What Forex Broker to Choose? Or how my balance has gone up from $1,980 to $17,738.

Every trader has had to face this question and surely read forum comments, checked out various dealing centers’ websites and analyzed obtained information more than once.

During my trading career I, the author of this blog, have changed about 5 brokers for different reasons.  As a result, I’ve discovered an interesting tendency.

Forex brokers come in two categories:

– one kind of brokers offer advantageous trading conditions (micro accounts, tight spreads, favorable swaps, locked positions, scalping) but there’s no talk about reliability here. Besides, if your trading balance grows considerably, you can’t withdraw your funds oftentimes;

– the other kind of brokers offer trading conditions that scare you off (a $100,000 deposit, no scalping, you need to provide a huge number of papers to open an account, including your dog’s bill of health from the vet) but these brokers guarantee 100% reliability.

Since I don’t have a $100,000 lying around and my deposit is rarely over $10,000, the second broker option is off the table for me. Here comes the crunch – who can I trust with my hard-earned money?

As mentioned earlier, I’ve worked with five different dealing centers in my lifetime and for now decided in favor of one broker – NordFX.

Why is that? I guess if you have a look at the list of advantages on their website, you won’t have many doubts:

– quick and easy account registration;

– a wide range of payment systems for account funding;

– minimal deposit $5;

– minimal spreads on Forex and minimal commissions on the stock and futures market;

– one account for all trading instruments (Forex, futures, stocks);

– position hedging by large market-makers MF Global Inc. (MFGI) and FXCM.

As you can see, currently NordFX offers trading with small deposits (from $5) as well as guarantees the safety of your investment due to the fact that all positions are hedged by such prominent market-makers as MF Global Inc. (MFGI) and FXCM.

I’ve been working with NordFX for almost half a year and have nothing to complain about so far. My balance has gone up from $1,980 to $17,738.

By Artur

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Is Forex Exchange Trading for you?

Foreign exchange or even forex currency trading is the way through which people can invest their money. This system works due to day-to-day fluctuations within forex exchange currencies. Whenever, the forex trading system changes, it brings change in the forex rates and Pips. If the value of the dollar suddenly rises in the forex currency marketplace then it means that traders can either win their trade or lose it, depending on their forex trading position.

I know there are lots of ambitious traders out there in the market who want to invest in forex exchange market but online forex trading is not for all and everyone. It might appear simple and easy thing for you, however there are numerous economic, political and social factors that can affect and disturb the value of a specific forex exchange par in the market.

For instance, when twin towers fall, the American dollar dropped down to a historic low value and then it rebounded after sometime and then dropped down again during economic recession. Similarly, the Japanese Yen dropped down its credibility when the recent earthquake hit the country. These two events show that the forex currency pairs depend a lot on the present economic, political and geographical factors like earthquake and famine.

Forex currency trading is actually much more volatile and dynamic as compared to other online trading options such as gold trading and purchasing of bonds. It is a moving market and it need to be continuously monitored and supervised.

The forex exchange market can be a wise option for those traders who always want to stay informed about their investment. Forex investors who can not monitor their trades all the night should look into their forex trading statements tri-monthly.

Before getting into forex exchange currency trading, traders should seriously evaluate their risk tolerance ability. After all, the currency exchange marketplace is an unbelievable place and it can change dramatically with in couple of hours. If you are prepared to take little bit of risk then you can either earn hundreds and can also lose your entire forex account as well.

Also, forex investors must have additional investment opportunities as well besides of forex exchange trading. However, if forex trading is your only option for investment then it will be better for you to increase your risk percentage.

Traders should consider forex exchange trading as a part time business because there are lots of uncertainties involved with the forex marketplace and you can never hope to earn regular money in online forex trading system.

Post by Ali

 

 

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Online Forex Trading is Indeed a Risky Business

It’s true that every investment is insecure but the chances to lose money in forex trade are even higher. That is why, as soon as you choose to be the part of online forex trading, you have to realize the potential risks that are connected with this market.
In online forex trading, traders actually deal with huge amount of money and there is always a possibility that the trade will go down. Potential forex exchange investors should know about the tools of careful and advantageous trading so that they can minimize their online forex trading losses effectively. But even if you minimize your trading risks, there is no guarantee that you will eliminate them at all from your trades.

You can Lose your Investment
Traders will be requested to deposit some amount of capital (security deposit) in their dealer’s forex account in order to sell or buy an off exchange online forex trading contract. This tiny amount of capital will let forex exchange traders to hold a trading position several times larger than the actual value of their forex exchange account. In forex online, this is known as leverage or gearing. High leverage can also prove to be a risky option for forex exchange traders and it can bring huge losses especially when forex rates move in non-favorable direction of the trade.

The Market can Move Against You!
For futures, it is absolutely impossible to anticipate the movement of forex exchange rates because the online forex trading market is an unsteady marketplace. Modification in online forex exchange rates at the time when you place the bid in the market and when you close it will really tell you about your prospective forex trading losses and profit in the market.

There is no Main Marketplace!
Unlike stock and other trading markets, there is absolutely no main platform or a marketplace where market buyers and market seller exchange their trades. Traders basically rely on forex exchange dealers for the execution of their orders in the forex marketplace.

The Trading System of the Trader can Break Down
Sometimes, traders can’t able to place their orders in the forex exchange market because of failure of a forex trading system. A failure of a forex system means that you can not able to place new orders in the market, can not able to execute their existing orders and can not even cancel or alter their old forex exchange orders.
In short, online forex trading involves high risk but with right tools and good discipline, it can prove to be one of the most fruitful ventures of your life.

Post by Ali

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Three Negative Habit that can Effect your Forex Currency Trading Career

Habits
Successful forex exchange traders incessantly make efforts to improve their forex trading system and methodology in order to extract more capital from the forex currency markets.
Controlling our feelings and mindset is indeed crucial if you want to as a successful and effective forex investor. This short article will discuss 3 important but damaging routines of a forex investor and it will also give you practical recommendations on how to undermine them successfully.

1. Absolutely No Pre-Defined Guidelines
Forex exchange trading can be nerve-racking process but successful and experienced forex exchange traders always plan their trades and then they trade their forex trading plan successfully in forex exchange marketplace. It is always a sensible thing to follow your forex trading strategy while trading in live forex market but to get consistent forex trading profit; you have to modify your trading plan and strategy as well.
Remember, if you will trade in the forex exchange marketplace without any plan then you will be susceptible to illogical and poor judgments and this will definitely bring bad effect on your live forex account balance. It is always good to go with some rules in the market than none because your rules will make you a safe and successful trader in forex exchange market.

2. Revenge Forex Exchange Trading
Lots of traders follow a rule of, not to make trades in the market after getting “X” losses in a single course. Wise forex investors always take part in live trading when they find series of winning trades. These people don’t enter in live trading to gain back their losses because they know that trading forex exchange currencies requires intelligence and mental power. They know that they can never win money in forex currency market with revenge trading policy that is why they constantly monitor their forex trading results and they give special attention to how forex trading losses are affecting their overall performance in the market.

3. Don’t having Flexible Forex Trading Approach
A flexible forex trading approach can give you winning trades but if you are not flexible in your forex trading approach or if you have the habit to change your forex trading strategy after reading the comments of other traders or after reading forex news then you can never able to trade successfully in online forex exchange marketplace.

Post by Ali

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What are the Killer Psychological Aspects of a Forex Exchange Trader?

 


Let’s talk about the most common mistakes of forex investors that can either prevent them from earning profit or wipe put their entire forex account. The top most killing psychological aspects of forex exchange investor are as follows:

 

1. Always Enter the Market against the Trend
Sometimes traders enter in the market with the thinking that the trend in the market is already on its peak and it will stay there. But, what happens is, the trend proceeds and the traders lose their trades. Sometimes we lose trades in the market because we rely on our conscious and on subconscious mind instead of our forex trading system and on our tested and proven forex trading strategy and when lose trades we start getting negative feelings about the market.

2. Entering in the Forex Marketplace when its too Late
Some traders have the habit to take risks very easily whereas; some forex exchange traders are risk allergic. Remember, whenever you join the currency trading market you will find the element of risk in it but if you will take reasonable risk and if you trade in the direction of the forex market trend then you can create winning position in the market.

3. While Losing, Increasing the Position in the same Direction
This particular pattern happens with those forex exchange traders who can’t face any type of forex trading losses. Such types of traders are generally great gamblers by nature and they usually possess high egos.

A trader buys a forex trading position and the market starts moving down instead of moving upward. All of sudden, a forex exchange trader purchase more. The market keeps on moving down and the traders still purchase more. When we do so, the market will either kick us out or it will give us a margin call.
Why the market behaved like this? We take positions in the market and after sometimes when we lose our trades, we become too self-possessed that we don’t accept that we are making wrong decisions.
Future foreign exchange traders should learn to trade emotionlessly in forex marketplace and they should never involve their egos in their trades. Just a firm control on your feelings and on your emotions and a full time practice on free forex account will keep up happy and prosperous in forex exchange market. The market can have peaks and it can have downfalls as well. Traders should learn to adjust with the changing forex exchange market conditions by using well proven and tested forex trading psychology.

Post by Ali

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What Traders Want to Know about Forex Exchange Rates?

Foreign exchange rates or forex rates actually indicate the value of one currency versus another. For example, the forex rate of two Australian Dollar (AUD) to Euro(EUR) shows that 2 Australian Dollars are equivalent to one Euro. Forex rates are determined by several factors such as psychological, political, fundamental and technical factors.

Factors Influencing Forex Rates

The factors that can directly affect forex exchange rates are as follows:
1) Technical Factors: Interest rates, relative inflation rates, exchange rates and capital movement and official intervention are some of the technical factors that can instantly increase or decrease forex exchange rates. Higher capital yielding forex exchange currencies generally have high forex rates as compared to the lower ones. Comparatively high inflation rate directly effect economic policies of the country and it also undermines the expected demands of the country’s currency in forex exchange market. In forex trade, the official intervention and forex market regulations can also affect forex exchange rates. Although, the official intervention can only yield positive results for forex currency traders if it’s done properly and whole heartedly.
2) A political crisis in a country or a big event like 9/11 can prompt forex exchange traders to buy Euro instead of USD.

Other determining factors include forex currency speculations, attitude of banks towards keeping trading positions open through out the day.

How Traders can get Best Forex Exchange Rates?

Here are few ideas for you to make sure that you are getting the best forex exchange rates in forex online trading:
• Information — Try to learn about forex currency market as much as you can before trading currencies in live market. With the help of forex currency broker, you can not only easily trade with your live forex account but you can grow your capital as well by getting real time forex exchange rates.
• Professional Guidance — Online forex trading gurus and professionals possess extensive market knowledge that is why; they are in position to offer you best forex exchange rates. These professional gurus and brokers are increasingly used by young traders in the industry and they really help futures to plan their trading and making sensible transactions. These professionals also provide services like booking and buying of forex currency rates as requested.
Forex exchange traders can also find latest information about forex exchange rates on World Wide Web as well.

Post by Ali

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