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Archive for April, 2012

Forex Brokers

Forex Brokers

To trade the forex market you need a reputable, trusted, and capable forex broker, the broker is the person or business that facilitates your interaction with the forex market. Without a quality forex broker there would be no way you could trade the forex market and take advantage of profitable trading opportunities each and every day. It is important that you find a recommended forex broker; one that many customers have had positive experiences with, otherwise you run the risk of using an FX broker that may not be as worthy of your business as some of the others. So, finding a top-quality forex trading broker that you can trust is a crucial part of becoming a successful forex currency trader.

With the advent and widespread accessibility of the internet, online forex brokers have become very popular; most forex traders use an all-online forex broker at this point.

This is mainly a good thing, but there are a lot of online forex brokers out there who are not on an equal level of service and technical capability as other online forex brokers. This is why before you decide to use any particular forex online broker, you need to make sure that you have studied and researched them thoroughly, this means checking out forex broker reviews and comparing and contrasting them in all ways.

With the majority of forex traders using online forex brokers today, it is crucial that your forex broker has the capability to provide you with service whenever the forex market is open. You don’t want to miss out on any trading opportunities because your fx broker doesn’t have the technological means to be online when you need them to be. Some traders experience periodic forex trading platform “crashes”, this typically happens during very volatile market conditions, usually around major economic releases. This is a very big problem because some of the best trade setups form in fast moving, volatile market conditions, you don’t want to be stuck on the sidelines because your online broker doesn’t have the redundancy they should have to be online every second the forex market is open. The best forex broker will have the technological capability to be online whenever you need them to be, not only during quiet market conditions, but during all market conditions.

The best forex brokers will also have excellent customer service; if you do need to call your broker or chat with them online, they should be attentive, friendly, and helpful, after all, the forex broker business is all about customer service. If your forex trading broker does not have excellent customer service, you should keep looking for a different broker, there are many to choose from so you should never settle for a broker being rude to you or providing you with poor customer service. The best forex broker will go above and beyond what you would naturally expect from them, both in the realm of customer service and in the realm of technical capability.

Archived under Forex Broker Comments

Forex Broker

Forex Broker

One of the key requirements when looking to move into the world of Forex trading is to find an appropriate Forex broker to use. Not too long ago there were only a few of very qualified brokers to use. However, not that has changed and there are many. Making sure that you choose on that is right for you and your trading plans is critical to your success.

The fact that the market has matured and there are now dozens of quality Forex brokers available, means that the spread and price points are not that different between brokers. However, there are variations between brokers and one needs to check each of them out. The time that you take to review the various brokers will allow you to find one that offers the best deal at the time as well as one that meets your Forex broker needs.

There are several points to consider when choosing your first, or any, Forex broker.

· What is the margin that is provided? It usually ranges between 1-4%.

· What are the currency spreads? For example, with EUR/USD it is usually be about 3-4 pips.

· What amount of money do you need to start an account?

· What is the small trade size fee? While some do not charge for that, others do and you need to be aware of what the costs might be.

· What, if any, other fees are there that you need to be aware of?

· How long had the company been in business? And what is their record and business history? If there are any issues, walk away and find another company.

· What kind of a Forex trading platform and charting package do they offer? And do they offer you a demo account to practice on?

A couple of the points above need a bit more detail due to their importance in your success.

When choosing a Forex broker, one of the most important features is what is their trading platform? Does it download to your computer or is it one that you need to login to in order to use.

Based upon your lifestyle and access to the internet, this can be critical. In order to determine if the Forex brokers platform works for you, make sure to test out the demo account that many brokers have. If you do not have one to test you can never be sure that this broker is the one you want.

As part of the Forex platform, you will be given access to charts. There is a broad spectrum of quality in the charts that you receive. Again, this makes being able to test a demo system critical to your success. Make sure that you can draw lines and plot indicators. Being able to write notes is also helpful.

Forex trading obviously has some risks associated with it as does any investment. However, the right Forex broker can make it easier for you to be successful in trading. Making sure that you’ve found the right Forex broker that has all of the tools that you need allows you to focus more on choosing the right trades rather than trying to make a trading platform work for you.

Archived under Forex Broker Comments

Fundamentals Of Technical Analysis

Fundamentals Of Technical Analysis

 Technical analysis has become one of the most popular science of trading. Even it is defined as not exact since that cannot guarantee future price trend, many traders are looking at it as it is a “trail to the gold”.

Now, when the computerization is developing to the higher levels, many technical analysts are forgetting about basic principles of analysis. Majority of retail and even professional traders and investors are jumping into the world of technical indicators in attempt to find or to develop a trading system or strategy which would make them rich “overnight” or allowed them do nothing and receive stable income flow. With hundreds of technical indicators many traders get lost in testing. It is difficult to call as analysis a process of selecting technical indicators and trying different indicators setting with purpose of finding a combination that works.

Yet, the main part of traders are focused exactly on that by considering themselves as professional analysts and by forgetting that this is not analysis but a simple testing.

In 1930s through 1940s when the computers were not used in the stock market analysis, traders and technical analysts were more focused on the analysis of the stock market itself. They did not look for magic indicators that would tell when to buy and when to sell. They tried to understand underlying processes behind price movements. They dig though years of historical data in order to find out what was the moving force of price before and used this knowledge to define what moves price now and where it possibly could go in the future.

Technical analysis based on the testing various indicators setting still can deliver nice profit. However, without understanding the meaning of technical indicators and translating indicator’s movements into actions of traders, any trading system or strategy is doomed to failure. Already a hundred years ago, investors understood that price does not go down because Stochastics run over 80 and price does not go up because Stochastics dropped below 20. Price is moved by supply and demand which is created by the investors’ sentiment or by desire of mass to sell or buy.

Overall, there could be one advice only. Before going into a search of technical indicators, it would be correct to refer to the fundamentals of technical analysis. I particular, basic knowledge of Dow and Elliot Wave Theories could provide a novice trader with basic knowledge of cycles in the stock market as well as some understanding of trader’s psychology and how price movement could be explained by investors’ sentiment.

Archived under Technical Analysis Comments

Reviews Of A Few Online Forex Platforms

Reviews Of A Few Online Forex Platforms

There are various online forex brokers to look out for once you do have a live forex account. Since online forex trading has become huge in the last few years and is now the worlds largest revenue building industry, competition is inevitable. Hence, in order to be ahead of the charts, it is important to consider a lucrative deal for your live forex account. Online forex brokers are available in plenty, but it is upon you to select the one that suits your trading business most. Following are reviews of a few online forex platforms and brokers for your reference

eToro This is a forex trading platform available online. Its layout is very user-friendly which makes navigation on the site very convenient and quick. Advanced traders have a treat here as the tools available are very reliable on this application. It also has a customer service available 24 hrs along with live forex trader forums and real-time analysis. eToro has a $ 50 fee for opening a live trading account. It also includes championships with prizes to be one on a weekly basis.

EasyForex It has a trading platform that can be downloaded and delivers basic information to novice traders and good tools for advanced traders. They believe in simplifying trading by keeping objectives and aims clear. This helps traders to manage their live forex accounts easily. All live forex account holders have a service manager as well as avails of training and support services.

ForexPros This is an online forex portal that offers a range of services which also includes an easy-to use online platform. One can open a live forex account with $ 100 and avail of interactive classes, latest news in finance and trading, low pip spreads, 24 hour customer service etc. Online traders are also given financial calculators and streaming trading charts.

FXcast This is an online forex broker that offers various resources that include secure trading for forex. It is considered a very reliable online forex platform. Both novice and advanced traders have their own share of surprises to look forward to and benefit from.

ForexYard This is an online service for live forex account trading and also is downloadable. Within minutes you can sign up and begin live forex trading. It has online tools as well as educational programs to help new traders along with a practice trading account. The charges start at $ 100 and goes up to VIP subscription. It has a 24 hours unlimited customer service, consultation and live chats.

Select that live forex account that is suitable for your business as well as can be accommodated within your budget.

Archived under Forex News Comments

The Canadian Exchange Rate

The Canadian Exchange Rate

Trade rates are rates at which nations currencies are exchanged, that is, the worth of one currency by way of another. A lot of nations now use the American greenback as the usual in opposition to which to measure the value of their own currency. As the good majority of Canada’s international commerce and monetary transactions are with the US, the worth of the Canadian dollar in relation to the US dollar is of prime importance to Canada.

The dollar grew to become the official financial unit of the Province of Canada on 1 January 1858 and the official foreign money of Canada after Confederation. Its “spot” or present market worth has approximated the US$ till the previous’s recent decline, the significant exception being in the course of the US Civil Struggle, when the Canadian dollar rose to US$ 1.45. From 1879 to 1914 Canadian and American currencies had been on the gold standard and were therefore each defined by mounted and equal units of gold.

Following World Battle I, apart from the transient period between 1926 and 1929 when Canada returned to the gold normal, the Canadian dollar has been both pegged at a particular value in relation to the US dollar (1962-70) or allowed to fluctuate in line with international demand and supply. From 1952 and 1962 and since 1970, the Canadian dollar has fluctuated or “floated.” During these intervals the BANK OF CANADA has purchased and bought overseas alternate to smooth out daily fluctuations in the rate. It has additionally raised or lowered Canadian interest rates, relative to these in the US, to encourage or discourage funds flowing into Canada that improve or decrease the worth of the Canadian dollar. Since being unpegged in 1970 the Canadian dollar has traded as high as US $ 1.04 in 1974 and reached a historic low of nearly US $ 0.63 in the summer of 1998.

The exchange rate of the Canadian dollar is influenced by numerous elements moreover direct government trade rate policy. Affluent business conditions abroad, particularly within the US, containment of Canadian inflation, improved labour productiveness, good grain harvests, new resource developments and expanded home and foreign direct funding in export-oriented industries all help to stimulate exports and put upward stress on the dollar’s overseas worth. An increase in international tourists visiting Canada has an analogous effect. Conversely, the other of these forces places downward strain on the dollar’s exterior value. In addition, considerations about whether or not the province of Qubec will remain within the Canadian federation are inclined to put downward stress on the Canadian dollar.

By mid-1998 the financial turmoil and financial uncertainty in Russia and much of Asia raised fears about the energy of currencies of some developed countries like Canada. Canada exports significant quantities of resource-based mostly products to Asian international locations, which are actually unsure markets. As properly, Russia, with its much-depreciated foreign money, is a competitor of Canada for a lot of such products. Because of these damaging components, currency speculators have been moving funds out of Canada to the US in anticipation of a weaker Canadian dollar. Their own actions have induced their expectations to be realized, regardless of the Financial institution of Canada spending billions of dollars ($ 5.eight billion in August 1998 alone) shopping for up Canadian currency to attempt to reduce the extent of its depreciation in international change markets.

This decrease dollar does, nevertheless, have advantages for Canadian corporations exporting products to the US and elsewhere. The place such products are priced in US dollars, the revenues to Canadian corporations, when it comes to Canadian dollars, increase. The place the products are denominated in Canadian dollars, they turn out to be cheaper to overseas consumers, so more of them are sold. Either means, exporters benefit. But there are prices too. Canadians import services equivalent to just about 40% of the full output of the economy (Gross Domestic Product), with about 76% of those being from the US. When the value of the Canadian dollar falls, all these services and products value extra for Canadians to buy. The lower greenback raises inflationary pressures, which may unfold all through the financial system, despite the fact that the unemployment rate remains quite high.

The present downward stress on the greenback has primarily been brought on by intense speculation moderately than main weaknesses in the Canadian economy. Due to this, the Financial institution of Canada responded by raising the Bank Price by one per cent. Though this improve raises costs for borrowers, larger rates of interest discourage capital flight from Canada and assist to stabilize and even improve the value of the dollar. As soon as the speculation mania has subsided, it will be doable for the Bank Price to be lowered once more, thereby decreasing the rate of interest structure.

Archived under Exchange Rates Comments

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