Category Archives: General Forex

General Forex

Introducing Forex Broker – Forex Bonus Programs Of Brokers And Introducing Brokers

Leave a comment

Introducing Forex Broker

Years ago, the minimum investment for speculators in the Forex market ran to as high as $10 million, a figure that restricted foreign exchange trading to banks, investment firms, Forex trading firms, and wealthy individual traders. Because of the internet and retail Forex brokers, a trader who has only $200 or less can now participate in foreign exchange spot trading through a home computer.

The increasing number of participants in currency trading with limited capital presented an opportunity for brokers to present them with Forex bonus programs that boost the traders’ incomes and attract more traders to pick the brokers’ services.

There are various ways that brokers present their bonus systems. Some brokers reward their new members simply for joining them by increasing the members’ initial deposits while treating their old clients with a similar deal. For example, a trader who opens an account with a broker who offers a joining bonus of 30% can earn an extra $300 for an initial deposit of $1000. Introducing Forex Broker

Some brokers reward high-earning traders by showering them with prizes in proportion to their profits. Under this scheme, a trader will be motivated to earn more as his Forex bonus proportionately increases with his Forex trading income.

Like Forex brokers, introducing brokers, who match traders with Forex dealing firms that pay them for their referral service, are also generous to their clients. These introducing brokers pay traders for every transaction that they make.

Choosing a bonus program can be as confusing and tricky as picking the right Forex broker. While most rewards are tempting, the wise trader research and evaluate before settling with an incentive system. Introducing Forex Broker

General Forex

Forex Lessons – Beginner Lesson For Wannabe Forex Traders

Leave a comment

Forex Lessons

Forex training classes are a great way to learn to trade forex. They are basically a method of getting a good grounding of knowledge from which to springboard a successful trading career. In this article, let me give you your first lesson of forex.

The Big Global Picture

Forex is how much you can sell one currency for to buy another – just like when you go on vacation.

But what affects forex prices is the big global picture. It is not just the economic picture but anything that affects a country.

So, forex prices will also be influenced by war, the threat of war, emigration patterns, the weather and much more. This is what makes forex so fascinating, because it is influenced by pretty much everything. Forex Lessons

Buyers And Sellers

If you look at a forex chart for today, it will look like a bunch of waves, moving up and down. What causes these up and down movements is the pulling and pushing between buyers and sellers of a currency.

At any given time, there can be more people wanting to buy or there can be more people wanting to sell.

Just understand that the price movements, although influenced by global events, are actually drive by individuals in the market. Forex Lessons

Forex Is Not Gambling!

In gambling, whether you are betting on a sportsbook or at a casino, the house has a huge edge against you. It makes it very, very difficult to consistently win.

In forex, the commissions or fees that you pay to trade are minuscule in comparison. This means that, so long as you are disciplined, it is not difficult to make consistent profits.

The only obstacle to that is yourself…

Discipline

After you learn the basics, the most important thing that you need is discipline. Never trade on a “gut feel” and don’t risk more money if you’re losing. This is the mentality of a gambler soon to lose all his money.

Instead, you should trade based on good decisions, based on logic. Remove emotion from the equation as much as you can. Always practice good risk management and don’t risk too much on a single trade.

These are the traits that make the difference between a winning and a losing trader. Forex Lessons

General Forex

Gci Financial Forex – The Top Four Forex Brokers

Leave a comment

Gci Financial Forex

Forex trading is not an easy job. It involves huge risk. Many people around the world are making money trough the online forex trading. On the other hand, a little knowledge about this field can result in considerable loss within a minute. The position is very delicate and weak. Trading in a forex market is not a trouble-free job. You have to master all the related concepts in order to become a top forex broker. If you are a beginner, then you can go through various sites related to foreign exchange trading. Various professionals offer complete information about the trading activities. The top four-forex brokers have an excellent reputation in the international market.

At present the top four-forex brokers are GCI financial limited, Saxo Bank, CMS Forex and GAIN Capital. The CMS Foreign exchange does not accept any commission. They demand just a small amount of only $200 for establishing a mini account. It provides its users with free and informative demo account. Here you can practice trading without investing any money. It can provide you with a chance to practice and understand the real trade experience. In case of a new trader, selecting a right Forex Broker is very vital. Gci Financial Forex

The top forex broker Saxo banks forex trading.com offers a complete twenty-four hour online training. It provides the detail information from its in house experts through direct online chat with its dealer, and professionals. The top four-forex brokers handle from simple to the complex order types. Professional approach and service oriented approach has helped them to earn a reputation as an excellent provider. It offers easy to use trading tools and advance offers to all its clients. GCI Financial is one of the largest online brokers who offer a commission free service to its clients. Gci Financial Forex

General Forex

Forex Broker Spreads – Finding a Forex Broker With Low Spreads

Leave a comment

Forex Broker Spreads

These days, open the internet and you will find loads of forex brokers claiming to be the one to offer the tightest spreads in the industry. But watch out! The marketing babble can be deceiving. To find out the forex broker with the small or the tightest spread one must understand the spread first.

The topic of spreads is rather complex and nothing affects your trading profitability more than this. Spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) quoted in pips. For example, a quote between EUR/USD at a given point is 1.2222/4, then the spread is 2 pips, or if the quote is 1.22225/40, then the spread is 1.5 pips.

Spread is the tool through which your broker makes his earnings. So, wider the spread, higher is the ask price and lower the bid price. As a result, you pay more when you buy and get less when you sell and therefore earn less with all your trades. The forex broker with small spreads ensures a better profit opportunity.

As a trader, you must buy currencies at a lower price and subsequently sell it at a higher price to make the whole proposition profitable. But wider spread means buying higher and having to sell lower. A half-pip lower spread does not sound like much, but it makes the difference in a big way. Now a days, software based spread calculators are there where you can find out the spread easily and how much difference it is going to make in your return.

The forex trader with small spread should also have good execution. It is the quality of execution that decides whether you actually receive tight spreads or not. Your forex broker may promise a small spread but if it is with few pips to your disadvantage or you find your request to be rejected, you receive wider spread than promised. Forex Broker Spreads

Spreads must be considered in conjunction with depth of book. On the interbank forex market, the larger the size of the ticket, the larger the spread. So a 1-pip spread on an ECN platform may not be available for all trade sizes.

As the spread policies differ from broker to broker, the forex broker with small spread must have a transparent policy. Some brokers may offer fixed spreads irrespective of market liquidity. But as fixed spreads are almost always higher than variable spread, you effectively pay more.

Some forex brokers with small spread may offer it only under specific market condition and liquidity. In their case, the spreads are tighter when the market liquidity is good but more when the liquidity is less.

In ideal situation, your forex broker with small spread should have the option of variable spread depending on your trading style. If you trade only when the markets tend to be volatile, you may accept a fixed spread, but be sure that the execution is good. Some forex brokers with small spread may offer variable spread to different clients. If so, find out how you can avail a better offer.

While seeking the service of the broker, you must learn the terms and conditions of the spread offered. It should not involve any hidden cost. You may find several reliable sites who periodically performs assessments of brokers. You can seek help of one such site before choosing your forex broker with small spread. Forex Broker Spreads

General Forex

Currency Trading Margin – Forex Margin Trading As a Method of Leverage

Leave a comment

Currency Trading Margin

A forex margin account is used by a forex trader when he wishes to invest into a position which requires a much higher financial investment than that which is currently available in the account of the trader. This is one of the unique advantages of the forex trade market wherein the traders are able to conduct transactions in currencies of worth which is much higher than the amount available in the forex account. Unlike the stock market and the equity market which offer little or no leverage to the trader, the forex market offers a leverage of 100:1 to its trader, implying that if a trader who has $1000 in his forex account decides to trade with a forex margin of 1% then he would be in a position to trade up to $100,000.

Forex margin trading is usually carried out through the broker and in order to indulge in this form of trade one needs to entail the services of a forex broker who offers margin trading as a part of a bigger package deal. This is owing to the fact that the concept of trading on forex margin is based on acquiring a short term loan from the broker for the purpose of indulging in trade and in return paying him a certain percentage of profits. Therefore, one first needs to open an account with the broker, deposit a certain amount of finances in it and then use forex margin trading to gain leverage and make a foray into the actual forex market. Currency Trading Margin

Although forex margin trading is considered to be an advantage of forex trading, a word of caution here would be pertaining to the proverbial two sides of the same coin. This implies that a forex trader might well be aware of the fact that if he can use the leverage option effectively, he stands to make phenomenal profits but at the same time if his investments turn out to be loss making then the extent of financial losses which would be incurred would also be manifold. This is evident from the fact that there are many people who complain of having lost out heavily due to forex trading and this is usually the case when people are misinformed about the market and make an educated use of the forex margin option. Currency Trading Margin