Pages

Friday, 13 July 2012

2 Pip Spread Forex Brokers

Spread is one of the most important concepts in forex trading. It is the difference between the bid and asking price. While trading forex, you will note that there will be a difference between the current value of the currency and what you pay for it.

That is where the forex brokers make their profit. Let us assume that the current EUR/USD price is 1.27237 and your forex broker offering you a 2 pip (percentage in point) spread, then you will pay 1.2739 when you buy. The higher the spread, the higher you pay while buying and the lower you get on selling.

Generally, the spread is lower in popular currencies like EUR/USD, USD/JPY, EUR/JPY etc. You will find many brokers who would offer a 2 pip spread for these currencies. But there are few equally important factors like speed of execution of orders and the value the order which can really help you in enjoying the advantages of low pips.

Going from a 3-pip spread to a 2-pip spread may sound small, and going from a 2-pip spread to a 1.8-pip spread may seem even less significant. But for both the cases the impact on profitability can be huge. Therefore a forex 2 pip spread sounds perfect in a fast moving financial market like forex.

An online spread calculator may prove to be useful in quantifying and comparing the impact of different spreads. You will have to key in few parameters like trading activity (deals per day, per week, per month, per year), average deal leverage, account equity, current spread in pips, and the calculator will find out the actual spread you are receiving.

If a broker is offering a spread as low as 1 pip, be cautious. As most of the brokers do not charge a commission, it the spread they use to make their money. In a 1 pip spread, there is very little scope for him to make profit.

It may so happen that they are quoting you a price, which is inaccurate. For example, the price is at 1.2000/1.2003. But the broker is quoting you 1.2002/1.2003. So, you go long at 1.2003. On the other hand, if the price goes up to 1.2007/1.2010 and you are quoted 1.2009/1.2010, you may decide to exit. But you get filled at 1.2007, the real price, instead of 1.2009.

So what is more important to you is not a forex 2 pip spread but an honest small spread broker who will pay you the spread he quotes. Make sure there is no slippage or requites. The broker must be regulated and must have proof of past success rates.

See also Forex Broker Reviews Website to discover which brokers offer the lowest trading spreads.

Forex Deposit Bonus and No Deposit Forex Bonus

No Deposit Forex Bonus

No deposit bonuses mainly serve to attract more general attention to a Forex broker, offering a small fixed amount of money to everyone. To receive Forex bonus with no deposit you don't have to make transfer any funds; it's often enough to sign up for a real account and provide some personal identification documents. It's a rather fast and easy way to get «free» money to introduce yourself to Forex.

No deposit bonus then can be used for trading purposes and earning profit. Forex brokers usually prohibit withdrawal of the bonus amount but after a certain amount of trades made by the trader they «unlock» the bonus for withdrawal. The profit earned from trading with this bonus is usually available for withdrawal without limitations. This type of free Forex bonuses is good for the beginning Forex traders that wish to practice with the real money without too much risk. Experienced traders won't get much from the no deposit bonuses as they are usually quite low (5-30 USD).

Forex Deposit Bonus

Deposit bonuses are offered by the Forex brokers that wish to attract more real account traders. Usually, to receive a Forex bonus deposit you only have to transfer some funds to your trading account. Sometimes you will have to make a certain amount of trades before you receive the bonus or before you'll be able to withdraw it from your account.

The bonus may be percental (e.g. 10%), fixed (e.g. $100) or some other way depend on the amount of your deposit. With each specific case some special conditions may apply. This type of Forex bonuses is recommended for the experienced traders that wish to get more for what they invest. Deposit bonuses aren't usually recommended for the newbie Forex traders that prefer not to risk with the big amounts of money.

See also: www.forexbonus.com, ForexBonus.com is dedicated to providing the detailed information on various Forex bonus programs offered by the on-line brokers.

Thursday, 12 July 2012

Trusted Forex Brokers

How to Choose the Trusted Forex Brokers

It is true that Forex is mainly how you think and making wise and calculated decisions which will get you sure fire success using Forex trading methods, but on the other hand you might need help from a trusted Forex broker. So, how do you go about looking for one that will be of big help to your success?

This article will quickly deal with the things that we have to look for in a Forex trade broker to make sure that we will be gaining more using the right trading system with their execution. At the same time, we will be looking forward to trading with less risk and more gains in our continuous Forex trades using a system with 89% accuracy and that is founded upon logic mostly used by bankers to gain more wealth.

This article will be dealing more with how we can choose for a trusted Forex broker which will help us materialize the system that is efficient with 89% accuracy with the lowest risk. We can start with as low as $100 and make it six-digits in just a year with the best broker in town.

# Brokers Reputation

It should be established that not all brokers are created equal, some brokers lack credibility and accountability. An efficient broker is reliable and has stood the test of time and pressure. Combining our Forex trading system with an efficient broker will lead us to materializing the goal of starting with $100 and reaching six-digits in just a year. Since the system is almost 90% accurate with 3%-9% gain every day, we can ensure that we have less risk and high probability of climbing the ladder of success in Forex.

Brokers should have verifiable records and should have a legitimate office to show that they really do have clean slate in doing Forex trading services.

They should be time-bound and they gain success out of experience.

Their performance should gain praises and good reviews for their services should be established.

# Regulation

You should understand that any legal action should be governed by rules. The same things apply for brokers. They should be with complete control but it should conform with monetary requirements and rules. These rules should be the logic behind their every action and they should be venerable in imposing such actions.

This quality is essential in applying the Forex trading system we will be utilizing. It will make sure that the accuracy and the efficiency of the model will not bypass any standard rule within the monetary requirements. The low risk factor and the 89% accuracy are based on the effectiveness of the system in dealing with Forex fluctuations and timed executions.

Forex Brokers Scams

A Forex Brokers scams is any trading scheme used to defraud individual traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market.

In this type of case, investors may be promised many thousands of dollars in profits in just a few weeks or months. Often with an initial investment of $5,000 or less. The investor money is never actually placed in the market through a legitimate dealer, but simply diverted, stolen for the personal benefit of the con artists.

Be aware that there is a unique organization - The United States Commodity Futures Trading Commission (CFTC). This agency regulates the trading of Forex currency, commodity futures and options contracts in the US and fights against companies involved in illegal or fraudulent sell of currency, commodity futures and options.

# How do I protect myself?

There are five essential aspects of foreign currency market a beginner trader should be aware of:
  • Forex Fundamental Analysis
  • Forex Technical Analysis
  • Money Management
  • Forex Trading Psychology
  • Forex Brokerage
Understanding these five aspects will help you to successfully invest in the Forex Market and not get scammed.

# Here are five ways to help you find the best forex broker and avoid Forex scams:
  1. Find out if the broker's company is a registered futures commission agent. Get the brokers NFA ID number. Beware of dealing with affiliates who may be associated with legitimate brokers but operate on their own.
  2. Make certain the registered FCM has substantial assets. The minimum required by the NFA is $250,000.
  3. A 3 to 5 pip spread is normal in liquid markets, such as the major currency pairs, and fees are typically charged on only the buy side.
  4. Requotes should be rare. If you get requoted more than a couple of times per year, something is fishy.
  5. Get a good information provider, and compare the brokers offer in the open market with others. Is it in step with the market? Or is it off? If it is off, they might be trying to profit from that difference.
Most Forex fraud and commodity fraud is committed by firms located in South Florida, Southern California or outside the United States. Russia is currently a major source of investment fraud. Never make a check or bank wire payable to ANYONE other that a FCM registered with the NFA.

A high number of cases of Forex fraud is instigated by firms located in the United States and brokers of the firm and were at one time registered with the National Futures Association and have had their licenses revoked.

You can spend a lot of money to download programs that have promised to make you tons of money. Do your research and look into what is available. Today there are many amazing programs that will put your Forex Trading on autopilot. Look into those programs.

See also: Amazing Automatic Forex Trading System.