I’m starting. The only platform I’ve tested is FxPro’s (DEMO account, of course). I’ve only made some random trades since I don’t know any strategies or technical and fundamental analysis. Just to get a feel of an actual platform and experimenting with the software. As time goes by and I learn more things, I guess I will open demo accounts with different brokers.
I’m thinking trying FOREX.com but their demo account only lasts 30 days. Their platform looks “neat,” but I suppose that I should not get tempted just by the looks.
In order for any trader to win in his deals it is best that he uses a trading strategy that is both tried and tested so that he can get to the levels he wants.
After I finish Pipsology School and the book I mentioned at the beginning of the thread, I plan to read “Essentials of Foreign Exchange Trading” by James Chen (2009).
And after that I’m intrigued by this one: “Beat the Forex Dealer: An Insider’s Look into Trading Today’s Foreign Exchange Market” by Agustin Silvani. Apparently he talks about brokers’ “dirty” tactics like “pip spikes” and such and supposedly tells you how to “beat” them. At least it sounds interesting.
In the School of Pipsology there is a section, “Which Type of Trader Are You?”. I would suggest you sit down and decide what style of trading you want to plunge into, scalping, day trading, swing, etc. Then look for trading methods that fit that style and start right away demo trading.
IMO it’s like learning how to ride a horse, you can read all the books, take all the classes, but the sooner you can spend hours & hours and more hours in the saddle, the sooner you will develop the skills and ability to become proficient.
I found this on another thread about “stop-loss hunting.” Sounds like a good approach considering that it seems to be part of how the “game” is played.
And after that I’m intrigued by this one: “Beat the Forex Dealer: An Insider’s Look into Trading Today’s Foreign Exchange Market” by Agustin Silvani. Apparently he talks about brokers’ “dirty” tactics like “pip spikes” and such and supposedly tells you how to “beat” them. At least it sounds interesting.
I can’t speak to this book, but have serious questions about it given the whole “dirty” tactics thing as you might guess from my previous comments. Also, the “90% loss rate” bit from the book’s description on Amazon is at best a vague comment and at worst completely inaccurate, depending on what exactly is meant by that.
I’ve read both of your reviews. I’m now interested in the Dummies one just because you say that it goes into more detail about discussing different currency pairs (which I suppose are mostly the majors). Since I’ve read many traders recommend to newbies to focus on just one pair at the beginning, it seems useful to know the characteristics of a specific pair.
I’ve been demoing with FxPro and when you open their platform it says “Your Trusted ECN Solution.” I decided to read their entire Client Agreement and at some point they clearly define themselves as Market Makers. Go figure.
So, continuing my research… for a newbie like me, it seems that it’s not enough with the differences between true ECN broker and Market Maker broker, now I’ve just discovered that there’s another route between Forex Spread Betting or Forex Broker companies.
So, if I understand correctly, it will be like this (in general terms):
A. First, you need to decide if you want to go with a Spread Betting company or Broker company.
B. Then, if you go for the broker route, you have to decide which type of Broker, a “true” ECN or a Market Maker broker.
Spread Betting, as far as I know, is tax free in the UK as long as you can prove that you have another source of income that covers your living costs. There lies the reason on why it could be more attractive for UK traders, because ALL profits would be yours. However, I’ve read not-so-good opinions on Spread Betting companies.
The downside with trading Forex with a broker (in the UK and from a profit point-of-view) is that is subject to tax, either Capital Gains Tax or Income Tax (which I’m still not sure when each case applies), so you’ll have to give some share to the taxman.
For a newbie in the uk go with a spreadbetting account. As you said its tax free and there is not that much difference. Dont believe all the bad reviews that are on the internet. You will read loads from idiots who have had margin calls because they have no idea of risk management. Spreadbetting firms do all they can to keep customers not the opposite as you will read a lot
It seems that what it will work for me it’s a company that allows me to trade micro lots (to get my feet wet as a beginner). Like I’ve said, I’ve been demoing with FxPro cTrader platform but unfortunately, they only accept a minimum of 10k units per position. I want the ability to trade micro lots because apparently it allows you more room for better risk management for newbies. And you gain some experience along the way.
I will continue my research on Spread Betting companies, but for now I’m more inclined for a Broker. However, I’ve downloaded a Demo Account with FXCM UK for their Spread Betting service. I still don’t know what is the big difference between Spread Betting and Forex Broker thing, since people usually comment that they’re similar, but I don’t know exactly what “similar” means in this case, besides that you set the price per pip.
Have you looked at Oanda? You can trade as low as $0.01 per pip. I must admit that I never heard of them but after going through hundreds of threads on this site, there name keeps popping up again and again. I have just opened a demo account with them (which stays open indefinatly). I am not trading live at the moment because I am starting my forex education again from scratch.
They are a spreadbetting firm i believe. From wgat i have seen from the demo you can trade from tgeir mt4 charts from $10 a pip and from their actual site from $0.01. Just another site for you to conisder.
You never get charged Capital Gains tax trading through a spread better provider, or an ECN provider.
Don’t forget what you are trading, or in fact what you are not trading. You are simply betting using derivatives that mirror the underlying financial you are concerned with. You never have ownership of what you are trading, and thus never make a capital gain or loss. Think of it more as bets if the financial will go up or down. Thats exactly what the big boys do in the city day in day out.
Hmmm… interesting. But you declare it as such for tax purposes IF you trade with a Forex Broker right? Because I understand that only Spread Betting is tax free as long as it’s not your “main” source of income. The rest of the Forex trading activity is taxed under UK laws. Or so I know.
even spread betting is taxable, regardless of it being your second income. If spread betting exceeds your previous main source of income then the Inland Revenue (HMRC) in the UK, label you as a professional speculator. Thus your combined income from your day job and that of ‘spread betting’ is aggregated together and you are taxed on the total income by income tax. Your net profit and loss is already shown in your account balance via your broker, so you cannot minus any losses as this is already accounted for.
