Wednesday, January 22, 2014

Five questions you should ask your broker about !!

Precisely why Size Does Subject

Size matters. Because the foreign exchange market is an over-the-counter market without any centralized exchange, not everyone receives entry to the same rates or quality associated with execution. Institutions with the biggest trade volume along with the most solid financials gain access to better prices and also execution. The even bigger the broker, the better they will pass on some great benefits of size, better rates, and better execution to your account.
Who Executes Your own Orders?

Not all Fx Brokers quote rates the identical way. Below usually are two possible selections:

Dealing Desk implies that your Forex Specialist creates the charges and executes the orders. The spread is generally fixed, which implies that traditionally, the spreads are above average variable propagates. Check for rules on placing orders during news or maybe economic events; for most traders, this can be a key time in order to trade.
No Dealing Desk results in that multiple banks stream competing rates through your Fx broker, so your orders are executed by the banks themselves. This means that there are normally no restrictions on trading news or maybe economic events, however, you should check with all your broker.

Fractional Pip Pricing

Most major foreign currency pairs are offered to four decimal sites, so a pip would typically equal. 0001 or maybe one basis level. Forex Brokers generally round the price up or right down to the nearest pip; however, many now offer Fractional Pip-Pricing. It ads one more decimal place, so spreads are usually tighter and more accurate.
Scalping the marketplace

Many traders prefer short-term scalping strategies, which involves placing orders inside spread. For scalping to get profitable for your client, the market maker must lose, consequently some Forex Brokers disallow the tactic. This strategy involves an increased level of danger.

Rollover is usually interest earned or maybe paid on Fx positions held instantaneously. It varies with regards to the difference in rates of interest between a foreign currency pair and fluctuates day by day with the mobility of prices. A poor Roll is after you sell a foreign currency that pays higher interest rate, so you fork out interest. A Positive Roll is after you buy a foreign currency that pays higher interest rate, so you can certainly earn interest. Negative Rolls are regimen, but not all Forex Brokers offer positive rolls.

The "Carry Trade" can be a popular Forex strategy which advantages from Positive Rolls along with the high leverage available in the foreign exchange market. For example, in the event you buy the USD/JPY, you can make a positive roll. You are essentially borrowing the japanese yen at a low interest rate cost to obtain the US dollar having a high interest fee earning. Remember in which leverage can substantially amplify your failures, so beware of the technique, as it posesses high level associated with risk.

Hedging lets anyone simultaneously hold Trade positions in the identical currency pair. The simplest way to trade a market if you're uncertain about its direction would be to find concrete assist and resistance ranges. This allows you to pinpoint levels wherever significant price action is going to take place.

Hedged positions don't necessarily limit danger as traders can buy themselves losing on both sides with the trade. While this strategy tends to perform temporarily in array markets, it does not work well in trending areas. Placing stop-loss orders on your own positions to mitigate your risk is usually strongly recommended.

The National Futures Relationship, a self-regulatory organization in the united states, adopted a new Compliance Rule 2-43 just last year that prohibits clients of Forex Dealership Members to wide open a "hedged" position inside same account. This rule may not apply to Forex Dealers outside the US.
Customer Support

Forex trading works twenty-four hours a day. Does your Fx broker? When you inquire further questions, do they response them clearly and also honestly or do they give you the run-around? Should your Forex Broker can’t response the 15 questions below, you may wish to look for one who can.

Friday, September 13, 2013

What is ECN Brokers ?

ECN brokers is shorten symbol of electronic communications network and ECN Brokers is A forex financial expert who uses electronic communications networks (ECNs) to provide its clients direct access to other participants in the currency markets.

Because an ECN broker consolidates price quotations from several market participants, it can generally offer its clients tighter bid/ask spreads than would be otherwise available to them.

in the simple definition way 
  An ECN is like Dukascopy forex broker. They don't trade against you so there is no need to manipulate the price. They consolidate bank quotes and show you the best bid and offers available. Spreads are tighter, but you have to pay commissions. When you make a trade they pass it through to interbank, so the counterparty is a real trader. Leverage is generally lower and minimum balances are higher. Interbank trades in $100,000 increments, so you need to be large enough to fit $7-10 per pip trades into you rmoney management.

Sunday, June 9, 2013

three steps to choose a good forex broker

there are many different choices you can see out there but when you choose the one you want to put your money with you must consider to put this three steps in your mind .

Step 1: Do a full research

Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself:
  1. Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.
  2. Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy.
  3. How much or how little leverage will a broker give you?  We highly recommend you review before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie
  4. Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature.
  5. Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither.  This information is important to traders who hold positions overnight.
  6. Does this broker offer premium services such as charting, news feeds, and market commentary? How important are premium services to my trading?

Step 2: Compare brokers

you must see what is the best offers for you and what broker can produce you a smallest spread and fast and good support etc .

Step 3: Open demo accounts and ask questions. 

Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.
Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.