Feb 14 2010
Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino
Forex Signals. Learn this powerful
Fibonacci Retracement secret FREE that pulls 500+ pips per trade. Read the
FRWC shocking 40 page PDF insider report that reveals all about the forex robots and the potential of automated trading systems. Knowing your broker intimately is very important for you as most of the time the broker might be trading against you without you ever realizing it. Forex is an over the counter unregulated market. This means that there is no central agency like that in the futures markets that can function as a clearing house.
This unregulated nature of the forex market means that most brokers are free to quote currency rates of their own. What many brokers do is add 1-2 pips to the interbank rate that they get. In times of volatility, you will find that the spreads might suddenly widen. All these are forex broker games that you need to be aware of if you want to seriously dabble in the game of forex trading.
Almost all brokers now tell their clients that no commission will be charged like that in the stock trading. What they don't tell you is that commission is being charged in the hidden shape of spreads. 2-3 pips bid/ask spread is your trading cost and the broker's profit.
Now, if you are new to forex trading chances are that you will lose 99% of the time. You lose, your broker wins as the broker has to provide liquidity to the clients and most of the time cannot immediately offset the position in the interbank market as the size of the most transactions are usually small. What this means is that most of the time, your broker is trading against you. The more you lose, the more your broker wins.
Add leverage to this. Your broker will entice you to use a high level of leverage by saying that it will increase your profits. You are new, you don't know how to use leverage. You end up losing. The more you lose, the more your broker will make.
These are all games that your broker is continuously playing with you. Your forex broker can turn your winning trade into a losing trade by using blip or a sudden spike in the price feed. This is also known as stop hunting. Stop hunting is what many brokers continuously do. You suddenly find that your stop loss order has been triggered and your trade is closed. What you don't know is that the spike in the price action was artificially created by the broker. So my friend, if you are really serious about trading forex than know your broker first before you start dabbling in the game of trading forex.
Jan 29 2010
Watch these 4 FREE Forex
Day Trading Risk Shield Videos that will change the way you thinks about risk management in forex traidng. Get the Ultimate
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Forex Scalping Cheatsheets FREE. Patrick Flynn, Traders Choice Forex: Do you want to finally achieve the success and freedom that using a Forex robot can provide? If you are trading a Forex robot, you need to use a Metatrader Forex broker to place your trades. Robots are built specifically for the Metatrader 4 platform. Since multiple brokers offer the Metatrader platform, you need to find the best one. All brokers are different and we are here to help!
At TradersChoiceFX we have years of experience in the industry. And, we have seen firsthand how working with the wrong broker can quickly wipe out your account regardless of the robot that you use. At the same time we know that a solid brokerage can make trading a pleasurable experience. Join us for our next complimentary eye opening webinar and learn how to improve your trading robot by using the right Metatrader 4 broker. Here is just a sample of the advantages you will gain by attending this great webinar.
- Make sure that your money is as safe as possible when you learn 2 key items to focus on when choosing a broker.
- Make Forex trading a pleasurable experience by ensuring that you get the customer service you deserve.
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This information is of great importance and best of all its complimentary. There is a very small amount of spaces available so make sure to sign up now.
Many of you have been asking which broker to use with your trading robots. All Forex brokers are different and using the right one for your robot is very important. Based on your specific needs we created a special trading arrangement that can be very beneficial to your robot trading. When you open an account at GAIN Capital using the link below you will be eligible for our Robot Trader Package. This premium package is built specifically to maximize the success of your Forex robot. Here is just a sample of the great benefits that you will get when you open your account:
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Aug 28 2009
As more and more people enter the retail forex market, retail forex traders are doing a booming business. A critical lack of market information has led to the rise of a new forex superstar, “The Forex Analyst.” Learn
forex broker games. Know
swing trading. First practice on your
forex demo.
Don’t know how to trade? Don’t worry; we have the people that can teach you. Can’t tell which way the Euro will go. Don’t worry, we have the experts. Retail forex brokers are hiring and promoting the skills of forex analysts in droves in order to offset their client’s fear of the forex market. Who is a Forex Analyst?
Sadly the investing public seems to not have learned any lessons following the internet boom era IPOs. Forex analysts are master peddlers of excuses and explanation as to what did happen. But a forex analyst will never really tell you what will happen.
Just think for a moment, do you think a company hired analysts will give anything but a strong buy to the company’s stock if a company is going public? A similar conflict of interest arises in the retail forex world now full of forex analysts more than willing to share their views on TV, print or chat rooms.
So who are these forex analysts? Are they forex traders? Do they trade their own money? Most of them are not traders. A look at their profile will show you an Ivy League degree full of theoretical knowledge. Is any of this knowledge applicable to day to day forex trading? Of course not!
Trust me if they were smart enough, they would have started their own fund long time ago. So what is the job requirement of a forex analyst? Look good on the TV and write well. They are supposed to know a lot of meaningless forex jargon and economic figures in support of their views.
So what is the exact job of a forex analyst? Since forex brokers only make money the more you trade as a retail forex trader and the more you lose, forex analyst will always be full of great trading ideas to help you trade more. Like any job in the world, the job of a forex analyst is simple to make money for the forex broker company.
If you are wise, you will never trade from the advice of your forex broker. Know this dirty little secret. Some moves just happen in the forex market without any fundamentals or technicals supporting them.
Since most corporate flows happen in the intra day market. These corporate flows make a mess of the intra day forex market. Most of the moves started by these corporate flows have no fundamental or technical reason behind them. Yet no self respecting forex analyst will be caught without a neat explanation at hand.
I would love to host a trading competition between the retail forex analysts and some of the dart throwing monkeys. Rest assured monkeys have a higher chance of winning. So on whom would you bet?
Aug 21 2009
In the past, the forex market was only open to the wealthy individuals and institutional investors. The emergence of sophisticated online forex brokers made forex trading feasible for private individuals like you and me. Compare
forex brokers. Know these
forex broker games. Understand
forex charts.
Many forex brokers tend to entice new trades by offering high leveraged margin accounts. Now anyone can open a forex trading account with a retail forex broker and trade currencies with little money upfront.
Market makers set the bid and the ask prices themselves. There are basically two types of forex brokers: 1) Market Makers and 2) Electronic Communications Networks (ECNs).
ECNs consolidate the various bids and ask prices from the different market makers and other participants connected to their platforms and display the best available prices. Market making is a lucrative business for banks and brokers and forms the backbone of market liquidity.
By quoting the bid and ask prices on the screens of electronic brokering platforms or through telephone calls, market makers are essentially providing liquidity and inviting other qualified parties like banks, hedge funds, corporations and retail investors to deal with them.
Some market makers establish credit lines with banks that trade on the interbank market. Market makers must always be prepared to buy or sell from other market participants. They also access the Electronic Brokering Platforms like the EBS and the Reuters for pricing.
The bid/ask spread is the difference between the price at which the market maker will buy (bid) and the price at which the market maker will sell at (ask) from the customer interested in foreign exchange. Market makers make profit from the difference between the bid/ask spread.
During the period of high liquidity in which there is a great deal of trading activity, bid/ask spreads of the actively traded currency pairs are usually kept quite narrow like 1-4 pips.
However, bid/ask spread may widen sometime by a huge margin when the market is quiet with very little trading going on for example prior to New York close on Fridays or during the news releases. Market makers widen the spread when the market activity is low in order to protect themselves against carrying additional risks.
ECNs are highly popular in stock trading as well as futures trading. ECNs are electronic trading platforms that match the buy and sell orders automatically at the specific prices.
An ECN broker gets its currency pricing from several liquidity providers such as banks, market makers or other traders connected to the system. The order is routed to the best available bid or ask price for execution in the system.
ECN brokers usually charge a small commission. However, you can usually get tighter spreads on many currency pairs due to the large liquidity pool available with the ECNs. Risk of trade manipulation is also minimized when using a good ECN broker as compared to the brokers that operate dealing desks.
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