Thread: Useful Daily Forex Articles

Finding a Reputable Forex Broker



When it comes to trading on the forex market, the first thing that you need is to find a reputable broker. There are hundreds of different brokers that you can sign up with if you are into forex trading. However, your selection of the broker could have a huge impact on your future trades. The right broker could not only help you earn a lot of money, but your broker will also make it easy for you to find important information. Here are a few advantages of working with a reputable broker:

Easy to Withdraw Money

A simple search on the internet will reveal hundreds of brokers who offer trading facilities on the forex market. However, not all of these brokers are reliable. For instance, many famous brokers offer a litany of different bonuses and additional benefits of signing up with them. In fact, many will give you double your deposit bonus for signing up with them. However, while this may seem like a wise idea in the beginning, you should know that many brokers make it incredibly difficult for you to withdraw the money from your trading account.

On the other hand, if you are working with a regulated, reputable broker, withdrawing the money is going to be incredibly easy. All you need to do is press a few buttons and the money will be withdrawn directly to your bank account. Remember, brokers earn money for every trade that you make, so they don’t mind offering you double the deposit amount, as long as they know that the amount cannot be withdrawn easily.

Customer Support

Working with a reputable broker gives you access to improved customer support. Customer support is essential if you want to make improved trades in the market. Many beginners who join the world of forex often fail to realize that customer support is essential to making informed trading decisions. Unless you have a solid idea of what you are doing and how you want to progress, it will be difficult for you to make the right calls. That is one of the main reasons why you need to work with a

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Fixed and Floating Spreads - What You Need to Know

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When it comes to trading in the forex market, spreads play a very important role. Many people don’t realize the difference between fixed and floating spreads. Simply put, the difference between the Bid and the Ask prices is the spread and this difference is calculated in pips. A pip is a basic numerical value that is used widely in the Forex market. The value of the currency is measured in pips. One pip is equal to 0.0001, while two pips equal to 0.0002 and so on. A single pip is the smallest exchange of price that can occur on the forex market.

Most of the currencies traded on the forex market are generally priced four numbers after the decimal. For instance, a standard five pip spread for EUR/USD (two of the most popular currencies) is generally 1.2530/1.2535. On the other hand, there are certain major currencies that do not have four decimal places after the point. Instead, some pairs, such as the USD/ JPY pair, only has two places after the decimal. The pair generally looks like this: 114.05/114.08. As you can see, there’s a three pip spread between the selling and the buying price.

What’s a Spread?

The spread highlights the difference between the price that the market maker gives to the trader, as well as what the market maker collects to sell it off to a trader. If you buy any pair of currency and sell if off without any change in the values of the currency, the trader ends up losing money, because the bid prices always fall below the ask prices.

Therefore, it stands to reason that smaller spreads are much better for forex traders. The reason for that is obvious: a small movement in the exchange rates can allow the trader to profit considerably form a trade in a much easier manner. Now, in general, there are two types of spreads: fixed and floating.

Fixed Spreads

As you can already guess, fixed spreads do not fluctuate with the passage of time. They are also not influenced by market volatility or the standard fluctuations in the market.

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The Importance of Customer Service in Forex Trading

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The world of Forex trading is incredibly complex. There are hundreds of different things that you need to know and many complex terms that you must carefully understand. Needless to say, forex trading is all about knowing when to make the right trade. It might seem like a simple thing, but having the right broker could make a world of difference. Many people who enter the world of forex trading don’t really know much about how to get started.
Here are a few reasons why you need to work with a regulated forex broker that offers top of the line customer service:
Allows you to learn the Basics
When you first enter the Forex trading market, there are many things that you must understand. One of the biggest problems that most Forex traders face is that it’s difficult for them to understand the basics when they begin. If you are working with a regulated forex broker, it will be considerably easy for you to enter the market, learn the basics and get started. Most regulated forex brokers are required to maintain dedicated customer support channels. Not only can you read important information about how to get started, but you can also learn about how much margin and leverage the broker allows you. This can be used in the future to make better, well informed trades.
Lose Less Money
If you are working with a broker that offers dedicated customer service,
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What is Trade Execution Speed?

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Timing matters significantly in the world of forex trading. For example, if you are trading based on the news, you will need to act quickly if you want to increase your revenue. Most forex traders generally have to be very proactive if they want to make quick trades. When you first decide to make a trade, you need to call in your broker in order to make the trade. However, most trades take a bit of time to go through. If you are working with a broker who has a reputation for being slow in the market, you will end up losing a lot of your trades.

Trade execution speed plays a vital role in determining whether your trades are likely to yield good results or not. There are millions of people all across the globe that have set up their trading plans based on real world events. As a result of that, it is important to gauge the trade execution speed of your broker before you decide to sign up with them.

How Does Trade Execution Speed Affect My Performance?

The values of different currency pairs in the forex market change rapidly. The price of one pair of currency can…

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Why is Latency so important for forex trading?

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Latency or delay as known in computer networking, is the time interval for a process to present an outcome, the time delay between the cause and effect of a physical change within a system. In Forex Trading, latency indicates the time needed for the traders’ requests to get a response from the broker’s server. Latency is considerably important because it can have a huge impact on the price that traders pay in the markets, hence it is significant for latency to be at lowest when making a trade. Traders can identify the range of latency in accordance with the trade that they are executing.

For example, traders trading within short term need to avoid a bad ‘ping’ and high latency, since both factors can be destructive for a scalper’s profits and trades. Traders making long term trades have less to worry about when it comes to latency, since their trades are not restricted to time frames, therefore they have less risk in case of high latency. A ‘bad ping’ can cause traders to make misjudgments and errors in execution on a trade and even in long term trades, it is vital for latency to be at its lowest.

Brokers generally take a lot of protection measures to ensure that latency will not mess up with the traders’ requests. The hardware and liquidity provider of a typical broker will be as physically close to the trading market as possible, reducing the distance a signal has to travel which in turn reduces risks of disruptions and

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Collaborating with a Broker ECN - What You Should Consider

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Trading on the ECN markets is fast becoming a popular option for most traders. Even though you have to pay a fee for every transaction you make on the market, there are many reasons why ECN markets have become popular today. One of the biggest reason why so many people prefer working with a broker ECN is because they can help you get much greater liquidity.

The Electronic Communications Network essentially forms a bridge between different tier 1 liquidity providers as well as small market participants. On one end of the spectrum, when an order is placed, the broker will take that order and deliver it to the liquidity providers for execution. However, before that can happen, the broker obtains liquidity from tier 1 providers such as banks and organizations. All of this is done over a highly secure and sophisticated platform known as the Financial Information Exchange Protocol.

For their services, the ECN broker gets a commission for every transaction. Now, this may not sit well with most traders, who are often used to paying a fixed fee, rather than a small commission with every transaction. For the broker though, this becomes easy, because the most trading volume his clients generate, the more profit he earns.

Before you collaborate with any broker ECN, there are several things you must keep in mind. Here are a few:

Reputation

There are a whole bunch of ECN brokers in the market. When you decide to work with any broker who uses the Electronic Communications Network, it is imperative that you read about their services and whether they are an established brokerage house or not. Small time brokers generally charge their clients a bigger commission, which is not something you want. As a result, you should seriously consider reading reviews of what existing clients have to say about the broker in order to get an idea about their reputation. It is important that you work with a broker who has an established reputation in the industry and is known for providing quality services.

Services

One of the biggest drawbacks of trading on the ECN market is that it’s difficult to get access to news feeds and charts.

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Can You Make Money With Zulutrade?

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Zulutrade is one of the most popular financial trading services provider in the world today. The company is headquartered in Athens, Greece and has been operating in the foreign exchange market for several years. The company owns the domain name zulutrade.com, which is an online foreign exchange platform that allows people to trade socially. Founded back in 2007, Zulutrade is often regarded by many Forex brokers as an automated trading broker. The concept on which the company works is relatively simple: all trades are shown as mirror signal providers. However, only a handful of brokers are able to use Zulutrade.

The brokers are responsible for paying Zulutrade for every trade made through the company. The signal providers receive a payment that’s the amount at half a pip per lot traded using the signals from the provider. However, it should be known that payment is only made when the trades are profitable.

So, when you first sign up on Zulutrade, you will start searching for signal providing traders. There are several different traders that you will find and can mirror. The company maintains a whole bunch of different statistics that are honest and transparent and provide key information about different traders. This will make it easy for you to see which trader is raking in the most amount of money. You can also view the trading records

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What is Scalping?

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The forex trading market remains active round the clock. This means that there are always people in different parts of the globe who are trading between currency pairs and hoping to generate a profit out of it. The forex trading market has become tremendously popular in the past few years due to several reasons. For starters, it allows the average person to make an investment with a very small amount. The barriers to entry are very low, and you can easily trade at any point during the day or night. Because of the fact that the market remains open round the clock, many people often trade in the dead of night.

Now, there are many different trading strategies and styles that a person can use when trading on the forex market. One of them is scalping. Some traders prefer following a long term trading strategy, which essentially means to hold currency pairs for a longer period in order to generate more profits. However, there are many traders who opt for smaller profits in the shorter run. Many amateur traders in the forex market often think of scalping as a viable strategy.

However, what is scalping? Simply put, scalping in the forex market basically means to trade currencies based off of a real time analysis of the market. Some traders often hold currency pairs longer in the hope of generating a greater profit. However, there are many who feel that continuous short term profits are a much better option. If you are a scalper, you will hold currency pairs for a short amount of time and then sell them out for a small profit.

The reason why scalping is so popular is because it allows you to trade with an aggressive approach, without risking heavy losses. Instead, it can end up yielding some very big profits in the long run. However,

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The Cost of Trading in Forex

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Forex trading is a highly attractive option for people who are interested in making a decent side income. However, before you start trading in forex, you need to know the overall costs of trading in the foreign exchange market. The overall cost of trading is the cost you will have to pay in order to run your trading business as a forex trader. There are certain optional costs, which are also termed as variable costs that you might have to incur based on your requirements. Optional costs generally include faster connections, customized technical analytics as well as dedicated news services that help you remain informed and up to date.

Apart from variable costs, there are certain fixed costs that a trader must incur. The costs of membership and essential services are often termed as the fixed cost, since they cannot be avoided whether you trade or not. For every single trade that you make, a certain amount will be paid as a commission to your broker. While the commission costs generally differ from one broker to another, the amount itself is relatively small. This is the basic cost of trading that you will incur.

While this may sound like a relatively straightforward process, you need to have a careful idea about how much you will end up paying based on your forex trading policy. As a trader, if you don’t

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What is Forex ECN Trading?

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Forex trading is a great pastime for many people. If you have saved a bunch of money, investing it in the forex market is a great option. The forex market essentially allows you to trade in currency pairs and it is a great option for people who are interested in making more money on the side. You can easily trade whenever you have free time, thus making it even more attractive. However, there are several things that you should keep in mind when trading in the forex market. First of all, since this is a completely unregulated market, there are certain market makers which determine the prices of certain currency pairs.

Rather than go through all the hassle, you should consider joining the forex ECN trading platform. ECN trading is touted by many as the way of the future when it comes to trading. The Electronic Communications Platform was designed to give small market participants the option of trading with greater liquidity. The Electronic Communications Network acts as a link between the brokers and the traders. The broker helps obtain liquidity from the tier 1 liquidity providers, and then executes orders from the clients.

Over the past few years, a large number of people have begun to sign up with brokers that offer ECN trading. However, while Forex ECN trading does offer a slew of different benefits, there are a few things that you should know.

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