Best Forex Brokers 2020

Forex trading is a process of exchanging currencies. FX trading has never been easier and perhaps you want a piece of the action.

best forex brokers

This article will help you understand the elementary matter of getting into the game with a reputed and established broker. This page contains all the tools you need to make it as a successful trader.

So let’s get right into it.

Top Rated Forex Brokers

Rank Broker Min. Deposit Regulated Features Review
1
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3
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Choosing A Forex Broker

Forex brokers are numerous all over the world. However, whichever one you choose will be a decisive move indeed in your career as a trader. All of them look promising, but not all of them deliver on their promises. So your best choice lies with a broker that is strictly regulated by the government and has superb reviews from the majority of clients.

Once some fitting candidates are selected, you can get a little nit-picky and scrutinize these details to cipher out the right one for you.

  • Service quality: A lot of this depends on whether the broker is licensed and regulated by an authority such as the CFTC and registered with the FCM. Usually you do not have to pry any further than the broker’s official website to find out what’s what?
  • Spreads: A spread explains the discrepancy between the buying price of a currency and its selling price. It is calculated in ‘pips’. A spread essentially how the brokers earn money in lieu of receiving a commission. So unless you have a soft spot for your broker at the expense of your own financial returns – unlikely – you should look for a broker with as low a spread as can be found.
  • An assortment of tools and information: Each Forex broker has its own trading platform online that customers can access to do their trading. Usually, this platform contains additional information such as charts and other kinds of data in real time and commentaries.
  • Options in leverage:Leverage is a huge deal in Forex trading. It comes across as a ratio between the total capital relative to the real capital – the amount lent to you by the broker to trade. With ratios expressed up to 250:1, it exponentially enlarges your winning potential but also your loss if the trade does not work out as you has predicted.
  • Types of accounts: Forex Brokers usually afford multiple accounts to their traders. There is the mini account which requires a minimum trade of around $250 to activate at high leverage. The standard account enables you to work different leverages but requires a much higher initial deposit of $2000. Finally, there is the premium account which requires a still higher initial deposit to be activated and comes with more tools and services along with differing leverages.

What To Look For In A Forex Broker

Now that we have covered the essential features to look for in a broker, let us now learn what we hope not to see in a Forex broker.

  • Sniping/Hunting: These terms describe dodgy moves made by brokers to make some extra green for themselves. Naturally, no broker has readily admitted to have ever done it but no of them can be totally cleared of suspicion. The only way to pinpoint the issue is by talking to other traders who have been unfortunate enough to experience it.
  • Rigid terms on margins: If the funds you are trading with have been lent, your broker has some control over the amount of risk you stake it at. And so, the broker can buy or sell on its own terms and that can be a costly error for you. Again talk to other traders and find filter out potentially crooked brokers.

Hopefully now you have a better understanding of how to go about selecting your broker to give you a good start into the Forex market.

Bitcoin vs Ethereum

Straight away, the distinction to make regarding bitcoin here is that it is still the dominant player in the cryptocurrency arena. Although that is not to say Ethereum has not been snapping at its heels lately, it has. What Ethereum offers that bitcoin does not is a wider range of applications and functions. But let us take a more detailed look at those differences now.

Ethereum Concerns More Than Mere Money

The term ‘digital currency’ does not quite cover all of what Ethereum really is. It is after all a platform rooted in blockchain containing numerous different aspects to it. There are variables like smart contracts and the Ethereum Virtual Machine (EVM) to consider as well as the currency it uses, called ether for the same sort of peer-to-peer transaction you engage with bitcoin.

Applications stored in blockchain are used by Ethereum’s smart contracts for contract facilitation and negotiation. The main benefit of said contracts is the blockchain supplies a decentralized method of validating them. Being decentralized makes it a lot tougher for the occurrence of fraud and censors. The smart contracts have an objective not only to enhance security over traditional contracts, but also to reduce the costs involved.

Ethereum is not entirely separate from bitcoin. The two do share striking similarities. They are both decentralized peer-to-peer cryptocurrencies and use a blockchain. Both are useful for the storage and transfer of value. But the fundamental intention with Ethereum is rather different. With Ethereum, a smart contract is basically Ethereum addresses which have a viable code and are stored in the blockchain.

Both these currencies are still relatively young along with the whole concept of cryptocurrency. However, if you were to ask which of the two are more stable, the answer would be bitcoin. Perhaps that is why it is still sitting pretty on the number one spot. But who’s to say that will not change? Ethereum is fast growing and volatile in nature. In this year alone, its value has spike thousands of times over.

Implementing Smart Contracts with Your Own Cryptocurrency

With Ethereum, you can create digital tokens which can be used to can represent assets, virtual shares, proof of membership and so on. They are compliant with any digital wallet and exchanges using the standard coin API.

After copying the code on the Ethereum website, you can use the tokens for multiple reasons from the representation of shares to fundraising and voting. Based on your established rules, you can have your circulation of tokens either in a fixed amount or a fluctuating amount.

Ethereum Does Not Require You to Have a Kickstarter

Ethereum enables you to increase funding for several uses. If you are trying to get a new venture going, simply set up a contract and look to the community for assistance. The funds that have been raised will be held until the aim is reached or the any certain date that has been agreed upon in advance. If your goal is not reached, the funds will go right back to the contributors or be diverted to another project which was successful. Taking out the third party, rules, fees, and all is what constitutes kicking out Kickstarter.

Skip Over Traditional Management with Democratic Autonomous Establishments

In addition to helping you outsource your funding, Ethereum can help you with organization and structuring as well. You can acquire different proposals from people who have supported your idea and put it to a vote to decide how you should proceed. This alleviates the cost of traditional structuring that includes doing paperwork and hiring managers. Ethereum will also safeguard your project from outer influences.

Block Times

With bitcoin, your block time lasts on average for 10 minutes. With Ethereum, it is closer to 12 seconds thanks to its GHOST protocol. So confirmations are faster but there are more abandoned blocks.

Conclusion

We have not had time to cover all of the differences here but from what we have shown, it is easy to understand how Ethereum and bitcoin are two different beasts. While they have their cryptocurrency status in common, that is all there is regarding their similarities.

Bitcoin is still the more stable cryptocurrency but Ethereum branches out more. Ether is merely a working part of it smart contract operations.

Bitcoin And Forex Risks

Foreign exchange has been and still is the biggest and most liquid global market in existence. Its operations continue on 24 hours a day for 7 days a week. The current main participant in this market is currency, real currency that draws its validity out of banks and governments.

But in recent years, we have seen the participation of a new type of currency, specifically cryptocurrencies which have radically and exponentially grown since they were first introduced and have made the forex market that much more lucrative and profitable.

In fact, there are leading brokers all over the world that have included cryptocurrencies as part of their trading assets. It would not be fair to try and explain them all in a single article. What we will talk about here is the cryptocurrency known as bitcoin and the potential risks involved with trading it in the forex market.

Forex Trading and Bitcoin

The first thing to note about bitcoin for all its influence on the forex market is that it is not in fact what we call real money. It does not draw its validity from any government or bank. It is entirely a virtual currency stored in a digital wallet. The future is now, it seems.

It is fair to assume then that trading it in the Forex market is going to be different than how you would trade your average dollar, and you would be right. Let us now take a look at what a regular transaction with bitcoin looks like.

First things first, you will need to own an account with a forex broker that includes bitcoin trading as part of its services. With that taken care of, let us assume you deposited 2 bitcoins and quote the value at $500 apiece. So in dollar speak, your deposit is worth 1000. What’s more you also take up a position in British currency for which the rate of exchange is $2 for each pound. So your bitcoin deposit is worth 500 in English pounds.

As for the rate for GBP/USD, we shall call it 0.45 and you quote your position at $1,111.11. So your profit will be 11.11%. However, rates tend to change all the time so let us now say the value of 1 bitcoin has gone up from $500 to $560. If you make a bitcoin withdrawal at this point, your return will be the quoted value of your position divided by current rate assigned to bitcoin. That is 1,111/560. You now get 1.984 bitcoins.

As much as you stand to make good profits from trading bitcoin, it is always advisable to be cautious and be keenly aware of the risks involved. We have listed them down here for your benefit.

Risks of Bitcoin Trading In Forex

  1. Bitcoin is traded over several exchanges and those rates differ all the time. As a trader, you must be acutely aware of the bitcoin exchange rates being used by your forex broker before proceeding to trade.
  2. It is common for practice for the majority of brokers to immediately sell off the bitcoins and retain the same value in US currency in the midst of receiving bitcoin deposits from client traders. And that goes even if you do not actually take up a position on the forex market, so you will be left vulnerable to the risk of an unfavorable rate on the US dollar influencing your deposit or withdrawal.
  3. Traditionally speaking, the prices for bitcoin are extremely volatile. An unregulated broker can capitalize on this at a trader’s expense.
  4. Being a virtual currency, never underestimate the threat of being hacked. No, the network is not entirely immune to a cyber-attack. Any deposited bitcoins are potential targets for theft by hackers. The best solution to this is find a broker that provides insurance in the event of thievery.
  5. New traders must understand how high leverage can cost them dearly.
  6. A cryptocurrency has its own way of assigning value to itself as a separate category under assets. Trading bitcoins in the forex market is basically bringing in a new intermediary form of currency that is relatively unpredictable in the way it affects profits and losses.

Conclusion

Hopefully now you have greater insight into bitcoin works in the forex market and the potential risks there are to trading it.

Bitcoin And Forex Benefits

As you may already know, Foreign exchange is by far and away the largest, most liquid market in the world running relentlessly around the globe 24/7. And while actual currency that is validated by governments and banks is at the forefront of this market, it is worth that other far more understated element of the forex trade: cryptocurrencies.

Bitcoin and Forex: What are the Benefits?

Their arrival on the market is quite recent. However, they managed to expand exponentially in terms of value and appeal for traders. And now, we even have forex brokers that will readily accept these currencies for trading. The specific currency we want to focus on here is bitcoin and the specific risks and benefits it poses to current and would-be forex traders.

Bitcoin in Forex Trading

Now we already know how real money is traded in the forex market but what about bitcoin? Being a virtual currency that is intangible and invalid within a bank or government, bitcoin represents a whole other ball game when it comes to forex trading. Here is what a typical bitcoin transaction would look like:

The first step is opening a forex account with a broker that deals in bitcoins. Assuming that is true, let us say you make a deposit of 2 bitcoins from your digital wallet and post the value for one bitcoin at $500 which is entirely realistic here. So your deposit is worth $1000 now.

Now assuming you want to take up a position in English pounds and the exchange rate is 2 dollars for each pound. That will yield 500 pounds. Now assuming rate for GBP/USD changes to 0.45 and you quote your position as $1,111.11. That equals a profit of 11.11%. But it is quite probable that the prevailing dollar rate for bitcoin will have changed in that time.

Let us assume $560 to 1 bitcoin. So now when you make a withdrawal in bitcoins the value of your position – which is $1,111.11 – divided by the current going rate for a bitcoin – which is $560. That means you will now be getting 1.984 bitcoins.

What Are The Benefits To Using Bitcoin?

  1. Decentralized valuations: There is no central bank here that implements random valuations on bitcoins. Being decentralized allow bitcoins complete immunity to any geopolitical or macroeconomic factors.
  2. Leverage: On average, the rate of leverage offered by forex brokers on bitcoin trades can be as high as 1:1000. And this can be an enormous asset to the more experienced players. But in any case, one must pay due caution to the projected losses that could be inflicted with a poor decision.
  3. No cost for transactions: Again, no banks or clearing institutions involved here since every bitcoin transaction is recorded on a public network and none of it is on paper. As a result, transaction costs normally do not apply to bitcoin even if that transaction is international. And with brokers not imposing a liable fee on bitcoin transactions, profits are that made that much sweeter.
  4. Slim deposits are enough: With some brokers that include bitcoin, you can begin with as little as $25. It goes without saying this is only trustworthy with a broker that is highly reputed and regulated by the law.
  5. Safety: Yet another benefit of not having a bank involved is you no longer have to produce your credit card or expose your bank account to make your transactions. And that is a big plus particularly if you are trading with foreign brokers since you get more privacy and incur far less of a cost.
  6. Trading at a low cost: With more and more bitcoin traders being added as clients, forex brokers incur increasingly lower costs on their operations.
  7. Limitless possibilities: Bitcoin dissolves the whole currency concept where each country runs on a certain value currency. Bitcoin does not submit to these boundaries. It is as applicable to a trader in the United States as it is to one in Hong Kong. Wherever traders are so long as they are willing, they can trade with no geographical concerns.

Conclusion

Such is the nature of bitcoin and forex and the benefits are very appealing to a lot of traders.

ethereum

How To Learn Everything About Ethereum

For those of you who are new to the concept of cryptocurrencies, no, the ether described here is far from what it is in the Marvel universe. What Ether means here is Ethereum’scryptocurrency which at its peak value was at $400.

That is an astronomical 5000% increase since the beginning of the year. So before we go into dealing with Ethereum in the forex market, it is well to get our eye in on what it is exactly.

What Is Ethereum?

As far as cryptocurrencies go, Ethereum is a prominent asset, second only to bitcoin. Despite its name, it is not something that came out of nothing. The blockchain technology that it uses is similar in many ways to bitcoin.

However, it is a programmable blockchain which means that its platform is Turing-complete. It also mean that significantly more advanced functions and applications can be added including other cryptocurrencies.

By contrast, bitcoin is limited to a singular function, facilitating peer-to-peer transactions in the form of a digital currency. It may have been the first to exploit the benefits of the blockchain technology, it has sustained scaling issues during its 8-year old life as a result of its limited functionality.

If this year has been any indication, we have seen some truly staggering growth with Ethereum. While it still remains as the second largest cryptocurrency, it is rapidly closing in on the top contender, bitcoin. Learn about bitcoin here.

And all guesses are this will happen through a phenomena known as “Flippening.” With Ethereum’s coin value having expanded dozens of times over within the year, we can only assume that it has further to climb in the coming weeks and months. No doubt then that an increasing number of traders will be keen to capitalize on this financially. So here some ways by which you can include Ethereum as part of your trading portfolio.

1. Create an Account on an Exchange

With etheruem as with any cryptocurrency, you can only buy or sell it through a transaction on an online platform. So stake out a service for this that is highly reputed. If you want some names, there is Coinbase, Bitstamp, Kraken, and Gemini. It is imperative that you select an exchange and create an account prior to trading Ethereum.

2. Verify your Account

A good tell of whether an exchange is reliable or not is if they require that you verify your account in one or multiple ways. That usually means uploading a certain amount of documents to confirm that your account is legit. The verifying process will likely take no more than a couple of days although that is somewhat subjective to the extent of activity your choice of exchange would be involved in.

3. Make a deposit in Fiat Currency

The next step involves depositing fiat currency to your account either through a bank or wire transfer. Once again, the duration of that process can last a few days before the money comes through.

4. Start Trading Ethereum

Now that you have a verified account with money in it, you are all set to purchase Ethereum as well as other cryptocurrencies through exchange. The interface differs more or less with each currency. But any case, be ready to confirm transactions and wait the allotted time which will also be pending on the full number of transactions that have been requested.

5. Withdraw ETH into your digital Wallet

Just as you have purchased ETH via exchange, you can now withdraw that currency straight into a wallet under your control. Hacking is an ever-present threat to exchanges so yes, you tokens are potential targets for theft. As a safety precaution, it is best to download and install a wallet that is compatible with etheruem and only grants you access through a key. That is about as private a place that you can acquire for storing your tokens securely.

Next you can enter the address of your account into the exchange so you can shift ether into your wallet. Take care not to use either your wallet address, password, or private key as you may encounter difficulty getting at your ether in the future.

Conclusion

Take your time, explore all angles and you can set yourself up nicely to buy Ethereum and enjoy its perks.

bitcoin

How To Learn Everything About Bitcoin

What is ‘Bitcoin’?

Well, the dry facts are that it was created in 2009 by one Satoshi Nakamoto whose identity currently remain anonymous. The main attraction of Bitcoin is the opportunity to incur lower fees on transactions relative to the conventional payment methods found online.

In addition to that, it operates under a decentralized authority. That is of course in contrast to government-based currencies. In any case, it is an idea that has now accumulated a market cap that is well over $7 billion.

And we still do not know the person or persons who came up with it. Strange times indeed.

We realize of course that we have eluded the question asked at the very beginning: What is Bitcoin? Bitcoin is a digital currency. It is, therefore, also a non-physical entity of which balances are retained in a public ledger in the cloud which also records every Bitcoin transaction.

Bitcoins are independent of any involvement from banks or governmentsand they represent no value at all as a commodity. They deal almost exclusively in a whole other realm known asvirtual currencies. We refer to them categorically as Altcoins.

Getting a Grip on Bitcoin

Being a cryptocurrency, Bitcoin balances are kept with use of keys, both public and private. These refer to multiple long strings of numbers that are connected through the same mathematical encryption algorithm by which they were first created.

The public key is very much similar to a bank account number. It is the address to which anyone can send in bitcoins. The private key is the cryptocurrency equivalent of your ATM pin number. So it is a private detail that is used to authorize a bitcoin transmission on your part.

The Mechanics of Bitcoin

Bitcoin was among the first of the digital currencies to integrate peer-to-peer technology make payments virtually instant. “Miners” is the term given to the independent persons and companies that run the underlying computer systems and are also active participants in the network.

Their incentives are based on the release of new bitcoin and payments made in bitcoin. They are the so-called decentralized authority that is so characteristic of the bitcoin network and they keep network credible and valid.

Bitcoin mining explains the process by which bitcoins are released into circulation. The main objective is to solve the complex computational puzzle that would reveal a new block which will then be added to the blockchain and receive a few bitcoins in return.

In 2009, that reward was worth 50 bitcoins and it continues to decrease ever 4 years. With an ever-increasing number of bitcoins being added, the difficulty of the mining process also increases. Back in 2009, the difficulty commenced at 1.0. However, this year, it is north of some 4.24 billion. Naturally, this meant upgrading computing power from a standard desktop computer too way faster hardware such as Application-Specific Integrated Circuits (ASIC), and more advanced processing units like Graphics Processing Units (GPUs).

What Is The Value Of A Bitcoin?

The bottom line is it is a lot. A single bitcoin today is worth well over a thousand US dollars which is exponential growth over last year when it was valued $770. The price of bitcoin is not correlated to the extent of the mining network. As for theprice of bitcoin increases in tandem with the cost of producing it. The mining network has thus far tripled its power in the past year or so.

Who On Earth Was Behind The Whole Thing?

For such a multi-billion dollar idea, you would expect to know a great deal about whoever came up with it in the first place. At least a detailed profile on the internet and the occasional public address to a group of college students or entrepreneurs or even a charity event?

But no, nothing more than aname that could refer to literally anyone has been attributed to such a world-changing idea. That name is the infamous Satoshi Nakamoto. It is thought to be the individual or group of individuals who released the first bitcoin white paper back in 2008 and developed the original computer software to support the network in 2009.

Conclusion

The bottom line is that this is now a highly lucrative enterprise that shows no signs of slowing down for the foreseeable future.

How to Be Successful in Forex Trading

Forex trading is a good opportunity to make an impressive profit. At the same time, there is also the chance that traders can lose a considerable amount of money.

If you want to avoid an unfavorable scenario, you have to know how to be successful in forex trading.

This means understanding what things you should be doing while also being aware of the steps that could lead to a bad trade. Here, you will find a comprehensive guide on how you can maximize your success:

Choosing the Best Broker

One of your main concerns involves choosing a legitimate and a fair broker. However, your search should take another thing into consideration – compatibility. First and foremost, you should find a broker that caters to traders with your expertise level.

If you are a beginner, for instance, find one with plenty of learning and support tools that will help you learn as you trade. Also, look for trading software that has a slow learning curve or that is very user-friendly and intuitive.

Deciding on an Approach That is Right For You

No two traders are alike. This is why the first step to getting you onto the path of success involves creating a plan of action that is right for you.

This means deciding on a time frame that you are comfortable with, choosing the best possible system, and finally settling on trading instruments that are compatible.

The timeframe that you will settle on will largely depend on whether you want fast results or are willing to weather some uncertainties.

When looking for a system, however, it is all about testing and retesting them, even after you have found one that works for you. In the same vein, make it a point to test out your system on the various trading instruments. This will help you to figure out which instrument works best with your particular system.

Start Small and Allow for Organic Growth

One of the most fatal mistakes that any trader can make with forex trading is starting off with high leverage. In the beginning, always start off with small amounts and with a basic account. Let your account grow naturally, via the profits that you make from your trades.

You will need to resist the urge to get higher and higher leverage if a particular account begins to fail. If your account is just losing money, the last thing that you want to do is to incur more debt in an attempt to stem the bleed.

Employ Risk Management

There is no denying that every forex trade has a certain amount of risk attached to it. Therefore, there is always the possibility that you will lose at least some money. Fortunately, there are a few ways to minimize how much risk you can incur.

The first thing you need to here is to avoid using gambling techniques such as the Martingale strategy or to place fast trades to make a quick buck. You should also always be aware of the odds of your trade being successful beforehand.

This will help you to determine just how much of your account you are willing to risk on that particular trade.

Monitor Your Emotions

Forex trading, or really any type of trading for that matter, has a tendency to trigger extreme emotions. These include panic, euphoria, greed, and even the odd adrenaline rush. However, if you want to be successful, you need to be objective.

A good way to do this is to set a plan for yourself once you have calculated the amount of risk involved. Then, once the plan is put into motion, stick to it and don’t make any deviations, regardless of whether you are feeling giddy from a win or anxious about a loss.

This is what you need to know about how to be successful in forex trading. This is not something that will be achieved over night. Instead, it will require learning, research, dedication, and common sense. Only then will you be able to claim victory.

How to Choose a Trade Expiry Time

Once you have decided to start trading binary options, you will realize one thing. There are a considerable number of expiry times to choose from. Now, it may seem relatively simple. After all, you just have to choose when a trade is going to end.

If you have ever placed a trade, however, you are aware that there this expiry time holds a great deal of weight. In the end, it may be the difference between you winning or losing a trade. If you want some insight on how best to choose the expiry time, keep reading:

Short, Medium, or Long Term Trades

This is probably one of the biggest debates among traders – what is the ideal trade time period. Short trades are typically defined as those lasting less than five minutes. Medium trades can range from about five minutes to a couple of hours.

Long term trades may even last a full twenty four hours. When it comes to short and long term trades, there is often a lot of arguments. This is because some traders feel it is easier to determine the outcome of short term trades.

Others, however, feel that a longer time period is simpler to predict. Most will agree, however, that medium length trades are the most prudent. This is due to the fact that these intervals tend to work well regardless of the market situation. With these, you can benefit from the release of new information as well as prevent your funds from being unnecessarily tied up.

Balancing Risk with Payout

So, if medium trade lengths are the easiest to predict why are they not more popular? The answer to this is simple – the payout rate. The payout rates for mid-range intervals are a great deal smaller than with short term trades. Therefore, they are less likely to appeal to traders. As there is a greater amount of risk with short term trades, the payouts are often excellent. Long term trades, much like the medium term trades, have lower payout rates. It is important to realize that regardless of what you choose, you are trading one aspect for another. Thus, you need to decide which is more important to you.

Expiry Times and Assets

Now, what most traders fail to take into consideration is the correlation between asset type and expiry time. Asset types are quite different to one another and as such behave differently. This includes how much their value fluctuates given a certain time period. Take commodities, for instance. Unless there is a particularly volatile market situation, it is unlikely that the price is going to change quickly. Therefore, you will have better luck with short term trades.

Conversely, with stocks, you are typically only able to discern any real changes over a longer period of time. This is why long term trades are more appropriate in such a situation. With currencies, you will find yourself being more successful in medium to long trades as the currencies tend to fluctuate minutely over short periods of time.

The Deciding Factor

To start off with, you may experiment with a variety of expiration times. After all, it is only with practice and experience that you can truly decide what is best for you. You may find yourself being more comfortable with one expiry time over another. This is fine as long as you conduct the proper analysis before deciding on an expiry time. This is because what will work in one market condition will not prove to be successful in a contrary situation. This means that you should not begin to automatically rely upon one interval over another.

All of this information will help you with how to choose a trade expiry time. Remember to always base your decision on fact and research rather than intuition or ease of method.

How to Decide on Currency Pairs to Trade With

With forex trading, one of the things that you are going to need to narrow down fairly early on is which currency pairs you want to trade. Now, considering all of the options available to you, this can be quite tricky.

For instance, should you simply pick at random? Do you stick with the majors or decide on lesser considered pairs? Are there pairings that are more superior to others? In this article, we discuss how to decide on currency pairs to trade with. Here is what you need to know:

Start Small at First

Before you go any further, there is one piece of advice that you should adhere to in the beginning. Typically, it is best to start off with one pair, at least until you are more comfortable with forex trading. Many traders believe that by choosing several currency pairs, they are giving themselves a better chance at success. However, what usually happens is that they end up juggling too many duties and end up losing out with one if not more of the pairs.

The Major Currency Pairs

There are some currencies that are more well-known or widely used than others. At the very top of this list is the United States dollar. Since they have the largest economy which constitutes about 25 percent of the gross world product, it is usually the favored reference currency. Not to mention, it is largely considered to be the reserve currency of the world.

Along with the US dollar, other important currencies are the Euro, Japanese Yen, British Pound, Australian dollar, Swiss Franc. These are what are frequently traded against the dollar. Together, they make up what is known as major currency pairs.

Now, most people assume that these major currency pairs are the best ones to trade with. However, while the major currencies are the most traded pairs, they are not always the best. These pairs tend to be the most volatile as they experience fluctuations throughout the trading day. This volatility, though, gives you just as much chance to make money as to lose it. The most important thing to remember about major pairs is that they have favorable trading conditions due to lower spreads. Despite this, these may not be the best for you.

Choosing a Compatible Currency Pair

When choosing a currency pair, any currency pair, information and analysis will be your most powerful tools. This will help you to gain a better idea about the direction in which the price of a given pair will move during a particular time period. You need to be able to understand what influences price changes, whether there is volatility, and how one currency can work against another.

It is the conditions mentioned above that prove that choosing major currency pairs is not always the best option for everyone. Rather, you may find greater success with choosing pairs that you are familiar with. Since you have a greater understanding of the value as well as the factors that influence it, you have the upper hand. Oftentimes, traders find that dealing with their local currency can be quite helpful.

As a rule of thumb, stay away from currency pairs with high spreads and stick to those with 0 – 3 pips. The higher that you go, the more expensive that it can get for you. Anything over six pips may prove to be too costly for the average trader.

Good Options for Beginners

If you are looking for something relatively easy to start off with, you may want to try USD/EUR. This is largely because of its low spreads and that the technical analysis that is involved is quite simplistic. Also, these pairs experience minimal volatility so you don’t have to take on a lot of risk. The USD/JPY can be just as profitable for new traders.

This is how to decide on currency pairs to trade with. You should consider what you are comfortable with along with what can provide you with the greatest profit.

Forex Trading Strategy

Getting a forex trading account is really not far off from signing up for an equity account. There is one very real difference. And that is with a Forex account, you will need to sign an agreement that specifies that the funds you are trading with are lent to you by your broker that therefore retains the right to interfere with a trade to prevent any losses on its part.

A Basic strategy for Forex trading

Coming up with strategy for Forex trading can be a part of two kinds: technical analysis and fundamental analysis. It is worth noting that with Forex markets, technical analysis appears to be the more prevalent type of strategy used by traders. Nevertheless, it is helpful to understand both in some measurable detail regarding how they affect Forex trades.

Technical analysis

Similar to equity markets, technical analysis has a lot to do with price trends in Forex markets. However, unlike equity markets, Forex markets function 24 hours a day so some elements of the methods of technical analysis would invariably require some tweaking and adjusting. We have listed some of the most popular forms of technical analysis below.

  • Parabolic SAR
  • Fibonacci studies
  • Pivot points
  • The Elliot Waves

Such studies are combined by technical analysts to draw out sharp predictions regarding the market.

Fundamental analysis

If you have ever undertaken fundamental analysis, you might get why technical analysis is usually the more preferable strategy with Forex Trading. Fundamental analysis here is a lot more complicated but getting it right enables you to see clearly into long term trends. There are several different indicators of currency values. We have listed a few of them below.

  • Durable goods
  • Consumer Price Index
  • Non-farm Payrolls
  • Purchasing Managers Index
  • Retail sales

Aside from the aforementioned reports, other factors such as commentary from meetings can have a similar influence on the market. The meetings in question are often prompted by a need to talk about matters that deal with currency values such as inflation and interest rates. We would humbly remind the chairman of the Federal Reserve that with great power comes great responsibility.

So what is your strategy?

The truth is your strategy is bound to be as unique as you are. Pretty much any successful forex trader has been working on their trading strategy overtime and perfecting it as they go along. Experts suggest employing elements of both technical and fundamental analysis so that traders have an accurate idea of long-term happenings as well. As far as we are concerned though, there is no greater teacher here than the simple trial and error method. Only you as a trader can truly know which strategy will best serve your interests.

Just be careful to consider the following.

  1. Start off with a demo account work with it until you are confident enough to trade with real funds. That leverage potential is always intimidating enough for you to hold off yur real funds until you have gotten enough practice.
  2. Remember that facts do not care about your feelings. If you make a move based on how you feel instead what is logically valid, you just increased you chances of making a loss. Stay sober about reality and make your trades about little else except cold hard math.
  3. Always keep a watchful eye on the trends. There is no good reason to swim upstream here. Going with the trend almost always gives you a much higher success rate.

Conclusion

And that is just about all you need to know about coming up with your ideal Forex trading strategy.

5 Reasons To Start Trading Forex

Not too long ago, trading in currency was not really an option for the everyday trader as it would require a plenty of funding that was mostly possible with international corporations and inordinately wealthy individuals. However, with the growing unpredictability of the current global economy, more and more opportunities and interest have been generated making it accessible to the average trader.

Top 5 Reasons to Think About Forex Trading

Forex is short for Foreign Exchange and is essentially a market in which currencies are traded. There many reasons why one might hope to be involved in this market as it is a tool by which you can do transactions internationally and can settle accounts with your native currency. Plus, the ever changing exchange rates can offer some great profitability. Let us now go into 5 major reasons why you should think about investing in the Forex market.

1.Diversity

It is a given that the currency of any country has the capacity to drop as much as it can rise. In the Forex market, traders are not limited to dealing in a single currency. If your currency of choice is experiencing a drop, or you sense that it will drop in the near future, straight away, you can invest in any number of other currencies that show signs of being on the rise.

Unlike with stocks, no currency is completely unaffected by another. If the value of yours is going down, the value of someone else’s is going up. You just need to have the right sense of direction.

2.The game is fair

Any information concerning the market values of different currencies is readily available in real time for traders to access. The game is by no means rigged. The strings are simply too vast for that. The actual value of any currency really depends on the economic state of its country. So traders can do some solid homework and accurately determine for the most part how the value of a currency might change.

3.A Global hedge economically

Currencies are a-changing. And as a Forex trader, you have the liberty of selecting a currency that you think is going to go up in a short while. And you can do this with multiple currencies across the globe therefore giving you a better chance for landing profits from the ever changing macroeconomic climate.

4.Capital appreciation

One aspect in which currencies are similar to stocks and commodities is their capacity for capital appreciation. If your currency goes past what the dollar is worth, you will get a profit. Else, you will incur a loss.

5.A hedge against risks in politics and events

You can take into account current significant global events such as new elections, revolutions, wars, taxes, economic depressions, changes in financial policy, political uprisings, natural disasters, Legal boundaries etc. when deciding on which currencies you want to be trading in.

The risks and the rewards

As a trader, accurately assessing the risk factor involved in Forex trading not only mean that you should stay informed of how your currency is fairing within your own country but on an international scale as well. You need to be able to perceive what will happen over what is actually happening.

That is key to reaping success in the Forex market. The risks and rewards are astronomically augmented by the leverage factor. Leverage is usually an intimidating ratio, up to 100:1 in some cases. That is easily enough to surpass the actual amount of funding in your account.

What it does mean however, is that you can make a significantly high profit from a tiny investment but you can also make just as big a loss if your trade goes south.

The Forex market is not a difficult place to invest in so long as you stay updated on real time information and develop an intuition for spotting good opportunities.

Should You Try Copy Trading?

Binary options trading can be a little confusing to those who are new to this particular form of trading. Not to mention, being an inexperienced novice can have its disadvantages. The main one is that you tend to lose money on trades when you first start out.

Imagine if you could side step all of these issues, however, and increase the chances of you making a profit. This is precisely what copy trading promises to do. Of course, if you are not well versed in this option, you may be wondering should you try copy trading. Well, here are a few things that may help you find an answer to this question:

What Does Copy Trading Entail?

Before deciding on whether or not this is for you, you will first need to understand what copy trading is.

With copy trading, you will be getting advice on which trades you should be making. This advice is typically given by traders who are not only experienced but have also found a great deal of success with binary options trading.

There are two types of copy trading that you can follow. The first involves you signing up to follow a trader of your own choosing. They will give you insight into the trades that they are making and permit you to make similar trades.

The second type of copy trading is known as social trading. Here, all of the exchange of information takes place on a social trading network. Here, you are able to view a number of trades that are taking place and see if they are fruitful or not. Social trading is also quite interactive with traders being able to leave comments, talk about strategies, and provide various other aids.

With copy trading, you may either be provided with manual or automatic options. With manual, you will be given a heads up when a trade is about to be placed. However, it is up to you whether or not you want to follow the lead and how much you want to invest in the trade. With the automatic method, you are letting someone else tackle your account for you and to place the trade in your stead. You can, nonetheless, set a limit for the trade.

The Benefits of Copy Trading

Copy trading is a great tool for individuals who are just not confident enough to place their own trades. If you don’t know enough of about binary options trading, it can be difficult to know when you are about to make a mistake. It can be equally problematic to identify when an opportunity might be presenting itself.

With copy trading, you don’t have to rely upon guesswork anymore. A trader – or traders – with more knowledge and familiarity with trading will be able to examine the market situation and discern any trade prospects.

Is It For You?

Copy trading is a great way to ease yourself into trading and to minimize the risk involved. This does not mean that it is for everyone, however. It is best to avoid the automated form of copy trading as it can result in your account being drained or you losing money.

If you really have no idea about binary options trading, you may find yourself better off with copying someone else. This method can also teach you about the right and wrong way to invest in trades.

It is important to understand the consequences of copy trading as well, nonetheless. For instance, you should know that if the trader that you are following hits a losing streak, so will you. Therefore, you should copy others’ moves with caution.

All of this information should help you to determine if you should try copy trading. Remember to also make up your own mind about whether or not to go ahead with a trade. You should also always retain full control over your account.

How to Choose a Forex Broker

If you want to be involved in forex trading, one of the first things that you will need to do is to find yourself a broker. Now, these types of brokers are a dime of dozen. What you need to focus on is how to choose a forex broker that is right for you.

How to Choose a Forex Broker That is Right for You

By employing a broker that is compatible with your needs and expertise level, you are much likely to be able to trade more successfully. Here are some of the tips you can follow for finding your best possible option:

Is the Broker Regulated?

As mentioned, you will find no shortage of brokers on the internet. This can make deciding between the legitimate ones and the scams quite difficult. If you want to be assured that you are making the right decision, then it is best to opt for a broker that is regulated by an authoritative agency.

Each country has a regulatory association that is responsible for forex brokers within their borders. For the United States, this is the National Futures Association and the U.S. Commodity Futures Trading Commission, while in the UK it is the Financial Conduct Authority and the Prudential Regulation Authority.Australian brokers are managed by the Australian Securities and Investment Commission whereas the Swiss brokers have to be regulated by the Swiss Federal Banking Commission.

In Germany, there is the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) while France and Canada adhere to rules set by the Autorité des Marchés Financiers.

What are the Account Offerings Like?

Each broker is going to make various promises regarding the leverage and margin, commissions and spreads, as well as the minimum initial deposit. It is a good idea to make comparisons between the brokers to decide which one is making the best offerings for you.

Each broker is going to have different accounts and then ask for varying minimal deposits. It is always a good idea to stick with an account that you can afford so that you don’t run out of cash too quickly.

If the leverage that is offered is competitive, then you can significantly increase on your initial deposit. However, to avoid falling into debt, you should remember to limit how you use the leverage.

There are two ways that brokers make money – commissions and spreads. Those that are involved in commissions generally charge a certain percentage of the spread. The brokers that don’t charge commissions, though, and make money from wide spreads. As such, it is best to stick with more popular currency pairs with these type of brokers.

What Currency Pairs are Offered?

There are some currency pairs that are known as majors. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF. If you are interested in trading with these or others that are similarly popular, you are in luck as almost every broker is offering these. If you want something more exotic, though, you will have to first ascertain that a broker that you are interested in actually offers these pairings.

What is the Trading Platform Like?

If you aren’t able to use a particular trade properly, there is a good chance that you will make numerous mistakes with your trades. As a result, you can lose a lot of money. To avoid this, you will need to find a trading platform that you are comfortable using. All of the controls and features must be easy to use and you should have no problem entering or exiting a trade. Similarly, it should offer you a lot of trading tools to choose from. Trading alerts and automated trading options can also help you a great deal when trading.

How Easy it to Deposit and Withdraw Money?

To make quick trades, you are going to need to deposit money into your account quite quickly. So, in addition to bank transfers and checks, you should also be able to place money into your account via credit cards and PayPal for faster options. Now, you should also look at the methods as well as the terms and conditions surrounding your withdrawal options. These tend to be tricky so you should ensure that you can take your money out with minimal hassle and cost to you.

This is how to choose a forex broker that is right for you. With some research and due diligence, you should be able to decide on one that is reliable as well as profitable.

Forex vs Stock Exchange

brokersWhich is best for you – Foreign Exchange or Stock Exchange? To answer that question, we must weigh both of them on the same scale and see if one can tip the balance over the other.

If you are the conventional ‘long only’ or buy-and-hold investor, you have some very good reasons for staying involved in the stock market. Statistically speaking, investors tend to get profitable returns from stocks and the taxation is sufferable.

But if it is trading you are keen on, you might want to hold your horses and take long hard look at Foreign exchange as well because it too has its own share of unique benefits.

Let us now go over some of the considerations that you would have need before choosing between them. Is it going to be Forex or Stock? Let’s find out.

1.Do you prefer fundamental analysis or technical?

If you are into assessing things in technical terms, then Forex is the better suited art form for you. On the other hand, if you are more about inherent value and subjective evaluation, your trading strategy is better suited to stock exchange. Your preferred method of analysis will come in very handy in your activities as a trader.

2.Leverage

Forex markets differ a lot here from any other kind. While in stocks you will usually  come across a ratio along the lines of 2:1, Forex can give you ludicrous ratios up to 100:1. So with Forex trading, whatever returns you get are exponential as per the given ratio of leverage. The upside is, you can make a heck of lot of green off of a very small seed. The downside is you can lose the same amount if your trade goes south.

3.Self-control

Bad trades come with the burning desire to make up for lost bounty. But can you actively control and suppress that desire when logic dictates you take leave it alone and reassess your trading strategy. You can never really know until the situation presents itself. This is an essential skill you need to make Forex trading work for you. With stocks, any potential losses are unlikely to go beyond your initial investment.

4.Bearish bets

Bearish bets with Forex trading is a rather simple matter. For instance, if you are predicting the Canadian dollar will end up higher compared to the US dollar, simply sell the Canadian dollar vs. US Dollar in the market.


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5.Number of positions

Number of currencies you can trade in a Forex market is obviously finite. In fact, as of 2013, only four of them account over three quarters of the trillions of dollar worth of trades executed each day. They are the US dollar, Euro, Japanese Yen and the English pound. Other major currencies include the Australian dollar, Swiss Franc, and Canadian dollar. A stock trader however has a veritable options list numbering in the thousands, and that is just in US.

6.News feed

Is your focus more toward a macroeconomic perspective on events or do you prefer doing some thorough searching in the sewers of whatever corporation or industry you are trading in? If you prefer the former, currency exchange should be right up your street.

7.Risk management

Your approach toward potential risks is a key factor to consider when choosing between trading stocks and trading currencies. If you are not suited to taking on risky moves, do yourself a favor and play stocks instead of Forex.

So which is it to be then? Hopefully, with the considerations listed above, you now have a clearer idea of which kind of trading would suit you best.

How to Start Forex Trading

In very simple terms, Forex trading is the most lucrative department of online trading you can be involved in. It is the market where all the currencies of the world are traded and daily transactions regularly amount to trillions of dollars.

If you really want to start forex trading then start here.

The market is open 24 hours a day on all week days except holidays. There are many ways to get in on the action and many fortunes and losses to be made. However, if you are considering getting involved as a trader in the Forex market, there are some fundamental early steps to be considered before you can stand any chance of making a successful turn of it.

Can you really become a millionaire with forex trading?

Here are some of the key variables and methods you should know about before starting out in Forex trading.

What should you know beforehand?

It is imperative that you get to know the trade before stepping into it. In the case of Forex, getting to know the trade outside of being involved is only half the job. The other half involves getting to know you as a trader. Forex trading is not for everyone. There are certain aspects of your personality that could give you an edge in thriving in this environment. Characteristics like high intelligence, patience, a natural intuition for trading and understanding of human psychology should all be abundantly present in a successful Forex trader.

If you feel that you do not adequately possess these faculties, you should probably second guess your decision to participate in Forex trading unless you have a strategy to circumvent your shortcomings. It is nothing to be discouraged about. Some people are just more adept at trading than others. Regardless of whether someone is theoretically capable of making an efficient trader, it will still be a trying experience in Forex Trading.

Where should you start?

Once you have gained a good amount of background information, you are almost ready to start trading. But before that, you must secure for yourself the services of a broker to enable you trade. In this regard there are some key factors to look for in taking your pick.

  • Licensed and regulated: If the broker is licensed and regulated by a government agency, you have added assurance that it is not a scammer.
  • Trading platform: Make sure the platform is user-friendly and easy to access so you can make trades unhindered.
  • Account types: The types of accounts on offer and how they are maintained is largely subjective to each broker. And so your ideal choice here will be best suited to your personal style of trading. It would be a tremendous added benefit to select a broker that offers the option of maintaining a demo account.
  • Leverage: This too is subjective to each broker. It is the ratio of the required margin relative to the value of the currencies being traded.
  • Customer service: Make sure the broker offers reliable customer support and is easy to contact on any given working day.

Are you ready yet?

After doing some elementary research in advance and picking a broker to collaborate with, you now have the two bare essentials to help you open your account into the Forex market. However, you cannot be completely sure of how those two will work together. To help straighten things out even further, you can start off by activating a demo account. It will enable to make trades in real time but without requiring you to stake your personal funds and run the risk of losing them.

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More importantly, you will be able to gain first experience into the market as it is without it being filtered to you through a book, a website or somebody’s advice. You will know what it is like to play the real game.

Now you are ready

Once the knowledge and experience to be had from the demo account has run its course, it is time to open a real account, deposit your real funds into it, and start really trading. You will be able to bring in all the knowledge and skills you have honed through the preparation stages to become a formidable trader in the market.

Start With Forex Trading

Decide wisely about getting involved, learn all that you can before getting involved, choose the right broker with which you will be getting involved, get a real idea of what it is like to be involved and finally, really be involved. These are the crucial steps you should take in order to make it as a Forex trader.