Veracity Markets works very similar to the interbank Online Trading scenario. If you trade with fixed commissions, like those offered by Interbank Market makers, you’ll need to cover an extra insurance premium due to the fact that fixed commissions tend to be much higher than variable commissions. Often times, Online Trading agents who offer fixed commissions also apply trading fees around the time of big news… This obviously adds to your costs.
So what can you do about this? You can try to work around the issues of fixed commissions and extra insurance costs by diversifying your trades. Of course, this doesn’t have to be a full service approach. You can choose to trade just a few major financial markets or several smaller markets. However, the key to trading effectively in veracity markets is to find as many liquidity providers as possible.
So how do you go about doing that? One thing you can do is to limit your trading in the major veracity markets to only the fractional pip pricing arena. By limiting your trades to a fractional approach, you can maximize your profits without having to concern yourself with things like fixed spreads. You should also make sure that you are using a broker that offers fractional pip pricing… this way you are assured of getting up to date quotes for your stocks without any additional charges. Finally, it’s best to talk to your broker on a regular basis so that you know he has your best interests in mind.
Many brokers don’t offer to trade with spreads in their online broker offerings. Some will let you trade these markets but not the full range of the markets. The biggest problem for traders using this type of broker to execute their trades knows if they are telling the truth or simply taking advantage of you. Many ECN account brokers will simply tell you that there are no trades to be placed during the event of a market disturbance, but this is not always true.
This can present a huge problem as it relates to trading in the physical delivery markets. When a firm wants to buy or sell its assets, they may have an order or set of orders to execute. But because of lack of available liquidity, if the required funds are not in the market, orders may continue to be placed, and this can keep prices from settling. For instance, if one broker is telling you that there is a $3.00 minimum order size, then you know that if the minimum funds are not in the funds deposited table, this will result in you being forced to place a larger order. This type of activity can temporarily decrease the volatility of the markets and can even result in losses to traders.
The second popular ECN broker in South Africa that many retail traders use is Equuleus. This is primarily because the platform that they offer is designed for small, fast trade transactions. In addition, the broker offers the ability to place buy and sell orders in South Africa, which is advantageous if you want to execute faster trades. However, this feature means that the margins will be smaller and the spreads will be higher. If your investment style is focused on quick profit margins, then this may not be a good choice for you.
The last of the three popular markets platforms that most investors use is MT4. This is primarily because the platform offers rapid access to live markets. In addition, this offer is considered as a discount service and so most of the brokers offering this service charge a low margin fee. Due to the fact that it is also a discount service, most traders do not take advantage of this feature and tend to hold their investment longer instead of placing smaller trades on a frequent basis.
This is important to understand when conducting research on the three main Veracity Markets review platform. There are other online trading options and each offers different features that are advantageous to different types of traders. For example, there are some brokers that allow traders to place unlimited orders over the phone. It would be prudent to determine your needs so that you can choose a broker that fits these needs. Once you determine what your needs are, you can make an educated decision on the best platform available for you and your investment goals.