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Market Analysis

Find Better Yields With Money Market Accounts

If you’re tired of earning next to nothing with your cash parked in a bank savings account, you should consider a money market account instead. Money market accounts almost always yield more than a savings account for several reasons, and are considered to be just as safe.

Safety

Money market accounts are insured by the FDIC. This is an agency within the federal government that operates completely independently, and reimburses you if the bank you have funds deposited in should fail. The FDIC came into existence during the Great Depression to restore public confidence in banks. Ever since its creation, not a single depositor has lost a single penny from a bank failure. The FDIC has always made good on its insurance promise. The FDIC pays depositors out of a special insurance fund, that is contributed to by the banks it insures, and from interest on its own portfolio of US Treasury securities.

Yield Correlates to Safety

The safer an investment is, the lower a yield it will offer. The way risk-reward is naturally structured is that in order to convince an investor to place his or her funds in a very risky investment, he will require a higher yield to be enticed to take on that risk. If the risk is very low, then the investor will not require a lot of convincing to invest in the proposition. However, just because an investment carries no risk at all, like money market accounts, that doesn’t mean the yield will be zero. The investor has to be offered something to place his or her funds in the deal.

Yield Correlates to Interest Rates

The biggest driver of money market yields, however, is interest rates. As interest rates rise, the yields on money market investments also rise. It has become costlier for the government to borrow money, which drives up Treasury yields. Corporations must raise the yields they pay on commercial paper to compete with other investments — such as bank savings accounts. The more interest a corporation must pay on a debt, the higher the risk that they may not be able to pay. That risk, again, is minimal. Nevertheless, it is a risk, so that boosts the yield.

Account Restrictions

There is a trade-off for enjoying the higher yields that money market accounts offer, but they are not at all significant. Many have a minimum balance requirement, which could be anywhere from $1,000 to $2,500. This contrasts with a regular bank passbook savings account, which can often be opened with just a few dollars. It’s important to note that this is an ongoing minimum balance requirement, not a minimum deposit requirement. A bank will often assess a fee if you fall below that minimum, so always be certain to check your balance before making a withdrawal.

Speaking of withdrawals, there are also restrictions placed on the number of withdrawals within any given statement cycle, usually around six. Generally speaking, these withdrawals can be automated or done via the telephone, and sometimes with a check.

Putting It All Together

There’s no better place to hunt down the highest money market rates than the internet. You can compare rates side by side in many cases. Bankrate.com lists average money market account rates, based on the amount you invest in the account. With the averages known, you’ll be able to find out if your bank is beating that average.

However, be careful. Don’t just go with the highest interest rate you find. Be sure the fund you choose has a long history. Make sure the bank offers the ability to write checks on the account. Having the equivalent of a cash account without the ability to draw from it easily will cause more problems than it’s worth.

General Forex

How to Find Excellent Forex Broker With Nine Simple Steps

A good forex broker is a secret to become successful in forex trading. Your forex broker is your representative in the market who executes all your trading orders according to your wishes and receives a commission for each trade. There are so many persons acting as a forex broker in the market, so it is a hectic job to select a good forex broker because your success is completely bind with the comprehensiveness and the facilities provide by the broker.

Here we are sharing some tips with you which might be helpful for you in choosing a good forex broker. Always remember that the selection of a broker totally depends upon the nature of the trader, so select a broker who completely fulfills your trading needs.

Minimum amount to start and trade:

Some people don’t want to start big because they are not ready to take greater risks in start. Keeping in view of this need, a good broker always provide you a minimum investment and a small trade limit. The traders can start there learning process in forex with low deposit.

Offer Dummy Accounts:

With the use of dummy accounts, you can easily learn the forex trading without any investment. A good forex broker always offer his traders to open a dummy account for practice because a dummy account allows trader to trade in original circumstances.

Choose a regulated forex broker:

Must choose a regulated forex broker. Every country has its own regulatory authorities so before open an account make sure that your broker is registered with the country’s regulated authorities.

Execution of orders should be quick.

Forex trading is a game of seconds. Every moment in forex trading is important to get profit. So choose a broker who has an ability to quickly execute the orders so that you can earn profit in seconds.

Spread should be minimum:

The brokers who offer a great spread, they want to get more commissions on the currency pair you trade. It is necessary to earn more profit that you must choose a broker who offers low spread.

Leverage:

Leverage depends on the return on capital and the level of risk you are ready to tolerate. The trader selects his leverage according to his nature. So a good forex broker is one who offers flexibility to its customers so that they can choose their leverage according to their need and requirement.

Low commission:

Commission factor is the important factor that should also be concentrated during selection because sometimes commission exceeds the profits earned. To ensure that you are getting a decent profit, must concentrate on the commission factor.

Free analysis tools and software support:

As any other regulated markets, there are so many analysis tools used in forex market which help the traders to know about the trend of the market. A good forex broker provides up to date knowledge to its customers also with a software support which helps the trader to keep in touch with the market.

High customer support:

A good forex broker is always ready to help his customers. Ask questions without limit. No matter how irrelevant your questions may seem, they are important for the broker. A weak broker always neglects the questions of traders.

The above key points provide a general guideline for choosing a good forex broker because it is a step towards successful forex trading.

Conclusion:

To trade forex successfully, you need a good forex broker. A good forex broker is one who will provide you up to date knowledge, low spread, low minimum deposit with low commission. So to get more profits select a broker who fulfills your trading requirements.

General Forex

Why People Find Trading The Forex Markets Full Time To Be Very Hard

Most people become acquainted with forex trading whilst they are still in full time employment. They may be looking to make some extra money, or they may be looking for a new career in a different industry or a job with more freedom. However it should be pointed out that there is a massive difference between part time forex trading and full time forex trading.

When you are trading the markets part time, either whilst you are working in your day to day job or in your spare time or days off, there is no pressure to make money. You will probably open an account with a few hundred dollars and start trying to make money with different trading systems, safe in the knowledge that you still have a decent wage coming in.

However when you are trading the markets full time, you rely on these profits in order to live because they need to cover your rent or mortgage payments, as well as all your expenses and day to day costs. If you have a few losing weeks, then you may well struggle to pay the bills.

This puts enormous pressure on you because you have to make money. So you may well find that it starts to affect your trading because you may have a decent trading system in place, but you keep on taking impulsive trades in order to hit your profit targets. Ideally you should stick to your system at all times even during the occasional losing run, but I fully understand how hard this can be when you need to make money every week in order to pay your bills and live your life.

It is also the case that because forex trading from home can be quite boring because you are sat watching your computer for hours on end, and there may be times when you day trade the markets just for a bit of excitement. However the trouble is that short term trading can be an absolute killer if you don’t have a top notch system in place with good money management rules in place, so this can make life difficult for you as well.

It should also be pointed out that there can be pressures put upon you from both your family and your friends. Outsiders often assume that you are making lots of money if you can afford to quit your job and trade the markets from home. So if you are making steady but unspectacular profits, it can be all too easy to start upping the stakes in order to bring in the big profits. Unfortunately this often leads to disaster.

When you add in the extra pressure of knowing that you may have to go and get a job again if you are not successful, it is easy to see why full time forex trading is so difficult. There are so many pressures and you will generally find that only a small group of people are still trading the currency markets full time several years after they first started.

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

Find Out Currency Trading The Correct Way

It is effortless for aspiring foreign exchange traders to lose their heads when contemplating of the probably enormous income that can be built buying and selling on the forex marketplace. So it is essential to understand currency buying and selling the correct way prior to engaging in foreign exchange day trading, to avoid traders from struggling losses.

Any critical forex education will commence by teaching traders the fundamentals of the foreign exchange market place. The foreign exchange market is routinely unpredictable and problems, such as the exchange price, are consistently altering. An understanding of the fundamentals of the industry would permit traders to examine these situations and base his buying and selling selections on his analysis of the situation.

Just as crucial as understanding the technical features of foreign exchange day trading is studying risk management. Foreign exchange buying and selling supplies the identical adrenaline rush as a gambler at t

he blackjack tables, and a forex trader can simply reduce his head and make trades until eventually he has lost his shirt. Consequently, the trader also has to comprehend when to get out of the industry.

The greatest way to test your risk management and technical expertise is by opening a totally free trial or demo account and practice foreign exchange buying and selling with fake cash. A demo account is crucial for traders to understand forex buying and selling and to produce their expertise. Only when a trader has mastered the demo account should he enterprise into actual trading.

There are many on the internet sources you can use to understand forex buying and selling. Traders can get courses on the web or go to virtual seminars. If you are previously dabbling in trading you can also get advice from veteran traders.

It is accurate that you can make a great deal of money by way of foreign exchange day trading even though venturing reasonably tiny money. But you can

also reduce a whole lot of funds if you don’t know what you’re doing. Thus, the best investment you can possibly make as a foreign exchange trader is a solid schooling in foreign exchange trading.