker placing your trades on yourbehalf is obsolete. Thanks to technology, namely the internet, everyone now hasreal-time live access to the market activity, and more importantly, the abilityto trade directly, through/via a trading platform provided by your broker ofchoice.
Are there special benefits to online trading and what are they?
There are severalbenefits to online trading. The biggestbenefit of it is the fact that the playing fields have now been levelled andthe new unsophisticated retail trader has the same information as thesophisticated wealthy investment companies. Online trading allows the trader tocontrol their funds on their own, without a third party interference as well asbeing able to trade from anywhere, home, work or on the go. Also, the fact thatthe trading is done online means that traders can act immediately and live withoutdelay of needing to trade via the broker who was taking the trade on yourbehalf. So, you can take a trade whenever you want 24/7 just by logging on toyour browser. Timing is everything in business and this benefit is integral toone’s success.
How can one succeed in online trading?
One can succeed inonline trading with three things: Education – a full knowledge of howthe market works, how to properly identify trends and patterns and how to usethe trading platform to their benefit. Information – the proper materialsneeded to take an informed trade, for example knowledge of the previous day’s activity, financialnews alerts, a tried and true strategy and the right indicators to plot entryand exit points. And lastly, Discipline which is the ability to control andmanage your money properly.
What are the best Onlinetrading areas and why?
There are no specificareas to trade from which are better than others for online trading. Ourplatform is live and active 24 hours a day. This means that anyone in anycountry can trade the market of their choice and can trade any financialinstrument, regardless of where they live. A trader is Dubai can trade theGBP/JPY and a trader in Australia can trade the S&P or Google stock…there are no more boundaries.
How would traders differentiate between credible onlinecompanies and fraud ones?
Traders must do theirdue diligence and find out the differences between the hundreds of onlinebrokers looking for their business. I believe the most important factor is to seewhether the broker is regulated. Only legitimate brokers take the time, effortand money to go through the rigorous process of regulation. Although this is aspeculative industry, one needs to know that their funds are secured.
How do money broker companies benefit being online?
The benefit of offeringonline services is to make sure that all clients have equal access to necessarydata and information and are in turn able to service their client’s needs all over theworld in live and in real-time.
Is there a minimum or a maximum value to trade online? What isthe percentage of profit and what are the expected losses?
The value to clientsdepends on their account size and each trader’s own money managementstrategy. The minimum account opening requirement at Xtrade is $100, however inmy learned opinion this is not a realistic amount to start with and I wouldrather see new traders look to start with a at least $1000 so they can applyproper trading strategies with realistic goals. It is not reasonable orrealistic to expect every trade to be a winning trade and if the account sizeis so small that it wont allow for a few losing trades, particularly in thebeginning, then this is not a real business. The percentage of profitabletraders varies between different regions and there is no fixed ratio of winnersto losers that we would make public. As a general rule I believe that the twomain requirements for profitable trading are knowledge/education and not beingundercapitalized.
There are numerous online trading platforms. How is Xtrade different?
The Xtrade platform isour own proprietary platform developed by our own team of experienced andsuccessful traders working closely with a highly skilled R&D technologydepartment. We have developed a platform which is brilliant in it’s simplicity. We havemade sure that our platform is easy to learn and use, especially for newbeginners, while at the same time has the necessary features and tools for moreexperienced and professional traders. We have intentionally not overcomplicated the platform with unnecessary features and have made sure that onlythe relevant and practical features are available and we have not implementedfeatures which we believe will not be to the trader’s benefit.
How would investors withdraw their money? Is there a specificduration?
Traders deposit andwithdraw funds online via a number of payment options: credit card, bankwires/transfers, and a selection of reputable payment processors depending onone’s region. The withdrawal process is instant and the process isstarted at the click of a button. As a regulated entity there is generally a3-5 day process in place to insure all transactions are in accordance withstrict regulatory rules. These rules are in place to protect the interests ofthe client.
What are the hazardous incidents investors could face online?
Traders must insurethey have the right tools to trade properly – computer and internetcapabilities that work seamlessly. One of the most common hazards is thelimitless supply of information that is available online and the uneducatedtrader can easily fall into the trap of believing and getting involved withunscrupulous and dishonest educators and advisors who prey on desperate greedytraders.
Are there legal regulations and supervisory bodies governing theonline trading platforms?
Yes the regulatorybodies are there to protect the investor and insure that regulated brokers arealways acting in the best interests of their clients.
What are the plans and strategies online traders should follow?Which is the most important?
Traders need to findthe right educators and feel confident in their services. The trader needs tohave access to the right information, and more importantly, know how to use theinformation. There is no one single strategy that works for everyone all thetime. Each trader, after learning the right way to trade will develop astrategy to suit their own style, personality, and amount of working capital.While developing their strategy, they should have access to educatedprofessional trading analysis and reports to see and if they choose follow whatthe experts are doing. Successful trading is an ongoing process, not a one-timeget rich scheme.
What is your advice to online traders?
Online traders have to respect the business and be humbleto the markets. No one is going to beat the market. Rather, learn to understandthe markets and the potential rewards if offers us. We can then learn to sharein these benefits and reap the rewards of disciplines, conservative tradingmethods and strategies.
By: MARK LEIGH
Mark Leigh is a globally recognized Forex market educator and expert Forex trader. Since founding Canada’s first educational company to offer training classes for online trading in 1997, he has trained and advised leading brokers, global companies with forex exposure and traders of all levels worldwide, to trade the forex market.