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FX trading platforms provide service for individual traders to trade small amounts online.FX trading has become more and more popular because of the internet and online retail FX trading platforms.
For retail trading，there are 4 types of FX brokers through whom.Individual traders could participate FX trading：market-making，no-dealing desk，straight through processing brokers（STP）and ECN brokers.If chosen market maker as broker，individual traders may confront a conflict interest when market maker trade against them.ECN brokers，on the contrary，pass on one's orders to a bank or another customer on the opposite side of the transaction reducing the risk of price manipulation.For each transaction taken through ECN broker，individual traders are required a fixed commission.This commission fee varies among ECN brokers.It is important，as an individual trader，to choose ECN broker carefully，because broker services affect the trade significantly through commission fees，execution efficiency and trading platforms.
There are 4 basic aspects one individual trader needs to consider when choosing the FX broker：
① Internet connection：if a broker does not execute trade in a timely fashion with the price the individual trader orders，one trading opportunity can quickly turn into a loss.
② Information service：individual traders can get well-informed through free charting software and news provided by brokers.User-friendly trading platform may facilitate trade well.
③ Option to open a miniforeign exchange account：for those are fresh in foreign exchange market，it is necessary to start with a small sum of money.
④ The rules and regulations：different brokers may have different rules when dealing with foreign exchange trade.Individual trader can choose the one that offers best quotation and commission fees.
Most foreign exchange dealing brokers choose Java-based software dealing programs because they are not easy to acquire viruses and to be hacked by unauthorized individuals during the downloading and installation procedure.
A lot have changed since the first platforms for online retail FX trading were launched，and today's platforms tend to have a lot of tools for the trader to make use of providing statistical analysis，receive tailor-made news feeds，utilize automated orders，etc.Some platforms are downloadable programs that need to be installed on computers，but there are also platforms available where traders carry out transactions directly in browser window.Recently，special trading apps has been launched for mobile touch screen devices using iOS，Android or Windows Mobile.
In China，individual FX Traders can choose charted bank as broker and all FX trading should be firm offer.
The instruction that traders give brokers to buy or sell currencies is called placing an order.Those orders are usually issued directly to the broker through the trading platform.It is as easy as a click of the mouse for traders.As every foreign exchange trade includes one currency X exchanged for another Y，there is both a buy and a sell in every FX trade.
If the amount of currency held in a portfolio is positive，the investor is said to hold a long position；otherwise，a short position is taken or the currency is shorted.More specifically，to buy currency X with currency Y，is said to be taking a long position in X.Just like any buying，if the underlying currency X appreciates against the other one Y，the long position generates profit.Similarly，one who sells a currency X for another one Y is said to be going short in X.That trader will profit if the underlying currency X depreciates against currency Y.
The buy and sell in every trade currencies are called currency pair.When a currency pair X/Y is purchased，the trader is purchasing the base currency X and selling the quote currency Y.When a currency pair is sold，the trader is selling the base currency X and buying the quote currency Y.
Various types of orders are used in foreign exchange market，among which 4 common types of orders are the Market Order，the Limit Order，the Stop Order，and the Stop Close Only Orders.
① The Market Order instructs the broker to buy at the current market rate.This order type is usually executed immediately，at the price displayed in the trading platform at the time the order is placed.
② The Limit Order instructs the broker to execute a trade to enter a trade at a specific price.The trade could be either to buy currency when it reaches a specific price below the present market price；or to sell the currency when it reaches a specific price above the present market price.Because the Limit Order automates the process，traders save a lot of time from waiting for their target entry price.But this kind of order is only effective at the price input before，it cannot meet much flexibility requirement.
③ The Stop Order is used to exit an existing trade by liquidating a position when the market price changes against the expectations of the trader.This order is thus used to limit losses.
④ The Stop Close Only Orders（SCO）are the orders in foreign exchange with an important twist associated with them.The twist is that to enter long，the market must close above a price that have been pre-selected.For a sell，the market must close below the pre-selected price.Here is an example which will better explain the situation：
Suppose that a trader buys a contract on the close at 990.50 USD/JPY stop close only orders.This means that the USD closes at or above 990.50 JPY.The idea is that with an SCO order，this trader has placed an important restriction on the market order，making it a viable entry.This forces the strategy developer to find a price that the market must close above（or below）before the strategy takes a position.This restriction turns a market order into a valid type of entry.
In foreign exchange market，the trader can trade with leverage，that is to place an order to sell a currency that she does not “own”.She needs to borrow this currency and pay the interest to the owner.To exit that “short trade”，the trader simply places an order to buy the currency later on.A trader thus exits a position when she executes the opposite trade by which she started.Margin trading is not allowed in China.
Most platforms automatically calculate profit or loss.Profit or loss is the difference between the value of the currency when the trade was entered，and when it was exited.
Many financial markets around the world，such as stock markets and FX futures as well as some FX options，do their trading through exchanges，while FX spot，FX forward，FX swap and some FX options trade as“Over-The-Counter” markets（OTC）.
In a market that operates with exchange trading，transactions are completed through a centralized source.In other words，one party acts as the mediator connecting buyers and sellers.There is a specified number of traders that will trade on that single centralized system.This situation places great power on the mediator，and this is a key disadvantage to this type of trading.The positive aspect to this is that it allows for better transaction enforcement，and stricter security.The NYSE is a typical example of an exchange-traded market.In such a market，products could be standardized，and it could also be guaranteed that tradings are in compliance with the terms of trade.
On the other hand，OTC markets are generally decentralized.There are many mediators who compete to link buyers to sellers.The advantage is that costs for intermediary services are ensured as low as possible.The downside is that these markets are not 100％ regulated，and prone to untrustworthy and fraudulent mediators.OTC markets have overtaken exchange markets in terms of volumes traded daily，mainly due to the increase in electronic trading and the rise in alternative investing.
The differences also demonstrate that there is more counter party risk in OTC traded markets than in exchange-traded ones，because the “exchange” acts as the regulatory，and is a counter-part to each transaction thus ensuring the delivery.
Also，exchange-traded markets have less chances of price manipulation by mediators，since trading is on a centralized system.However，in OTC markets，it will largely be determined by how many dealers are trading in a particular security at a given time.
Among dynamic prices prevailing in FX market there is one fundamental price：exchange rate.Many other prices are financial derivatives，such as forward，futures，swap，options，that are priced according to exchange rate.FX market participators are mainly trading against exchange rates.
Among many influnce factors there are 8 factors that can significantly affect the fluctuation of foreign exchange rates.People who engage in money transfer internationally stay updated on these 8 factors so that to be able to decide the best times when they can carry out their money transfer.
1） Inflation Rates
Market inflation causes change in currency rates.The value of currency appreciates when a country is experiencing low inflation rates.When the inflation rate is low，good and services price will increase at a low rate.When a country is experiencing high inflation rates，the currency value depreciates.
2） Interest Rates
Varying interest rates affect the value of a currency according to Interest Rate Parity.When a country has high interest rates，its currency value appreciates because lenders make more profit，this results to increased foreign capital and high exchange rates.
3） Country ’ s Balance of Payments
When a country has loss on its current account because of earning less money from its exports and spending more on imports，this leads to depreciation.Balance of payments can lead to unstable domestic currency rates.
4） Government Debts
When a country has a lot of debts，it cannot acquire cheap foreign capital for financial sustainability.If a certain country suffers a serious debts issue，panic selling will depreciate its currency.
5） Terms of Trade
Terms of trade（TOT）are the ratio between a country's export prices and its import prices.One country with greater TOT experiences a high revenue，high currency demand and increased currency value.
6） Political Stability and Performance
Political and economic stability of a country determines the strength of its currency.Foreign investors are always attracted to countries that are stable both economically and politically.Countries that experience political and economic turmoils often miss a lot of investment from foreign investors.High inflow of foreign capital causes a country's currency value to appreciate while currencies of countries with political and economic crisis go depreciation.
7） Recession
When countries experience recession，their interest rates fall drastically making it impossible to attract foreign investors.The currency values of such countries become weak leading to depreciation.
8） Speculation
Foreign investor will invest more in countries that have a possibility of experiencing high currency values in future.This leads to a high demand on that currency and the currency value rises up even faster.When speculators sense any hint of depreciation，they would compete to dump that currency，worsening the depreciation.
We come to the conclusion that exchange rates are never constant in the global market.They keep changing from time to time.In fact，they are constantly changing every minute as viewed in the stock market graphs.The FX brokers and the foreign exchange experts always keep their eyes on the constant changes.This may help them to know when to make purchases and sales of the money.The factors that affect the behavior of currencies in the international market mainly are the supply and demand.The factors that determine the supply and demand can be political stability in a country，the economic stability in a country and the security that exists within the borders of a particular country.
Exchange rate determination is a huge topic，the above listed factors just touch the surface.Interested reader may try conducting a web search under“exchange rate” and can have access to numbers of publications on this exciting subject.