Get Yourself ForEx Educated! Course Forex Online Trading

June 28th, 2010

Before you begin you Foreign Exchange online trading venture, you have to learn the basics of how this kind of trading works. Of course, encyclopedic knowledge could not be enough (and updated) so you really need help to get you through online trading for foreign exchange. Learning about the forex online trading can help one to become a successful foreign exchange trader.

Because this forex trading is online, where else can you get the answers to your query? Of course, you can take up forex online trading education on the Internet. All you have to do is search on any search engine, and it will provide you with all the companies which offer crash courses for online trading. But scrutinize them all carefully before you choose. There are some sites which also sell DVDs regarding forex online trading. Before you decide, also consider in what way you learn best. Is it by hearing, seeing or a combination of both?

Many sites offer courses for stocks, options, real estate and of foreign exchange. Some also offer free courses, trading workshops and also course retakes! Some also offer self study courses which you can take home.

It’s all up to you on which site or company you would choose. Learning courses could take for days, weeks up to months. Duration of the courses also depend on how much you are willing to pay for them and your previous knowledge of foreign exchange trading online.

There are also sites which offer an ascending curriculum, meaning from the basics up to much more complicated stuff. This kind of course is highly recommended for those who are just getting started with forex online trading.

Free Forex training also exists. But the knowledge it provides could be limited than paid ones. For example, a 42-hour online session (plus bundles) could cost up to $3000. But you’ll get compensated by having knowledge that will guide you in your forex tradings. Such bundles also include free courses. Some also give away some thousand dollars worth of a demo account.

Online forex trading courses could be very costly. How do you minimize your spendings? As mentioned earlier, bundles can give you discount. But make sure you can make use of what those bundles contain and think if you really need them.

There are also some companies which offer rebates on your tuition. This works when a company has partnerships with certain dealers and brokers. These dealers or brokers (well, at least some of them) are willing to underwrite for what you have paid for your forex trading education. When you graduate from your course, a rebate certificate will be provided by the company (where you took your course) to you. This certificate will then be submitted to the broker or dealer you have chosen. This dealer/broker will set up an account for you and you’ll get about ten to twenty percent of gross commissions. This acts as a discount alongside your trades.

FOREX Market Hours Monitor: A Great Help to FOREX Traders

June 26th, 2010

FOREX market is a huge, dynamic and competitive market. As financial and trade experts put it, FOREX market is a “convertible to cash market”. It does not sleep; it runs 24 hours a day. Although it involves trading, FOREX market is not your traditional market in a sense that no central location for trading is set. Trading is usually done over the telephone and through the use of electronic trading systems. Essentially, in currency exchange, the interbank market serves as the main market. Banks, insurance firms, and financial institutions handle the risks related to currency rate fluctuations in that vital connecting market.

As said earlier, FOREX market operates for the whole 24 hours of the day, and it gives the traders auspicious opportunity to do business at any point in time, be it daytime or nighttime. However, a perfect timing is considered a crucial factor in a successful trading at the foreign exchange market. When the market is at its most dynamic state, and boasts the largest quantity of trades, then that would be the perfect time to deal because a lot of currency movements produce great chances for you to hit the trade and earn profits. Don’t waste your time dealing once the market is kind of relaxed or slow.

At any point in time, someone somewhere in the globe is dealing currencies. And as one market closes up, there sure another that will kick off. Profitable hours really overlap, and the trade keeps going as days and nights exchange glances. Volume of dealings stays above average during the whole time of activity, but really reaches its highest point when the markets of Asia, US and Europe open all at the same time. You must target these trading hours for maximum possibility of gaining significant amount of valuable trades. And this is what is called as FOREX market hours.

To be able for you to keep track on the latest foreign exchange market movements and sessions all over the world, you should try to have and use the FOREX market hours monitor. It is a multipurpose freeware program on which major trading operations having the largest volume of dealings are shown in easy to use dialog window on the computer screen including busy hours tracking tool. The program does not need installation so it is really convenient to use. Foreign exchange dealing hours that are presently on the go are vividly detailed using this program.

FOREX market hours monitor standardizes and adjusts the user’s present time to meet the Eastern Standard Time or EST. It also displays the on-going trading movements in the FOREX market. This commendable program could help all the traders dealing with FOREX located in different places of the world and at any time zone.

Understanding the Criteria for Forex Brokers Ratings

June 26th, 2010

There are so many established forex brokers around the world that your head already spin just trying to count the number of these web institutions within your country. All of them hold the promise and the motto to make their partners prosper, but of course not all of them are of the same caliber when it comes to actual trading. So, how do you find the right forex broker then? The answer is by looking at websites featuring forex brokers ratings. These websites try to rate each and every forex broker that they can within their area (web area or physical area) and gives recommendations based on what specialties a specific forex broker has.

To give you an idea of the things to look for, we are going to present brief explanations for some of the major criteria used:
Charting – simply referred to as the way forex brokers represent data through graphs and charts using specialized applications or software. They can also organizae data using their own organization system.

Execution – the way a deal or a transaction is done by a forex broker. This encompasses all of the marketing and business strategies of a specific forex broker in forex, along with all of the necessary equipment needed for such activities. It is one of the most important criteria that determine forex brokers ratings.

Spreads – the main objective of a forex broker, and their main source of income. It is the difference of that price that you buy currency at to the price that you a selling currency at. The wider the spread, the higher the higher your buy price and the lower your sell price will be.

User-friendliness – not much to discuss here, it is simply how good or how satisfactory the treatment of the forex broker is. Not too important on the actual business part, but is nevertheless important in indirectly making things run smoothly.

Functionality – Indirectly related to execution, but is more on the end part of a scheme, program or a plan, which relates to the results. Functionality also describes the versatility of a forex broker in different perspectives of forex or in the number of services that they can offer.

Reliability – the most important criteria that determine the end result of it. It dictates if you are going to get an honest result or not when dealing with a specific broker. Fraud and deception surrounds this type of business, and it’s important to find a forex broker that you can have official business with properly.

Swap rates – swap in forex means buying and selling of currency at the same time. Forex ratings that gives high scores to swap rates usually mean that your chosen forex broker really knows what they are doing, and are executing their business strategies well.

Advantages of Offshore Forex Brokers

June 25th, 2010

So, what have we learned about offshore forex trading? It can be just as risky, dangerous, and more likely to be a form of a gamble like any other kind of forex trading. Hiring offshore forex brokers also needs the same utmost caution and care as any domestic forex broker. Technically, they aren’t really that much different from a regular or domestic forex broker. In fact, many people have grown to dislike off shore forex trading, because of the instability that leads to the unreliability of some offshore forex brokers. Many also have bitter experiences in clinging to much to the exaggerated hopes that offshore forex trading apparently could have brought them.

If that’s the case, then why offshore forex brokers would still be chosen over any other kind of forex broker? What conditions would give us the proper reason to hire them for our business? Why would it even be on the main list of different forex brokers to begin with?

Hiring offshore forex brokers apparently has some advantages that go in line with the same advantages of offshore forex trading itself. Take a look at these two substantial advantages:

1. Tax advantage – many people within this industry know very well that offshore, unlike domestic forex, is not chained to a set of trade laws that limit that generally limit the income potential of your forex strategies. By hiring an offshore forex broker, you can potentially get a tax advantage (depending on the location of your offshore forex broker), which can consequently mean increased income given that the correct choices are made.

2. High leverage trading – many laws around the world have already established limitation to the maximum trading limit possible in forex. This is temporarily ignored by collaborating with they, because you are relatively trading well outside your own country. Of course, like our first advantage, you might well have to research a bit on the laws of the offshore forex broker’s location, just in case you don’t want ending up at a worse position than before.

So as we can see here, the exact instability (country-wise) that they have, can be used to your advantage to improve profits. Remember, always trade at your own risk though, as there is still a significant chance that you’ll lose everything that you have invested in one gamble if you’re not well prepared. It acts as a double-edged sword, a heavy one that almost always lands on you if you’re not cautious enough.

How to Choose from the List of Best Forex Brokers

June 24th, 2010

How do we find a good forex broker? With the tens and thousands of forex brokers worldwide, how would you be able to choose which one of them would be the best for you? Many people go into their web-surfing gear and initiate a deep research session. Others find it better to search for forums that tackle about the matter and hear opinions from experts before choosing a forex broker. But others look into review websites and make a list of best forex brokers. How does one make this list? Tossing the ratings of the review websites aside, how would you choose the best forex broker for you from this list?

Here are some tips to help you get that list first:
1. First, find a good website that gives reviews of forex brokers. You can go for any website, as long as the data is reliable, backs-up their data well with numerous data presentations, and is able to tell specifically the pros and cons of a single forex broker. For reinforced research, try to visit several websites for cross comparison. You never know if one website’s list would turn out to be a lot different from another website. Also, don’t make list too much forex brokers, and try to cut the list to at least 10 forex brokers. That way, you’ll save yourself from the confusion that would make it hard for you to do the second step.

2. Go with an order of prioritization with a selected category. Many people are familiar with the idea of arranging their list of best forex brokers according to overall rank, with each criterion carefully analyzed and calculated to give a numerical rating to a forex broker. While this may be a convenient and a logical way of arranging them in a list, there is still what we call as a priority. What would be the most important criteria that you would need now? Would I need to leave out the less important criteria when look into the list? Choose according to what would be your top priority, but never choose a forex broker that rates very poorly on one area.

3. If there seems to be no more competition in skill and reliability and you still can decide on a forex broker, try to go for a criterion that is unrelated to a criterion that you have previously used for comparison. The location of the forex broker can be a good alternative, although it’s probably impossible to use location as a criterion for offshore forex brokers.

Significance of FOREX Demo Account Opening

June 22nd, 2010

To be able to do business and deal FOREX, you have to open or start a FOREX account with of course, a FOREX broker. And you might find it overwhelming due to the significant numbers of FOREX brokers available from which you can choose from. But before you open a real account with any FOREX broker, you might want to check first their status, reputation, and financial strengths for you to determine their reliability and to see if they are blacklisted or been complained by their previous customers or clients.

Considering a FOREX demo account opening is one of the best ways to do before opening a standard one. A demo account does not really differ from a real or actual account. The only difference is that you will be able to experience trading FOREX without the risks, meaning the gains and losses are regarded as virtual, because you do not have actual deposit on this kind of account. A demo account is more of an educational account that can help you test or assess yourself in actual FOREX market situations or conditions. Also, you will be able to learn the process of analyzing money market as well as build up your personal or particular risk management scheme. A FOREX demo account allows you to use factual quotations in real time and help you improve your strategic trading abilities without any financial risk. If possible, try FOREX demo account opening with a number of different FOREX brokers to be able to get an idea and experience the feel of how their platforms functions. And during these tryouts, be sure to analyze the advantages and disadvantages of each and every demo broker accounts you are contemplating. After you have assessed their respective criteria, you will find yourself more decisive in choosing the appropriate FOREX account that will best suit you.

Opening a FOREX demo account allows you to access the brokers’ platforms where you will be able to deal FOREX, commodities, options and CFD products on stocks and indices in actual market statuses without risking any amount from you. And through the use of demo platforms, you will be familiarized with the wide range of advanced tools and indicators used in trading as well as learn the ways of reading charts, identifying market trends, and even predicting what is going to happen in the market in the future based on the present indications.

FOREX demo account is ideal for investors who are new to FOREX trading, and for traders who wish to try their trading strategies but are worried of the risks it may bring to their actual FOREX account. A demo account would also be beneficial to traders wanting to try new and different trading tools that are free of charge, and practically to all those who want to learn how to trade.

The Benefits of Technical Analysis For Forex Trading

June 20th, 2010

What exactly is technical analysis for Forex trading? The foreign exchange market can be volatile, but sometimes studying the patterns and the behavior of the market can help predict the prices’ direction. Technically speaking, it is the prediction of the prospective directions of prices. It is a discipline wherein past market data is studied and used to determine the flow in the market. Price and volume are essential data that technical analysis for Forex trading. People behind this are called technical analysts. They look for and point out price patterns in financial markets. Their aim is to use these for their advantage. In doing their this, different kinds of tools and methods are used. Studying price charts are the most inherent tool for studying price trends. The patterns that these technical analysts want to point out are archetypal patterns. One example of this is the head and shoulder, also known as the double top reversal patterns. They also look for moving averages, flags, resistance, balance days and channels. Their job is not only limited to charting, however.

Technical analysis also integrates economics and quantitative analysis. Since economics contains the rules of how the economy works and its rules, along with quantitative analysis, data provided can be interpreted and used. It is not only the Foreign Exchange market that benefits from technical analysis for Forex trading, but also financial professional, market makers and traders. Technical analysis for Forex trading is more widely used than fundamental analysis.

Technical analysts do not consider the influence of the media (or news) on how the prices are determined. The history of trading patterns is rendered more important than other factors such as economy. Since technical analysts also identify trends and conditions, they also study the patterned behavior of prices. They believe that price actions have the tendency to occur over and over again.
Technical analysts also suppose that prices have directional trends, whether it be upwards, downwards or flat and combined. They also consider “investor sentiments” in the Foreign exchange market. Such sentiments affect the behavior of investors on their actions in the market, which also affects prices. To do this, surveys are utilized.

Technical analysis helps traders to gain more profit. Since it gives traders a hint of how the prices are moving and going to move in the future, traders have more chances to be profitable either in financial or commodity markets. There are well known traders who have made use of technical analysis to maximize their profits. Some of them are Michael Marcus, Richard Dennis and Paul Tudor Jones.

What Really is a FOREX Market Maker

June 20th, 2010

A FOREX market maker is sharp when it comes to the present cost or price of dealing in the FOREX market. They examine the prices of purchases, as well as the selling prices in currency exchange. Market makers aren’t agents or trustees or intermediaries. They are neutral and they serve as counterparty to the clients’ position and provide platforms for FOREX for the customers. They help the customers to lower their risks of losing financial funds in the FOREX market. Foreign exchange is a market that is quite unregulated; hence, risks are inevitable in its trade.

Market makers are organizations or companies that influence and control market values. FOREX businesses and banks are perfect exemplars of these market makers. Essentially, they deal finance resources but they do not apply charges or earn commissions from customers. Then you may ask how they make their money or profit. There is a difference in buy price and sell price in FOREX, and that difference is known as “spread”. The difference between that spread of currency traded is where market makers earn their money. It is their main source of profit. But don’t get it wrong. Market makers cannot just augment their income that easy by reducing the profit of the customers in the process. Although market makers always name the costs of trading, customers, on the other hand, also know both the ask rate and the bid rate. In addition, the process of trading is fundamentally based on the supply and demand in the market. So a FOREX market maker cannot just fly in the face of a customer’s position to be able to gain profits.

As market makers do business involving huge amount of money and trade, they are somehow compelled to work within pertinent international guidelines and also with their own policy on risk management. FOREX is without a doubt, a good market and most of the FOREX firms are also market makers that offer clients the maximum liquidity that can be possibly achieved.

Market makers offer user-friendly charting software and indicators that are practically free of charge, and such are very useful tools in trading. They also provide daily news feed of what is transpiring in the economic movements in the market. Less risky prices and faster trade implementation are also being made available by market makers. But of course, there is always a “B side” to every story. Market makers are quite unreliable sometimes. They may restrict trading chart for a definite period of time and even hold any execution of orders. Furthermore, they may sometimes trade against customers and totally manipulate the prices.

Just always remember that entering the world of FOREX trade really entails risks and that anyone who will join the market must be equipped with knowledge, resources, talent and a great deal of connection to be able to cope up with the movements in the market.

Forex Online Platforms Rating Trading

June 18th, 2010

So how much do you want to do business at the comfort of your own home? Since everything nowadays seems to be possible on the Internet, of course, you can also trade on the foreign exchange market. There are many companies that offer online foreign exchange transactions, all you have to do is choose. But before choosing, always try to compare their forex online platform ratings.

The firsthand knowledge you should have before deciding to trade through the foreign exchange market is the basics on how the foreign exchange market works. Since every country in the world has its own currency and each country trades with other countries, the medium of payment from country to country must be converted to that country’s currency. Platforms rating trading are settled by the way of its currency.

To begin with dealing in a foreign currency, one must apply to be a broker or get a franchise of agencies dealing in Forex trade. Affiliating oneself to another broker is also one way. Since technology nowadays offers convenient ways in dealing with the foreign exchange market, most transactions are done online. This is to make transactions fast and easy on any part of the globe. It also doesn’t matter if the online platform rating trading in one’s country is open or close.

Another thing to remember is the broker or agency you are going to select has good reputation. Also, things like technical and fundamental analysis should also be your concern. There are many foreign exchange platform ratings on the Internet. It could be hard to choose in which one you should associate yourself with. Some rating agencies uses certain parameters, exclusively for their own agency. So when looking for online platforms, search for one that has been awarded by any international agencies.

International rating agencies uses various parameters on rating trading platforms:
1. Consistency of Performance (rating agencies also check if any platform has been involved in shady transactions or scandals)
2. Leverage provided to customers
3. Longevity in the Market
4. Spread Payment (rating agencies check if a platform pays spread to its customers regularly)
5. Fees and Dues

The abovementioned are some criteria where international rating agencies rate online trading platforms of the foreign exchange market. So, a valuable lesson here is to check if the online platform you’ll be joining has any rating. This could help you in your market experience.

Finding a Reliable FOREX Internet Broker

June 17th, 2010

Before choosing the FOREX broker that will suit your needs and preferences, let us first define what is meant by a FOREX broker. A simple broker is an agent, and could be a single individual or a large firm, that facilitates or acts as a mediator or negotiator between a buyer and a seller. A FOREX broker is a dealer, and serves as an investment partner in opening an account to be able to trade in the FOREX market. In the same way, a FOREX internet broker is one who offers trading services to traders by means of advanced technology, most especially the internet. Using such facilities, anyone that has a reliable computer and an access to the World Wide Web can possibly trade in the FOREX market.

A lot of online FOREX brokers emerged on the internet due to the sudden increase of the virtual FOREX financiers or shareholders who want to explore the expandable demand and supply of online economic upsurge. The number of people that considers trading as another possible income source is remarkably increasing. That is why numerous financial firms and brokerages across the different parts of the globe are extending their services in the world of internet. There is a wide variety of FOREX brokers to choose from. And from there, sometimes arise the difficulty of deciding which one will best suit your needs and preferences. It is crucial for you and your investments to go for a reliable FOREX trading broker that will not charge you for any unnecessary services.

Looking for an apt FOREX internet broker will require you to take into consideration several important things, like doing a thorough research on the list of online FOREX brokers to see which among them are blacklisted or have bad reputation, so that you would be able to avoid dealing with them in the future. Checking your confined finance and main organization or association, and suggesting before them a list of possible brokerages you want to go in with them, will also be beneficial on some aspects.

The next thing to do is to pay attention to the international certificates and regulatory bodies of these brokers. Beware also of their credentials as well as the testimonials of their customers that are shown on these brokers’ websites, as they can sometimes be untrue or fictitious. Also, get some referrals or recommendations from reliable sources. You might as well consider visiting online forums that tackle topics on FOREX brokers, or reading reviews about them, with true and relevant stories of those who join their firms. It will help you to decide, eventually, which one you will choose. Always be prudent in investing your finances. Choose a competent and legitimate online broker that can provide you utmost service and benefits.