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 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 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 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, 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 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, 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, 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 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, 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 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:
  2. eToro - Website:
  3. Oanda (FXTrade) - Website:
  4. FX Solutions (FX Sol) - Website:
  5. Advanced Currency Markets (ACM) - Website:
  6. Interbank FX - Website:
  7. Global Forex Trading (GFT Forex) - Website:
  8. Capital Market Services (CMS Forex) - Website:
  9. Easy Forex - Website:
  10. Interactive Brokers - Website:
  11. MB Trading - Website:
  12. Saxo Bank London (Saxo Bank) - Website:
  13. GCI Financial (GCI Trading) - Website:
  14. FXDirectDealers (FXDD) - Website:
  15. Dukascopy Swiss FX (Dukascopy) - Website:
  16. Marketiva - Website:
  17. GAIN Capital Group (GAIN Capital) - Website:
  18. Forex Club (FxClub) - Website:
  19. CMC Markets - Website:
  20. MG Financial Group (MG Forex) - Website:
  21. ForexGen - Website:
  22. GFX Group (GFX) - Website:
  23. ODL Securities - Website:
  24. Deutsche Bank (dbFX) - Website:
  25. TradeStation Securities - Website:
  26. iForex - Website:
  27. MIG Investments (MIG Fx) - Website:
  28. FXOpen - Website:
  29. AVA FX - Website:
  30. Alpari IDC (Alpari) - Website:
  31. Questrade Inc. (Questrade) - Website:
  32. ForexWebTrader - Website:
  33. Delta Stock - Website:
  34. MoneyForex Financial (Money Forex) - Website:
  35. FOREX YARD (FOREXYARD) - Website:
  36. Admiral Markets - Website:
  37. IG Markets - Website:
  38. LiteForex (Lite Forex) - Website:
  39. Finotec Trading Inc. (Finotec) - Website:
  40. thinkorswim - Website:
  41. E*Trade Financial (ETrade Prof.) - Website:
  42. Realtime Forex SA (Realtime Forex) - Website:
  43. IFC Markets - Website:
  44. Windsor Brokers, Ltd. - Website:
  45. Real Trade Group - Website:
  46. Pro Finance Group Inc. (PFGFX) - Website:
  47. HY Markets - Website:
  48. Neuimex Direct Dealing (Neuimex) - Website:
  49. InterBank Group - Website:
  50. The Royal Bank of Scotland (RBG) (formerly ABN AMRO) - Website:
  51. Dealing24 (formerly PRO-FOREX) - Website:
  52. Foreign Exchange Clearing House - Website:
  53. Ikon Global Markets (IkonGM) - Website:
  54. Pip Forex - Website:
  55. Infinity Futures FX (fomerly ProEdge FX) - Website:
  56. Forex Capital Trading (ForexCT) - Website:
  57. PFG BEST - Website:
  58. X-Trade Brokers (XTB) - Website:
  59. FIBO-FOREX.LT - Website:
  60. Tradex Swiss AG - Website:
  61. Fx Direkt Bank AG (FxDirekt Bank) - Website:
  62. Master Forex - Website:
  63. Fxcast - Website:
  64. MF Global Ltd (Man Financial) - Website:
  65. SpeedTrader - Website:
  66. Advanced Markets - Website:
  67. Noble Trading Worldwide - Website:
  68. Apex FX Trading - Website:
  69. FX | Clearing (FX Clearing) - Website:
  70. Capital Forex - Website:
  71. Swiss International - Website:
  72. FxPrice LLC (FXPrice) - Website:
  73. TradeFreedom Securities Inc. - Website:
  74. AvailTradingCorp. (ATC Brokers) - Website:
  75. Akmos Trade - Website:
  76. FastBrokersFx - Website:
  77. Halifax Online (HalifaxOnline) - Website:
  78. ICAP - Website:
  79. Trading Intl., LLC (Forexecutor) - Website:
  80. Investment House International - Website:
  81. My Private Trade (MyPrivateTrade) - Website:
  82. NTWO Capital Market (N2CM) - Website:
  83. Cantor FX (formerly BGC FX) - Website:
  84. KVB Kunlun - Website:
  85. Advised Trading (AT Switzerland) - Website:
  86. Global Futures Exchange & Trading - Website:
  87. Fx-Pro - Website:
  88. GOForex (formerly Pacific Trader) - Website:
  89. ATG Marketplex (Aaron Trading) - Website:
  90. FXTSP - Website:
  91. Global Forex - Website:
  92. FCMarket - Website:
  93. FXOnline Japan Co., Ltd (FXOnline) - Website:
  94. Treasury Mgmt Svcs (TMS Brokers) - Website:
  95. ADM Derivatives, Inc. (ADM) - Website:
  96. Hudson Global Capital - Website:
  97. STIFX - Website:
  98. Exto Capital - Website:
  99. Forex Trading USA - Website:
  100. FxLite - Website:

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.

Online Forex Trading Brokers

The widespread popularity of online trading among all types of traders have given rise to a variety of brokerage firms. Today traders can trade almost all financial instruments including stocks, bonds, commodity futures, options, funds, currencies, and much more online, from the comfort of their own home. Online trading brokers offered much fast order execution for less charges and made available a range of trading tools which once were available to only institutional and large scale traders. There are many different kinds of classifications of online trading brokers, here are some important ones.

Classification based on products is the one of the most popular. Here brokers are classify according to the access to products they are providing. They include
  1. Stock trading brokerage firms - brokers whose main service is to trade equities. Most brokers you heard about are primarily stock brokers.
  2. Forex trading brokerage firms - these are brokers who offer traders access to the worlds biggest financial market, forex currency trading market. Forex brokers tend to differ from others, as they do not charge any straight commissions, instead they profit from spreads between ask and bid price for a currency pair.
  3. Futures trading brokerage firms - these brokerage firms which allow traders to trade commodity futures. They can be of many subclasses of brokers who specialize in equity futures, currency futures, financial futures, energy futures, commodity futures, etc.
  4. Options trading brokerage firms - these are brokers whose primary trading service is for options, an interesting instrument having different underlyings such as stocks, futures, funds, bonds or currencies which offer a traders a option to buy/sell or not to buy/sell the underlyings at a future time.
  5. Funds trading brokers - includes brokerage firms which offer traders access to many mutual funds, treasury notes, bonds and Exchange Traded Funds.

But the above classification, other than forex and futures brokers, is not a clear one as most brokers allow traders to trade many products and markets. One other popular way of classification of online trading brokers is according to their trading service(s).
  1. Online full-service brokers - these are traditional brokerage firms which start offering online trading services. They allow traders to trade a vast variety of products and markets; offers more order types, and plenty of trading services. In return, they charge often high but they are well-informed of market movements and are very good in customer support.
  2. Discount brokers - they usually offer the same number of services as full-service brokers for a remarkably low charge. They highly automate their trading services. But one can never expect the same level of market knowledge, trading assistance and customer support from them.
  3. Deep discount brokers - they tend to offer lowest commissions but almost fully automating the trading procedure, even customer support. Often the traders will be limited with the number of markets and products they can trade.
  4. Day trading brokers - also known as direct access brokers, they provide traders real-time access to markets. Products and markets can be limited but they offer some of the most powerful trading systems which tremendously help in active trading.

To find the broker who best suit one, he/she must consider many factors which include trading style, products/markets, profit goals, risk-tolerance, commissions payable, order types, account specifications, past performances, accessibility, platform, and much more.

See also , NobleTrading is an Online Trading Broker for stock, options, futures, ETFs and forex currencies. Get the account features, trading tools, real-time market access and personalized customer service that every trader needs.

Sunday, 1 July 2012

Forex Micro Account

Choosing between a forex micro account will depend on the amount of money you want to invest in your trading upfront. These days you can open a micro account with just $25, while a mini account usually requires ten times that amount, at least.

The micro lot size:

The size of a micro lot is 1000, so with a $25 account we are talking about 400 to 1 leverage. This equates to high risk and makes it likely that your account balance won't last very long.

The only way to trade under these conditions is to use a proven system where large losses are few if any. There are systems with a 90 percent win rate, but it's the 10% in losses that can wipe you out quickly with such high leverage.

Why bother with a mini or micro account?

Still there are some practical uses for these smaller accounts outside of necessity. Some traders have more money and could open a larger account but choose to start small. You can also use a micro account to turn to when you really want to enter a trade that's outside your system but you can't resist for some reason. You could fund it with money that you can afford to lose, keeping mind you probably will, and fast when you decide to forgo your system and play hunches!

A micro or mini account can also be useful if you want to learn a new system using real funds instead of a demo account. This can be a good idea because it eliminates the over-confidence you can get caught up in when trading with play money.

Just keep in mind that it can go both ways, and losing is losing, no matter what account. So when you lose some or all of your small account, do your best to keep it in perspective so your confidence isn't lost as well.

When you start seriously trading the forex, your confidence in yourself is the most important factor. You need the right account size, and the right system for you, combined with a belief in your ability to trade successfully. And the understanding that every trader experiences losses. It's part of the package and to think otherwise makes forex trading nothing more than a fool's game.

If you ultimately want to trade the currency markets full-time, keep in mind that every choice you make as you begin is laying the foundation for your future results. If you take things seriously and form good habits from the start, your chances of winning more and losing less are more likely. As you know if you have ever tried to break an unwanted habit, it can be nearly impossible, so make your early trading decisions with care and they will serve you well.

Take enough time to build your trading foundation on a solid understanding of the basics, and choosing whether to open a forex mini or micro account will be obvious to you.

Offshore Forex Brokers

What You Need to Know about Offshore Forex Brokers

There are lots of disturbing developments with Forex brokers. You can find some reports of it on the Internet forums, and it is worse than merely manipulating numbers - it is downright fraud.

I'm referring to Forex brokers that are based offshore or in Third World countries, and because of their location they are very difficult to pursue legally. It is very easy with the Internet to virtually copy a refined and elaborate site, and appear to be a large corporation even if operating from the kitchen table.

Appearances are deceptive.

The foreign or offshore broker may be more concerned with taking your money than paying back your winnings, and there have been reports of brokers who literally have held onto successful accounts and not paid out anything to the winning traders.

You can fight this sort of scam by seeking recommendations from friends, and by taking great care with anyone who you do not know. Even if the broker has an American address, it has been known for this to be the residential address of an unconnected person-in one case it was a foreclosed house. If you can't visit the broker's office, then at least you should make calls to the telephone numbers given, and see if the phone is answered in a businesslike manner, or whether it might be a personal line. Most reputable brokers will be included in business listings, and perhaps registered with the Better Business Bureau.

In case you think that this is mere scaremongering, you should note that the Federal Trade Commission states that typical broker scams cheat clients out of an average of $15,000. In fact, the National American Securities Administrators Association has called Forex trading at best risky, and at worst outright fraud. You have reason to be very cautious when starting to trade Forex.

As so many people find Forex trading works for them, you should not let this put you off; but you should take it as a stern warning to do your due diligence thoroughly when selecting a broker, and not just take the cheapest one that comes along.

If you want to learn how to choose the right forex robots visit, for the reviews of top rated ForexRobots.

Recommended Forex Brokers

Are you one of the many Forex traders out there who are being ripped off by their broker? Honest, dependable and customer-focused Metatrader 4 Forex brokers are the basis of every successful Forex trading operation, especially if you use Forex robot traders to profit from the Forex markets. The majority of brokers are guilty of fluctuating spreads, costly requotes and downright frustrating trade rejections. If you've suffered through one or all of these issues during your trading endeavors, then by the end of this article you'll know how to quickly recognize the recommended Forex brokers to take you to Forex robot trader profits.

Here are the three fundamental characteristics of a Metatrader 4 Forex broker you should do business with to guarantee satisfaction and maximize trading profits:

1. Straight Through Processing & Direct Market Access

Straight Through Processing is another way of saying that your broker doesn't act as a market maker, and more importantly does not ever take the opposite side of your trades. If they do, they are essentially betting on you to lose. It will surprise you that many so called top Forex brokers are guilty of this, which gives rise to the unsavoury practice of stop hunting by your broker.

Direct Market Access guarantees instant execution to the market for all of your trade orders. This eliminates the possibility of costly requotes and rejections that can make or break your Forex robot trader.

2. Highly Competitive Fixed Spreads

Even though your Metatrader 4 Forex broker still has to make money from your spread to stay in business, how do you know if your broker is just plain ripping you off? Well, if you're being charged any more than a 2 pip spread on the EUR/USD and USD/JPY, that's unacceptable. The majority of recommended Forex brokers can and will give you a lower spread that is fixed regardless of market liquidity or trading times.

Competitive fixed spreads are vital for the long term profitability of your Forex robot trader, because the pip savings you make on the spread will quickly add up over time. It's your choice whether you want to keep that difference of tens or even hundreds of thousands of dollars in spread savings for yourself, or 'donate' it to an uncompetitive broker.

3. Supports Forex Robot Traders

If you check the small print of many of the top Forex brokers out there, you may find that the terms and conditions prohibit you from trading with Forex robot traders. When the time comes that you want to withdraw your funds, your broker is perfectly entitled not to honor your Forex robot trader profits, because of this policy alone.

When choosing between Metatrader 4 Forex brokers, be sure to select recommended Forex brokers that allow and fully support the use of Forex robot traders. Be sure to make sure that they also allow scalping and hedging, as many Forex robot traders strongly rely on these trading techniques.

Finally, the best recommended Forex brokers will offer an unlimited demo trading account. This is ideal for anyone who wants to perform live testing on their Forex robot trader before trading it with real money.

So, if you've been searching for top Forex brokers to run your Forex robot traders on, choose a Metatrader 4 Forex broker that has Direct Market Access & Straight Through Processing, competitive fixed spreads on the majors and most importantly, full support of Forex robot traders. Your Forex robot trader profits depend on it!

Loyal Forex is one of highly recommended Forex Brokers, you can read loyal forex review here. Right now, they are offering a 10% bonus on all deposits above $1,000 for a limited time only.