Hello, when we do margin trading such as foreign exchange and gold, of course our biggest concern is the issue of funds.

Be sure to choose a formal platform, such as FXCM, Wanda, Interactive Brokers, etc. Others are not recommended. Don’t be tempted to open an account on a small platform just for the sake of small profits.

After choosing an account opening platform, there is no problem with the specific method of opening an account. The most important thing is the payment and transaction methods. This is the issue we are most concerned about.

Only companies that have reasonable and legal solutions for account opening and payment are trustworthy companies. Therefore, we need to pay attention to the following points:

1. What money should be used to open an account

Since it is an overseas investment, what we can be sure of is that it is impossible to open an account in RMB, no matter what the excuse is. Because the RMB is not recognized by the international market, it is not a freely convertible currency. Commonly used currencies are: US dollars, euros, pounds, yen, etc. Therefore, if a company's transactions are quoted in US dollars and an account is opened in RMB, there is a problem. It is likely to be a betting transaction, and the investor's order is not at all. Enter the international market. It’s just that the client’s funds are betting against the company’s funds.

2. To whom should the account opening funds be given?

Overseas investment must be done by foreign platforms, so the funds will definitely not be given to domestic companies. No matter what excuse, those who accept customer funds should It is the final platform provider, that is, an overseas company. According to legal regulations, there is no possibility for overseas companies to set up agents in China. Investors’ money must be given directly to overseas market makers or institutions with corresponding qualifications.

3. Who is supervising the company?

Overseas formal traders or professional institutions are subject to the legal supervision of the country or region. No matter where the investor comes from, as long as they enter its market It will be supervised and protected by the laws of the country. If investors want to judge whether the company is formal, they can log on to the corresponding institutional website of the country to check. We can enter the registration number or company name of the company to verify its authenticity. To avoid being deceived, many unscrupulous companies in China are deceiving investors under the banner of "London gold" or "Hong Kong gold". In fact, they are betting transactions, sucking away investors' hard-earned money. Strict regulatory mechanisms include: UK Financial Services Authority (FSA); US National Futures Association (NFA); Australian Securities and Investments Commission (ASIC).

4. Are there any problems with the trading software?

Formal trading software should include market prices, transactions, information, etc., and the data should be real market transactions, while some illegal companies The software is self-developed. Not only can these companies see all the transactions of investors, they can also artificially adjust prices, report false data, mislead investors, and even artificially cause trading losses. And when investors are making money, they are unable to log in to the system to trade, etc., which are all very bad behaviors. It is recommended that investors try out the company's software before starting formal account opening and deposit transactions, and compare several software to see if there are any problems. In short, investors must keep their eyes open and not be fooled by some superficial phenomena. Opening an overseas investment account requires a very strict process and cannot be completed in one day. Moreover, the currencies used, trading software, trading rules, etc. are all strictly regulated.

5. Does the gold (foreign exchange) margin change with the price of the product?

Generally, on regular trading platforms, the trading margin should change with the price of the product, which means that the price you buy The more expensive the item, the more you have to pay, and vice versa. Some unscrupulous companies often fix a certain price as the required margin for the investment product. On the one hand, the unscrupulous company simplifies transactions and expands the customer base for betting against them. On the other hand, it is the platform system of the transaction. This level of settlement technology cannot be achieved.