The Difference Between Dealing Quotes and Forex Online
By plot, how to transact in the world of forex is calculated in two. That is through normal telephone calls called dealing quotes (DQ) and the second using the internet so that it is normally called Online Forex Trading.
1. Dealing Quotes (DQ)
Many people see this through television. Someone as well as a telephone with busy and asking price. In a few seconds the transaction is complete and the transaction information has been stored by the dealer. A dealer is someone who is placed by a broker with the task of channeling the mandate of the Investor to transact. The dealer tells us the current price. When a price match occurs, the transaction occurs. Proof of the transaction is in the form of a voice recording of telephone conversations and quotes that are all stored by the dealer.
It looks simple and easy, pick up the phone, talk then complete. But if we look further, this method has many weaknesses. The first weakness is the weak evidence of transactions held only by the dealer. Investors are very dependent on proof of transaction in the form of quotes and recordings that are also held by the dealer. And investors need to justify that the valid proof of the transaction is only those two things (because they are bound by the Client Agreement). As if the investor has proof of the transaction recorded on his own initiative. The evidence is not legally recognized by the dealer and the applicable law. In this case the investor’s position is weak. What happens if the proof of the transaction disappears or is defective. Whereas the transaction is valid and the investor needs to make a profit?
Another disadvantage, because the transaction is brokered by a dealer who is also a human, the human error factor is always there. Even though the dealer is normally a trained person, it still has technical factors. That is inaccuracy, neglect or even emotional factors that can reduce work professionalism.
2. Online Forex Trading
Along with the advancement of the internet world, transactions can now be done via the internet. Prices displayed are official prices and are recognized internationally. and it is right on the screen of the investor’s computer. In this way, investors can trade their money at will. No longer need the dealer and because the transaction is carried out by the Investor himself then the possibility of losses due to dealer factors becomes zero. Reporting is made online as well as real time. It’s easier, there is no price game (by illegal dealers / brokers), and control is truly in the hands of investors. In addition, there are many flexibility that these online transactions have that are not owned by conventional methods. Investors do not need to go to the market or even call, just by internet, everything is fulfilled.
Online forex trading platform
Then what about in Indonesia? Which method is more widely used? Even though the online trading system is certainly better than the DQ system. In fact, not all brokers provide online forex trading. Whereas in foreign brokers the DQ model transactions are only provided as deposits when the online system has a problem. The majority of foreign brokers have used online systems.
The difference in overseas brokers is a 10,000 (mini) and 100,000 (regular / standard) size contract whereas in Indonesia only 100,000 (regular / standard) contract sizes are available. In a minimum contract size of 100,000 and the invested need is above Rp. 50 Million. Even though overseas brokers require only a minimum of $ 250 to transact.