Most people new to financial trading open a currency trading account because they have been drawn in to foreign exchange, or forex, as a way of making money online. This article will look at six things to be careful about when opening such an account.
1. Financial stability of your broker
Always make sure your broker has a capital base of at least $7 million USD or £5 million GBP. It should also be registered in the UK, USA, a European Union country, Switzerland, Australia or Japan with the appropriate statutory body. In the UK it's the Financial Services Authority and in the USA it's both the US Commodity Futures Trading Commission and the National Futures Association.
2. Your broker's status
All brokers are either FCM (Futures Commission Merchant) or ECN (Electronic Communication) Broker. It's often difficult to determine which, as most brokers don't seem to think it important. Always choose an ECN broker. Such a broker won't have its own dealing desk, but will pass all trades on to the market, as he is supposed to. ECN brokers also tend to have the best spreads and prices, and have no restrictions on trading or hedging. FCM brokers can have their own dealing desks, and often fail to pass trades on to the market, instead matching one client up against another or, failing that, betting against the client. They can then distort the prices on their platform to make it easier for the client to be stopped out and lose his money.
3.Check the costs
Most brokers have their charges set out clearly on their web site. Check these carefully and compare one against another. Some brokers have "roll-over" fees when one accounting period ends and the next one starts.
4. Pressure to start trading with real money
Nearly all brokers offer a "demo" account to get started in forex. Use this for as long as it takes until you're thoroughly familiar with trading. You're bound to make many mistakes and misjudgments in forex - even experienced traders make losing trades regularly. Make sure you lose all the money you're bound to lose on a demo account and not a real one.
Many brokers boast of how much leverage their accounts allow. Some even go as high as 1:400. This is frankly crazy, even for a hardened trader. You, as a beginner, are bound to lose all your money if you fall for this. It doesn't matter so much on a demo account, of course, but even then you should treat the money as real, or you won't really learn. Once you are making steady, if small, profits on a demo account, you can open a real one, but even then start small, trading only $1 or £1, as the case may be, per point.
5. Reliability of your broker
Search the name of your prospective broker on the forums to see if anyone has been having any problems with web site uptime or difficulties in getting telephone support. Check this also with the broker before you open an account.
6. The broker's trading platform
This should be uncluttered and easy to understand at a glance. You should be able to choose the currency pairing and whether to go long or short with one click. Stop loss and limit orders should be easy and fast to enter. If the platform is either MetaTrader 4 or myForex there should be no problem. The charts should be easy to read, even if you have up to four on your monitor at once. There should be at least a fully customisable Simple Moving Average indicator.
Finally, if you find you're not really suited to forex trading (and probably most people aren't) then consider using a system other than spread betting, and instead trade shares, indices, commodities and options. These don't have the volatility of forex, and you don't need to sit in front of your monitor all day.
Philip Gegan is a retired UK lawyer who has studied the financial
markets since 1991. You too can make profits such as 70% in less than
a week on gold at http://www.onlinefinancialtrading.com
Article Source: http://www.articledashboard.com/Article/Selecting-a-Currency-Trading-Account---6-Checkpoints/922329
Sunday, June 28, 2009
Beginners Guide to Currency Trading
There was a time when you say currency trading; the first thing that most people will think is that this is the domain of large financial institutions. That day is over; right now anyone with interest and with an access to the market thru technologies like the internet can participate in currency trading. Are you one of those who are interested to dip your fingers in the wild world of currency trading? If you are mesmerized by currency trading and wants to copy the lifestyle of millionaires who profited from dealing these currencies, then let this little guide be of help.
In this form of trading, any place can be considered as the location for currency trading. There is no regulated exchange to speak of, as compared to the regulated exchange where futures and stock trading can happen. In currency trading, there is no identified central governing agency that can guarantee the trades and can act as the mediator once something wrong happens on the trades. What happens is that traders are left to fend for themselves and they will trade with each other based upon the credit requirements or the financial standing of other trader. As they say, the only thing that can seal the deal between two players in currency trading is the proverbial handshake.
At first glance, this informal set-up where the currency traders can leave other traders of other markets bewildered, confused and frustrated. They may even say that this informal set-up will lead to nothing and will lead to the eventual collapse of what we refer to as currency trading. But for years now, currency trading and the so-called informal market is still there thus this says a lot about the informal set-up. This means that the informal set-up and self-regulation works.
In currency trading, a third player in the form of an agent or a broker is non-existent. This market is considered as the market for principal players only, with no room for brokers. Another interesting feature of the currency trading is that players actually sell and buy nothing. This is true because the market is speculative in nature, and trades are initiative and finished on computers. The market still exists in order to provide an avenue for large players like corporations in order for them to trade the currencies on a continuous basis. For example, some business organizations need to buy currencies in order to cover the cost of the transactions incurred when doing business with other businesses and organizations from other countries. But these transactions are said to be just a fraction of the market, and still the bulk of the market are still considered as speculative in nature as participated by large participants like financial institutions who hedge and speculate.
Though every country is represented by their own currencies and there are hundreds of countries out there, only a few are traded heavily in the market. These are called the majors which include the EUR/USD, the USD/JPY, the GBP/USD and the USD/CHF. These four majors are backed by the commodity pairs of AUD/US, the USD/CAD and the NZD/USD. These currencies are the most active in currency trading, accounting to almost 95 percent of the trades made every day.
Trying to find information on currency trading? Look no further, we cover everything you need to know in our
Currency Trading Guide. Head to http://www.yourtradingzone.com/currency-trading to get started today!
Article Source: http://www.articledashboard.com/Article/Beginners-Guide-to-Currency-Trading/893401
In this form of trading, any place can be considered as the location for currency trading. There is no regulated exchange to speak of, as compared to the regulated exchange where futures and stock trading can happen. In currency trading, there is no identified central governing agency that can guarantee the trades and can act as the mediator once something wrong happens on the trades. What happens is that traders are left to fend for themselves and they will trade with each other based upon the credit requirements or the financial standing of other trader. As they say, the only thing that can seal the deal between two players in currency trading is the proverbial handshake.
At first glance, this informal set-up where the currency traders can leave other traders of other markets bewildered, confused and frustrated. They may even say that this informal set-up will lead to nothing and will lead to the eventual collapse of what we refer to as currency trading. But for years now, currency trading and the so-called informal market is still there thus this says a lot about the informal set-up. This means that the informal set-up and self-regulation works.
In currency trading, a third player in the form of an agent or a broker is non-existent. This market is considered as the market for principal players only, with no room for brokers. Another interesting feature of the currency trading is that players actually sell and buy nothing. This is true because the market is speculative in nature, and trades are initiative and finished on computers. The market still exists in order to provide an avenue for large players like corporations in order for them to trade the currencies on a continuous basis. For example, some business organizations need to buy currencies in order to cover the cost of the transactions incurred when doing business with other businesses and organizations from other countries. But these transactions are said to be just a fraction of the market, and still the bulk of the market are still considered as speculative in nature as participated by large participants like financial institutions who hedge and speculate.
Though every country is represented by their own currencies and there are hundreds of countries out there, only a few are traded heavily in the market. These are called the majors which include the EUR/USD, the USD/JPY, the GBP/USD and the USD/CHF. These four majors are backed by the commodity pairs of AUD/US, the USD/CAD and the NZD/USD. These currencies are the most active in currency trading, accounting to almost 95 percent of the trades made every day.
Trying to find information on currency trading? Look no further, we cover everything you need to know in our
Currency Trading Guide. Head to http://www.yourtradingzone.com/currency-trading to get started today!
Article Source: http://www.articledashboard.com/Article/Beginners-Guide-to-Currency-Trading/893401
Currency Trading in the UK
In recent past the UK currency rates drastically came down after the Bank of England predicted that the future of the Foreign Exchange investment would be not so bright because the recovery of the economy and bank lending conditions coming back to the normalcy would be time taking affairs.
Even the deteriorating conditions of UK economy and the market trends in April 2009 were indicating at UK currency trading to have a tough time ahead.
But as the currency trading hugely depends on the correlations between the moves of different currency pairs, the oil prices and profits in US equities have caused the jump of the UK currency against the US dollar.
The latest leap of the Sterling against the US dollar has shown that the world economy has started moving towards a positive direction as the UK currency has gone up almost 6% against US currency in 2009 May, making the highest monthly gain after 1993.
According to the US business review and Euro Zone, the global economy has started recovering from the shock the recession has caused. Though it will require time but the trading conditions in the world market are sure to improve in future.
But the IMF opposed this view and said that UK economy has very poor chance of quick recovery and will continue to be unstable in coming days. It further warns the investors to be cautious as the UK market is still vulnerable and can cause more damage to the financial sector.
Though the current improvements in world economy have given the UK currency trading an impetus, it does not seem to last long.
The forecast issued by the US Federal Reserve for the next three years is also very bleak. According to it there will be only some average improvements in the US as well as the world economy.
According to the market analysts these gloomy views about the future of the global economy, the forecast about the future risks of unemployment and other severe problems have made the investors feel worried and insecure.
This eventually hurts the sentiment of the UK currency traders as well. UK stocks have also shown several drops recently and therefore the investors are still shaky about making any trading in UK currency.
According to many experts the recent leap in sterling seems to be just a temporary thing. The possibility of UK economy to go through further rough patches is restraining the traders to deal in UK currency.
For more information about foreign exchange please visit: Currency Trading UK
Article Source: http://www.articledashboard.com/Article/Currency-Trading-in-the-UK/916038
Even the deteriorating conditions of UK economy and the market trends in April 2009 were indicating at UK currency trading to have a tough time ahead.
But as the currency trading hugely depends on the correlations between the moves of different currency pairs, the oil prices and profits in US equities have caused the jump of the UK currency against the US dollar.
The latest leap of the Sterling against the US dollar has shown that the world economy has started moving towards a positive direction as the UK currency has gone up almost 6% against US currency in 2009 May, making the highest monthly gain after 1993.
According to the US business review and Euro Zone, the global economy has started recovering from the shock the recession has caused. Though it will require time but the trading conditions in the world market are sure to improve in future.
But the IMF opposed this view and said that UK economy has very poor chance of quick recovery and will continue to be unstable in coming days. It further warns the investors to be cautious as the UK market is still vulnerable and can cause more damage to the financial sector.
Though the current improvements in world economy have given the UK currency trading an impetus, it does not seem to last long.
The forecast issued by the US Federal Reserve for the next three years is also very bleak. According to it there will be only some average improvements in the US as well as the world economy.
According to the market analysts these gloomy views about the future of the global economy, the forecast about the future risks of unemployment and other severe problems have made the investors feel worried and insecure.
This eventually hurts the sentiment of the UK currency traders as well. UK stocks have also shown several drops recently and therefore the investors are still shaky about making any trading in UK currency.
According to many experts the recent leap in sterling seems to be just a temporary thing. The possibility of UK economy to go through further rough patches is restraining the traders to deal in UK currency.
For more information about foreign exchange please visit: Currency Trading UK
Article Source: http://www.articledashboard.com/Article/Currency-Trading-in-the-UK/916038
Secrets of Currency Trading Software
Secrets of Currency Trading Software Divide the Rich and Poor Traders by David Hurst
Since the existence of currency trading software has been made open to public, many novices have the opportunity to make a fortune they never imagine. This has always been the secret of professional traders to make consistent profits with the forex market.
Just like the market for gold and silver, there is also a specific market for foreign currencies. To produce more liquidity, the value of foreign currencies fluctuates on a daily basis. This means theat there are profits to be made in this market for those who know when to buy and when to sell, relating to the term bid and ask price.
Savvy and professional investors have taken the time to study and predict the right time to buy and sell. These groups of investors have finally decided to expose their strategies and allow others to obtain consistent wealth, just like how they have been.
The truth is out…
What they did is developed the currency trading software to help others understand the currency market. The beauty of this kind of software is that it not only illustrates how the currency market works, but also provides real time instruction on when to buy and when to sell.
This is a great advantage to all humans, even professional traders as we are often delusionized by our constant Fear and Greed when the market goes live. This is something even professional traders find it hard to perfect them.
So with currency trading software, the trading robots in it are designed to efficiently execute and exit the trade based on a specific algorithm or strategies fixed by the founders or creators.
The Secret of Simplicity…
With that said you can basically just set up your software up and leave it. By now, you can see why many forex newbies and advanced traders who use them tell you why they can NOT sit in front of the computer whole day watching charts, and still make profits consistently.
Currency trading software has helped many achieved autopilot income and freedom. By using the currency trading software, you too can seize the day and start seeing bundles of money flooding your account.
Find out how this type of currency trading software makes forex newbies and pro traders consistently 95.9% winning trades and why it is constantly being rated the best forex trading software in the market. Go to ForexOnlineSoftwareTrading.com
Article Source: http://www.articledashboard.com/Article/Secrets-of-Currency-Trading-Software-Divide-the-Rich-and-Poor-Traders/923165
Since the existence of currency trading software has been made open to public, many novices have the opportunity to make a fortune they never imagine. This has always been the secret of professional traders to make consistent profits with the forex market.
Just like the market for gold and silver, there is also a specific market for foreign currencies. To produce more liquidity, the value of foreign currencies fluctuates on a daily basis. This means theat there are profits to be made in this market for those who know when to buy and when to sell, relating to the term bid and ask price.
Savvy and professional investors have taken the time to study and predict the right time to buy and sell. These groups of investors have finally decided to expose their strategies and allow others to obtain consistent wealth, just like how they have been.
The truth is out…
What they did is developed the currency trading software to help others understand the currency market. The beauty of this kind of software is that it not only illustrates how the currency market works, but also provides real time instruction on when to buy and when to sell.
This is a great advantage to all humans, even professional traders as we are often delusionized by our constant Fear and Greed when the market goes live. This is something even professional traders find it hard to perfect them.
So with currency trading software, the trading robots in it are designed to efficiently execute and exit the trade based on a specific algorithm or strategies fixed by the founders or creators.
The Secret of Simplicity…
With that said you can basically just set up your software up and leave it. By now, you can see why many forex newbies and advanced traders who use them tell you why they can NOT sit in front of the computer whole day watching charts, and still make profits consistently.
Currency trading software has helped many achieved autopilot income and freedom. By using the currency trading software, you too can seize the day and start seeing bundles of money flooding your account.
Find out how this type of currency trading software makes forex newbies and pro traders consistently 95.9% winning trades and why it is constantly being rated the best forex trading software in the market. Go to ForexOnlineSoftwareTrading.com
Article Source: http://www.articledashboard.com/Article/Secrets-of-Currency-Trading-Software-Divide-the-Rich-and-Poor-Traders/923165
Currency Trading - Two Sides to a Most Important Coin
Your Currency Trading Platform - Two Sides to a Most Important Coin by pegweb
Your currency trading platform is like the golden key, the last piece of the jigsaw puzzle, in your strategy to profit from currency trading. It's a modern wonder of computer software engineering - a multitude of different coding and languages woven together seamlessly to produce a means of trading a world wide market from anywhere in the world.
Before you sign up to any brokerage deal, check up on the trading platform it requires you to use. Quite likely it will be MetaTrader 4 or myForex, in which case you should have all the tools you are going to need, with a few left over. If it's anything else then don't commit yourself to anything other than a demo account until you're thoroughly familiar with the platform provided.
There are two fundamental components to a currency trading platform - the interface through which you place, amend and close orders, and the charting and indicator faculties which help you decide how to trade. The interface is basically similar on whatever platform you use - you select the currency pairing and click on either the bid price or ask price, filling in the stop loss and limit order levels immediately afterwards.
This takes just seconds but replaces a procedure that, before modern computers and the internet - and currency trading platforms - was complex, lengthy and often frustrating. No wonder currency trading has taken off so rapidly in recent years.
The charting and indicator faculties of any currency trading platform are just as important, for these help you decide whether to trade at all, and if so in what currency pairing and whether to buy or sell. But it's not as easy as many sellers of forex systems or software would have you believe. The traders who make profits from currency trading have usually spent months or years developing their own system, sometimes losing thousands in the meantime.
Once you decide on a trading platform you should study it at length. Become thoroughly familiar with it. Get used to reading charts quickly and deciding whether now is the time to trade it. If you trade with a demo account every day then you will rapidly improve until you feel confident enough to trade with real money.
If you're still struggling to make a success of currency trading, it certainly isn't down to the platform you're using. It's down to a combination of yourself and the currency trading market itself. Just remember that currency isn't the only thing traded on the financial markets. There are easier things, even if they don't have the glamour of Forex.
Philip Gegan is a retired UK lawyer who has studied the financial markets since 1991. You too can make profits such as 70% in less than a week on gold at http://www.onlinefinancialtrading.com
Article Source: http://www.articledashboard.com/Article/Your-Currency-Trading-Platform---Two-Sides-to-a-Most-Important-Coin/922347
Your currency trading platform is like the golden key, the last piece of the jigsaw puzzle, in your strategy to profit from currency trading. It's a modern wonder of computer software engineering - a multitude of different coding and languages woven together seamlessly to produce a means of trading a world wide market from anywhere in the world.
Before you sign up to any brokerage deal, check up on the trading platform it requires you to use. Quite likely it will be MetaTrader 4 or myForex, in which case you should have all the tools you are going to need, with a few left over. If it's anything else then don't commit yourself to anything other than a demo account until you're thoroughly familiar with the platform provided.
There are two fundamental components to a currency trading platform - the interface through which you place, amend and close orders, and the charting and indicator faculties which help you decide how to trade. The interface is basically similar on whatever platform you use - you select the currency pairing and click on either the bid price or ask price, filling in the stop loss and limit order levels immediately afterwards.
This takes just seconds but replaces a procedure that, before modern computers and the internet - and currency trading platforms - was complex, lengthy and often frustrating. No wonder currency trading has taken off so rapidly in recent years.
The charting and indicator faculties of any currency trading platform are just as important, for these help you decide whether to trade at all, and if so in what currency pairing and whether to buy or sell. But it's not as easy as many sellers of forex systems or software would have you believe. The traders who make profits from currency trading have usually spent months or years developing their own system, sometimes losing thousands in the meantime.
Once you decide on a trading platform you should study it at length. Become thoroughly familiar with it. Get used to reading charts quickly and deciding whether now is the time to trade it. If you trade with a demo account every day then you will rapidly improve until you feel confident enough to trade with real money.
If you're still struggling to make a success of currency trading, it certainly isn't down to the platform you're using. It's down to a combination of yourself and the currency trading market itself. Just remember that currency isn't the only thing traded on the financial markets. There are easier things, even if they don't have the glamour of Forex.
Philip Gegan is a retired UK lawyer who has studied the financial markets since 1991. You too can make profits such as 70% in less than a week on gold at http://www.onlinefinancialtrading.com
Article Source: http://www.articledashboard.com/Article/Your-Currency-Trading-Platform---Two-Sides-to-a-Most-Important-Coin/922347
The Way How Forex Currency Trading Performs
If you have ever wondered what actually the meaning of “Forex” is and where it has been arrived from, you’re at the right place. For your kind information, Forex has been derived from the terms: Foreign Exchange. The process to exchange a currency with another is well-known as the Foreign Exchange. Generally, this process is held with the purpose of making some significant profits.
When it comes to Forex currency trading, you can now participate into it easily than ever before. Actually, it wasn’t so a couple of years ago. It was totally the banker’s era and investors with small amount of investment were not allowed to participate in Forex currency trading activities. Most of the interested traders have to give up their willingness as they lack funds and tools required for attaining success in Forex currency trading. However, today you are not limited with such restriction and could enjoy and make money with Forex currency trading even if you hold a small amount to deposit initially.
At present, whenever you see the term Forex when surfing the Internet, you may also notice the words currency pair allied to it in most cases. It’s because the currency pairs actually are what Forex trading consists of.
The value of currency pairs also differ from one currency pair to another. Some currency pairs are considered more superior than others and you might see those entitled as the “majors”. Take a note that this information is something that you’ll need to gain lot knowledge about if you seriously want your career to be forwarded with Forex Currency trading. Therefore, try your best to learn about Currency pairs as much as possible.
Although you may not be able to learn about the entire currency pairs, you should learn the ones trading most often. Then once you are ready to enter into the Industry of Forex trading, choose to trade only such currencies that you gain a lot of information about.
Your key focus in Forex trading should be to obtain a currency which chances to gain popularity is higher compared to other currencies. Actually, you can consider it as a horse race. When you choose to participate in some betting activities at the race track, you’ll always prefer placing your bet on such a horse which strong historical background is something that you are already aware of. And there’s no doubt that it is the same with Forex trading.
How do you know about a currency that is going to hit the peak rank in future? You study the trends until you gain utmost information about them and the possible circumstances arriving with them. An ideal trend is actually what the bank knew and pursued from the very beginning when the trading is not preferred by other small investors. The trade is also what you have to pursue when it comes to Forex trading.
http://KungFuForex.com
http://InfiniteForex.com
http://FXMasteryAsia.com
Article Source: http://www.articledashboard.com/Article/The-Way-How-Forex-Currency-Trading-Performs/891529
When it comes to Forex currency trading, you can now participate into it easily than ever before. Actually, it wasn’t so a couple of years ago. It was totally the banker’s era and investors with small amount of investment were not allowed to participate in Forex currency trading activities. Most of the interested traders have to give up their willingness as they lack funds and tools required for attaining success in Forex currency trading. However, today you are not limited with such restriction and could enjoy and make money with Forex currency trading even if you hold a small amount to deposit initially.
At present, whenever you see the term Forex when surfing the Internet, you may also notice the words currency pair allied to it in most cases. It’s because the currency pairs actually are what Forex trading consists of.
The value of currency pairs also differ from one currency pair to another. Some currency pairs are considered more superior than others and you might see those entitled as the “majors”. Take a note that this information is something that you’ll need to gain lot knowledge about if you seriously want your career to be forwarded with Forex Currency trading. Therefore, try your best to learn about Currency pairs as much as possible.
Although you may not be able to learn about the entire currency pairs, you should learn the ones trading most often. Then once you are ready to enter into the Industry of Forex trading, choose to trade only such currencies that you gain a lot of information about.
Your key focus in Forex trading should be to obtain a currency which chances to gain popularity is higher compared to other currencies. Actually, you can consider it as a horse race. When you choose to participate in some betting activities at the race track, you’ll always prefer placing your bet on such a horse which strong historical background is something that you are already aware of. And there’s no doubt that it is the same with Forex trading.
How do you know about a currency that is going to hit the peak rank in future? You study the trends until you gain utmost information about them and the possible circumstances arriving with them. An ideal trend is actually what the bank knew and pursued from the very beginning when the trading is not preferred by other small investors. The trade is also what you have to pursue when it comes to Forex trading.
http://KungFuForex.com
http://InfiniteForex.com
http://FXMasteryAsia.com
Article Source: http://www.articledashboard.com/Article/The-Way-How-Forex-Currency-Trading-Performs/891529
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