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Foreign exchange

The international currency market is the biggest market in the world when it comes to financial transactions. It is difficult to estimate the turnover, but a bid would be around 4 trillion USD on a daily basis. In other words, huge sums of money is traded every day and it creates an almost infinite liquidity.

Foreign exchange investors can thus not risk being left with a position on their hands. The flexibility and easy access to liquidity is a great advantage for many investors.

Spreads / trade price

Investing in foreign exchange is not free of cost. The cost as an investor is the size of the spread or the difference between a bid and an offer price in a given currency pairs.

Spreads can vary dramatically from provider to provider, and can also vary dramatically throughout the day. NPforex.com have fixed low spreads throughout the day, and we suggest that customers in doubt should compare our spreads to other providers’.

We do not guarantee the lowest spreads at all times, but we know that we are highly competitive and that we have the lowest spreads in Denmark.

The difference between us and many others is that we are not a market maker. When you purchase from us, we will send your order on to the market. Other providers keep the contract, which means that you will act against the bank. When you wish to close your position, the bank decides what course you shut off, and who do you think the price is for? You or the bank?

Investment flow

Investor Andersen believes that the U.S. dollar will rise against the Japanese yen. And he is willing to invest around £ 10,000 in the U.S. dollar. Because our margins are at 3.75% on the cross, he can invest approx. 25 times as much money, so approx. DKK 250,000

He uses NPforex.com to buy DKK 250,000 USD / JPY rate to 87.7608. Hereafter,The U.S. dollar rises at 3 percent. to 90.3936 and Mr. Andersen sells. The gain is DKK 7,500, and Mr. Andersen has only invested £ 10,000, representing a return of Mr. Andersen's investment of 75% by an increase in the U.S. dollar at only 3 per cent. Had the dollar conversely decreased by 3 per cent Mr. Andersen had lost DKK 7,500.

The example shows that small investments in foreign exchange can lead to significant gains and losses.

If you frame a trend in the foreign exchange market, you can earn big sums just by following the trend. If you do not hit a trend, it is a matter of urgency to get out of the investment, so damage control can be made.

Trading Opportunities

Investors can use our platform to act directly on the foreign exchange Interbank market without paying commission. We have no trading desk who must approve your trade first. We are not a market-maker, so you will not be trading against us but rather as an anonymous player in the Interbank market.

If you trade elsewhere your counterpart may be the FX-provider itself, which means they will make money when you lose money. Trading with us, it is vice versa. We want you to earn as much money as possible because it means you will continue to be our customer for a long time.

If you are considering switching to us but is still not quite sure, ask your current provider if you have complete anonymity when trading with them and if they have a trading desk that takes on risk!

A good idea is to become a test client on our trading platform for 30 days. You get a virtual amount of GBP 100,000 to trade with. There is no difference in the spreads as a test client compared to being a real client.

Currencies

Currencies You can trade the largest and most liquid currency pairs with us. As we are from Scandinavia, we have emphasized that there are good opportunities to trade in Scandinavian currencies as well.

We take NO commission or have any sign-up fees. We simply earn our money on the spread, or difference in the bid and offer price.

For you as a customer it is crucial that you trade at spreads as low as possible and therefore you must choose one of the suppliers with the lowest spreads. Several providers advertise that spreads may come down to a very low level, but it is often only for few minutes a week. Ask, therefore, what the typical spread is. With us, you can trade at fixed, low spreads. This is the information you need for clarity and comparison.

For the ultra liquid currency pairs spreads are narrow.

You can see the price list for currency pairs here.

Preview

Foreign exchange is the exchange of on currency for another. If you buy EUR / USD, you effectively buy euro and sell U.S. dollars at the same time. This means that you believe the euro will rise against the dollar and therefore you go long (buy) the euro whilst shorting (selling) the U.S. dollar. Currencies are always traded in pairs and are traded over the counter (OTC) which means transactions are settled between two counterparties. There is no exchange to facilitate trades as we see it in the equity markets for example.

Leverage

The money you deposit with NPForex will be used as margin to facilitate trading. Therefore you will trade for amounts considerably higher than what you have deposited. You can trade with a leverage of 40 times your balance at NPForex.

Other brokers could allow much higher levels of leverage, but this would increase the risk and have magnified effects on your trading performance. We advise you to not demand very high leverage as so much smaller fluctuations in the markets could mean that all is lost.

Some brokers allow a leverage of 400 with a minimal initial investment. Your odds of beating the market under these conditions are very low.

FX-market

The international currency market is the biggest market in the world for financial transactions. A good estimate is that the size is around USD 4 trillion on a daily basis. In other words, huge sums of money are traded on the market every day and it creates an almost infinite liquidity.

Investors in foreign exchange can thus not risking burn hold a position that you can not get rid of. The flexibility and easy access to liquidity is a great advantage for many investors.

SPREAD / PRICE OF COMMERCE

It is not free to invest in foreign exchange but trading with NPForex is commission free. The cost you as an investor pay is the size of the spread, which is the difference between the bid and offer prices.
Spreads can vary dramatically from provider to provider and may with some providers vary dramatically throughout the day.

In NPForex.com we have fixed low spreads throughout the day, and we can only suggest that customers who are unsure compare our spreads to our clients’.

The main difference between us and many other brokers is that we are not a market maker. When you purchase from us, we send your order directly to the market. Other brokers hold orders or take positions against their clients, which means your counterpart is the broker and not someone in the market. This creates a conflict of interest. When you then close your position, the FX-provider can decide what is your closing price, and who do you think the price is favours? You or the FX-provider?

Questions

If you have any further questions please don’t hesitate to contact us on support@npforex.com.