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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.