Online Forex brokers

Forex Fantasy trading platform review

2009-06-12T10:05:00.000-07:00

Among the many currency trading programs on the market, Forex Fantasy seems to stand out as something extraordinary. This is due to one special but ever so important quality of this program: its ability to adapt to market conditions and alter its trading habits in relation to changes in market behavior.
Why is this important?

It's important because it deals with one fundamental weakness of forex trading programs: the fact that they operate on static algorithms which generally operate the same regardless of market conditions. This makes the robots vulnerable to a certain degree as they may not perform as well as they should in certain market conditions. They may be efficient but they're not really intelligent. They can't learn anything.
This is where Forex Fantasy rises above the rest of the pack. This is a learning program, capable to adapting to fluctuating market conditions. This flexibility increases the safety factor of this program and provides an added layer of security to the trading decisions it makes.
Of course, you can't expect to have a 100% successful trading program, and Forex Fantasy is not one either. There is simply no such thing. Even a learning program makes mistakes, and often the market changes so rapidly that the program can't adapt fast enough. This will probably be rare, but I want you to have the right expectations and not go overboard.
However, the impressive results that this program has, both in tests and as exhibited in the testimonials of traders who have used it and generated a considerable profit, show that Forex Fantasy does work and can be used by traders of little or even no experience to generate a handsome profit.

Example of great FOREX trade

2009-04-09T14:08:00.000-07:00

Would you like to learn how to trade FOREX without missing all the good trades? If you have been trading the Forex for long you probably know the frustration of missing out on good trades. You may spend hours or days waiting for a signal to enter a trade and then when it happens you weren't there at that moment watching the charts to make the trade. You then watch the market move in your direction without you, feeling sick about the money you just missed out on because you missed the trade.

The Forex can be very profitable but at the same time very frustrating. One of the advantages of the Forex markets is it's open 24 hours a day. Unfortunately this can actually be more of a disadvantage because some of us have to sleep and have lives to live and we can't watch the markets 24 hours a day. So how do you ensure you won't miss the good trades?

There are several ways. You can team up with other people so you can take shifts and always watch the markets. This is what a lot of the large trading firms do. The problem with that is most new and small time traders can't afford a staff and then there are concerns of trusting and depending on the other people.

You can also use charting software where you can set up alerts that will give you an alarm when a buy or sell signal is triggered. They can make a sound, send you an email or even call or text your cell phone. The problem is you might not be somewhere where you can get to your computer when it happens. And do you really want to be woken up at odd hours of the night to make your trades? I tried that for a while and I was left exhausted from broken sleep. And I didn't sleep well to begin with knowing at any moment an alarm might go off.

The other option is to use automated trading software also called robots or bots. With a robot you can set it up to actually make the trades for you when the market gives it a signal. Once you set it up it will make the trades for you 24 hours a day while you are away living your life. After using a robot that's all I use to trade now. I have no interest in going back to watching charts and staying up odd hours waiting for good trades. Many traders are starting to use robots and I think it's only a matter of time before old style manual trading becomes obsolete.

If you want to know how to Forex trade using a robot I suggest you try one on a demo account first as with any new system and prove to yourself that it will make a profit before you ever use real money. Also make sure it has a money back guarantee. Some come with time tested winning trading systems already set up, just make sure the advertised results are from real live trading and not just back tests.

My first try in FOREX trading

2008-09-26T08:44:00.000-07:00

Four years ago, I sow banner on some site where was something like "make money from your chair trading in forex market". That was very intrigued me so I decided to try! Company offered demo, which means that I didn't need to deposit real money and start trading.I thought great! Opened that demo account and start with trading. Trade by trade fro virtual $10 000 I gone to $5 000.Decided to lear.Learn,learn and leran about forex trading strategies, about spreads and pips, about forex charting,fundamental analysis etc,etc...

After that I back in game again,this time I back to my initial deposit $10 000 in about 10 days and started to go over.After 2 months I learned a lot and made about $25 000 in my DEMO forex trading account. "Ok", I said to myself, it is time to go for REAL money trading, and I done that. Deposited $2 000 from my credit card.

Results was frustrating, in just 3 days I spend $2 000, I was broken not just without money,simply broken. Then I released that succeeding in forex trading is loooong journey...

So, decided yo motivate myself, and start again with researching about forex trading fundamentals, about brokers, about trading platforms, about everything, but that is another story that I will post in my next post, about my second try in forex.

Reviews of FOREX brokers and trading platforms

2008-09-17T05:01:00.000-07:00

When I started blog about forex, my base idea was to review forex brokers and platforms, compare spreads and leverages and find best forex brokers for You no matter are you professional or newbie in forex market.

This time i would like to say just few words, generally about trading forex and importance of choosing right forex platform and latter I will describe one by one forex platform. When You choosing right forex trading platform for You i is important to find platform that feet all your need what can mean from be comfortable great designed but also functional and very fast. Generaly best FOREX trading platforms are MetaTrader, Streamster ans SaxoBank trading station, but again I say it depends on you and your needs and what You accept from your forex trading platform.

Also, if you never trade before, please check this stock market for beginners informations that can give you some base info about stock trading what is actualy easier part. Harder and most profitabil is of course FOREX trading.

Who are FOREX exchange participants ?

2008-09-08T14:48:00.000-07:00

For start, we need to know what is forex at all like I wrote in previous post, so it is important to understand basic concepts of forex exchange so I decided to cut from you few more very important basic facts and words about forex exchange market from best source, online encyclopedia,about participants in forex exchange market:

Market participants in FOREX exchange:

Unlike a stock market, where all participants have access to the same prices, the forex exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. As you descend the levels of access, the difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the forex market are determined by the size of the “line” (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail forex market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in Forex exchange markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the forex market to align currencies to their economic needs.

Banks in forex exchange

The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

Commercial companies in forex exchange market

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Central banks in FOREX exchange market

National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high — that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.

The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[4] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.

Retail forex brokers in forex exchange market

There are two types of retail brokers offering the opportunity for speculative trading. Retail forex brokers or Market makers. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. Retail forex brokers, while largely controlled and regulated by the CFTC and NFA might be subject to forex scams[5] [6]. At present, the NFA and CFTC are imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone. It is not widely understood that retail brokers and market makers typically trade against their clients and frequently take the other side of their trades. This can often create a potential conflict of interest and give rise to some of the unpleasant experiences some traders have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but caution is still advised in ensuring that all is as it is presented.

Other participants in forex exchange market

Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companies. These are also known as Foreign Exchange Brokers but are distinct from Forex Brokers as they do not offer speculative trading but currency exchange with payments. i.e. there is usually a physical delivery of currency to a bank account.

It is estimated that in the UK, 14% of currency transfers/payments are made via Foreign Exchange Companies[7]. These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. These companies differ from Money Transfer/Remittance Companies in that they generally offer higher-value services.

Money Transfer/Remittance Companies perform high-volume low-value transfers generally by economic migrants back to their home country. In 2007, the Aite Group estimated that there were $369 billion of remittances (an increase of 8% on the previous year). The four largest markets (India, China, Mexico and the Philippines) receive $95 billion. The largest and best known provider is Western Union with 345,000 agents globally.

I hope that You read carefully about participants in forex exchange markets, it is very important to know this facts, because You need to know who is your "friend" in the market nad who is "the enemy" in the forex market, you can't beat FOREX that is rule number one for every participant in forex, but You can learn who you will follow in this game for rich and poors!

What is FOREX market at all ?

2008-09-01T10:53:00.000-07:00

For those totaly unfamiliar with this: FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. I wil try to give you some forex tipsI and to try learn you on FOREX trading.In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand. As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. According to various assessments, money masses in the market constitute from 1 to 1.5 trillion US dollars a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. Practically in every time zone (that is, in Frankfurt-on-Main, London, New York, Tokyo, Hong Kong, etc.) there are dealers who will quote currencies.
FOREX is a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars. That is why any influence by a single participants in the market is practically out of the question. The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive. (You can learn more about it in the section: The main principles of trading .)
The idea of marginal trading stems from the fact that in FOREX speculative interests can be satisfied without a real money supply. This decreases overhead expenses for transferring money and gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. That is, on can conduct transactions very quickly, getting a big profit, when the exchange rates go up or down. Many speculative transactions in the international financial markets are made on the principles of marginal trading.
Margin trading is trading with a borrowed capital. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it it is necessary to have only from 0.5% to 4% of the sum.
For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405). For the calculation of 1 pip click here.
Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.
In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).
In order to assess the situation in the market a trader has to be able to use fundamental and/or technical analysis, as well as to make decisions in the constantly changing current of information about political and economic character. Most small and medium players in financial markets use technical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price. The initial data for a technical analysis are prices: the highest and the lowest prices, the price of opening and closing within a certain period of time, and the volume of transactions.
A technical analysis is founded on three suppositions:

Movement of the market considers everything;
Movement of prices is purposeful;
History repeats itself.

That is, technical analysis is a statistical and mathematical analysis of previous quotes and a prognosis of coming prices. A number of technical indicators have been installed into the PRO-CHARTS trading system. Analyzing the indicators one can come to the conclusion about further movements of the quoted currencies. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click here.
Fundamental analysis is an analysis of current situations in the country of the currency, such as its economy, political events, and rumors. The country's economy depends on the rate of inflation and unemployment, on the interest rate of its Central Bank, and on tax policy. Political stability also influences the exchange rate. Policy of the Central Bank has a special role, as concentrated interventions or refusal from them greatly influence the exchange rate.
At the same time one should not consider fundamental analysis just as an analysis of the economic situation in the country itself. A far bigger role in the FOREX market belongs to the expectations of the market participants and their assessment of these expectations. Various prognoses and bulletins, issued by the participants, have a strong influence on the expectations. Very often an effect of the so-called self-filfilling prophecy occurs when market players raise or lower the exchange rates according to the prognosis. But a deep and thorough fundamental analysis is available only for big banks with a staff of professional analysts and constant access to a wide field of information.
In spite of these different approaches, both forms of analyses complement one another. Traders who act on the basis of a fundamental analysis, have to consider some technical characteristics of the market (the main rates of support, such as resistance and resale), and supporters of the technical approach to the market must track the main news (interest rates, important political events).

The main merits of the FOREX market are:

The biggest number of participants and the largest volumes of transactions;
Superior liquidity and speed of the market: transactions are conducted within a few seconds according to online quotes;
The market works 24 hours a day, every working days;
A trader can open a position for any period of time he wants;
No fees, except for the difference between buying and selling prices;
An opportunity to get a bigger profit that the invested sum;
Qualified work in the FOREX market can become your main professional activity;
You can make deals any time you like.

Welcome to new blog dedicated to online forex brokers

2008-08-16T09:23:00.000-07:00

You want to start trading? You heard something about forex and want to participate, you are on right place! Here you can read and lear everything about FOREX market, forex trade, forex rates, spreds pips, trading platforms and trading software, charting and everything else related to FOREX market. Also after basic education you can start trading with demo account at one of many brokers on this market. For first time I will give You definition (from wikipadia) about FOREX:

"The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is almost US$ 4 trillion"