Tag Archives: Broker

General Forex

Forex Broker Terms You Might Need to Know

When dealing with a Forex broker, you are introduced to a whole new trading jargon. Therefore, it seemed fitting to present to you a variety of Forex broker terms that you will need to know.

No Dealing Desk (NDD) Broker-This is a broker who does not have his own dealing desk. He instead outsources persons who would interact with the clients, providing them with price and liquidity information. These liquidity providers are the ones responsible for sending in all bids to the trading platform. The best bid is then presented to the client.

Forex ECN Broker-ECN stands for Electronics Communication Network. Therefore, an ECN broker is an Electronics Communication Network broker. All the trades are done in the name of this professional without the use of a dealing desk but rather via the use of a marketplace. This marketplace is flooded with market makers, banks, and traders who are making offers. This is a form of anonymous trading.

Market Maker-This is an individual that provides pricing and liquidity for currency pairs. This professional would then stand by waiting for the chance to buy or sell a currency at a specific price. A variety of strategies are used in order to provide traders with opportunities to make the most profit.

Agency-A professional establishment that provides intermediary services to both buyers and sellers is known as this. This outfit employs agents who make commissions off any gains made. Sometimes a small commission is charged regardless of how the financial transaction turns out.

STP-This is the acronym for Straight Through Processing. It is simply a term to indicate that an entire trading transaction is fully automated. There may be a person overseeing the automated transaction system. However, there is no intermediary taking care of your trade you just made. It is all done using web-based or downloadable software.

Margin-This is the amount of equity contributed by a trader. It is a percentage of the current market value of securities which are held in a special account.

PIP-This is the smallest unit of money that is used to accurately calculate Forex rates. This is a more precise determination of how much profit has been made or how much profit could be made.

Spread-Difference between the bid and ask price is referred to as this. This is another calculation of gain or loss as a transaction is made. It also is part of what is used to create statistical graphs and charts for a Forex broker to use as a guide.

Leverage-Market participants use this method of increasing potential gain of a Forex transaction made. It involves the use of various financial instruments (foreign currency in this case) or borrowed capital (usually money).

Lot-A pack of trading units that are sent to the market are often referred to as this. There are three different types-the micro (1,000 units), mini (10,000 units), and regular (100,000 units). This is done to help accommodate Forex broker accounts created by traders within varying budgets.

General Forex

How to Find The Best Forex Broker

Not long ago, there was a time when trading currencies only happened in banks. These days, Forex or Foreign Exchange Reserve has taken up this role. In other words, Forex is the place where the trade of one currency for another takes place. It is today the largest financial market in the world. However, it is not a piece of cake and has its share of complications. Probably the worst thing is that it involves money. In such a market broker plays a very important part as it is he who meditates between the buyer and the seller. In such a scenario, going for the best Forex broker is as important as anything else. It is mandatory that you should do some hard research, but if you are just an amateur in this field, it is better to take someone to find the best broker.

The Forex broker that you are looking for should be registered with the regulating authority. He should have enough experience as being able to guide you regarding all the important process. In case you want an early and quick profit, enquire whether he offers non fixed or fixed spreads. Furthermore, how much leverage he will give you, all these questions will give you an overall idea as to how much money should be put in and what will the average profit gained by you.

Making a comparison find the best Forex broker is also important. You can choose three to four brokers with a good reputation available in the market and compare their achievements and weaknesses. Finally, you will come out with the best broker available in the market. Do not forget to ask them the questions regarding their potentials and reliability as it is the question of your money, as the last thing you would like to experience in this field is the loss of money.

During such a business, there is a huge possibility that you might face any problem at any time. So your Forex broker should be able enough as to guide you through all the possible difficulties. His support is the best pillar for you in such a trade. So he should be technically very sound. It is further better if he is an experienced broker and is well known.

As far as the minimum deposit is concerned, it varies from one broker to another. The best Forex broker also allows you to open the account with him. In order to avoid the huge losses, you should start with the moderate or at least small amounts. This phenomenon is mandatory only for those who are not very familiar with the field. Once you have gained enough experience, you can play with the big amount, or as you wish.

Now the thing which was discussed earlier and demands to be repeated is that the best Forex broker that you are looking for should be registered with the authority. This will make you sure that you are not going to lose your money in an illegal way. Seeking the potential that this market offers, the respective governments also began to register the Forex brokers.

Finally, customer service is always there to help you in case it is difficult for you to find a good Forex broker. You can contact them in case you find no one to help you in the market. They will definitely help you with the best possible means at their disposal.

Forex Trading Articles

Finding a Forex Broker: 6 Factors to Consider

Choosing the right people to help you could be your ticket to success in Forex Trading. As such, you should make sure you hire a broker that is worth every penny you pay him for, and more.

You see, a Forex broker is the person who will trade in your place, and whether you profit or not, you will have to pay him, in the form of a commission. So, if you do not want to waste money, it is necessary for you to find the perfect broker.

Here are 6 factors to look into:

1. Check their track record. You would know if a broker is doing well or not by looking at his numbers. If he is making a lot of money, it means that he is a skilled broker.

2. Investigate. A little background check would not hurt. This could save you a lot of money because it keeps you away from deceitful brokers. You can inquire from the Commodity Futures Trading Commission or CTFC, or the Futures Commission Merchant or FCM. You should also make sure he is a member of the NFA, or the National Futures Association. If you find his records questionable, then look somewhere else.

3. Consider his deposit requirements. While there is really no need for a deposit to start trading, many Forex brokers require it as a means of security for them in case they will not be paid by the investor. However, the deposit should not be too steep; the average asking rate is $200-$500.

4. Get reliable and effective software. Your broker should be able to advise you regarding the use of software as a tool in trading. You can use a demo account, which allows you to test the software prior to purchasing it.

5. Consider the use of currency pairs. This is something a good broker should do- use a wide array of currency pairs. Short-list a broker that uses the currency pairs you prefer, as each one has a unique pattern.

6. They must have customer support. Trading is very dynamic, and at any given time, you will need the help of your broker. You do not want to wake him up in the middle of the night just to trade. It would be very convenient for the both of you if your broker has a helpdesk you can reach, 24/7. Of course, having good customer service is just as important too.

Before you enter the world of Forex Trading, you need to go over these factors and see to it that you will be able to tackle these in your quest for a good broker.

General Forex

Finding The Right Online Forex Broker For Your Business

In a race to have a flourishing online forex trading business, people often neglect the important aspect of selecting an online forex broker that is true and genuine. There are various things that you may not know about online forex brokers.

Many people are conned into getting the best of services with their forex trading account. The so called commission-free services are not always accurate as they appear.

Forex brokers earn their income from the margin between the pricing and the original bid. In order for leverage on trading banks usually approves loans and brokers are mostly associated with such investments. The bank is the source through which brokers buy out. The customer is then sold the same as the question price by the broker.

Traders tend to spend a lot on trading more than expected which is not necessary. online forex brokers exist to assist you in your online trading and not manipulate you. Pay attention to the suggestions and tips from your online forex broker but you need not abide by it religiously. Take an informed decision that will benefit you trading online.

You will also come across many suggestions for services by the broker. But not all of them are necessarily put to practice. One must carefully evaluate all the facilities provided by a forex broker before finalizing a deal. This is only to avoid future hiccups for your business.

Researching on online forex broker is compulsory. This only helps you evaluate your broker before signing up deals. Spend time on selection, because once you have the right broker with you, online forex trading will only include benefits.

Forex Trading Articles

Choosing The Best Forex Broker

You should make sure the data transfer is fast and not delayed. Your internet should be high speed and connect directly to the forex broker’s charts and trading platforms. You can experience slow trading when the volume is high by using a broker that is based outside the United States. Traders should not use a dial up connection if you are trying to daytrade the currency markets. Forex brokers need to have tight spreads and not slip during high trading times.

If you are trading in the USA you should find a currency broker that is from the United States. There are several good forex brokers you can choose from including Oanda which is located in Canada that have fast and reliable trading software. These FX broker will have charts and software that run off their own servers. After you sign up with them you will be give access to your account and trading platforms. Some forex brokers will have client based systems that you download directly to your own computer. Remember if you choose to use a client based trading platform you will only be able to use it when you are trading from your own computer. If you are use the brokers server you can trade form any where. A great advantage of using their software is that it is encrypted and not as vulnerable to attack. The broker’s servers are kept in a secure data system with each account backed up in an outside data system to keep your account protected. Your forex broker should proved you with charting systems that you can trade directly from the charts this will eliminate any delay in processing your currency trades. Many top brokers will provide up to the minute news that is occurring in the forex markets around the world.

Best Forex Brokers