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Saturday, 23 June 2012

Forex Trading Brokers

Before a Forex trader can embark on their trading journey, one of the first thing every trader must do is selecting a Forex trading brokers. Since Forex is an over-the-counter market, it is not as heavily regulated as compared to the stock market, as a result, there are literally thousands of online broker to choose from and selecting the right broker is like going shopping on boxing day. Below is a list of five qualities that you should consider when selecting the best Forex trading brokers:

1. Company's Year in Operation and It's Financial Regulation

Because of the popularity of Forex in recent times, you will notice an insurge of brokerage company offering Forex trading in the last few years starting from 2008. Newer company does not always affect their reliability but it is advisable for a smart trader to choose an older company around 2003 or even pre-2000 as they have more experience with handling Forex transaction and possibility in most cases, provide better customer support.

Before signing up with any brokerage, it is also important to cross check rather the company is financially regulated. This ensures that your deposited money is protected in an event of a crisis so the loss of your capital will be compensated accordingly.

2. Platform Reliability and User Interface

Every brokerage offers a unique trading platform with various features that are suited to traders' need. It is important to get familiar with the particular brokerage trading platform as you will be spending most of your trading time executing your trade there. The best thing to do is before depositing real money, most brokerage offer free practice account so you can familiarize yourself with the platform and its many features.

3. Spread

Spread is the difference between the ask/bid price. This is essentially how the brokerage makes their money off their client. Well, everyone got to find their own way to make their own money right? Ideally, you want to shop for brokers that offer low spread. Typical spread range for standard account trading the most common currency: EUR/USD is 2-3 pips. Depending on the size of the account, it is even possible to go as low as 0.9-1.5 pips on EUR/USD if you negotiate with your brokerage. This is important because every trade you make, spread cuts directly into your profit. This is especially the case for scalper or daytraders who do high volume trades per day. Therefore, it is important to keep spread lows so you can keep your profit at the end of the day.

4. Leverage

Most brokerage offers 50-200 times leverage. Some even offers 400 times leverage. Leverage is of course a double-edged sword because it could mean double the rate of return on investment or double the rate of loss. It is advisable for beginning trader to start with 50x first before moving into the standard 100x leverage and move on higher when you have the capital to do so. Again, proper money management is key to long-term FX success.

5. Deposit currencies of choice

In the past, most Forex trading is conducted in US dollar as most traded currencies on the board are pegged to the US dollar. However with the instability of the US dollar, some brokerage are beginning to offer accounts in Euro or Yen. It might be a smart move to use these alternative currencies as they are becoming more reliable and rises in value in comparison with the US dollar.

Best Forex Brokers

Criteria For Selecting the Best Forex brokers:

The Forex market is considered the largest financial market in the world. About $1.5 trillion are executed through the daily currency trading and this is the only market that offers 24 hours trading. Thanks to levers, the potential to multiply your capital and make profits are high.

For the best brokers the requirement for participating in currency trading is that they provide access to Forex traders. But what are the other aspects that determine the best Forex brokers? A minimum requirement is the use of real-time quotes, to allow quick, market-oriented actions. Also, it is useful for a broker to provide various analysis, charting tools, and a free unlimited demo account for beginners.

Individual brokers also differ in the minimum deposit, payable by the investor, as well as by the number of tradable currency pairs. Depending on whether traders want to trade only with the major currencies, or with foreign currencies, currency plays an important role in choosing the best Forex brokers.

Some Forex brokers offer training programs that can be used by beginners or advanced traders to expand their level of expertise in foreign exchange. The best brokers offer good support, available 24 hours a day. The best Forex brokers also offer various deposit options for different accounts. Integrated real-time news systems also assist you in understanding price movements and identifying entry and exit points in time. This is useful as foreign exchange rates react very quickly after news about economic or political events. If you are informed quickly, you are able to react in time and make good trading decisions.

# Minimum Size of The Forex Depot

Most brokers usually require a minimum deposit for the depot. These minimum deposit sizes vary between brokers but are generally between U.S. $10, and $50,000, (sometimes even larger amounts). One should also inquire in advance, about the payment limits for accounts, sometimes there are not only minimum deposit amounts but also maximum deposit amounts.

# Trading Software

This is important, you should find out in advance if the used trading software is installed locally (Windows / Mac / Linux) or whether a web-based access is used by the browser. Both options have their advantages and disadvantages, so it could be beneficial to have both versions offered together. You can then, depending on the situation (e.g. failure of a computer) go back to a local software or web browser. It is an advantage if the best Forex brokers also supports the MetaTrader software. This software is a quasi-standard in professional Forex trading, and a first choice for many when it comes to choosing trading software.

# Demo Accounts

Most of the best Forex brokers offer demo where you can practise using their trading software. But remember that these account often have a limited life span. Demo accounts that are available for longer, or are unlimited can be a big advantage.

# Maximum Leverage

The maximum leverage indicates actual money with which traders can use to perform trades. The charm of trading Forex is that you can trade large sums of money with little actual money. e.g.: with a leverage of 100 you can with a trade $ 100, and in Forex currency pairs its worth U.S$ 10,000.

# Margin

The safety margin measures the performance of a trader on the Forex market. The top brokers protect their traders against losses that might otherwise incur in trading. A minimum margin of 1% is required at a leverage of 1:100, and a trade volume of U.S. $ 10,000 requires a margin of U.S.$ 100.

See more on the best Forex brokers and how to choose them at www.forextactics.net or see some Forex broker reviews here, good luck!

Friday, 22 June 2012

ECN Forex Broker Reviews

Forex ECN or Forex electronic communications network is the network system of Forex brokers and Forex traders. Forex ECN started due to the advent of home computers and the worldwide spread of internet access. This system is designed for online streaming of market activity and Forex trade results. This system is based on the online connection between Forex brokers and Forex traders from all venues; from the large banking institutions to major Forex traders to individual Forex traders.

The ECN system eliminates the need for a third party or middleman; because there is a direct connection with prospective traders. This in turn allows for immediate execution of online trades because the order is viewed immediately by the seller. The ECN system matches trade orders to the active trading market.

Orders on the ECN system are processed in real time. With an ECN broker you will get better spreads on transactions and as a trader this will definitely be to your benefit. In addition to the other benefits of using a Forex ECN broker you have the luxury of complete anonymity for the execution of your trades. Since the market is always in flux the availability of viable trades is always in existence even during a volatile time in a particular trading market.

Also the ECN market allows for versatility in trading by handling orders of any size. ECN brokers will not bid against you. The ECN brokers also use trading platform software but it will not be as user friendly as other systems because it is primarily designed for use by the broker. Another perk of an ECN broker is the availability of a demo Forex trading account this allows you some time to become acclimated with the ECN system and broker before jumping into the market.

With the ECN system, a Forex ECN broker can act in your place in many capacities not only for the buying and selling of foreign currencies but a broker can also seek out multiple buyers/sellers and make bids for you to all of them. Also in that same respect the fulfillment of purchase obligations can come from multiple liquidity sources. An ECN broker cannot control the market pricing or availability.

In addition an ECN broker will charge a fee or commission for their online services and it would be well worth the time to have a broker acting for you. An ECN broker helps to get you better prospects on trades. With any Forex trade or ECN trade you will need to exercise caution because the Forex market is an unstable market and any trade that is executed is subject to become a loss if poorly strategized or executed.

You can visit www.fxopen.com to get more detailed information.

Swiss Forex Brokers

Many traders are placing their funds in Swiss accounts for better protection and privacy. Forex brokers in Switzerland is something to think about when deciding where hold your trading funds.

Forex Brokers in Switzerland:

Thursday, 21 June 2012

Top Forex Brokers

Top Forex Brokers Review: The Top 4 Forex Brokers are Saxo Bank, GAIN Capital, GCI Financial Ltd., and CMS Forex.

1. CMS Forex

CMS Forex accepts no commission, demands a small amount of only $200 to establish a mini account, provides users with a Free Demo account, provides leverage as high as 400:1, and has a 3 to 4 pip spread on major currencies.

2. Saxo Bank's

Saxo Bank's ForexTrading.com offers 24 hour online trading, streaming news from three major providers, detailed analysis from in-house experts, direct online chat to dealers, and a secure trading environment.

3. GAIN Capital

GAIN Capital gives its asset managers robust technology, wholesale dealing spreads, consistent liquidity, fast execution, and access to a wide range of sophisticated tools. GAIN Capital's proprietary trading technology today supports over $60 billion in monthly trade volume. GAIN Capital's FOREXTrader has streaming prices in 14 currency pairs, real time profit and loss account information, sophisticated risk management tools, a variety of simple and complex order types, and full reporting capabilities.

Professional dealing practices and a service-oriented approach has earned GAIN Capital a reputation as a world class provider of foreign exchange services. Client and partners from over 110 countries currently rely on their technology, execution and clearing services, and administrative tools. For individual investors, GAIN Capital operates FOREX.com, which offers advanced, yet easy-to-use trading tools along with lower account minimums and extensive educational resources.

4. GCI Financial

GCI Financial is one of the world's largest online brokers offering commission-free trading in Forex. GCI Financial offers Internet trading software, fast and efficient execution, and the low margin requirements. GCI Financial's free trading software gives the investor the edge in execution, market information, and account management. GCI Financial offers forex and indices on an online dealing platform. In their forex trading platform the trader can add and remove instruments from the ""dealing prices"" window to fully customize the trading.

Forex Trading Broker Reviews

Forex Trading Broker Review

After having accounts at several online brokerages, I've found myself maintaining one at Oanda for the last several months. There are many reasons for this (I will discuss them later), but the reality is that it comes down to service and dependability. At least, it does for me.

Many brokerages offer very high leverage amounts, such as 100:1. I've even seen as high as 500:1, which can get anyone into a whole pile of trouble if they don't know what they're doing. Oanda is quite honest in this respect, and their support desk is unlikely to recommend that you utilize such a high leverage amount. They recognize that if you're in this game long term, you won't be using it anyway.

They may sometimes have a large spread than most when the news hits (20 pip), and though many people may see this as a disadvantage, I am happy to live with it as Oanda really comes through when it counts. Their tight spreads (1.5 pip) on every transaction (regardless of size) helps regulate the cost of doing business, and if you're to become a successful trader, you'll need to monitor your expenses. I am quite happy that Oanda is as honest and as regulated as they are, for it gives me a stable and reliable trading platform to use.

They offer free practice accounts to anyone that wants to dip their hand into the Forex "game", but doesn't actually want to get it wet. For a new user, this feature alone is worth whatever cost of membership they may incur when they become a live trader with Oanda. I wish that I had the ability to try live trades with real market conditions, one with fake money, when I was first beginning to trade. Only God knows how much money I would have saved during those first frightful trades.

The Technology and The Company

The biggest praise that I have for Oanda, by far, is their Java-based trading platform. Because of how it is run (Java), I am able to access it from nearly any computer. This means that, no matter where I am or where my home computer is, I am able to access my account and make trades as I need to. This has been a terrific way for me to monetize on several of my hunches.

Their trading platform is 100% automated, allowing for instantaneous trades and minimal loss as a result. They claim the fastest execution at the best price, and this has certainly been the case in my experience.

Oanda was incorporated in 1996, and has steadily grown from offering a simple currency converter to offering their own trading platform, live market analysis, economic forecasts, and more. Oanda prides themselves on the level of dependability and trust they have developed, both with small-time traders and large Fortune 500 companies.

Oanda in a Nutshell

I recommend Oanda to any trader due to their continued dependability. In this business, a reliable, stable platform is just as important as tight spreads or low commission rates. Oanda, though not perfect, is just better than the rest.

You can learn more about Oanda at www.brokerjam.com and find real testimonials from traders who use it.

Wednesday, 20 June 2012

Best Forex Broker Reviews

Best Forex Broker Reviews - eToro is The Best Forex Broker?

The Forex marketplace is very exciting with over $3 trillion traded all over the world daily. However, if you are going to trade you need a good solid trading strategy that you execute with discipline, and a good broker.

eToro was set up with the vision to create an extremely usable trading platform that traders from novices up to professionals could use.

For those new to Forex there are video tutorials to take you through the first few trades, the platform also takes on a game like atmosphere to make everything as easy and fun as possible.

As you gain experience or for seasoned traders, there is a professional mode which continues to have the same functionality, but without the game like experience.

The spreads at eToro go down to 2 pips which is extremely competitive in the industry. Pips are basically the cost of trading, the difference between the bid and ask price. Many brokers will charge 5 pips as a standard. If you trade frequently this can become very expensive and eat into profits.

They also have a very reliable platform, which is essential. Many brokers in the industry also experience 'slippage' or re-quoting, which means that a trader cannot buy or sell at the price they wan,t and have to be re-quoted at a less advantageous price.

The customer service team are available 24 hours a day and they are focused on providing a community feel and have a lively forum for exchanging ideas.

There is also a full comprehensive training program and free practice accounts for those who would like to gain confidence, or develop their trading strategies.

Traders can start their first real money trades with as little as $50.

For more information on eToro you can visit this link.

Thank you for reading and good luck!

Tuesday, 19 June 2012

Forex Broker Reviews & Ratings

Forex Broker Reviews and Ratings

Are you simply fed up with browsing the internet for finding out the right forex broker? Then what you need is some authentic forex broker rating. Your Forex trading depends on the brokers, as they help you to succeed in the market. Forex brokers are individuals or agencies who help you to gain from the market and to cover the risk of your investment. The brokers help you in managing your accounts, in executing your orders, or to inform you of market trends. So the forex broker rating is what you need before zeroing on the right broker you are looking for.

You will find a number of websites suggesting forex broker rating. There are some criteria, which you must consider to find out a good, dependable broker. Few basic parameters will be to know what is the minimum amount the broker is asking for to open up an account, will there any commission charged, or the facility to operate a mini account etc.

The first thing you need is to identify your personal selection criteria for your forex broker rating. Your forex broker rating criteria must make it sure to confirm that they are registered under the regulatory agencies like Commodity Futures Trading Commission (CFTC) and they have membership in NFA. These agencies are instituted to save investors from the impostors and to stop abusive trade practices, manipulation etc.

Another important factor for rating the forex brokers will be to judge their reputations. If the broker is from an agency you can be more assured, as the broker will be regulated by the agency itself. Your forex broker rating should be formed by evaluating the type of account you want to open, the demo-accounts they offer or the kind of trade platform they have.

Some forex brokers may offer you to open an account with various currencies like yen, dollar, pound, etc. If you have decided to trade in a particular currency, you must be aware of the exchange rates. Forex broker rating should consider the brokerage or the commission asked for. Very few brokers in forex ask for direct commission, and therefore, you should find out what special they are offering in exchange of this commission. Try to find out if the broker is having any signal services, which may influence your forex broker rating greatly.

Leverage is another factor that helps you to succeed in forex trading. So, while rating the forex brokers you have to consider on the fact the amount of leverage they are offering. But one thing you must remember that as you increase your leverage, your risk also increases. In forex broker rating you can look for whether the broker may offer you some customized service either free of cost or with some small subscriptions. Judge the brokers very carefully based on the forex broker rating as the selection can make or break your trading.

To discover the best Forex brokers around you can visit www.instantforexincome.com. Good luck!

Sunday, 17 June 2012

Forex Broker Reviews

Online Forex Brokers Review

Choosing the best online Forex broker for you is an important decision since how well your broker operates can have an effect on your profits. It can also make your trading easy or complicated, depending on the quality of the broker.

There are many online Forex brokers these days. They all are eager to attract as many customers as they can find. But not all brokers are created equal and it's important that you take the time to make sure your broker provides everything that you need to trade easily, simply, and profitably.

# Reliablilty

It's important that your broker be reliable. This is important for 2 reasons:
  1. The trading platform itself has to run without glitches so that you can trade at your convenience wherever there's an internet connection.
  2. You need a reliable broker to deposit money with them and make withdrawls when your profits soar.
This is why it can be an advantage to work with well-known Forex brokers.

# Ease of Use

The trading system your broker provides needs to be easy to use, navigate, and learn. You don't want things to get overly complicated. You want to make money as easy as possible, so choose a broker which offers a user friendly interface.

# Support

You need to be able to contact your broker easily by phone or email to ask questions or report any problems which may arise. Make sure your broker has a support system in place.

# Extra material

You want your broker to provide you with additional Forex material to make your trading easier and more profitable. The good brokers provide additional Forex information and news and may even alert you to possible money making opportunities in the marker. Don't settle for just a trading platform, but make your broker a 1-stop solution for your Forex needs.