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.

Most Popular Forex Brokers

EToro is an online platform of financial trading & investment, worlds most popular. It is a foreign exchange broker with innovative and friendly service platform.

Etoro Forex Broker provides educational and informative tools helping us understanding the foreign exchange market in a better manner. Registering for their services and making deposits is easy and you get a free Foreign exchange demonstration account with registration for a better understanding of the market. This platform is capable of serving in many languages which include Spanish, French, Arabic, Italian, German, and Chinese and so on. Their friendly staff members always feel happy in assisting you with their trading experience.

The minimum deposit here is very much affordable, deposit as low as $50 and transaction as low as $25, when compared to the other foreign exchange brokers. Their process is also very fast and easy to handle. You need to just click the "Download Now" button provided below and you can start the free trial immediately. E-Toro is a winner of "MoneyAM online finance" award and the number of its investors has exceeded 1.5 millions. Its OpenBook e-Toro provides its investors follow how others trade. It has won the "MoneyAM online finance" for the second consecutive time and recently won the award of "Most innovative trading platform" recently. Its OpenBook brings the traders close while accelerating the knowledge sharing and shortening learning curves for its users. Etoro Forex Broker trading platform also provides the traders, novice or experienced, tools and the materials containing instructions which are helpful in trading of foreign exchange. It also includes research tools; with an online community catering to the needs of it's over a million users in the world. The unique e-Toro trading platform is a "once in a long time" product which has revolutionized the industry.

Etoro uses a visual interface, which is an innovative product, which has simplifies forex trading, which makes the trading a user-friendly approach for all the traders of all experience levels. E-Toro makes complex foreign exchange market easily understandable to the first time online traders as well. E-Toro also emphasizes on communities which include forums, chat and contests. The community helps the trader make decisions with "Top Trader Insight" tool, which helps its traders view the popular trades of its top profiting trading.

You can visit www.forexobroker.com to read eToro Forex Broker Reviews.

Reference: www.bestonlineforexbrokers.com

Wednesday, 11 July 2012

Tips For Trading Forex Micro Lots With Different Brokers

If you have been trying to make profits trading Forex you will have been researching the best broker online. You will have found many brokers offering you a live account starting with as little as 1 USD. Others will offer you a live trading account with 100, 200 or 500 USD. But can you make money trading micro lots with these brokers?

You need to choose your broker wisely. You need to know which broker will honor your trades without asking for re-quotes, fixing the prices, apart from indulging in various nefarious activities leading to you losing your money deposited with them.

You need to know the tricks brokers play on clients just to make a fast buck in the guise of "teaching" you Forex trading.

Most brokers hedge their trades against you. They actually trade against you in the anticipation of you making losing trades. How, then can their intentions be trusted? If you lose, they hedged trades will ensure that they don't lose money.

By the same logic, if you make winning trades they will lose money. Can they be trusted not to fix all your winning trades? These brokers are the Dealing Desk brokers.

A lot of brokers profess to not having a dealing desk 90 percent of the time, but believe me the dealing desk is there all the time. STP or straight through brokers are another lot to watch out for. If they have a STP system why not just say that they are ECN brokers?

ECN is Electronic Currency Network. This is the network where major banks and financial institutions all over the work trade foreign exchange. Clients are directly connected to this network and the broker will charge a commission to trade. They have no control over the trades so fixing trades or hedging against the traders is out of the question. These are the true STP brokers but then again not all brokers who profess to be ECN really are. There are ways to find out the truth.

An ECN broker will not have to say they are STP brokers. They are just playing around with words.

ECN accounts are expensive to open and may begin with USD 2000. That is why it is not possible to make profits with a 1 USD or 500 USD account. Brokers offering these accounts cannot possibly offer ECN accounts and they are thus free to manipulate trades.

All of them will argue but experience has taught me better.

See also: www.ewriterz.com, professional Forex Money Manager to manage your personal ECN Forex Account for you.

Forex Brokers With Debit Cards

While many who trade within the forex market choose to use international debit cards and credit cards, international banks are beginning to capitalize on the market involved with these convenient cards. Asia Commercial Joint Stock bank plans on collecting a flat fee per transaction after the rate difference.

What this means for you is money coming out of your pocket whenever you make a trade. Forex debit cards are a great choice for those who trade heavily in the forex market, as they allow traders to swiftly transfer cash from account to account without any major wiring fees. While the new fees imposed by banks are cracking down on the forex bubble, cards are still the best way to transfer currencies between traders, and cuts back drastically on costs.

Traders beware, however. Check around to make sure you are getting the best rates available. Some banks offer lower fees and so some careful shopping will go a long way in saving your hard earned cash from being eaten up by bank fees. For instance, Sacombank only charges a 2.1 percent fee on the difference on all types of international credit cards and debit cards. Traders can find a bank and a debit or credit card that can work for their accounts and trades.

International debit cards are a great way to speed up your trades and transactions, and transfer money automatically. See your forex account manager today for more information and find out how you can take advantage of this inexpensive way to trade and transfer foreign currencies.

InterbankFX ( www.ibfx.com ) offers a free demo forex account and an FX debit card for convenient trading. Take advantage of the premium online platform's constantly updated charts and information.

Legitimate Forex Brokers

One of the many available forex brokers on the web is FXOpen. This is a very popular broker and has a huge amount of active accounts. But forex brokers are often scams and cheats, and so the regular forex trader often has trouble trusting brokers, and it is important for them to find out which ones are truly legitimate. So, is FXOpen a legitimate forex broker? Or is it just another scam hungry to gobble up all your money?

Something that is quite off-putting for people looking at using FXOpen is the fact that they don't actually have a licence, and they are based in an off-shore area. This is very sketchy. But, on the other hand, some of the reviews it has gotten have been entirely positive.

For the most part, they are said to be a good, quality broker. Payments are always made, and they are made very quickly, which is a very important aspect to look at. Some people say they have had a bad experience with payments, but those people are quite few. The majority say they received payments in a timely manner.

Another good aspect that is talked about a lot is that they don't distinguish between high end and low end traders. Some brokers choose to give higher end traders more attention, while ignoring the small traders. FXOpen does not do this, and gives a fair service to everyone.

Overall, few people say they have had problems with depositing and withdrawing, and there are next to no reports of glitches or mistakes while trading. They also have demo accounts available for newbies who want to take a look at the system before getting into it, and there have been no troubles with those. So, the system appears to be of top quality.

There have been complaints about the quality of the client support. The support staffs are reportedly slow and a bit unhelpful at times, however, they do generally end up fixing whatever the problem is. This is an area they could definitely use some work on.

They aren't regulated either, and this could be a reason to look elsewhere. On the other hand, many good forex brokers are not regulated, and they are still perfectly legitimate forex brokers.

Some people also believe that their values are out of whack with the market. It's been said that the values are being manipulated in their favour, so they make more money. In all likelihood, however, this is probably just angry traders who have lost money by making bad decisions and are taking it out on the broker. FXOpen does appear to stay close to market values most of the time.

Overall, if you are looking for a good quality broker, FXOpen is high up on the recommended list. Go ahead and try it out with one of their demo accounts, or jump right into it. If you're still worried about their reliability, just start out with a few dollars and see how it goes from there. You'll be profiting in no time.

You can go to www.qajk.com to find out more about reliable forex broker.

Tuesday, 10 July 2012

Leading Forex Brokers

The Forex Market and Role of Leading Forex Brokers

It's no longer news that the Forex trading industry, with a daily turnover of over $3.2 trillion as estimated by The Bank of International Settlement, has rapidly become the world's leading and most liquid financial market. Until recently, the Forex market allowed very restricted access to private traders since it was assumed that single individuals would be unable to take care of it's requirements or cope with the rudiments of Foreign currency trading.

Today, leading foreign exchange brokers provide best Platforms to trade forex. They have, over time, developed cutting edge Forex trading software, accommodating both trainee and expert traders alike by way of user friendly trading interfaces, and a variety of extra attributes that make the vast world of Forex trading accessible to fresh traders. Such uncomplicated, expert Forex platforms make Forex trading almost absolutely insightful through their broad use of trade visualizations.

Best Forex brokers online provide their traders with the opportunity to acquire real trading experience by trading with virtual money over an unlimited period of time. This of course gets them acquainted with the whole system while mastering the Forex market and trying out different trade techniques before finally summoning the courage and confidence to trade with live money.

This singular attribute often attract a large number of beginner traders since it affords them the opportunity to first learn the nitty-gritty of the trade without necessarily having to risk gambling with real cash. In this manner, novices can obtain an essential understanding of the world of Forex, before getting into the market properly to make their kill! In addition to this, the learning experience should be a smooth and effortless one. This is generally done by substituting compound charts, graph and the Forex market lingo, with easy step by step instructions, tutorials, professional help and support, as well as detailed graphic illustrations of trading activity. A good Platform for Forex trading will be highly consequential to the degree of success attained in Forex business.

4 Digit Forex Brokers

Until recently, all Forex quotes had 4 digits. It was easy to use and simple to understand because the last digit also signified how much a pip (also known as a point) was worth. But recently, many brokers have turned to 5 digit Forex quotes with the last digit signifying a partial pip. This trend seems to be catching on but there are still brokers that only use 4 digit quotes.

The question is, what are the pros and cons of working with a 5 digit Forex broker? What should you do?

Pros:
  • A 5 digit quote is more accurate. There is more room to play as the prices can be broken down further. You can choose to play with half-pips or any other partial amount and this does allow traders, especially scalpers, more room to play with.
  • Big traders can enjoy more favorable spreads. Now that partial pips have come into play, big traders can get a discount from 2 pips on a major currency pair to a 1.8 pip spread. This may not seem like much, but when you're trading big sums, this can translate to thousands of dollars in savings on spreads. Not such a bad thing at all.
Cons:
  • Traders who are used to 4 digits quotes may find the new quotes a big confusing. It does take some time to get used to and you may make a few mistakes in the first few trades. However, I doubt that it will take you too long to get the hang of things as the general rules of trading have not changed one bit.
  • If you're using an EA (Expert Advisor) program or an automatic trading robot and your broker has decided to switch to 5 digit quotes, you may have trouble working with your software for much longer. Therefore, it is important to check with the developer of your system whether they have an update to use with 5 digit brokers and to test out your EA or robot extensively with the new quotes.
It seems to me that there is no point in resisting the tide as it seems that 5 digit quotes are where the Forex market is going. You can trade in pretty much the same way with the new quotes and still thrive.

See also: Free Forex Report to get a free forex ebook.
Good luck!

Best Forex Brokers For Beginners

One of the biggest decisions any Forex trader has to make is which Forex broker he o she is going to use. After all, your broker has to be supportive, provide an easy to use interface, and make your trading as simple and fast as possible.

The problem is that most online Forex brokers have trading platforms which are more suitable for experienced traders than for new ones. Some of these platforms can make the entry into Forex trading downright frightening and can even make it harder for you to make money at first. If you're a new trader, you have to make sure your trading platform is super-easy to use and simple to understand.

I think that eToro is the best online Forex broker for beginners for the following reasons:
  1. Etoro's graphical interface allows you to choose from a variety of trading platforms some of which are displayed as a game would so that it makes trading fun, especially when you're starting out. Of course, this doesn't mean that eToro doesn't provide detailed charting software as well as technical indicators and analysis tools.
  2. Etoro allows you to open an account with a very small initial deposit. Anywhere between $50 - $100. This makes it much easier to begin trading since you don't have to to put up to much money.
  3. Etoro have a very supportive staff which help their traders with any questions. This is excellent for new and inexperienced traders.
  4. The eToro platform is one of the most friendly and easy to use interfaces I have come across.
  5. This is a stable platform and a highly respected broker.
  6. You can trade in multiple languages so you shouldn't have any problems trading.
Overall, I think this is the best Forex broker for beginners and a great one for veterans as well.

You can visit www.truthaboutforex.com to read full eToro review.

Monday, 9 July 2012

DMA Forex Brokers

The majority of people that retired from the Forex market had different reasons for their decision. The most common reason for people to quit trading is the disappointment of losing important sums, or the bad quality of services offered by the Forex sites. It is true that 90% of people trading on Forex lose, but with perseverance and determination, you can become one of the rest 10%.

Finding the professional Forex Brokers

The most important aspect about a Forex trading company is its relationship with the market. There are a large number of Forex Brokers that are only representatives of other sites and brokerage companies. Therefore, the spreads imposed by those sites for the transactions are bigger compared with the ones of the direct traders, and it is normal, as long as this is the profit of the respective site. The key factor for finding the best Forex site is to determine if the respective site or company is allowed to trade directly on the currency market. It is simple to find those brokers. Just look of the respective site offers DMA trading options, and if it is approved to intermediate direct transactions.

What is DMA?

DMA means Direct Market Access, and the few sites that are allowed to trade this way will display this authorization with great pride. The DMA Forex Brokers are the leading Forex Companies, and if you are able to find such company, you will have numerous advantages.
  • Small leverages and reduced commissions
  • The smallest spreads of the Forex world
  • The possibility to sell currencies directly, allowing you to win on a falling market
  • Placing orders directly in the stock market's registers
  • Direct and continuous trading with the subscription feature
With the DMA Forex Brokers, an investor will combine the advantages of direct trading with the leverage effect, having the possibility to win decent money with a reduced risk.

A DMA Forex does not promise millions of dollars a week for the traders. A site of this kind doesn't really need a presentation, as it is used only by professional traders with a long Forex experience. For this reason, the DMA Forex Brokers will always tell you the straight truth about your possibilities to win or lose on the market.

The Direct Sites offer reduced spreads, as their profits are based on the number of transactions and on the size of the sums traded. In other words, while a small site that represents a DMA Forex trader needs to attract as many investors as possible to obtain profits, the DMA site only needs a small number of professional traders with important financial resources at their disposal. Those sites are designed for people that really know their way in the Forex industry.

Maybe the only advice for a beginner is to find the DMA Forex Brokers. A site of this kind is surely professional, so it will surely offer a good virtual platform to develop your trading skills, good tutorials and guides, but also a simple and intuitive platform to start your Forex online adventure.

See also: www.divisafx.com, Divisa Capital LP ("DCFX") is an investment house that provides spot foreign exchange trading services to a diversified client base that ranges from financial institutions through to private individuals.

Reliable Forex Brokers

One of the more important things that you're going to need to keep in mind whenever getting involved in the Forex market is that you must choose from among the Forex brokers that are available. It is impossible for you to trade directly on the market and any trades that are made must take place through a qualified broker. It doesn't matter whether you are dealing with one directly or if you are using an online platform in order to place your trades, it is all run by brokers in the background.

Among so many forex brokers, Dukascopy is one of the best known forex broker in the world. This is a Swiss forex broker that provides direct access to the Swiss forex market. It is considered as one of the best and reliable forex brokers in terms of its performance and quality. Dukascopy strictly controls the money laundering frauds and due to this check money laundering cases have been eliminated to a great extent. It is under the control of ARIF and FFA that enables it to prevent any fraudulent activity.

Dukascopy is the most consistent and reliable forex broker. However opening an account is a bit complicated process with this as the traders need to send identity documents for legal purposes. The reason for this identification process is that the Dukascopy is very concerned about the protection of its client that's why they have developed powerful countermeasures to help fortify their online security. Besides this Dukascopy has very good liquidity and you can create as many forex accounts as you like.

Mostly there are two ways to perform trading by Dukascopy, firstly by phone and secondly by it's highly developed online Forex trading platform. Its users are widely spreading all over the world and its charting is getting improved on daily basis. There are two options to trade via Dukascopy. First is to use demo account in order to check and test its results and second one is to use a real account but in actual there is no difference as both of these provide the same performance.

One of the best things about Dukascopy is that the customer service provided by them is second to none. They provide 24 hours a day support and respond to each customer's query in a highly professional and timely manner. They are available 6 days a week to help their clients in the best possible way. Apart from this, Dukascopy has only one disadvantage that it can only start trading with $50,000 which novice traders cannot afford. However for highly professional and experienced forex traders it is the best and most reliable way to earn money.

You can read full review at www.forextradingoverview.com..

Retail Forex Brokers

The Truth About Retail Forex Brokers

In the industry of speculative trading there are only two types of brokers that are allowed to take part in forex trading. The first one is the market maker who has potentially more power to perform speculative trading compared to the other. The less powerful, and more often exposed to controversy that led to its early sunset, is the retail FX broker.

This is an individual person who is a small fraction of the whole trading market. He is only advised to join the trading when there are few slots that remain untaken. Part of the limitation that is given to a retail Forex broker is the fact that he can only participate indirectly through the intervention of the licensed broker or a bank.

The reason why rigidity is being imposed stems from the fact that with there is a greater tendency for a conflict of interest to arise. This is the reason why retail Forex brokers are largely being controlled by two of the widely known governing entities - the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).

More often, the retail FX brokers are the subject of foreign exchange scams. It is for this reason that rigid control over this type of broker is widely implemented.

In order to pin down the sources of these scams and the scammers, the CFTC and the NFA have mandated the No Dealing Desk (NDD) and the Straight Through Processing (STP) schemes that are bound to resolve problems such as scamming.

Sunday, 8 July 2012

Types of Forex Brokers

Types of Business Models of Forex Brokers

When it comes to choosing the right type of Forex brokers, one of the factors that influence your choice would be the business model they adopt. A business model is a sort of guideline the broker follows when they conduct their business. The types of main business models available are the STP brokers, dealing desk brokers, and hybrid brokers. Read on to learn about their differences.

STP brokers refer to straight through processing brokers. As its name suggests, the processing of orders is straightforward, directed immediately to the liquidity provider, which can be a bank, hedge fund, investment corporation, or other brokers (which is somewhat similar to electronic trading systems or ECN that pairs offers and demands without the presence of an intermediary). This means that the intermediary dealing desk that filters orders is absence in the trading. In other words, bids and asks rates by clients are given directly to the liquidity providers. This way, there are no delays in sending the orders, neither will there be re-quotes to the clients, wasting no time or being restricted during the release times of financial news. For STP brokers, the advantage comes in for them when they ask for commissions and profit from spread difference.

The dealing desk brokers are synonymous with market makers as they are in control of when a trade is sold or bought from them, trading against their clients to create the "market" instead of with the real global currency market. Dealing desk brokers profit by trading against their clients, whereby they gain through their client's loss, and vice versa. There are usually delays in processing orders because each trade needs to be manually approved and are often re-quoted to fill the client. However, people do trade against dealing desk brokers because when they do succeed, the broker can easily lose all their money. Unfortunately, 95% of the time, traders lose to these market makers.

The hybrid brokers, on the other hand, are a mix between STP and dealing desk brokers. They may take some aspects of each type, forwarding some of their clients to liquidity providers while keeping some, and might keep some of the trades while sending others to the liquidity providers.

Once you have selected the appropriate business model, it would be wise to compare brokers and test their demo versions before finalizing your choice of a Forex broker. Understand their terms and legal information, and then choose one that you are comfortable and confident with.

See also Forex Brokers lists at www.erforex.com

New Forex Brokers

The Benefits of Using a New Forex Broker

Whether you are already trading Forex regularly or are looking for a way to begin, you're probably overwhelmed with all of your options. In fact, there are hundreds of Forex brokers to choose from, many of which offer similar services. So how can you know which one to choose?

The most important thing to consider before choosing a new broker is whether or not the broker is regulated and registered with an acceptable governing body. If you're a Forex trader based out of the United States, you'll need to choose a new Forex broker that is regulated by the CFTC (Commodity Futures Trading Commission) and the NFA (National Futures Association). Because of the steep costs of registering with these agencies, only long-established Forex brokers are registered. However, if you live outside of the United States, you can - and should - consider trading with a Forex broker that is new to the market.

Governing bodies outside of the United States, such as the Financial Services Authority, register both established and new Forex brokers, ensuring that your money will be protected with every deposit. A prime example of a stellar new broker is Sunbird FX, a broker which has existed for quite some time, but has recently expanded to serve traders worldwide. The benefits of using Sunbird FX as compared with an older broker are numerous. For starters, Sunbird Forex offers excellent customer service via phone, chat and email. Unlike larger brokers who are often flooded with inquiries, this new Forex broker takes the time to answer each query in a timely fashion.

Moreover, new brokers like Sunbird FX often offer cutting-edge technology that older brokers fail to offer. Some of the best features that are offered by new brokers are excellent customized trading desktops, access to the exclusive MetaTrader 5 platform, and superior mobile trading platforms. If you're looking for these features, you can find them on Sunbird FX, but you can also try Plus500, an older company that has recently been regulated and provides an innovative platform for new traders.

Lastly, it's important to consider many of the bells and whistles offered by newer brokers in an effort to grab traders away from more established brands. Many new Forex brokers offer free signals, access to the latest in mobile trading technology and unparalleled charting options to provide the widest possible trading experience. Yet despite these excellent features, it's always a good idea to try a demo account or research the broker thoroughly before investing any money. Once you've tried a new broker, you may be ready to start a new trading trend.

See also: Sunbird FX Review

Forex Brokers With Bonus


Forex brokers have been offering great bonuses for a long time. Some brokers offer sign up bonuses, where the broker actually places a nice amount, usually around $25, in your account simply for signing up for a Forex trading account. Others offer trade execution bonuses, where you get paid for each trade you execute, regardless of the currency pair traded. Other brokers give bonuses for reaching a certain level of pips. Once you earn a certain amount of pips on their platform you are paid a nice bonus for reaching that level.

While all these bonuses can be great, there are ones which are even better & more beneficial to us Forex traders. Brokers are now offering special bonuses such as vacation packages & even new cars for some of their top performing traders. Competition bonuses have also become quite common in the Forex market, letting people get a prize for seeing who can earn the most money in Forex.

Forex Trading Systems Now Offering Bonuses!

One of the amazing things about Forex is that Forex trading systems are now offering bonuses as well! Forex trading systems have realized the truly awesome potential of offering us trading bonuses, so one of the best Forex trading systems has decided to give several bonuses for signing up. A trial offer of their services for less than five bucks, a free members area with the trial offer sign up & trading signals for all major currency pairs, not just one like the EUR/USD. This trading system also offers signals for gold & silver, as well as a full 60 day moneyback guarantee so you can start trading easily on a demo account!

Are you ready to make real money in Forex? Sign up at www.forexsig.com today to get started earning your fortune in Forex with 100% automatic trading signals, daily live trades, customized prediction charts, an excellent trial offer, accurate trading on all major currency pairs & much more. You'll see how easy Forex can be with a trading system that's proven to be the most accurate for over 7 years.

Saturday, 7 July 2012

Islamic Forex Brokers

Among the many different Forex brokers and Forex trading accounts available to the Forex trader, there is one particular type of broker and trading account that stands out. An Islamic account, provided by an Islamic Forex broker is a very unique type of trading account that we do not find in other trading markets.

An Islamic Forex broker might offer its customer base the option of opening an Islamic Forex account, which is of course not limited to Muslims only. No Forex broker, not even an Islamic Forex broker can or will ask you your religion when trading Forex.

What an Forex Islamic account is in simple terms is an interest free, also known as a No Riba trading account. So how does this all work? For example, if a Forex trader decides to leave his or her trading positions open overnight, the standard broker will charge rollover fees, which are basically the interest the broker pays the bank to leave the trade open overnight.

The thing about these fees is that they are problematic for the Islamic community. According to the Islamic Shariah law, Muslims are forbidden to take any money in return for their "giving". That means if a Muslim is investing in Forex, he/she is not allowed to pay or receive any type of interest on their payment. By the way, this is something that exists in the Jewish religion as well.

In order to meet the needs of the Islamic population and to enable them to trade Forex, the concept of an Forex Islamic account was invented. Anyone can open such an account in theory, but it might not be right for everyone. An Islamic Forex account is in fact interest-free but it often times comes with higher spreads or other down sides, all depending on the Islamic broker,

If you are a trader that leaves trades open overnight on a regular basis and regularly pay high rollover fees, an Islamic account might be the perfect solution for you. Once you decide to trade with an Forex Islamic account, the next step is choosing the best Islamic Forex broker for you. The most effective way to do that is to read Forex broker reviews by some of the Web's leading sites, and simply filter out all brokers that do not have the option to trade with a Forex Islamic account.

See also www.dailyforex.com about Islamic Forex.

International Forex Trading

The international Forex trading market has grown in volume and stature in the last few years. According to the Bank for International Settlements, the currency market generates an estimated daily turnover of over $3 trillion, with London generating the highest volume, followed by New York and Tokyo.

International Forex trading is mostly dominated by large banks and financial institutions. However, institutional investors have also started flocking into the currency market due to its relative security and high trading volumes. The foreign exchange market has been considered safer than other exchanges, particularly after the 2008 global credit crunch.

How to trade at the currency market

A trader can open an account at the foreign exchange market and simultaneously buy and sell a pair of currency. He or she can choose from a range of transaction types, which include spot, future, swap and forward. For an independent trader, the spot transaction is mostly the favored type.

A spot is a transaction that has a two-day delivery period. This involves a direct exchange between two currencies and requires cash rather than contracts. In terms of volume, spot transactions are the second largest segment of the FX market, second only to swaps.

Swaps, the largest transactions by volume in the foreign exchange market, are also the most common forward transaction methods. A currency swap involves two entities exchanging currencies for a specified period of time, with an agreement of reversing the deal at a later date. Swaps do not involve standardized contracts. In comparison, a currency future transaction has standard contracts and maturity dates. A futures contract usually covers an average period of three months.

Why You Should Open an Account at FX

The FX market is considered relatively safe. Although profit margins are relatively low compared with other exchanges, their levels can be increased by increasing the volume of trades. Currencies traded in this market work against each other; hence, the strengthening of one will result in the weakening of another. It operates on a 24-hour period, except on weekends. This is beneficial to traders since it allows them to react quickly to global developments that may impact the status of the currency market. The foreign exchange market is also considered advantageous because of its high level of liquidity and its use of leverage.

You can read more about Learning Forex Trading to profit from the financial market at www.forextradingwebsiteonline.com. International Forex trading continues to attract not only large financial institutions and big banks, but also commercial companies and small, individual investors. For those interested in entering the currency market, this might be as good a time as any.

List of Best Forex Brokers

A Guide to Find Best Forex Brokers List

Forex Broker is the helping person for those who are newly entered into the forex market. The relation between the investor and a broker is long lasting relation that deals several different transactions and orders very smoothly. It is not much difficult to find a good forex broker list as you imagined, just read on to know about the things that are considerable to select a broker.

Many online websites provide you a list of forex brokers, but finding the best brokers is must for making profitable trading dealings with them. Prepare a sheet to keep the details which describes name of the company, year of entering into the forex world, its platform and more.

Search in the internet for the best brokers and send the sheet to those who you already selected to fill it, you can get the reply from all. They will provide you all the details what you want, now you have to work on it to find a good forex broker list among all the lists. List out the top brokers based on their company's legitimacy, authorizations and reputation.

Know the ratings and ranks allotted to them by referring the online reviews, the ranks and ratings are given to them based on their websites traffic level. Broker makes the market, the good broker sells when you want to buy and he buys when you want to sell. Now select the ideal forex broker list from your list of brokers based on their potential to get profits, ranking ratings.

Using all the information which is at your hand, it is much easy to find perfect broker list. So, there you have it. Hoping you can get it!

Friday, 6 July 2012

European Forex Trading

Best Time for Forex Trading in European Market

The forex market stays active 24 hours a day, making it difficult for a trader to keep a track of every single market activity. He cannot respond to every movement instantly. Time is the key factor in forex trading. A trader can maximize his trading opportunities by tracking the amount of market activity every minute during his own market hours. This also helps in formulating an investment strategy that is not only effective but also time-efficient.

Apart from liquidity, the trading range of a currency pair gets heavily influenced by macro economic factors and geographical location. The knowledge of exact times in a day when a currency pair has the highest or lowest trading range helps traders a great deal in enhancing their investment as a result of better capital utilization.

Forex Trading: European Session (London): 2am - 12pm EST

London forex market is the UK's largest trading center. According to a survey conducted by the BIS earlier this decade, London has a market share of over 30%, making it the world's largest transaction center. London's share of the global turnover increased from 31.3% to 34.1%, as estimated by International Financial Services, London. Most of the larger European banks are located in this city. A majority of the forex transactions are carried out during London hours because of the high efficiency and liquidity of the market. Many risk lovers find the GBP/JPY and GBP/CHF to be the best trading pairs.

There is a direct connection between London hours and the US as well as the Asian sessions. The forex markets are typically the most busy when trading hours of the two largest trading centers of the world overlap. For instance, The US and the European hours overlap during 8 A.M.-12 P.M. EST. This trading range comprises on average 70% of the total average trading range for all currency pairs throughout the European trading hours. This average is 80% during the US trading hours for all currency pairs.

The trading hours of European and Asian forex markets overlap during 2 A.M.-4 A.M. EST. The intensity of trading is, however, low due to slow trading in the Asian morning. Due to thin trading in these hours, risk lovers can give their racing minds some rest.

Honest Forex Brokers

Is Your Forex Broker Honest?

As Forex traders we cannot live without them! They are our magic bridge between humble living and the vast world of Forex market. And in order to survive in Forex market you have to make sure that the Forex broker you have picked is honest and reliable.

To everyone's regret, not all brokers are reliable though. So in order to avoid "I can't live with or without my broker" situation you have to check every term and condition of the Forex broker you have picked. Don't let any condition or extra fee catch you by surprise. The more you know about your Forex broker, the better!

In my opinion, the first thing you should check is support. While trading you can run into technical problems, find yourself asking trading questions or even be unable to locate your trading history. Broker should provide a fast and professional support to every question that might arise via chat, email or phone call. I think the best way to check this is to open a demo account and see how fast support answers your requests. After all, if a Forex broker doesn't take a good care of potential traders what will happen when you turn into a real client? A professional Forex broker will give an outstanding support, especially in technical area.

Second thing that I would check in a broker is leverage options. Just a reminder for those who forgot - leverage is like a loan. For example a leverage of 1:100 will turn your $1000 into $100,000. But, of course, never ever forget that there is a great risk involved with this trading option. I suggest not drooling over high leverage option. It might just be a perfect trap where you loose all your savings!

One more thing that is crucial in choosing the right Forex broker is the spread. You might ask why to care about spread? If the spread is how Forex brokers are getting paid for their service why would I care about it? Just a quick reminder, spread is a difference between buying and selling price. So the bigger the spread is, the more the exchange rate has to rise in your favor to break even. To make things short - avoid high spreads! Whenever you see spreads higher then, let's say, 6 pips, RUN!

Let's not forget the trading platform. There are two options web-based and download trading platforms offered by Forex brokers. Which one is better? This is something you should decide for yourself. Whether download or web-based, make sure that the trading platform has every trading tool you need, including charts, news, available currencies etc.

Just to summarize - investigate, interrogate and cross-examine your broker before you jump in! Test your Forex broker with demo accounts and make sure to read those extremely boring terms and conditions. Oh, and one more thing, don't miss anything written in tiny letters in beige font - it might just be another "invisible" extra fee.

See also www.forexvote.com for free forex trading tutorials.
Good luck!

Fixed Spread Forex Brokers, Market Maker, or Use an ECN

Over the last four years I have traded forex with a number of brokers both in Australia and abroad. During this time I have experienced the best and worst of the forex markets and also the best and worst of forex brokers in general. I have traded with market makers, fixed spread providers and on electronic communication networks (ECN's). Often I get asked which type of forex broker model is best. To answer this question and share my experiences I decided to write this article on each type of forex broker model.

Fixed Spread Providers

There are quite a few fixed spread forex brokers in Australia some have spreads as low as 2 pips on EUR/USD. Trading on a fixed spread can have its advantages as well as disadvantages. One of the main advantages of trading on a fixed spread is that traders are guaranteed consistent spreads during times of market volatility such as interest rate announcements; these are often the periods during which spreads can widen dramatically without warning often catching novice traders off guard.

Despite having the benefit of a fixed spread during market volatility fixed spread providers will often quote wider spreads during quiet periods, often their spreads are much wider than those offered by market markers or ECN forex providers. Trading on a fixed spread is often good for newbie traders who are not yet accustomed to the wild price fluctuations of the forex market.

Market Makers

There are a few market markers that have given the rest a bad name by trading against their clients and profiting from client losses, however this is not common practice for all market makers only a select few. Generally market makers are able to offer relatively tight spreads across all of the major currency pairs, however it is important to understand that this not always the case if you are looking to trade large parcels or trade around announcements such as interest rates or non-farm payroll.

Some market makers are known to widen their spreads by as much as 50 points during times of market volatility, they often do this to protect themselves from scalpers looking to take advantage of their tight spreads. When selecting a forex broker who is a market maker you will need to ensure that you do your homework and make sure that they are not one of the few that are actually trading against you and profiting from your losses.

ECN Providers

By far the most transparent forex broker model is an electronic communications network or ECN. An ECN broker simply aggregates the best price feeds from a variety of investment banks and always displays the best bid or offer. Most ECN brokers will charge a commission rather than apply a spread to the natural market price this ensures that you are trading on the real market price as set by the world's largest investment banks.

There are many advantages of trading with an ECN broker the most apparent being the spreads offered; often there is no spread or an inverted spread, prices not achievable by market markers or fixed spread providers. During volatile times an ECN will always show the best price available, as ECN brokers rely on a number of investment banks who are actively trading over these periods you will always get the best price and not by subject to extremely wide spreads which you would otherwise get with a market maker.

Of course it is up to you type of forex broker you choose as each have their own unique advantages. You should always make your decision based on the trading strategy that you employ and your level of experience in the market. My personal preference is to trade with an ECN forex broker as I can always be assured to receive the best pricing available.

See also www.icmarkets.com.au, they guide will help you to develop a plan to achieve success in forex trading.

Thursday, 5 July 2012

Mini Forex Brokers

With the advent of technology, it has become possible for new and small investors to start currency trading. These investors do not have the huge capital that a conglomerate or an MNC (Multi-National Company) has. Therefore, such small investors are given an option of opening a mini forex account.

Mini Forex Brokers allow investors to open their forex accounts by putting down a comparatively smaller down payment. The minimum requirement for actual forex trading is $100,000. Mini forex brokers may accept contracts as small as $10,000. Also, the margin in real forex trading is 1%, where as mini accounts may operate at around 0.5%. Many mini forex accounts can be opened with a deposit as low as $100.

A mini forex broker offers the investor a quick and inexpensive way to trade from the comfort of home day and night. All the specifications remain the same, except that these trades are operated from a mini forex account.

For beginners, many online websites of these brokers offer demo or trial accounts that help the investor practice trading skills. These accounts also help increase the understanding of the functioning of the real time forex market.

Mini forex brokers often guide their customers regarding the best trading options that could yield the most profit. The major factors to consider while choosing a mini forex broker are feedback from other traders about the broker, if the broker has insured his client's funds and the amount of commissions charged.

A trader's success in forex trading depends on the information they possess. Brokers keep traders informed of market fluctuations, which help them to take maximum advantage of the forex market.

Best Forex Brokers For Scalping

Is there such a fact as the best forex broker for scalping? Perhaps the more realistic approach is to comprehend what propels a system to join the ranks of others which have shown worthy gains to its users. As this exercise is about trading money with the objective of gaining profits through many frequent transactions, it is essential to derive a list of tried and tested tools which show actual results of achieving said objectives. Given that the financial market is of a volatile nature, there are bound to be some standing the tide of times and emerging victorious despite the pounding waves of economy. These are probably the ones worth further investigation as their principals are in the business for the long term.

As the foreign exchange trade utilizes technological means to get things underway, there is no denying the fact that one has to embrace this mode of dealing with money. By marrying stone-age principles with new age processes, this supposedly drives greater efficiency on the whole. Although various flavors of platforms are available for the trade, the more recognized MetaTrader platform is often the option of choice. Being a tool, it is massaged and manipulated into systems in accordance to the brokers' tastes and directions.

Often times, one presents his product as the best forex broker for scalping without surety of delivering on its name. To avoid being a guinea pig for a beta version or being taken for a ride by a broker of lesser scruples, it pays to conduct fervent research into the subject. Professional reviewers and user forums present excellent sources of information as they have gone on many of these roller coaster rides and able to attest to the systems' pros and cons. Trading algorithms employed to predict and react to foreign exchange trade play a significant role in separating the good from the bad and ugly. All in all, best is what works best for the user as it revolves around profitable investment of his hard-earned money.

See also www.iticsoftware.com is well known for forex scalping and other currency trading tools with 24-hours technical and billing support and their Target response time is 8 business hours. Visit for more details.

STP Forex Brokers

Have you ever noticed that most Forex brokers advertise their price spreads above all other factors? While this is an important factor to consider when trading, it is merely one piece of the puzzle that must be examined.

Certainly, a more important factor is the ability to execute trades at quoted prices around major market news events such as the monthly NFP report. As a trader who looks to profit from short-term price moves, you may not be able to execute your strategy whether manual or automated. One reason is the fact that a broker may act as the buyer of a Forex pair while you play the part of the seller. Sound like a mutually beneficial contract?

At its essence, this relationship pits the trader against the broker as one participant's interests are opposite of the others. Simply stated, if your trade is profitable, the broker realizes a loss. Employing a Dealing Desk model is not inherently evil (to put it jokingly). Some may argue that Dealing Desks provided a service for those individuals who traditionally did not have access to the Forex market due to high barriers in the form of excessive charges and substantial deposit minimums. When Dealing Desks fail to perform their intended role of providing liquidity for retail Forex trades, the problem usually can be attributed to a breakdown in the firms' risk management guidelines and/or systems. If not properly managed, a Dealing Desk can become a huge liability for a broker if steps have not been taken to offset excessive position risk. As a trader, are you willing to take this risk?

True STP brokers take the Dealing Desk model employed by most of world's largest Forex firms and stand it on its head. How? The former always operates under the premise that the interests of both the client and the broker are aligned. The STP broker wants it's traders to, in the words of Spock, "Live long and prosper". This is the case since the STP broker only makes money when a client executes a trade. In order for this to be a profitable venture over the long term (and even the mid term), the broker wants to create an model where traders will use their appreciating account balances to generate an ever increasing number of revenue producing trades. This highlights my earlier point of why having interests that align is sensible to traders and non-traders alike.

A true STP broker will not discriminate against short-term trades as the firm is merely acting as an agent charging a fee for order execution and clearing. Until recently, the ability to transact directly with banks via the interbank market was reserved for large institutions. Finally, the trading public can choose to compete on a level playing field.

For more information please visit www.divisafx.com, Divisa Capital LP ("DCFX") is an investment house that provides spot foreign exchange trading services to a diversified client base that ranges from financial institutions through to private individuals.

Wednesday, 4 July 2012

Forex Hedging in the Forex Market

One of the low risk trading strategies is hedging. The technique might give an impression of being too complicated; however when done right, a trader can reduce the overall risks and make profits. What is involved in hedging? How complex is it? What can you expect from this strategy?

Forex Hedging reduces some amount of risk when holding an open position. What kind of risk are we talking about here? How about market falling down unexpectedly leaving you with losses you can't handle. This is a well-defined reason for using hedging in case you suspect that the currency pair of your choice may reverse against you.

Hedging technique involves holding a trade with one pair and opening another trade (or more) with a different pair, which is related to the first pair. The idea behind it is to reduce the risks involved - in case one trade goes bad, there still might be profit with the other trade.

Consider opening a position with, let's say, USD. Simultaneously you open a reverse of that position on the same currency (USD, in our case). In case any of the position starts loosing, the second one backs it up and therefore protects a trader from getting a margin call and gives a trader a chance to profit even if one of the trades fail.

Hedging, if done correctly, can play an important role in saving your account from losses. In fact, many professional traders with wide experience in market rapid movements and timing use hedging in their trading plan.

100% Hedging Technique

This technique is considered the safest and the most profitable among traders. The idea behind this is:
  • You trade with 2 different brokers - one that changes/pays roll over rates at the end of the day, and another that doesn't.
  • Open a trading position with currency A with the first broker.
  • Open a reverse position for the same currency A with another broker that doesn't charge interest for carry over.
With this technique, you have to be careful and consider several important factors:

1. Which currency to trade with?

Different brokers credit different amount of interest to the trading account for every 1 regular long lot.

2. What is interest free broker?

You have to find a forex broker that allows opening positions for an unlimited time and that changes small flat fee for every night of each lot held. Why is that a good thing, you may ask? In most cases, when a broker changes money for holding the position, you are most likely to be able to hold the position for unlimited period of time, which is exactly what you need.

3. How much money do you need?

If you don't have enough in your trading accounts, hedging won't work. The last thing you need is a margin call in the middle of your profitable deal. The only way to keep this from happening is to maintain large account balance or a way to perform quick money transfers between two brokers.

4. How to maintain the "losing account"?

You must have a smart money management plan. One of the well-known techniques is to take out the profits from one account and deposit the excess to the losing account. The main problem is that some forex brokers do not allow a withdrawal while your position is still open, therefore this is another thing that you need to check before starting trading.

See also www.forexvote.com, great resource for free forex trading tutorials.

Non Dealing Desk Forex Brokers

Dealing Desk or Non Dealing Desk Forex Broker

Most Traders are not realizing that their success in trading currency markets is depending on their sponsoring broker. There is an "artificial market" that has been creating and fully controlled by most of very well branded brokers that claim that are Non-Dealing. Many of us that trade through for example FXCM, IBFX, FXDD, FXSol, Gain Capital, Investtechfx, Alpari and many many more, are trading in Artificial Market. Due to broker's full control over every traded transaction the "Artificial Market", the odds are stacked against us more then playing black jack in casino. Imagine, the dealer/broker can not only see his hand bat also yours and if he doesn't like his cards he can sneak another one from time to time.

Find broker who is offering "low leverage", brokers that offer 300:1 or 500:1 leverage have very "unique business model" - transferring money from clients accounts to their own pockets, they are not there to look after your interest, you need to remember Dealing Desk is there to take trades against you, they sell you when you are buying and buying when you are selling, they make an impression that you are transacting with "interbank" but in reality orders ends up on a Dealing Desk of a Broker. Dealing Desk Brokers DO NOT like or even ALLOW for scalping the trading.

The D.D Brokers spike rates to take out trades when it suits their purposes.

Now listen to this very carefully:

D.D Brokers "SPIKE THE RATE" of up to 10-20 pips on routine bases to fill "unbalanced" trades, leverage their own account or to meet immediate liquidity requirements. I hope one day NFA or FSA will start indicting those "branded" brokers for manipulating rates to their own advantage and ripping their trader's accounts.

Red Flags Dealing Desk
  1. "Scalpers" are not welcome, or charged a FEE for Scalping
  2. Offering FIX SPREAD and/or LOW SPREAD (0.5pip, 1pip...)
  3. Delayed Execution of your ORDER
  4. Offering Leverage 300:1, 400:1 even 500:1
  5. Slippage at closing positive trade
  6. Limiting Stop Loss at 10 or 15 pips

Advantage of The Non Dealing Desk
  1. 1No Inherent Conflict of Interest. N.D. D. brokerage firms do not trade against their clients. As facilitators of trading, they do not take positions that may from time-to-time conflict with the interests of individual traders.
  2. Market Access. STP (straight through processing) N.D.D. brokers offer every trader, no matter of a size, equal access to the interbank market. The rates (bid and ask prices) are not set by an individual broker but those derived from active trading between participating banks, institutional investors, FCM's and individual traders. The process itself makes every trader regardless of size an independent market maker.
  3. Anonymity: Trading is done in total anonymity - the N.D.D. broker does not know or have a need to know your positions so stop loss orders are not/cannot be targeted for takeout when a broker has a need to meet liquidity requirements.
Pricing Intervention (Bias). N.D.D. broker rates as well as bid/ask prices come directly from the interbank system. They are not filtered or otherwise manipulated to maintain established (undisclosed) profit margins or spiked by the broker to gain a trading advantage.

Transparency. No games No gimmicks. What you see is what you get, dollar in dollar out - Straight Through Processing (STP)

Spreads are Variable, Not Fixed. The Forex is an extremely liquid market. Spreads are in a constant state of flux and when traders trade through a STP non-dealing desk their tickets are cleared through BBO model Best Bank Offer.

During peak trading hours, spreads can drop to zero, a fact most traders using a dealing desk are not aware of. During off-peak hours, spreads can be considerably higher.

Straight Through Processing /Non-dealing desk brokers don't offer or execute trades based on fixed spreads. They charge a nominal transaction fee. Such is not the case with the dealing desk broker. Whether interbank spreads are high or low, they just boost their rates to guarantee the profits they have imputed in their fixed spreads. They also generate an undisclosed amount of income trading against their trader clients.

You can visit www.vertifx.com if you want to trade with The Non Dealing Desk.

Reputable Forex Brokers

Tips For Choosing a Reputable Forex Broker

One of the easiest and quickest ways to find a Forex broker is by contacting your local licensing authority. They are responsible for issuing brokers their licenses so that they can be in business. If a prospective broker does not have a license, avoid dealing with them. Avoid the scam artists who pose as brokers and offer fantastic deals that sound too good to be true. Start out cautiously so that you don't get taken advantage of before you get some experience.

There are many forex brokers in our present world but getting a reputable one is a hurdle to cross. However, taking the following features into consideration will put you in a better position to determine who your broker will be.

1. A broker must be well capitalized
Before you pitch your tent with a broker, investigate its capital base to know if it is well capitalized. This will give you the confidence that your earnings would be adequately and promptly paid. If a broker is not adequately capitalized, it will be having problems in paying earnings to its clients.

2. A broker must be licensed
The National Futures Association (NFA) is the body that regulates the forex industry. It is your responsibility to confirm that your prospective broker is licensed by NFA. If not, whenever you have any problem with your broker, you are on your own. But to be on a safer side, simply visit NFA's website to confirm that would-be broker is recognized by the industry's regulator.

3. A broker must have a good online reputation
It is important to know what people are saying about a broker online before opening an account on its platform. Visit forex forums and seek other people's opinion about your choice broker. One way or the other, you will come across those who have traded and are still trading on the platform you desire to trade on.

4. A broker must have an excellent trading platform
Before you can have a wonderful trading experience, your broker's trading platform must be excellent. It must be up-to-date with new features that enhance earnings. Research has led some brokers to come up with improved, easy-to-use trading platforms that make trading a stroll in the park.

5. A broker must have an efficient customer support unit
A reputable forex broker must respond to customers' complaints promptly. The customer support unit must be available 24/7/365 and must be able to handle all complaints satisfactorily. Experience shows that there is no way you will not contact the customer support staff at one time or the other, hence, before you open an account with a broker, make an inquiry into the activities of its customer support department. It is very imperative to confirm that the staffs in the department are professional and efficient or else your forex trading experience would be far below average, and you don't deserve that.

Tuesday, 3 July 2012

ECN Forex Brokers With MT4

Known to be the best online trading platform, Metatrader4 is concerned with providing brokerage facilities to customers involved in Forex Trading. If you can lay your hands upon MT4 you will not need anything else to become successful in online forex trading market. A platform that provides every facility regarding currency trading to forex brokers, Metatrader4brokers is the most leading trading platform in the industry. It gives excellent services to its customers and has got some of the most unique advantages. Below are the topmost benefits of MT4.

Perfect Security System

One of the most important features that make Metatrader4 a highly recommended choice of Forex brokers is its perfect security system. Its user interface, easy to follow procedure and introducing broker service facilities make it the most preferred choice in online forex market. The best thing about this software platform is that you do not need to be skilled to access this software. Using a metatrader4 brokers software platform not just provides you with perfect security system but also increases your accuracy in currency trading.

Multi-Currency Issue

This one of a kind software platform not just provides with complete security but also handles the multi-currency issues, which means that you will never face any kind of language barrier while using MT4. This system is accessible in various languages so that you can use it as per your convenience. Also the software platform is known for its dependability and reliability. You can immediately access it to a particular plug- in to use it aptly.

Get Real-Time Updates

Along with vast security, the main thing forex brokers are concerned about is the real-time updates and that is one feature that the Metatrader4 can uniquely perform. It provides immediate updates on the important information associated with forex market trading and delivers all sorts of reports and precise data to forex traders. Once you get yourself familiar with the features of this software, you should have no problem coping with it to strive for earnings in the online forex market.

Choose metatrader4 to get every facility you need from a software trading platform. The software comes with both the back office parts and front terminals and has been designed keeping all important factors in mind.

Kingdom Forex, an IBC based ECN/STP Forex Broker offers online forex trading services through Metatrader4 forex trading platform. Visit the site www.kingdomforex.com, open live forex trading account, get expert forex analysis and start forex trading today.

Forex Binary Options Brokers

A low cost Forex binary option broker has the ability to open the world of high yielding returns to day traders with lower capital than you would have to come up with to trade standard options. Foreign exchange is an extremely fast paced investment market, in which daily investor transactions are expected to top $110 billion dollars per day on the open exchanges. One would think the vast amounts of individual currency changing hands can at times create imbalances in the market however the retail (as it is called) market is dwarfed by the daily volume of the amounts of institutional trades that pass through the Bank of International Settlements (BIS).

It is the institutional traders trading mostly on behalf of hedge funds or for their own accounts that account for an estimated 80% of the daily volume of currency trades. This makes trading directly on foreign currency movements a dicey proposition for retail day traders like you and I. This is why another type of trading has emerged as the leading investment of choice for individuals wanting to participate in the foreign currency market: Binary Options.

Forex binary option broker/dealers offer small trade makers the opportunity to buy put and call positions on the major cross rates such as Yen/Dollar, Dollar/Euro, Dollar/Pound, Euro/Yen, even Dollar/Swiss Franc is open for trade on the binaries exchange. This market offers the average trader the chance for a fixed high yield return with a payout either hourly or at the end of the day. Trading is fairly simple - as the transactions are denominated in dollars by your forex binary option broker, and simple call or put orders are made with the click of the mouse.

A few quick clicks to a forex binary option broker will get your account open with as little as $100. Trades expire at the end of the day or hourly and have a simple fixed percentage payout structure. Learn more about what trades you can make with a forex binary option broker account at www.binary-option-broker.com. Keep in mind that all it takes is two $200 in the money trades per day nets you $300 in profit per day.

Top 100 Forex Brokers

Top 100 Forex Brokers:
  1. Forex Capital Markets (FXCM) - Website: fxcm.com
  2. eToro - Website: etoro.com
  3. Oanda (FXTrade) - Website: oanda.com
  4. FX Solutions (FX Sol) - Website: fxsol.com
  5. Advanced Currency Markets (ACM) - Website: ac-markets.com
  6. Interbank FX - Website: interbankfx.com
  7. Global Forex Trading (GFT Forex) - Website: gftforex.com
  8. Capital Market Services (CMS Forex) - Website: cmsfx.com
  9. Easy Forex - Website: easy-forex.com
  10. Interactive Brokers - Website: interactivebrokers.com
  11. MB Trading - Website: mbtrading.com
  12. Saxo Bank London (Saxo Bank) - Website: gcitrading.com
  13. GCI Financial (GCI Trading) - Website: saxobank.com
  14. FXDirectDealers (FXDD) - Website: fxdd.com
  15. Dukascopy Swiss FX (Dukascopy) - Website: dukascopy.com
  16. Marketiva - Website: marketiva.com
  17. GAIN Capital Group (GAIN Capital) - Website: gaincapital.com
  18. Forex Club (FxClub) - Website: fxclub.com
  19. CMC Markets - Website: cmcmarkets.com
  20. MG Financial Group (MG Forex) - Website: mgforex.com
  21. ForexGen - Website: forexgen.com
  22. GFX Group (GFX) - Website: forex.ch
  23. ODL Securities - Website: odlsecurities.com
  24. Deutsche Bank (dbFX) - Website: dbfx.com
  25. TradeStation Securities - Website: tradestation.com
  26. iForex - Website: iforex.com
  27. MIG Investments (MIG Fx) - Website: migfx.ch
  28. FXOpen - Website: fxegypt.com
  29. AVA FX - Website: avafx.com
  30. Alpari IDC (Alpari) - Website: alpari-idc.com
  31. Questrade Inc. (Questrade) - Website: questrade.com
  32. ForexWebTrader - Website: forexwebtrader.com
  33. Delta Stock - Website: deltastock.com
  34. MoneyForex Financial (Money Forex) - Website: moneyforex.com
  35. FOREX YARD (FOREXYARD) - Website: forexyard.com
  36. Admiral Markets - Website: fxservice.com
  37. IG Markets - Website: igforex.com
  38. LiteForex (Lite Forex) - Website: liteforex.org
  39. Finotec Trading Inc. (Finotec) - Website: finotec.com
  40. thinkorswim - Website: thinkorswim.com
  41. E*Trade Financial (ETrade Prof.) - Website: etradeprofessional.co.uk
  42. Realtime Forex SA (Realtime Forex) - Website: realtimeforex.com
  43. IFC Markets - Website: ifcmarkets.com
  44. Windsor Brokers, Ltd. - Website: windsorbrokers.biz
  45. Real Trade Group - Website: realtrade.lv
  46. Pro Finance Group Inc. (PFGFX) - Website: pfgfx.net
  47. HY Markets - Website: hymarkets.com
  48. Neuimex Direct Dealing (Neuimex) - Website: neuimex.com
  49. InterBank Group - Website: interbankgroup.com
  50. The Royal Bank of Scotland (RBG) (formerly ABN AMRO) - Website: marketindex.rbs.com
  51. Dealing24 (formerly PRO-FOREX) - Website: dealing24.com
  52. Foreign Exchange Clearing House - Website: forex-swiss.com
  53. Ikon Global Markets (IkonGM) - Website: ikongm.com
  54. Pip Forex - Website: pipforex.com
  55. Infinity Futures FX (fomerly ProEdge FX) - Website: infinityfutures.com
  56. Forex Capital Trading (ForexCT) - Website: forexct.com
  57. PFG BEST - Website: pfgbest.com
  58. X-Trade Brokers (XTB) - Website: xtb.com
  59. FIBO-FOREX.LT - Website: fibo-forex.lt
  60. Tradex Swiss AG - Website: tradexfx.com
  61. Fx Direkt Bank AG (FxDirekt Bank) - Website: fxdirekt.de
  62. Master Forex - Website: masterforex.org
  63. Fxcast - Website: fxcast.com
  64. MF Global Ltd (Man Financial) - Website: mfglobalforex.com
  65. SpeedTrader - Website: speedtrader.com
  66. Advanced Markets - Website: amifx.com
  67. Noble Trading Worldwide - Website: nobletrading.com
  68. Apex FX Trading - Website: apexfxtrading.com
  69. FX | Clearing (FX Clearing) - Website: fxclearing.ca
  70. Capital Forex - Website: capitalforex.com
  71. Swiss International - Website: swissfs.com
  72. FxPrice LLC (FXPrice) - Website: fxprice.com
  73. TradeFreedom Securities Inc. - Website: tradefreedom.com
  74. AvailTradingCorp. (ATC Brokers) - Website: atcbrokers.com
  75. Akmos Trade - Website: akmos.com
  76. FastBrokersFx - Website: fastbrokersfx.com
  77. Halifax Online (HalifaxOnline) - Website: halifax.iitech.dk
  78. ICAP - Website: icap.com
  79. Trading Intl., LLC (Forexecutor) - Website: tradingintl.com
  80. Investment House International - Website: ihifx.com
  81. My Private Trade (MyPrivateTrade) - Website: hi.myprivatetrade.com
  82. NTWO Capital Market (N2CM) - Website: n2cm.com
  83. Cantor FX (formerly BGC FX) - Website: cantorfx.com
  84. KVB Kunlun - Website: kvbkunlun.com
  85. Advised Trading (AT Switzerland) - Website: advisedtrading.com
  86. Global Futures Exchange & Trading - Website: globalfutures.com
  87. Fx-Pro - Website: fx-pro.com
  88. GOForex (formerly Pacific Trader) - Website: pacconsec.com.au
  89. ATG Marketplex (Aaron Trading) - Website: aarontrade.com
  90. FXTSP - Website: fxtsp.com
  91. Global Forex - Website: fxtsp.com globalforex.com
  92. FCMarket - Website: fcmarket.com
  93. FXOnline Japan Co., Ltd (FXOnline) - Website: fxonline.co.jp
  94. Treasury Mgmt Svcs (TMS Brokers) - Website: tms.pl
  95. ADM Derivatives, Inc. (ADM) - Website: admd.com
  96. Hudson Global Capital - Website: hudsongc.com
  97. STIFX - Website: stifxonline.com
  98. Exto Capital - Website: extocapital.com
  99. Forex Trading USA - Website: forextradingusa.com
  100. FxLite - Website: fxlite.com


Monday, 2 July 2012

Low Spread Forex Brokers

When you start your Forex trading you will find that the Forex brokers, do not ask for a commission for their service. But of course, they do not perform their operations for free. They make money by charging a "spread" from the investor. It is therefore very important to find out a low spread Forex trading platform.

The first thing you'll need is a low spread Forex trading broker. These companies don't typically ask for a commission or transaction fee. They don't provide a service for free either. They make their money on what is called the spread. This is the difference between the bid and ash price of a currency pair.

Although you may read how there are no commissions with the Forex, that really isn't true. It's just called a spread instead of a commission. Brokers still make money on transactions. All of the brokers have spreads.

For example, if you were to buy and then immediately sell a currency pair that had a 3 pip spread between the Bid and Ask price, you would be down 3 pips. This occurs even if the market price is exactly the same when you buy and when you sell.

One minor difference between stocks commissions and FX spreads is when you pay it. For currency pairs, you pay it when you buy. With stocks, you pay when you buy and when you sell.

You want to find a broker that has a low spread on the top two currency pairs. Chances are, you will want to focus your trading on the Euro/U.S. Dollar and the Great British Pound/U.S. Dollar. So, check out the spread amounts with these two pairs. You will definitely want a low spread for these. A spread of 3 Pips is what I currently pay.

If you're like me, you will be generating trade signals yourself through automated software. Because of this, you will want to find a discount broker to ensure you are getting the lowest spread prices possible. There's no need to pay high spreads from regular brokers if you are a hands on trader.

A small deposit requirement is something you should look for as well. With the right trading system, you should only need a few hundred dollars to start trading. There are lots of companies who only require deposits of $250 to $500.

While seeking the service of the broker, you must learn the terms and conditions of the spread offered. It should not involve any hidden cost. You may find several reliable sites who periodically performs assessments of brokers. You can seek help of one such site before choosing your forex broker with small spread.

So there you have it. Low spread Forex trading is changing the lives of thousands. It can do the same for you. Your next step after finding a low spread forex broker? Get yourself a trading system that is easy to use and makes consistent profits.

ECN STP Forex Brokers

What Does STP - Straight Through Processing Mean?

An initiative used by companies in the financial world to optimize the speed at which transactions are processed. This is performed by allowing information that has been electronically entered to be transferred from one party to another in the settlement process without manually re-entering the same pieces of information repeatedly over the entire sequence of events.

What Does ECN - Electronic Communication Network Mean?

An electronic system that attempts to eliminate the role of a third party in the execution of orders entered by an exchange market maker or an over-the-counter market maker, and permits such orders to be entirely or partly executed.

The Disgruntled

The broker grumblings and trading malcontent is not new and has been around since the Forex market began. As of late this discussion is exceedingly fierce and is gaining in popularity. As we all know change is not something we embrace. Such questions like, Why are my spreads changing and getting wider? I do not ever remember spreads being this far apart. My order slipped more pips then it would have normally. What is going on? Why is this happening now?

As the market changes and adapts the Forex trader evolves. The evolution of a trader is witnessed by the news traders which have needed to change strategies, and how they trade economic news. The potential to make great gains is apparent with economic news releases, and it was not long before traders caught on. Such strategies as straddling the market prior to news releases became more prevalent.

How does the market react to such changes?

How does this affect brokers, traders and what are the consequences of using ECN/STP type brokers and does it benefit a trader to use an ECN given the above circumstances? The answer to this requires some further inspection into market makers and their relationship with Interbank Forex market and subsequent liquidity providers.

It's no secret retail brokers are the counter party to all of your currency market transactions. When you execute your trade the opposite side of your trade is taken by another trader just like you. The resounding affect for the broker is they receive a commission for facilitating your trade.

Now let's look at another means to facilitate your trade. Rather than sending your trade to liquidity providers for processing there are market makers which take the opposite side of your transaction in order to assist facilitating the trade. A Market Maker may decided because the feel your going to lose anyways it benefits them to take your order and keep in house.

In the first instance where one trader is available to take the opposite side of your trade is ideal until there is no volume then you get to understand an ECN and STP broker. With an ECN and STP you are submitting market orders. Market Orders get filled when there is the volume to do so otherwise you get off quotes which tell a trader nobody is willing to risk taking your trade/order. During times of high volatility such as economic news, spreads can widen with an ECN, STP and any other type of broker unless you have a broker which charges a fixed spread. Not only will the spreads perhaps widen you may not get your order filled at the price you intended. Seconds could pass before you get filled causing slippage or requoting.

So now you see how it's possible to be perfectly happy with your broker and then the rules change and you start to see more instances of slippage, more requotes and or off quotes then you had seen previously. You are really at the mercy of the market. The more traders that jump on board and trade economic news the less likely the conditions will remain favorable. How long do you suppose a broker and subsequently a liquidity provider going to be willing to lose money. So it should become obvious a business model change is in order. The same ECN broker you used previously for news trading is now not so willingly to facilitate your order(s) at the price where you could potentially turn a profit. Your broker is having issues with all of those orders for Euros that nobody wants now. So what does the market maker do now? Well they will slip the price, widen spreads or shutdown the ability to trade during new releases.

So you're not happy anymore. Is it time to look for a new broker?

When the playing field changes for you as a trader suspicion sets in and you start to wonder if your broker is not taking advantage of you. You have certain expectations when you go to place your order and now it just seems like you're not making any money and you feel as though your broker has pulled a fast one. So you start to look around for a better deal. You ask your trading colleagues and search the internet to make a change.

So what now? Where do you look?

In your search you find the perfect broker for your specific needs. You read the hype and it seemed vaguely familiar but you need a home and they are telling you there are no requotes, off quotes or slippage. So you proceed to download their demo, and the spreads are amazing. Not only that but they have straight through processing and direct market access.

The STP/ECN experience

Your perception and faith is once again restored. We always thought the STP/ECN model would finally put an end to cheating and if we ONLY could trade with a direct link to the market unlike those dirty rotten dealing desks we would be set to trade profitably and without intervention.

Immediately you begin to notice slippage even though you were sold a bill of goods of no slippage. So why does this happen? Well you are getting a taste of the true STP/ECN environment. You are not really getting slipped you are getting exactly what you asked for. A real dynamic market which provides traders with market orders. The market changes in a nano second at times, so because price is not static the price you requested is not always the price which is being offered at that time. So your not being cheated you are getting precisely what you asked for, the only difference is the price moved prior to your getting filled. In a heavily volatile market the differences can be more glaring then a pip or two and that's even if you get filled. It is possible during times of economic news you may not get filled at all. Bottom line just because you are selling does not mean someone is going to buy what your selling especially during times of uncertainty.

You should if you have not already get a feel for the market during news times where there is a frenzy of activity both from bankers and speculators on news. You will see price moves erratically so if you are planning to participate in this kind of market you should know all bets are off. There are no stops losses nor take profit price guarantees. You are at the mercy of what the market give you during times of heavy volatility.

Another consideration are commissions. With an ECN or STP broker you generally pay a commission and spread but at least the spread is a true raw spread and not increased or manipulated by your broker. You're seeing spreads the liquidity providers sets.

In the end your left wondering is an ECN really worth it?

It depends on your trading style if an ECN/STP is right for you. The reason these types of models are gaining in popularity is because of transparency. The STP/ECN model allows for pricing to go directly to the market without any intervention by the intermediary such as with a dealing desk type model. This model also can give you peace of mind with respect to their inability to take advantage of price manipulation. This is not an absolute fool proof nor absolute transparency however its what we have to work with presently. It is the best means we have to work with and as you have no doubt discovered where there is an opportunity to exploit, someone will always attempt to do so.

Bottom line is if you are happy then there is no need for you to change brokers or means of how you trade forex. STP/ECN models are not the be all and end all but if you are needing to get closer to the actual market then this may be the model for you. There are some really good market makers out there which offer enough benefit that is worth staying especially if you have a smaller account. Such things they may offer are never having to worry about losing more money then what is in your trading account. Perhaps you are trading with an EA or Expert Adviser which scalps the market for a few pips.

Obviously if your spreads are not tight then you are either not going to be profitable or not as profitable as you be with a company which provides guaranteed fixed spreads. Other considerations when choosing a broker include, leverage, speed of execution, funding methods and a host of other items you need to fully understand.

Related Posts