Review Category : Brokers

Things to Note when Choosing Forex Brokers

forex brokers

Traders need to work closely with forex brokers when trading in the foreign exchange market. Brokers provide trading platforms as well as execute orders on behalf of the trader. Your choice of broker can determine the amount of success you are able to achieve in the largest financial trading market of the world. Therefore, instead of making a random choice, you need to consider many things so that you are able to choose wisely and benefit from it.

As a beginner, you need to evaluate the brokers so that you are able to choose the best. You need to be aware that the popularity of the forex market has attracted several fraudulent brokers who make unrealistic claims. It is best to avoid them as you may lose your valuable time and money if you fall prey to their claims.

Important things that beginners should consider when choosing forex brokers

The most important thing that you need to check when choosing forex brokers is their regulatory status. The Australian Securities and Investments Commission (ASIC) regulates all brokers wishing to provide their services to traders in Australia. You need to ensure that the broker of your choice is licensed and regulated by ASIC. It is best to avoid brokers who are not regulated by ASIC, as they can be fraudulent.

After you have verified the regulatory status, you need to focus your attention on the trading platforms. You need to understand that each platform has unique features and functionalities and you need to make the choice as per your specific needs and requirements. If you are unsure about choosing the right trading platform, you can opt for a demo or practise account so that you are able to test the features and make an informed choice.

The trading accounts that are provided by brokers should also be taken into consideration when making the choice. Micro and mini trading accounts are considered best for beginners, as they may be able to trade only in smaller lots with these accounts. This can help minimise risks and maximise profits.

Apart from this, you also need to consider leverage and spreads when making the choice of brokers. It is best to choose brokers who offer you the most competitive spreads so that you are able to reduce costs of trading.

Customer service is important when choosing forex brokers

One of the common mistakes that most beginners do when choosing forex brokers is to ignore customer service and support provided by them. As the forex market is open all through the day, you need to choose a broker who may be able to provide you support whenever required.

It is advisable to call the broker so that you are able to ascertain how fast they respond. Timing is crucial for success in the foreign exchange market and if the broker is not able to respond to your problem immediately, you may lose the favourable trading opportunity available in the market. Good service and support can enable you to trade confidently and help you make consistent profits.

 

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Forex Trading STP

Forex Trading

Many are confused as to what STP means. Beginners see it and think it must mean spot transaction processing or something similar. In one sense they would not be wrong. An STP broker does have spot transaction processing; however, the exact lingo means straight through processing. In forex trading you can have STP or STP and ECN setups for a no dealing desk broker. The following will explore STP in more detail.

Forex Trading with STP Brokers

STP brokers are not ECNs. They just offer a platform that enables straight through processing, where the platform does most of the work. The broker just makes certain the trade is able to get through to the right client based on the rates chosen by the client or trader. The system ensures the trade goes from the trader directly to the liquidity provider which is linked with the interbank market. Usually in forex trading the no dealing desk STP is going to have more than one liquidity provider. With an STP broker they have a table that will show the liquidity providers and the bid/ask prices for currency pairs. The best to worst bid/ask prices are usually provided, in which the best price available at the time is shown to the client. You would not see these different quotes on the platform you use for forex trading. Instead, you see the price the broker is going to charge you. This price will usually include the spread unless the broker elects a commission based programme.

What the broker might see for a rate on EUR/USD is 1.2000/1.2002, but you see 1.2003/1.2005. Your pip spread is 3, but the broker is charged 2 pips. The broker will route the trade to the liquidity provider offering the best rate to them. It ensures a better price for the trade in terms of profit. STP brokers usually need variable spreads in order to work the forex trading system.

Forex Trading ECN Brokers

ECN brokers are different because you can interact with orders and participants on the ECN network. Banks, hedge funds, other brokers, and retail traders can all trade against the other. In this case it really is the best available price competition in forex trading. The clients or traders get to see how deep the market is. ECNs are more likely to charge commissions because fixed and variable spreads do not work well for the ECN operator.

They are unable to get a spread or a large enough spread to cover their costs when you can see the actual interbank rates. In this situation the commission is usually small, but nevertheless it is there to ensure the ECN can continue operating.

The setup of broker types ensures you have at least three choices for how you can trade. Some traders do not mind paying commissions because it means a more direct deal with the liquidity provider, i.e. the company selling or buying the currency you want. Others go with STPs for the lower spread and to take the middle man out of the equation. You can make the choice in how you will conduct forex trading.

 

 

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When Choosing Australian Forex Brokers

Australian forex brokers

It is not easy for traders to find the best Australian forex brokers as there are hundreds of brokers offering their services. You need to remember that not all these brokers may be able to offer you the services you require and it is advisable to choose those who meet your specific needs and requirements.

Apart from the good, reputed forex brokers there are also many fraudulent brokers offering their services and if you are not careful you may fall prey to their false claims and lose your valuable time and money.

Things to look for when choosing Australian forex brokers

One of the most important things that you need to look for when choosing Australian forex brokers is to check whether they are licensed and regulated. Brokers who wish to offer their services to traders in Australia need to be licensed and regulated by the Australian Securities and Investments Commission (ASIC). Regulated brokers always trade in compliance with the rules and regulations stipulated by the regulatory authorities and this ensures that your trade is placed in an ethical manner.

The best broker should be able to provide you reliable trading systems so that you are able to place a trade easily. The trading platform that the broker provides should be user friendly and help you execute a fast trade. This can help you take advantage of the many trading opportunities available in the foreign exchange market. A complicated trading platform may be difficult to use and you may not be able to execute a fast trade.

A good broker always keeps the traders informed about the changing market conditions. When you are aware of the prevailing market conditions you may be able to take important investment decisions. You may also be able to time your trade in an effective manner and this can enable you to earn consistent profits.

Security is a concern for most traders choosing Australian forex brokers and it is important that you choose those brokers who offer you a safe and secure trading environment. Encryption coding and firewall are the basic security features you need to look for in the trading platforms offered by brokers. This ensures that your financial information is safeguarded at all times.

Customer service and support offered by Australian forex brokers

The customer service offered by brokers is also important when making the choice and it is best to test their service by calling them and seeing how they respond to your questions. As the foreign exchange market is open all through the day it is necessary that you find a broker who may be able to provide you support for twenty-four hours.

It is also advisable to check how long the brokers have been in this business. When brokers have many long years of solid reputation and overall positive reviews you can go ahead and choose them to place a trade. Read reviews that are available on reputed websites, blogs and forums so that you are able to make an informed choice.

 

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Venturing Into The FX Trading Market

This article is about entering the FX trading market and how you should go about it.

Venturing into FX Trading

New traders with no experience in the FX trading market should ensure that they start at the beginning.  You should not jump certain sections of your training or try to start trading in the live market before you have gained sufficient knowledge and confidence in your trades.  You can obtain many free online forex training courses and resources to help you on your path to success.

Forex Brokers

The first step after training is to find a forex broker.  Forex brokers differ in the services they offer traders.  Some have larger brokerages than others, whilst some offer tighter spreads and other offer you all the additional features you could ever need.  All forex brokers have their pros and cons, but there are a few basic factors you should consider before you decide on one.

You need to know if the broker is incorporated.  If it is, in which country is it incorporated.  You have to find out if the broker is registered with its local regulatory body and if so, which regulatory body it is registered with.  To make for ease of trading, you need to find out the size of the brokerage, the number of staff members it employs and if it offers a 24 hour telephone customer support system.

To ensure the security of your funds, you should consider registering with a large brokerage that is registered with at one or two of the regulatory bodies situated in the major currency countries.  The larger brokerages have the funds to offer you better technical and customer support.  A brokerage with a large staff complement will offer you easy access by email or telephone.  You will always be able to connect with someone if you are experiencing technical or trading problems.

FX Trading Test Account

Before you sign up with a forex broker, it is recommended that you test their trading platform to ensure that it suits your needs.  This can quite easily be done by opening a demo account.  Most test accounts offer you the same functionalities as that of the live standard trading accounts.  You gain access to real-time prices and information related to the FX trading market.  The main difference is that you do not trade with real money.

A demo account gives you the opportunity to become familiar with the broker’s trading platform and this will aid in your choice of a forex broker.  It also offers you the opportunity to test your trading plan and trading strategies before trading live.  You should continue trading in your demo account until such time as you feel confident enough to venture into the live trading arena.  You need to ensure that your trading strategies are making profits before you stop trading in your demo account.  It is recommended that you trade in your demo account until such time as you are showing consistent profits using your strategy.  A demo account offers you the chance to adjust any flaws you may experience in your strategy and re-test it.

Newcomers to the FX trading market may think that forex trading is quite difficult.  It is not an easy career to follow, but you can undertake training courses, both theoretical and practical, to make it easier.

 

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Why Retail FX Trading Is Popular

This article looks at the reasons why retail FX trading is popular.

Retail FX Trading

Retail FX trading has become very popular over the years.  There are a lot of people who wonder why this is the case.  There are a number of reasons why people look at retail FX trading and you should consider what these are.  You should also consider how this will impact the trading that you are able to do and the alternatives that you have for your FX trading.

The Costs of FX Trading

One of the reasons why retail trading is popular is the overall costs that you find with other trading.  If you were to use a broker for all your trading then you will have to pay them a commission.  You will also have to have a much higher amount of capital to start with.  Retail trading allows you to complete the trading yourself and you do not have to have a lot of capital.  There are many trading accounts that you can open for a very small initial deposit.

Of course, when you look at the costs of trading you should not only look at the costs of opening the trading account.  You need to consider how much capital you need to trade reasonably and make a decent return.  The amount that you need to open the trading account may not be enough to actively trade on the forex market.

The Research You Can Do

Another reason why retail trading is popular is the access to information that comes with the internet.  On many other trading markets there is a filter of information with the major players on the market getting the information first and then the retail traders getting the information.  This is not something you find as much with the forex market.  Retail FX trading offers the same access to information as the professional trading.

This is due to the fact that countries will release their economic news to everyone at the same time.  If a report about the interest rates is released by the central bank then all traders will be able to access this at the same time.  Of course, the advantage that the major players have is that they can trade more based on the news.

The Use of Social Media

Retail FX trading does have a link with social media.  Social media allows information to be transmitted to a lot of people at the same time.  When you use social media for trading you can connect with other traders and you can find out information that you can trade on.  The use of social media may not be one of the major reasons why retail trading is popular, but it is one of the lesser reasons.

Being in Control

Being in control of your trading is another reason why retail trading is popular.  When you use a trading manager you have no way of knowing what they are actually doing with your money.  There are many horror stories that put people off using a manager.  When you are able to control the trading that is done you can ensure that everything works toward the goals that you have set and that the risks being taken are right for you.

 

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Forex Brokers and Starting Capitals

Forex brokers

If you start well in your new profession then it would become easier for you to excel in your new endeavour over time. This is especially true for professions that are difficult and vast in nature like the forex market. The forex market is genuinely huge with various options for everything ranging from forex brokers to potential trades.

Everything in the forex market needs to be calculated carefully and deliberated upon. This includes the sum of money you are going to start trading with the first time you do it. There are various considerations pertaining to the starting capital that need to be made.

Having a Solid Platform

It is likely that you are wondering why it is so important for you to calculate how much money you are going to start with when you can simply start with any amount of money.

The reason for this is that most new traders tend to fail in the market because they start with insufficient funds. Unless you have a good foundation then how can you profit in your account which you have opened after carefully analysing various foreign exchange brokers?

Typical Factors to Consider

Typically, there is a set of factors that you can consider while deciding the size of your starting account with forex brokers. These factors include financial goals, trade sizes, leverage usage, and psychological benefits.

Usually, it is considered that it is better to wait till one can open a large account with foreign exchange brokers as opposed to opening smaller ones. Calculating the ideal account size to open with the brokers, however, can be quite confusing for a new trader. Fortunately, there is another method to do this as well.

Taking the Lead from Forex Brokers

New forex traders are, in any case, not going to start with huge accounts with their forex brokers because they are unsure of their prospects. However, having an account which is too small can actually be detrimental to the trader’s prospects.

One of the best things to do in this situation is to simply take the forex brokers’ recommendations when it comes to account sizes. In the majority of cases, if the brokers can be trusted then these recommendations can be trusted as well. Here is why.

Experience in the Market

Most forex brokers have considerable experience in the market in terms of time and data. Their databases include performance levels of all their trades. Effectively, they can use this data to recommend account conditions most suitable to new traders.

Maximum Performance Setups

Forex brokers can help new traders find the perfect balance between having an account large enough to gain significant returns from the market while having an account small enough to counter the risks posed by natural market forces.

Regulation Requirements

Finally, many times forex brokers make recommendations on minimum deposits and leverage use on the basis of what the country’s laws require. As is obvious, these cannot be ignored and should be considered extremely important. The alternative would be to deal with forex brokers from other countries.

 

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Essential Forex Training Course for Beginners

Forex training

Forex training is important if you want to succeed in the largest financial trading market of the world. If you are not equipped with the knowledge and skills to handle the various complexities of the market you may not be able to succeed in this volatile market. Traders who fail to survive and succeed in this market are those who do not attempt to gain the necessary knowledge and experience needed for trading.

If you are entering the foreign exchange market for the first time you need to understand that knowledge is important for success. The popularity of forex trading has ensured that there are hundreds of websites offering many trading courses and programmes to beginners and experienced traders. You can make the choice depending on your specific needs and requirements.

When you get a good education you may be able to minimise the inherent risks of trading and maximise the profits. You may be able to learn about the terminologies, currency pairs, reading and interpreting charts and strategies. When you acquire adequate knowledge it may be easy to start trading in the forex market.

Where to get forex training

If you live in Australia you can easily find a forex training course of your choice, as there are hundreds of courses offered by websites. Before you make the choice of website it is important that you check the reputation of the website so that you are able to get the right type of knowledge to trade successfully.

It is best to read reviews about the various training programmes and websites offering such programmes so that you are able to make an informed choice. Read reviews that are available on blogs and forums of traders so that you are able to get a clear picture of the course that is offered to you. Avoid reading reviews on affiliate websites as they may not be truthful and can be misleading.

Before you make the choice of training course, it is advisable to check the curriculum so that you are able to ascertain whether it suits your requirements. Most websites offer basic, intermediate and advanced training programmes and you can choose depending on your knowledge and experience.

Demo account for forex training

The website that is offering you the forex training programme should be capable of providing you a demo or practise account so that you are able to practise all the skills necessary to place a successful trade. The demo account can also help you get familiar with the trading platform that you may be using to place a trade. Apart from this you may also be able to test the many strategies you plan to use when trading different pairs of currencies.

As the demo account is similar to the live trading account in most aspects you may be able to place trades without risking actual money. This can enable you to learn from your mistakes and help you trade confidently. The experience that you get from trading on a demo account may prove to be useful when trading with a live account.

 

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Do Not Sabotage Your Forex Trading Strategies

forex trading strategies

The forex market is extremely competitive in nature, regardless of how wonderful and special your forex trading strategies are. The fact that 95 percent of forex traders end up failing on the foreign exchange shows how difficult it is to excel in a market like this. Despite this, most traders enter the forex market with rosy dreams such as retiring early.

The dreams and hopes of new forex traders always receive a boost by the marketing experts in the forex market who are trying to sell them readymade forex products like foreign exchange trading strategies.

What these people fail to tell the new and relatively inexperienced trader is that the strategies by themselves are nothing and that their effectiveness mainly relies on the trader using them. This means that it is possible for a new trader to completely sabotage his trading strategies from nothing but sheer inexperience.

Here are some common ways through which inexperienced traders end up doing this to their forex trading strategies. Consider the following carefully and you can evade the fate that befalls most forex traders these days.

Deviating from Established Rules

One of the most common and career fatal mistakes that inexperienced traders make is that they start thinking that they have cracked the market and that their forex trading strategies are gold. However, it does not take a lot for their strategies to turn from gold to brass.

In fact, all it needs are the market conditions to change ever so slightly and all the money that was made disappears. Overconfidence is a sure shot way to lose any ground that you may have gained with the help of your forex strategies.

Failing to Consider Risks

One of the direct fallouts of becoming overconfident of the efficacy of your forex trading strategies is that you will stop paying heed to the risks inherent in each trade up until the alarm bells start ringing. If the alarm bells are ringing in your head then it is already too late to recover what you may have lost.

Pay attention to risks in each and every trade, in addition to overall risks to your account equity, and you will be able to get the best out of your forex strategies.

Ignoring Position Sizing

If you focus on risks in each and every trade then you would never forget the aspect of position sizing even if your forex trading strategies give you extremely good forex signals.

Position sizing is one of the best tools you have not only for minimising risks inherent in each trade but also negating risks that the market poses to your whole account and trading career.

Being Active All the Time

You may have forex trading strategies with exceptional success rates. However, they probably have such a great win ratio because they advise you to not trade often and instead trade smart. This means that instead of running to the market with all your forex signals, you should wait for the right one.

 

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Facets Of Good Australian Forex Brokers

Australian forex brokers

These days, there are so many different types of Australian forex brokers that it can become extremely difficult for a new trader to find the right one. Between all the forex brokers who have just set up shop and those brokers who are simply there to make a lot of money before disappearing, the rare good ones can get lost in a hurry.

However, these high quality but rare forex brokers are the ones who can elevate your basic forex trading skills to a level where, before you know it, you have become a seasoned expert of the forex market.

Thus, if you can find such forex brokers then you may actually be making an investment into your forex trading future. Here are some qualities that all good Australian foreign exchange brokers share that you should look for.

Licence From The Right Authority

First and foremost, you would not find any good Australian forex brokers who do not have a licence from the Australian Securities and Investments Commission. This is the regulatory body responsible for assessing and granting licences to good forex brokers in the country. However, while all good brokers will have a licence from them, it does not mean that any broker with the licence is a good broker.

There Should Be A Variety Of Accounts

Good Australian forex brokers make it a point to structure their business in such a way that their prime agenda becomes the success and satisfaction of their traders. Their logic is quite simple.

They believe that the longer their trader makes profits, the more he or she will stay in the market and, hence, make them money too. Hence, good brokers never waver from providing traders with a wide variety of accounts to choose from spanning different lot sizes.

Clear And Concise Documentation

High quality Australian forex brokers are also always aware of their reputation to a point where they would not do anything to ruin it. Thus, you would find documentation from such brokers to be top notch and without any ambiguity.

You should study the terms and conditions documents of all brokers looking for things like minimum balance requirements, margin and leverage requirements, availability of support, and even withdrawal conditions.

Low Spreads And No Hidden Costs

You would also never see high quality forex brokers placing hidden charges on their clients or even offering spreads that are bigger than the market norm. In fact, most top class brokers make sure that they offer the tightest spreads possible to further the success of their clients.

Reputation Of Client Satisfaction

As mentioned earlier, the best Australian forex brokers would never have a single mark against their reputation amongst their peers and clients alike. Reputation is fairly easy to find in this world of fast paced connectivity. Just log online and look for reviews and comments on blogs and forums.

Trading Software Must Be Comprehensive

Superlative Australian forex brokers would also have exceptional trading software programmes because they want their clients to have the best. Typically, platforms from such brokers tend to be extremely detailed and comprehensive with thousands of features.

 

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Finding the Best Australian Forex Brokers

Australian forex brokers

Finding the best Australian forex brokers can take some time and effort. The popularity of the foreign exchange market has ensured that there are hundreds of brokers offering their services to traders in Australia but not all of them may be able to match your expectations. Choosing a good broker is important for your success and irrespective of whether you are a beginner or experienced trader you should not neglect this vital aspect.

As the broker handles your money when you place a trade, they should therefore be reliable and trustworthy. The number of fraudulent brokers who try to fool investors of their hard-earned money has increased significantly and unless you are careful, you may fall prey to their marketing tactics and lose your money.

Tips to finding the best Australian forex brokers

When choosing the best Australian forex brokers one of the first things that you need to look out for is regulation. All brokers wishing to offer their services to traders in Australia need to be licensed and regulated by the Australian Securities and Investments Commission (ASIC). If the broker of your choice is not regulated by ASIC, it is best to avoid them.

The best brokers provide a safe and secure trading environment. Security of financial information of traders should be a top priority when making the choice of broker. As a trader, you need to ensure that the sensitive financial information is safeguarded at all times from hackers and others who may misuse it. It is best to choose a broker who provides the best security measures like encryption coding and firewalls to safeguard all information.

You need to ensure that your broker provides you the maximum currency pairs to trade so that you may get more opportunities to profit. Some brokers may provide only limited access to currency pairs and it is best to avoid them. Choose brokers who may be able to allow you trading in the most popular and actively traded currency pairs.

As brokers do not charge commissions for the trades they place, it is best to choose those that offer the most competitive spreads. This can help in bringing down the cost of trading and help you maximise your profits easily.

Trading accounts provided by Australian forex brokers

The account types that are offered by brokers may also be taken into consideration when making the choice. Apart from the standard, mini and micro trading accounts a reputed broker should also be able to offer you a demo or practise account.

If you are a beginner, you can make use of the demo or practise account to gain knowledge and experience about the various aspects of forex trading. When you opt for a demo account, you may also be able to test the trading platforms that are used to place a trade.

The customer service and support provided by Australian forex brokers is also important, as you may need their help whenever you place a trade. As the forex market is open all through the day, you need to ensure that they will be able to help you through all twenty-four hours.

 

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