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Showing posts with label Education. Show all posts
Showing posts with label Education. Show all posts
July 14, 2018

Six Questions to Ask Your Forex Broker

Six Questions to Ask Your Forex Broker
Six Questions to Ask Your Forex Broker

We find no excuse for not to repeat that working with a reliable forex broker comes before anything else in forex trading. You may have found the holy grail and your strategy could be making thousands of bucks every month consistently. However what good is it to be if you selected a vulturous forex broker? These are the main six questions to ask your forex broker in order to distinguish a reliable forex broker from a fraud forex broker.

Is the Broker Regulated?

This should be the first and by far the most important question to ask your forex broker. Compliance with strict standards and safety of your funds come before any other affair in trading in our humble opinion and it is ensured by the strict regulation. Imagine that you have a winning trading strategy under your disposal and you are earning a decent amount of money on forex, however consider whether it really matters, if you are not going to be able to withdraw your profit from the broker.

FCA (UK), ASIC (Australia), CFTC (US) and SEC (US) are the regulators which We respect the most and We would comfortably say that any broker that are under the jurisdiction of those regulators are to be trusted. They will ensure that the broker you are trading with is not located in a tropical off-shore island where you are going to be able to reach if anything goes wrong with your account and trades.

How Long Has the Broker Been in Forex Business?

A company’s history tells a lot about its success and customer satisfaction. You know very well that a fraud company cannot stay in the business for long time. This is particularly true for forex sector. I would recommend you to look for your forex broker to operate in forex business for at least five years. Scams only survive for few years and even less if they are regulated by one of the strict regulators such as FCA, ASIC and CFTC.

Does the Broker Offer Low Spreads and Commission?

Spreads and commissions are the primary criteria for many investors when they choose a forex broker. It makes sense since traders’ goal is to earn money and lower the spread and commission higher the profit for trader. Especially for those traders whose trading strategy is based on scalping and short term trading, lower cost of trading determines the difference between a winning and losing trade. No doubt that this is crucial however it is at third place on our list because, again, how it matters if you get super low spreads from a broker but it is not regulated and you don’t know if you could withdraw your profit.

What Deposit and Withdrawal Options Does the Broker Offer?

Before you start trading and profiting on your trades, you first should deposit funds into your forex account. And in order to be able to spend your profit, you first must withdraw the funds from your account. Therefore you should ask your forex broker how easy it is to deposit and withdraw funds and what options they offer. The most common two methods for deposit and withdrawal are wire transfer and credit card. However, say you are only willing to deposit money into your account by Neteller, so you have to ask the broker if you can do it by this certain way before even sending your application and submitting your documents. Make sure they offer the methods that suit best to your preferences.

What Type of Products Does the Broker Offer?

Okay, you have been trading forex all the way till now however you have just read a report and are convinced that there is a great buy opportunity on gold. You go through your broker’s instrument list and no, gold is not there. Phew, you have just missed a potential profit dude. We are trading forex pairs most of the time but We still would like to have other instruments at hand. Not only precious metals though. Make sure that CFD indices, oil, agricultural and soft commodities are present and ready for trading on your platform.

What Trading Platforms Does the Broker Provide?

You have been trading with MetaTrader for long time and it is the only way for you to trade. Now you have signed up with a new broker just to see that they are not offering MetaTrader. Ouch, big frustration. Most of the brokers offer MetaTrader as the standard trading tool but it is not rare to see brokers developed their own platform and only providing clients with their unique trading software. If you were planning to use an EA programmed for MetaTrader, you were most likely not going to be able to do it. So it is always a good idea to ask your forex broker up front what trading software they provide.

How to Withdraw Your Money From Broker

How to Withdraw Your Money From Broker
How to Withdraw Your Money From Broker

The best and most exciting thing about forex trading is, of course, to withdraw your profit from the forex broker. Say you have been trading, made a considerable amount of profit and now you want to spend your profit. In order to be able to do it, first you have to get your money back from the broker. To withdraw money from your forex account is very straightforward in general but does require you to take few steps.

Choose the Withdrawal Option

When it comes to withdraw your profit from forex brokers, the methods are not scarce including credit card, wire transfer, WebMoney, Neteller, Skrill, Western Union, Bitcoin to name a few.

We usually go with wire transfer when withdrawing our profit. Nevertheless it comes with some caveats. Wire transfer is recommended if only you are going to withdraw an amount over a thousand. Otherwise the bank transfer fees are going to eat up your hard earned profit. Bear in mind that when you choose to get your money back through wire transfer, you are going to get double charged (once by the bank in where your forex broker is located and again by your local bank). The fees could range from $50 to $100 in total. The certain amount completely depends on the bank the broker is working with and your local bank.

Our second favorite option to withdraw funds from forex account is credit card. Again there are some caveats. Some forex brokers don’t allow you to withdraw more than what you deposited with the same credit card. When you deposit $1000 to your forex account using credit card, you can only withdraw an amount up to $1000 by the same card. So you will have to choose another withdrawal method to transfer your profit.

Though We haven’t used so far, other popular methods are digital wallets like Neteller, WebMoney, Skrill. Forex brokers don’t charge extra fees to withdraw money by digital wallets however those services apply their own fees when you want to transfer money from the wallet to your bank account.

Forex Brokers Money Withdrawals

The withdrawal options accepted by our top listed brokers are below:

1. HotForex Withdrawal Options: Wire Transfer, Credit Card, Skrill, Neteller, FasaPay, Union Pay, Webmoney

2. XM Withdrawal Options: Wire Transfer, Credit Card, Skrill, Neteller, Perfect Money, Webmoney

3. PepperStone Withdrawal Options: Wire Transfer, Credit Card, PayPal, POLi, China Union Pay, BPay, Skrill, Neteller, Qiwi, FasaPay

4. ForexTime Withdrawal Options: Wire Transfer, Local Bank Transfer, Credit Card, Skrill, Neteller, Alfa-Click, WebMoney, Payza, OKPAY, DIXIPAY, CASHU, Yandex Money,QIWI, Perfect Money, Bitcoin, QQPay, Baidu, Konnexone

5. Exness Withdrawal Options: Wire Transfer, Credit Card, Skrill, Neteller, QIWI, Webmoney, Perfect Money, CASHU, Yandex Money, Bitcoin

6. eToro Withdrawal Options: Wire Transfer, Debit Card, Neteller, PayPal, Skrill, WebMoney, Yandex, Giropay

7. FBS Withdrawal Options: Wire Transfer, Credit Card, Skrill, Neteller, Bitcoin, OKPAY, Perfec Money

8. AvaTrade Withdrawal Options: Wire Transfer, Credit Card, Bitcoin, Paypal, Neteller, Moneybookers, Web Money, Giropay

9. RoboForex Withdrawal Options: Credit Card, Skrill, Neteller, Fasapay, Bitcoin

10. FxPro Withdrawal Options: Wire Transfer, Debit Card, PayPal, Skrill, Neteller, UnionPay

11. FiboGroup Withdrawal Options: Wire Transfer, Credit Card, Neteller, Skrill, QIWI, Web Money, Baofoo, CASHU, DIXIPAY, OKPAY, Fasapay, Bitcoin

12. FxChoice Withdrawal Options: Wire Transfer, Debit Card, Skrill, Neteller, Bitcoin, Fasapay, Perfect Money, PaySafeCard, epayments, Trustly, QIWI, AstroPay

13. HyCM Withdrawal Options: Wire Transfer, Credit Card, Skrill, Neteller, UnionPay, Web Money

14. EasyMarkets Withdrawal Options: Wire Transfer, Credit Card, Neteller, Skrill, UnionPay, iDeal, SoFort├╝berweisung, WeChatPay, Giropay, Yemadai

15. Alpari Withdrawal Options: Wire Transfer, Credit Card, Skrill, Neteller, WebMoney, Baokim, UnionPay, Fasapay

Submit Your Withdrawal Request

After you decided the best transfer option for you, you have to submit your withdrawal request. Forex brokers used to demand clients to print out a withdrawal form then fill, sign and forward it to the broker by mail or e-mail.

However nowadays you don’t have to go through this cumbersome process. Majority of the forex brokers provide clients with a username and password for the client portal where they can submit their money withdrawal request in just seconds.

Just log in to the client portal, navigate to the money withdrawal section, fill the online form and click the submit button. Congratulations!

Wait Until Your Fund is Transferred to Your Bank Account / Credit Card / Digital Wallet

It ranges between one to three business days depending on the forex broker and withdrawal option you used. Wire transfer and credit card transfers could take up to three business days. Though We remember several times that We received the funds same day when We used wire transfer as the transfer option.
July 07, 2018

Best ECN Accounts / Brokers With Lowest Spreads / Commissions

Best ECN Accounts / Brokers With Lowest Spreads / Commissions
Best ECN Accounts / Brokers With Lowest Spreads / Commissions

Spread is a one of the most important factors which decides whether a forex traders is going to be a successful one or join to the majority of traders and fail. We are going to explain further what exactly is spread and why it is important in an other blog post. Well, all right, definitely spread is very important so what are the top forex brokers with the lowest spread?

First of all, We would like to put forward that when you pick a forex brokers for your trading, low spreads should not be the only or primary criteria. Instead it should be in the bowl of criteria in addition to regulation, leverage, available instruments, funding and withdrawal options.

It is hard to give a crystal clear answer to the question but We can say that forex brokers that offer ECN forex accounts are the right ones to try for those traders who are over sensitive about spreads. We have explained here what is ECN forex account or broker.

As an example, ForexTime (FXTM) and PepperStone ECN accounts have tighter spreads compared to standard forex accounts. Perhaps, it has not occurred to most of you but your account size could also play an important role for the spreads that you are seeing on your forex account in a way that it gives you a bigger bargaining power if you demand lower spreads.

Commission in Forex Trading

A very critical point to note about ECN accounts is the commissions. Forex brokers don't make quotes up themselves, they receive them from a liquidity provider with certain spreads and in order to be able to make money, they have to widen the spread.

On the other hand, on ECN accounts, you receive the raw spreads which means that broker passes the quotes directly from liquidity provider to you. Thus brokers charge commissions on ECN accounts to profit and in some cases those commissions could easily eat up your profit. So We recommend you to make sure that the commissions would be bearable for your trading strategy.

What is ECN Account or ECN Broker In Forex?

What is ECN Account or ECN Broker In Forex?
What is ECN Account or ECN Broker In Forex?

ECN stands for Electronic Communication Network. ECN forex accounts have lots of advantages for forex traders and it is how We usually trade. Comparing it to standard forex accounts, ECN lets you trade directly with the liquidity provider. So it removes the risk of broker manipulation.

This type of brokers allows you to access the global liquidity pool which are compromised by regulated financial institutions. Your orders are automatically matched and executed at the best price available and the fasted execution time.

Since the broker earns commission fees on every transaction, the more you trade more they profit. Therefore this trading model encourages ECN brokers not to trade against clients or manipulate the trading conditions contrary to the brokers which are B-booking clients.

ECN Broker or ECN Account
ECN Broker or ECN Account

Get Direct Access to the Source With ECN Forex Account

In order to make it easier to understand, think of a supermarket and farmer allegory. The farmer provides supermarket with food. You can’t access to the farmer due to either you don’t have the necessary means or you don’t know the address to the farm.

The supermarket has to mark up the price that it pays to the farmer in order to profit. Perhaps sometimes excessively because it has a monopoly around your neighborhood. Imagine that this particular supermarket promises you that it is going to reveal you the address of farmer but with a commission on every product you are going to purchase from the farmer. This latter supermarket could be thought of as an ECN broker.

Spreads are very low because you are dealing directly with the main guy without any middleman. Execution is instant due to absence of market maker interference and any trading strategy is allowed. All those make ECN brokers ideal for forex trading, especially for traders whose trading style is based on scalping and expert advisors. ECN has been the way for us for long time.

Forex Trading Is Profitable?

Forex Trading Is Profitable?
Forex Trading Is Profitable?

Forex trading is profitable and is trading forex for a living really possible? We are sure that most of the forex traders begin trading forex with a dream of earning their living by trading currencies on their computer at home. No obligation to wake up early in the morning to go work, no managers, no deadlines.

Every forex trader has the fantasy of financial freedom and flexibility for living wherever they wish and believe me this market has this potential. There are plenty of forex traders out there who are living the dream. Though it takes a lot of experience and pain to reach that level of success. Let us represent you again the fact that %90 of the forex traders are losing all their investment in less than 2 months. So it is not impossible but it is going to take a lot of time and patience.

Forex Trading For A Living

As we pointed out in this and this article, it is really simple to open a forex account and begin trading. But it is the being a profitable trader part that is the difficult part. It requires a lot of time and effort to excel at forex trading just like any other endeavor that you would get involved.

Would you become a successful engineer or banker if you are not willing put the necessary effort to work hard and necessary time to train and improve yourself? No. Very same logic goes with forex trading as well.

It would be a grave mistake to think that you are going to be a profitable trader by day one. Well, you could make profit at day one but it would be by chance and you would probably blow your account following days. Forex trading is a serious profession like others. Thus you will have to invest combination of these four to become a consistently profitable forex trader; time, money, effort and patience. Unfortunately, there is no shortcut.
July 03, 2018

What is Foreign Exchange, FX, Forex Trading?

What is Foreign Exchange, FX, Forex Trading?
Foreign Exchange, FX, Forex Trading

To put it simply, Forex, Foreign exchange or FX, is the market place where currencies are traded by banks, institutions, investors or individual traders with turnover over $5.3 trillion+ per day.

Forex gives you the opportunity to trade a wide range of currencies versus one and another. Traders expect to earn profit on the changes in the exchange rates between currencies which they buy or sell. In practice, Forex (FX) traders speculate on the direction of future exchanges rates like whether Swiss Franc (CHF) will appreciate or depreciate versus another currency, such as the Euro (EUR).

If the exchange rate goes the direction that trader expects, it is a profit. However if the rate goes against the direction that trader bets, it is a loss and unfortunately this is the case for %90 of the traders according to the statistics.

Advantages of Forex Market

Forex market is decentralized, largest and the most liquid market in the world. There is not one single exchange for forex as investors can trade currencies 24 hours a day by the market place that is open at that particular time. For example, you cant buy or sell stocks at spot market once the stock exchange is closed.

However, there is no such limitation in forex trading as currencies are traded continiously at any time across a vast network of banks, investors, funds and firms. You cant buy Apple shares after the US stock exchange is closed whereas you can buy euros and sell dollars even past midnight.

With over $5.3 trillion+ turnover per day, foreign exchange market is the largest and the most liquid in the world. To put this in the perspective, consider that New York Stock Exchange’s daily turnover averages to $300 billion+

Is Forex (FX) Trading Profitable?

We are pretty sure that every single of you who is reading this article is fantasizing a future of financial freedom and flexibility of working at home and living wherever they wish. We strongly believe that forex trading offers this prospects. We personally know plenty of forex traders out there who are living the dream. But it takes a lot of time and financial pain to get to level.

How Does a Forex (FX) Brokers Make Money?

Allow us to answer this question based on the nature and revenue model of forex brokers. In very simple terms, there are two types of forex brokers with respect to their revenue model; markets makers and others.

Markets makers are believed to be the largest group who take the exact opposite direction of their clients’s trade. This implies that these type of brokers make money when clients (you) lose and lose when clients profit.

Others (STP, ECN brokers) let traders access to the global liquidity and they execute trades at the best price available and the fasted execution time offered by their liquidity providers. Since this type of brokers’ revenue model is based on the commission on every trade that the clients execute, more the clients trade more they earn.

Over a thousand forex brokers all around the world allow you to access this market place at the convenience of your computer and mobile device with great privilages as such leverage, lower commissions compared to banks, wide range of currency pairs and ability to invest in commodities and indices. But which one to choose? Which is the best one for you? Please check our Top regulated and trusted brokers.
June 26, 2018

How To Start Forex Trading?

How To Start Forex Trading?
How To Start Forex Trading?

Forex trading starts with finding the right broker to trade with. Even if you are an expert at analyzing currency markets or you have discovered the holy grail for trading, you may end up being another forex trading failure story because the forex broker that you are trading with doesn’t provide you a favorable trading environment in terms of spreads, execution time, slippage and etc.

Find the Best Forex Broker For Your Style

We have been trading forex for last 15 years and have founded this web site to help you to find your ideal forex broker among over a thousand brokers out there. Please check our brokers list to see if one of those suits well with what you expect and need from a forex broker.

Open a Forex Account and Verified It

Let’s say you have decided on the broker that you are going to trade at. Next step is to open an account. In this article, We explained how to open a forex trading account in detail.

It is straightforward and usually takes no more than one or two days once you uploaded the required documents and verified your account.

After your account is opened and verified, you will need to fund your account to start trading. Forex brokers accept a variety of methods for depositing or withdrawing funds. Bank transfers, credit card, Neteller, Skrill, WebMoney are few of those methods.

Login to Your Trading Platform

Now you have a forex account with funds deposited and are ready to start forex trading. MetaTrader 4 (MT4) or MetaTrader 5 (MT5) is the most popular trading platforms followed by cTrader. Some brokers have their own platforms as well. Log in the platform with account number and password provided you by the broker.

Forex Brokers Advantages

You are now connected to the forex market and should benefit the great advantages such as leverage, high liquidity, 24 hours a day functionality, low commissions compared to banks and exchange offices, easy access to wide range of instruments such commodities and indices along with forex pairs.

Starting To Forex Trading

To start trading forex is the easy part relative to becoming a consistently profitable trader. This is the tough struggle and may take several years depending on your apetite to learn and ambition for forex trading.
June 21, 2018

How to Open a Forex Trading Account with Broker?

Before opening a forex trading account with any broker, you should first find the right forex broker for you and this is the whole purpose of this website.

Okay, let’s talk about how to open a forex trading account with broker. So you have done your homework, gone through web sites, talked to the customer representatives and gathered the information necessary for you about the broker and you picked one that feels right and the best for your trading style.

Next step is to fill the registration form: This step is relatively easy, Most of the forex brokers (it may vary due to regulation) require you to put your basic information such as name, surname, date of birth, place of birth, country of residence, gender, address, e-mail address and phone number regardless of the account type which you are intending to open.

Following step is activation. After you submitted the required personal information, you are going to have to validate the genuinity of the account. In other terms, you have to proof that the personal information that you have submitted is correct and you are the person who you have declared on the registration form.

How to Validate Your Forex Trading Account?

In order to get your trading account validated, you are required to submit.

(i) Copy of your national ID card, passport or driver license as proof of ID.
(ii) Copy of utility bill or bank statement which is not dated older than 3 months as proof of address.

In addition to those documents, some brokers may demand different documents depending on the regulation and a copy of your credit card if you funded your account with this payment option.

The validation step shouldn’t scare you. As long as you have the documents scanned and ready on your computer, opening a forex trading account is straightforward and it doesn’t take long time. As always, you can contact us here. if you have an inquiry about opening a forex trading account.

Types of Forex Trading Accounts

Different brokers offer different type of accounts with different features for traders but offering those two types of accounts have become pretty much the standard in the industry; live and demo account.

Live Account

Live accounts are the real deal. They are where traders deposit real money and earn / lose real money. In order to be able to open a live account, the account holder has to go through a validation process in which they have to proof the genuinity of the account by submitting an official ID document and proof of address.

Demo Account

Demo account is offered by almost all of the forex brokers as a practice trading account that is funded with virtual money. It is identical to a live account in many ways such as it shows live quotes, lets you buy and sell instruments offered in live account and allows traders to use automated trading systems (erxpert avdisors, robots). The most important difference, and that is vital, is that demo accounts enable investors to trade with virtual money which means you wont actually lose or earn money. Demo accounts are a great way for newbie traders to learn forex trading without suffering big financial damage and for experienced traders to experiment of their new trading strategies or automated systems.

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