Never put all your eggs in one basket, don’t invest all your money in one brokerage company, I advise you to choose some good broker to trade. But among hundreds of forex brokers available online, which one is the right one for you?
What forex broker is the best for a forex beginner and why? Here are some things to consider when choosing forex broker:
What kind of trading platform is offered?
What are the minimum deposit requirements?
Are there any hidden fees? (for withdrawals, for overnight, for an non-active account etc.)
Is customer support efficient and professional? (email, phone, online chat)
What do others say about this broker?
Is the broker regulated and certified?
What are the spreads for the currency pairs you are planning to trade?
What is the maximum leverage available?
What are the payment methods available?
What kind of services will you get – daily updates, recommendations, mobile trading, live news, daily analysis, free advisor… etc.
What kind of bonuses are available for new traders?
You must know exactly what you want from trading.
what currency pairs are you going to trade?
what spreads would suit you (fixed, variable, how many pips)?
do you accept paying a commission for trading Forex?
what would be your minimum investment (account size)?
what leverage do you need?
what tools, indicators do you need for trading?
do you need a specific trading platform (like MT4)?
do you want to scalp?
do you want to hedge?
do you need a trailing stop?
do you need “one-click-trading” execution feature?
do you wish to have mobile phone trading feature and/or trading alerts?
do you care whether it is going to be a ECN/ STP or a Dealing Desk broker?
do you care about reputation of a Forex broker? (You must actually care, for the safety of your investment).
which way (wire transfer, Paypal, credit card etc.) can you transfer and receive funds? There could be restrictions depending on the country you live in.
how much would it cost you in fees to pay for funding, transferring, withdrawing your money?
Forex broker for newbies
I like Paxforex and Fxtm best. Paxforex, I’ve never seen any requotes from their side and they US welcome also, so it’s really pleasure to trade with them! Fxtm, Higher margin call, mutiple user account types, withdraw and 100% refund quickly via many ways, good support. All best ! I reccomend Fxtm to the beginner or the experienced trader. Other brokers like octafx, exness, hotforex, 1lotstp, unitedforex, gkfx, fxclub-global also are good choices.
Forex broker for scalping:
Criteria best brokers for scalping in my opinion: allow all trading including scalping techniques, Non Dealing Desk / ECN, offering high leverage with LOW SPREAD,… I suggest you some broker as: icmarkets, gdmfx, armada markets, pepperston razor
Forex broker for Zulutrade
Aaafx(Triple A Fx Us) is well-know (with no commission and slippage) or Forextime. It’s ok, you can extra check: greenfxtraders, ikongm, skyfx.
Biggest broker in the world.
These are well-know broker suck as: Fxcm, SaxoBank, GFT, IG group, Oanda, Gain, Alpari
Above, my sites i like, you can suggest your broker site here.
All about forex brokers, you canfind here
If you like my post, you can take more information about my forex trading strategy on smashword here
Thank for reading, you canfollow me here
How To Make Passive Income In Forex Trading With Etoro
For A Leader:
With over 1.95m traders in its network, and more than 500,000 live accounts, eToro can claim to be one of the most popular Forex trading networks on the web, although it caters for commodities traders as well. Users receive $10 every time somebody copies one of their trades, and their trade copy platform has one of the highest success rates around.
For A Investor:
Forex company eToro launched a application CopyTrader that every trader and investor could only dream about. And the most exciting thing is that you don’t need to have any special knowledge, skills and experience: you choose the most successful Forex traders and the system automatically copies their trades.
How it works?
On the ranking page of the OpenBook you will see a list of the best traders with their trading statistics.
Click on the trader you like to open his/her profile and then press on the “Copy” button.
Set up the amount you want to use to copy that trader and press the button “CopyTrader”. In order to start copying you need to fund your trading account. We suggest to start from $1000, though you can start as low as $50. You can use up to 20% of your balance to copy one trader.
You are done. Close the window and enjoy watching your money grow.
Any time a trader you copy opens a trade, the system automatically opens the same trade for you, when a trader closes the position, the system will close your position too. You will make the same profit as the trader does in the percentage ratio.
I also use this moethod to make money in Forex. You can use eToro CopyTrader and trade by yourself in the same trading account of eToro. To trade by yourself, click on the WebTrader button on the top of the eToro website to login to the best trading platform eToro WebTrader.
Part 1: What drivers the forex market
Tracking changes in how an economy is growing is clearly an important part of gaining a sense of whether a currency will be strengthening or weakening. The relationship of growth and currencies applies throughout the world. While there are many aspects to economic growth, the forex trader’s main focus should be on interest rates. An increase in interest rates tends to strengthen the currency. The trader needs to go further than just knowing what the rate levels are. They trader needs to assess whether the economy is strengthening or weakening. Housing data is one of the most important areas that affect the decision to increase rates, keep rates the same, or decrease rates. The forex trader should keep track of housing data when trading a currency.
DEVELOPING A FUNDAMENTAL OUTLOOK
Developing a fundamental outlook is part of the evolution of a forex trader. When you first begin trading, the focus tends to be on technique and tactics because learning how to put on the trades and how to read the charts is the most important task at hand. But as a forex trader develops an understanding of the fundamentals, he or she will eventually ask the following two questions:
What currency pairs should I be trading?
What direction is my next trade?
It is helpful to be able to group currencies by their fundamental personalities. We can see that some currencies are stronger than others and that some currencies are fundamentally at extremes; those groups become more interesting to trade. A fundamental view leads to the understanding that the major causes of change in the relative value of currencies are real or perceived changes in interest rates, inflation, or economic growth between their economies. The relationship between fundamentals and forex prices is not a direct relationship; rather, it is more akin to fuzzy logic or a chemistry of forex. Fundamentals remain in the background and provide important conditions conducive to a currency’s strengthening or weakening. By forming a fundamental view of currencies, the trader is able to get in line with the powerful economic forces that currencies ultimately reflect.
To guide traders in conducting their own fundamental analysis, they need to have their own fundamental forex checklist and action plan. The purpose of the fundamental forex checklist is to make sure you have the information to make some trade strategy decisions.
Fundamental Forex Checklist and Action Plan
Scan and list current global data on gross domestic product (GDP), interest rates, and inflation levels.
Scan price patterns in commodities such as oil, gold, copper.
Review the Trade-Weighted Index (TWI) of each currency to determine if any are probing key support or resistance.
Check the U.S. Dollar Index (USDX) at ino.com and compare it to the TWI of the U.S. dollar.
Scan global interest rates and try to group currencies by:
a. Countries expected to raise rates
b. Countries expected to keep rates the same
c. Countries expected to lower rates
Choose which currency pairs to trade.
Choose the preferred direction of your next trade. If you do not have a preferred direction, that means you are choosing to trade in either direction.
14 KEY TECHNICAL INDICATORS
There are dozens of indicators that accompany many of the forex platforms. This multitude of indicators can lead to confusion for the new trader. Many of these indicators are not all useful for forex trading. Many of the indicators offered by forex platforms reproduce indicators that have been a standard part of the trader tool box for generations in other markets. Whichever indicators are used, they should be evaluated as to how well they contribute to identifying market conditions and help determine the best location and time to put on the trade.
A first step in choosing indicators to use in trading is to understand what they do. Technical indicators are algorithms, which are equations that take price data and generate a smoothing out of the data. The value to the trader of any indicator occurs when they help confirm several technical conditions, as shown in the checklist below:
How strong is the trend?
How strong is support and resistance?
Are there signs of weakness in the trend or in support and resistance?
Are there signs of volatility or momentum peaks or exhaustion?
Is there a divergence between the indicator and prices?
The overall goal is to find the set of indicators that increase the level of confidence that the opportunity to put on the trade is at hand. It’s useful to think of indicators as ingredients in a recipe to create the basis of a trade. However, the trader needs to also recognize that the key disadvantage of indicators relates to their inherent lagging behind the market and their potential instability when applied to very short time frames, such as under five minutes.
Spreads starting at 2 pips and doesnt support Liberty Reserve but Profitforex is good, highly recommended!
The variable spreads of Dukascopy can be an issue during news events, but only if you are looking to scalp the news announcement, and deposits are only allowed via bank wires.
OPTIMIZING YOUR USE OF INDICATORS
The developers of indicators offer default settings that are intended to be general in their use. However, the settings can be altered. Many traders try to alter the settings without a real understanding of the basis of the alteration. Simple changes, such as increasing or reducing the periods used, aren’t particularly controversial. Generally, traders use the default settings on the indicators. These defaults are there because a shorter period makes the indicators more sensitive to price changes, while a longer period smooths out the indicator and increases its robustness. But the question arises as to what is the optimum setting.
For example, is 5, 3, 3 on the slow stochastic a better fit to the data than the default 14, 3, 3? It is possible to answer that question if an optimization program or back-testing program was available. Many platforms and charting services provide an ability to optimize the settings. The first step in optimizing an indictor setting is to identify the time frame for the optimization. A period of price action too far back runs the risk of the trader’s optimizing against conditions that are no longer there. Geopolitical and economic conditions change frequently, particularly in forex. This means that the period of optimization should be perhaps very recent, such as the one to three months. Also important is a selection of which
candle chart to optimize. Will it be trading off day candles or shorter ones such as the 15-minute candle? Additional challenges face traders using optimizing approaches. A key factor is the stop loss. Even after settings are optimized for gaining the most profits from a trading period, the use of stops and limits will ultimately affect the results. Once you have developed a trading idea, back-testing is the next step before turning your idea into real, live trades. While paper trading with a demo or game account is highly recommended for getting used to the real-time nature of markets, back-testing
can save you an incredible amount of time. By definition, back-testing is a simulation of what would happen if you had traded your ideas in the past. You can test a day’s worth of trades up to many years, going back as far as there was a market for the instrument you are trading.
It has to allow maximum adjustment to any trader’s psychological character
It should be universal, that is, effective and profitable regardless of a market trend at any given moment or period of time.
The system structure must be simple and consist of logical and understandable ready-to-use elements and units.
It has to generate specific price signals for the trader to open or close positions at the levels chosen some time in advance.
It must leave some room for a trader’s creativity and allow the trader to choose certain tactical options in specific cases, so he would not consider himself to be a dependent tool in his own trading system.
It has to have some degree of flexibility to let a trader modernize and adjust the system in accordance with periodically changing market conditions, without violating the main principles and elements of the system’s structure.
The system should also relieve a trader from extra emotional and psychological stress, and make his job comfortable and routine.
It has to include a customization feature so different traders, regardless of their experience, knowledge, training, size of trading account, and such could use the same method.
6 Signs You Know You’re Maturing As A Trader #1 First You Manage Risk, Then You Manage Reward #2 You Are Completely Relaxed When Making Trades #3 You Don’t Force or Chase Trades #4 Trading is Not Your Daily Adrenaline Fix or Entertainment #5 You Follow Your Trading Plan #6 You’ve Stopped Looking For The Holy Grail
8 Essential Forex Tips To Make You A Pro Trader
Learn the Basics
You Won’t Get Rich Quick, Experience Makes You Rich
Forex Mistakes
1.Putting in too much money and not having any trading experience
2.No Training Experience
3.False expectations
4. Stop loss too tight
5.Taking Large Stop Loss
6.Not having profit targets
7.Over Trading
8.Opening too many positions at once
9.Not having a good understanding about margin rules and requirements
10.Not having a trading plan
11.Not setting goals
12.Not understanding money management
13.Not having a defined strategy
14.Not following your plan
15.Entering impulse trades just to be in the market
16.Following gurus blindly
17.Listening to everyone
18.Too much info
19.Listening to no one
20.Not Understanding pip cost
21.Using the wrong broker
22.Not knowing how to use your trading platform
23.Not understanding the difference between ask and bid pricing
24.Thinking you can just follow someone’s trades and be profitable
25.Letting trades run against you
26.Going for the big one!( putting all your money in one trade)
27.Emotion Based Decisions
28.Not being financially ready to trade
29.Putting too much pressure on yourself
30.Not having a clear understanding of Technical analysis
31.Trading the News not being properly prepared
32. Relying too much on indicators
33. Using a complex system
34. Believing that having more money means you will be more successful
35.Not having the right attitude
36.Leverage too high
37.Not putting the work into Your Trading
38.Falling for Forex Scams
39.Not doing a personal examination of yourself to determine trading style
40.Over Confidence
41.No confidence
42.Not Trading at the Right Times
43.Not having good charts
44.Picking Tops and bottoms
45.Revenge Trading
46.No Patience
47.Cutting Winners Too Quickly
48.Letting Greed Control You
49.Not understanding the spread
50.Trading with Fear
51.Over analyzing the trade
52.Not understanding Market Fundamentals
53.Opening different trades with the same base pair
54.Insisting that you were right
55.Not recognizing the impact of global events and how they impact the currency markets
56.Following a big move (Chasing Trades)
57.Shorting the lows and buying the highs
58.Not Understanding Margin requirements
59.Moving your stop loss so you don’t get stopped out
60.Not setting alarms so that you know when you price levels are met
61.Trading During the News and having bad slippage and execution
62.Trying to Predict the Market
63.Trading When Mad or Angry
64. Anticipating Trades
65.Building a position past money management rules
66.Not Having the right Equipment
Forex Mistakes
67. Trading with the Crowd
68.Pushing the wrong button
69.Trading Demo Too Long
70.Not willing to take a loss
71.Giving Up Earned Profits
72.Not Taking Every Setup
73.Sticking your head in the sand
74.Fighting the Trend
75.Changing Lot Size
76.Under Capitalization.
77.Failure to take responsibility
78.Not looking at the big Picture
79.Not looking up close
80.Jumping From system to system
81.Not willing to wait and develop as a trader
82.Giving Up
83.Losing Faith.
84.Thinking that the Market is wrong
85.Lack of consistency
86.Messy Charts
87.Trading the news
88.Misinterpreting the news
89.Not taking breaks
90.Bad Eating Habits
91.Having a bias
92.Trading on Rumors
93.Not Having A Life
94.Not Maximizing Profits
95.Repeating the same mistakes over and over and over and over again
96.Not Having Have Guts, Courage, Fortitude, Mental Will Power, or A desire For Excellence
97.Lack of Focus while trading
98.Not Having Fun!
99. Using Invalid Data
100.Not Setting a Stop Loss
101.Over Optimizing Your Strategy
Position sizing is the term given to the process of adjusting the number of lots you trade to meet your pre-determined risk amount and stop loss distance.
This is how you calculate your position size on every trade you make:
First you need to decide how much money in dollars you are COMFORTABLE WITH LOSING on the trade setup.
Find the most logical place to put your stop loss, calculate Stop Loss pips
Next, you need to enter the number of lots that will give you the $ risk you want with the stop loss distance.
Ex: if your pre-defined risk amount is $200 and your stop loss distance 100 pips, you will trade 2 mini-lots (200/100)
