Choose The Best Forex Brokers

Before you choose the brokerage company you the following questions

Is the company subject to regulatory bodies?

Does not mean that the Forex markets are trading through networks that is not subject to supervisory authorities, each State that the regulators regulatory capital markets should be subject to a mediation in this state companies.

The main function of the regulators is to protect investors from any manipulation may be carried out by companies against their interest, so beware of Vigilance each selection of a company is subject to a regulatory point of known .

Here are the top regulators reliable in the world :

USA: Commissions NFA And CFTC 

Britain: body FSA 

Switzerland: Authority SFBC 

Australia: Authority ASIC 

Canada: Authority IIROC 

Hong Kong: Body SFC

Does the company offer free swaps accounts?

In the currency market, there are so-called benefits of premeditation (Rollover) , Which is the difference between the interest rate of the base currency and the counter currency, and are added to or deducted from your account every day at ten pm GMT .

And where this is considered usurious interest, you must make sure that the broker provides a free Islamic accounts of a swap service, so as not to contradict the trade with the Islamic Sharia .

Does the company provide a good trading platform and in different forms?

Should be the mediator provides a good trading platform contains everything you need shops are simple and easy, and it must take into account that the trading platform is available at more than form .

Shall be in the form of software that is installed on the computer, and the program for direct trading on the Internet, and software for trading on the mobile phone, so that the possibility of trading available to you under any circumstances .

Does the company provide good technical support and a strong customer service to their clients?

Because the currency market works 24 hours a day, there also the availability of technical support and customer service 24 hours a day, so that it can refer to them at any time and when there is any inquiry, and should make sure that the brokerage company you choose .

It should also ensure that the diversity of the means of direct support on the company's website conversation, telephone conversation, e-mail .

Does the company carry out the trading orders quickly?

One of the most important points that must be considered when choosing a company, in order to ensure implementation of the orders at prices that you want to serve your goals, and if the company delayed the execution of orders and reiterates that you should think of other brokerage firm .

Does the company offer a good rate differentials?

Some might think that the recent price differentials are the best features of the company, but must beware of this point if the price differences become low in a clear and exaggerated, is the clear indication of the lack of credibility of the company .

And that's where the brokerage firms that buy from banks in large quantities and then you break what has been purchased for the customer and profit from the difference between the purchase price and the selling price, if this difference is very small, what is the profit of the company? !

And also the large price differences are exaggerated undesirable, so you should choose the same rate differentials brokerage firm suitable and good .

Does the company have the credibility in dealing with the mistakes?

Errors may occur during handling, which is normal and it is very important to the company's credibility in dealing with the mistakes the test, do you recognize it and are repaired in case of damage to the client? You should make sure that a company as well as .

Web Trading Platforms in Forex Industry

Generally, almost all existing platforms in the Forex market have their own conveniences, and there are as many opinions as there are people, but objective parameters can make the real difference. Functionality, speed, interface, tools and security should define your best choice. Yet we have to note that trading is all about taking the right decisions at right time and, this is where web traders come handy. With a web trading application, you can easily fill orders without installing any software.

Today we will take a look at 3 most interesting trading platforms available in your browser.

MetaTrader 4 WebTrader

MT4 Web is a web platform to access your MetaTrader trading account in real time via internet browser. It is a new version of MetaTrader 4 platform that was long awaited by many trading enthusiasts. Let’s see if its functionality and features match the expectations.

MetaTrader 4 is known as a reliable and convenient trading platform. Thanks to the wide functionality it became one of the most popular among experienced traders. Modern technology, rich functionality, and intuitive interface allow carrying out transactions based on technical and fundamental analysis of the market. But the recent web version excludes many of the old conveniences as it is found in an incipient phase.

Interface – the web version of MT4 has an intuitive interface which has some differences from the usual platform that you might be familiar with. The chart loads quite fast and doesn’t require much traffic. You won’t have any problems when trading since the web terminal works without any misses.

What is included? – Those who had to deal with the usual MT4 platform may find it quite empty. For example, you can use only 5 basic indicators: Moving Average, Envelopes, Bollinger Bands, Momentum, and MACD. Fibonacci lines are also included. When you compare this achievement with over 50 technical indicators and the ability to customize your own indicators, which are the built-in options of downloadable MT4 platform, then we can presume some dissatisfaction of MT4 fans. However, the developers promised to add other technical indicators in the future.

The positive impression comes with the 3 chart options like Japanese candlesticks, bars, and the broken line. You will also have 9 time frames for a precise analysis. On the platform, you will find the current market prices, trade currencies (from major to exotic pairs), commodities, indices, CFDs, and bitcoins. To resume everything said above, we will separate the pros and cons:

Advantages of MT4 Web terminal

The customizable window "Market Watch" is grouped by asset class and has an easy search function

 With "Click & Trade" option, market orders are executed by one or two mouse clicks

The ability to trade directly from the chart

A huge number of financial instruments, although this depends on your broker

User-friendly and intuitive design

Charts of different time periods

Disadvantages

Even if it is functional, it still may need some revision and changes

There are a few technical indicators which makes it limited

It does not support trading advisors

You cannot change the interface settings

cTrader WebTrader

The cTrader web terminal is one of the latest technologies in the field of online trading. It is designed to work with ECN-accounts and combines advanced tools and features to satisfy the needs of both beginner and professional Forex traders.

The chart options that you will find on the top of every chart are very intuitive. Here they are:

Zoom option with 6 levels for in depth view.

Chart templates option

Time frame option with 14 different time-frames

Chart type option with 5 types of charts: bar, candlesticks, HLC chart, line, and Heiken Ashi.

In the middle of the chart you will find the Buy and Sell buttons and a volume selector.

The indicators can be added on the chart by clicking on the indicator menu. These are organized by types and come with submenus.

Using the color setting you can change the chart color and then save it to your chart templates.

The last chart sign on the top of the chart screen is the objects list, which shows you a list of all objects and indicators currently used.

One of the useful tools is the Quick Trade option. Quick trade is a setting that leads you into the market orders with one or two clicks. The quick trade setting can be found at the top right of the platform in the Quick Links toolbar. Quick trade is disabled by default, which means that clicking the Buy or Sell will open the market order window where you can confirm the position you like to enter. After activating one-click mode, you can enter an order by simply selecting a volume from the Market Watch and then click Buy or Sell.

Chart modes – cTrader has several chart modes designed for different trading needs and market views. More precisely, there are 3 chart mode buttons on the object toolbar:

1)Multi chart mode displays all your open charts in a fixed layout on your screen. You can swap chart positions by clicking and dragging from the upper left corner over any chart, but you cannot change chart sizes.

2)Single chart mode will expand the active chart to fill the entire chart area on the platform. Then you can view full screen every chart by using the tabs at the top.

3)Free chart mode will show you all your charts on screen like multi chart mode, but you will also be able to resize these (as shown in the image below).

Features

True ECN spreads

Level II pricing – full market depth

One click execution

Multiple order types

Advantages

Advanced charts and technical analysis

You can trade against the market without deal desk intervention

A wide range of trading instruments (83 currency pairs on the Forex, and metals)

More than 50 indicators with the possibility of their combination and optimization, as well as developing your own

Quick access to the most frequently traded instruments

Disadvantages

It is quite hard to mention the disadvantages of cTrader Web, but to be objective we can say that this platform has just an extremely wide scope of features. If you are a starter, you may be simple overwhelmed by all of the indicators, objects, buttons and other bells and whistles. This way it may be hard to actually focus on trading and analyzing the chart.

UTIP WebTrader

UTIP is a relatively new web platform and it is a great alternative to what you have seen above. The Forex beginners can enjoy its great convenience because it is simple and intuitive. Unlike MT4 Web, UTIP has its toolbar on the right side, making it easier to access. UTIP has a strong capacity for technical analysis, beautiful design and a user-friendly interface.

Platform Features

Forex and Binary – UTIP fully integrates the two markets: Forex and binary options. Trading takes place in the same terminal on a single trading account. For the two markets there are available the same tools and functions.

Interface – The terminal has conveniently located buttons so that the trader can access any feature right from the main window. This allows the trader to quickly perform operations on opening and closing of transactions, change current positions, view reports, and more. The hotkeys are great for scalpers, who cannot enjoy such conveniences with MT4.

Design – Modern dark color scheme looks good on personal computers, as well as on laptops, PC tablets, and mobile devices. Dark design is not only stylish and fashionable, but also comfortable. The bright color scheme is also available. It is suitable for traders with more conservative views.

Technical analysis – A full set of tools for technical analysis with multiple functions meet the needs of any professional trader. UTIP is the only terminal in which the minimum time frame is 5 seconds and the maximum is one year, which is a great advantage against MT4 or cTrader.

Indicators – with UTIP, there is a huge selection of these (more than 30). You can find the indicators arranged in groups and they can be customized for individual needs. If you wish, you can add your own indicator.

The terminal also has a function of drawing on the chart. It comprises 29 elements for drawing. Among them: lines, canals, and other icons. This gives greater freedom to the trader.

UTIP Disadvantages

Although this platform is certainly great for the starters, there are a few weak points:

No support for automated trading

Lack of custom indicators

A few supported brokers

Conclusion

There are quite a few 3rd party trading platforms available and it is often hard to find the most suitable one. While MetaTrader 4 can be seen as a viable alternative due to its availability, it is advised to take a look at an alternative supplied by UTIP as it can offer a few more advantages. If you are an advanced trader, cTrader can be an interesting option too.

by Nick James

Forex Brokers

Most FOREX traders use a broker to handle their transactions. What exactly is a broker? Strictly speaking, a broker is an individual or a company that buys and sells orders according the investor's decisions. Brokers earn money by charging a commission or a fee for their services.

A FOREX broker needs to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

The best advertising is word-of-mouth advertising, and this is just as valid in FOREX trading as it is for any other type of business. Talk to friends and associates to see who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.

You could try selecting a few online brokers and contact their Internet help desks to see how quickly they respond to enquiries and whether or not they answer questions to your satisfaction. Keep in mind, however, that pre-sales service may be better than after sales service. This can be true for any online business, not just FOREX brokers.

Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets.

Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker.

Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.

Trading software is very important for the online FOREX trader. Get a feel for the options that are available by trying out a demo account at a few online brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them.

Other information to find out about includes the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance.

by Simon Harris

support@arundel.net

FOREX Trading Strategies

The world of trading and investment can be as frustrating as it can be rewarding! And Forex (Foreign Exchange) is no exception — often described as risky, profitable and complicated.

Forex is the largest trading market in the world.

Forex is the worldwide market for buying and selling currencies. These markets were developed to cater for the supply and demand of different currencies by governments, companies and individuals — for international trade and assisting importers and exporters.

Therefore those who trade in this market include consumers, businesses, investors, speculators and the banking industry.

Different countries use different currencies — which vary in their values against each other. Forex trading invovles the buying and selling of two currencies — trading pairs — you are selling one and buying another eg you may use the US dollar to purchase British pounds — if the supply of the pound lessens — it will cost more dollars to buy pounds — the Forex trader hopes to sell their pounds at a higher price than the purchase price.

A speculator in Forex is someone who accepts the possibility of adverse exchange-rate movements in the hope of making a profit from favourable movements in currency.

As a speculator you should always start trading with a small amount and have a trading system — which tells you when to get in and out of the market. It is a favourite option for currency traders as you can trade the Forex market 24 hours per day and the transaction costs are minimal.

This market — because of its sheer size — is hard to be manipulated — which stocks can be — it is more likely to be influenced by global news or events. Hence, the opportunity for 'insider trading' is eliminated.

However — beware -Forex brokers estimate that 90% of traders lose their money; 5% break even and only 5% achieve profitable results!

by Gay Redmile

Indicator of Forex Market Economy

All the investors in the forex market often base their decisions in trading upon economic and political news around the world. Forex and stock market depend on the countries economy. Using of industrial production index is the best way to predict the market trends in the future. All the traders are using this market indicator specially the traders who want to trader for a long time because if a country's economy is improving definitely its currency rate goes up and if the economy is decreasing, currency rate will automatically goes down.

What is Indicator?

Forex indicators are the primary and most essential tools used to determine the trend of foreign exchange and their future prospects. These tools sometimes become so important for the users to anticipate future ups and downs of the Forex market according to which, they could invest and deal their finances with foreign exchange.

There are a variety of Forex indicators available to the users of foreign exchange, which are highly advanced and avail an enhanced platform to the Forex dealers and users to deal the challenges with foreign exchange efficiently. These indicators are useful not only to the novice Forex trader, but also an experience Forex dealer as well. The two most significant indicators of them are as follows.

Moving Averages: Simple, Exponential and Weighted

Most Forex traders use Moving Average Indicators to calculate the trends in foreign exchange. This procedure can be set and interpret easily. Using this indicator, we can easily measure the average movement of the price within a particular time period. Through this indicator, the price data get smoothen with which, we can easily observe the market trend and tendencies.

Stochastic indicator

Stochastic indicator is another significant tool used as a Forex indicator by the Forex experts and dealers to estimate market trends and tendencies. The main idea suggested by this indicator is that the rising price always lies closer to its previous highs and the falling price always lies to its previous lows.

By Manish.

Durable Goods and the Forex Market

Forex traders, like all investors in the big investment markets, pay close attention to the economic news of the day. That's because economic data (or economic indicators) often shapes trading, whether it's on the stock market or the currency market. One of the more common economic indicators that are utilized by Forex and other investors is the durable goods report.

Defining durable goods

Before discussing the actual report, the term "durable goods" needs to be explained. Durable goods are those goods that last more than three years. In other words, the consumer expects to make a purchase that won't have to be replaced in the near future. Examples of some durable goods are automobiles, furniture, appliances, tools, and factory equipment.

The durable goods report

The durable goods report is released about the 20th of each month for the prior month's activity. The report measures the number of newly placed orders on durable goods from a sample of over 4,000 manufacturers in roughly 85 industries. Usually, defense and transportation figures are deleted from the report due to their volatility.

This report is vital to investors since it's considered to be one of the major leading indicators for the economy. That means if figures are strong (i.e. high number of orders), then consumers will more likely purchase more durable goods, which will strengthen the domestic currency. On the other hand, if the durable goods number decreases, then consumers will more than likely purchase less goods, which can negatively affect a country's currency rate.

Non-defense capital goods

In addition to other numerous breakdowns of durable goods orders, this report also reflects orders of non-defense capital goods. Non-defense capital goods refer to those orders for non-defense related capital equipment orders. This is an important piece of information since it's basically equivalent to the producers' durable equipment (PDE) category in the all-important GDP economic indicator. Just like other categories, this PDE-like category is a strong indicator for future economic trends. If the non-defense capital goods figure increases, that's a good sign that the economy is growing (positive affect on a country's currency rate). On the other hand, a decrease in orders can signify an impending downturn in the economy.

by Harman Gilly

Forex trading system platforms provide an online environment for Forex market investment.

Currency Correlation and How to Use It?

Currencies are priced in pairs, no single pair trades completely independently of the others. This makes the understanding of correlation very important.

For example, currency pair "A" moves in the same direction as pair "B" and we have been following up pair A's move very closely. We expect it to go up and we buy. We have not been following up pair "B" so closely and suddenly we look into that and the fundamentals or technical analysis suggests us that this pair may go down. We short sell. What eventually would happen that we would end up having profit on one pair and loss on the other as they moved in same direction. Similar case would happen if we simultaneously go long or short on two pairs which move in opposite directions.

Once we know about these correlations and their changes with time, we can take advantage of them to control our portfolio's exposure.

The correlation coefficient ranges between -1 and +1.

A correlation of +1 implies that the two currency pairs will move in the same direction 100% of the time. A correlation of -1 implies the two currency pairs will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the currency pairs is completely random.

Positive Correlation:

A positive figure but less than +1 means that the currency pairs generally move in same direction but not always. A value closer to +1 means that most of the time they move in the same direction.

Negative Correlation:

A negative figure but more than -1 means that the currency pairs generally move in opposite direction but not always. A value closer to -1 means that most of the time they move in opposite directions.

How to use currency correlation when you are trading Forex? Well, your slow speed because of an occasional traffic jam on the expressway does not really indicate that the average speed you would end up on the road will be same. The correlation are dynamic and change every moment. Take a note of the correlation of the past few days and compare it with the correlation value in the long term, say past one year. If the short term value is far different from the long term value, may be it's offering you a chance to place a trade... but how? Let's say that currency pairs A and B has a correlation value of 0.98 during past one year. It means that they both move in almost the same direction. When currency pair A moves up, currency pair B also moves up with the same speed. Suddenly you notice that during the past one month or one week the correlation value of the currency pairs A and B is 0.10 i.e. moving in the same direction but with a different speed. To clarify as an example let's say two cars are moving towards the same destination, one is moving at 100 miles/hr and another at 10 miles/hour. But we can assume that ultimately both may have to catch up on the speed (similar speeds). So what do we do? Well, we find out which one is slow and ride that.

When we convert this car example to currency trading, suppose two currency pairs move in the same direction and have been moving up with a correlation over 0.60 in the long-term and we find that suddenly the correlation value in during the past few days has become 0.20, we just see which currency pair's movement (increase is slow) and we could buy that. On the other hand we could short-see another currency pair.

by Himanshu Jain

The author is a Forex Trader and also runs ForexAbode.com. By qualification a graduate mechanical engineer, with over 20 years of diversified international experience. The Involvement with Forex Trading started in the year 2000. Over the years Forex Trading not only became the greatest passion but evolved into a success which could replace the traditional successful consulting and business development career. Currency Correlation Page of http://www.ForexAbode.com/.