Forex is the largest and most liquid market in the world.
Trade with the UK's No. 1 retail provider (1)
Why trade Forex with Guardian ?
Dedicated relationship manager
Highly experienced and qualified, and on hand to assist you as much or as little as you need.
Easy to use platforms and apps including MT4.
Small initial deposit
Only pay a small percentage of the trade value.
Regulated and secure
Guardian Stockbrokers Limited is authorised and regulated by the Financial Conduct Authority
Integrated charting package and algo trading
Offering real time trade ideas including entry, exit, stops and limits and automated algorithmic trading with Meta trader 4 or pro-realtime.
Negative balance protection (2)
You can never lose more than is in your account.
Ways to trade Forex with Guardian
What are the costs of forex trading?
This is the cost to trade. The spread is the difference between the buy and sell price. The spread is effectively a commission charged for executing the trade. The spreads we can offer are among the lowest in the industry. You may also be charged overnight funding on some positions.
Forex is a margined product. This means that you are only required to pay a deposit to control a much larger amount.
This will magnify profits and losses.
What is forex trading ?
Forex or FX trading is the exchange of one currency to another. Participants include individuals companies and banks. The market is huge with daily volumes in the region of $6 trillion.
Whilst some of this volume is made up of physical delivery for goods and services, the vast majority is speculation. Speculation increases volatility and therefore attracts investors in search of profits but the added volatility will also increase the risk.
In order to trade FX, you need to decide if one currency will appreciate in value against another. Traders look at market news and charts to make decisions.
How does forex trading work ?
Forex always trades in pairs. For example GBP/USD. To make a trade you decide which currency will increase against the other.
In the example below GBP is the base currency. If you believe GBP will increase against USD you go long (buy).If you believe that GBP will fall against USD you go short (sell).
If you are correct you will make a profit, if market moves in the opposite direction you will make a loss.
Trading forex with leverage
Leverage allows you to hold a much larger position than you would be able to with your own funds.
A provider will typically only require a small percentage of the transaction from you in order to make a trade. This magnifies your profits and your losses.
Guardian Retail clients can trade using 1:30 leverage on all Major FX pairs. That means you can trade 30 times the value of your initial deposit.
Forex example spread bet (long)
GBP/USD Pair is 1.2850
1 GBP = 1.2850 USD
BUY (Go long) £1 per point.
Trade value = £1 per point x 12850 points
Trade value = £12,850 (deposit required £424.05)
If the price moves to 1.2950 your profit is £1 x 100 = £100
If the price goes against you to 1.2750 that would be a loss of £1 x100 = £100
Placing a stop loss
A stop loss order closes a position at a predetermined level in order to minimize losses.
In the above example if you had a stop loss placed 100 below your entry level of 1.2850 the system will automatically close the position at 1.2750, resulting in a loss of £100.
The level is not guaranteed and if the market drops quickly or aggressively you may not be able to exit at the desired price unless you use a guaranteed stop loss.
Placing a limit order
A limit order is placed above your entry level and is used to lock in profits.
In the above example a limit order placed 100 points above your entry level of 1.2850 would close out the position at 1.2950 resulting in a profit of £100
By number of primary relationships with FX traders (Investment Trends UK Leveraged Trading Report released June 2020).
Negative balance protection applies to trading-related debt only, and is not available to professional traders.