5 Tips To Identify A Reputed Forex Broker

There are thousands of Forex brokers out there, but you need to find a reputed one in order to make your trading profitable and effective. Here are 5 tips to identify a reputed Forex broker. 1. Capital The Capital base of a Forex broker is extremely important for a smooth trading experience. The larger the…

There are thousands of Forex brokers out there, but you need to find a reputed one in order to make your trading profitable and effective. Here are 5 tips to identify a reputed Forex broker.

1. Capital

The Capital base of a Forex broker is extremely important for a smooth trading experience. The larger the broker, the better would be the prices offered and the quality of execution. They would have a high trading volume and good financial backing for all their operations. They would also be able to pay earnings to clients promptly.

2. License

Although the Forex market is not regulated by any authority, it is mandatory for brokers to be registered members of the National Futures Association or NFA. Ensure that your Forex broker has a valid license issued by the NFA. You can visit the NFA website to check whether your broker is registered with the authority.

3. Trading Platform

You need to have a good trading platform through which to trade in the market. Your broker should provide you with a platform that is up-to-date with the latest tools and features to help you increase your earnings. Therefore, look for a broker with an easy-to-use and efficient trading platform.

4. Customer Support

Good customer support is essential for smooth interaction with any service provider. Since a lot of your money is at stake with a Forex broker, you need to have absolutely good customer support from your broker. Since the Forex market is a worldwide entity, it works round the clock. You may need support at any time of the day or night. Therefore, your broker should be able to provide prompt customer support 24/7.

5. Online Reputation

A good broker needs to have a good online reputation. Word can spread fast on the Internet. Anyone with a bad experience with a particular broker would have left a negative review online. Of course the possibility of a person trying to malign the reputation of a broker is also present. So try to verify the authenticity of any remark. Also visit Forex forums and read reviews about online brokers to get a better picture. You can read feedback from customers about their brokers from client testimonials.

These are some of the things that you can do to identify a reputed Forex broker. Using all these criteria would help you to choose the right one for your particular trading style and requirement.

A Brief Introduction To The Currency of India!

Indian currency enterprises of numerous varieties of banknotes. Rupee is the official currency of India and all Indian banknotes are issued by the “Reserve Bank of India” (RBI). Moreover, each and every banknote of India carries the signature of RBI's Governor, except the one rupee notes that have the signature of the Finance Secretary of…

Indian currency enterprises of numerous varieties of banknotes. Rupee is the official currency of India and all Indian banknotes are issued by the “Reserve Bank of India” (RBI). Moreover, each and every banknote of India carries the signature of RBI's Governor, except the one rupee notes that have the signature of the Finance Secretary of India.

In the year 1917, the first one rupee note was issued. It was printed in England and issued in the form of a packet of 25 notes. This variety had the picture of King George V on the left side of the note. Made up of white hand-made molded paper, it was issued under three signatories; MMSGubbay, H. Denning, and AC Mc Watters.

These were the only issue of Indian banknotes prefixed 'O.' Moreover, there were two different varieties of watermarks on these notes; which were a star enclosed in a rectangle and the second one was a rayed star.
As the value of the money kept growing, the printing of one rupee notes was stopped in the year 1994. Similarly, the two rupee notes came to an end in the year 1995. The 5 rupee notes too are going to be discontinued very soon. Earlier, there were notes printed in 5000 and 10,000 denominations.

However, during the emergency period of 1970, these banknotes were discontinued. Currently, the banknotes that are in circulation include the denominations of 5, 10, 20, 50, 100, 500, and 1,000. Some of the people still have the 1 Re and 2 Rs notes that are being circulated in the markets. As the economy is changing at a rapid state, we could soon see the 5,000 and 10,000 denominations once again in the market.

The first RBI Governor was CD Deshmukh and every note carried his signature except for the one rupee that had the signature of KRK Menon, as he was the first Finance Secretary of India. The notes were only printed in Nasik from the year 1935 – 1975. Later on in the year 1975, there were many printing presses set up across the country and some of these were in Mysore, Dewas, and Salboni.

Collectors across the globe enjoy collecting the numerous varieties of Indian banknotes. The most commonly liked series are the British India series, Republic India series, Haj and Gulf notes, Fancy numbered notes, Error notes, and much more. There are many rare varieties that are easily available for sale over the Internet. So, collectors can purchase them without any problems and complete their collection.

Investment: What to Invest In?

Investing is a hope of gaining a profit in the future; a profit is the surplus of an investment and is the motive for investing; an example of an investment is CFD trading in currency pairs, stocks, commodities and indices. Investing in an item as CFD trading has potential risk and the success depends on…

Investing is a hope of gaining a profit in the future; a profit is the surplus of an investment and is the motive for investing; an example of an investment is CFD trading in currency pairs, stocks, commodities and indices.

Investing in an item as CFD trading has potential risk and the success depends on the investor's background, dedication, desire and motivation; in the disclaimers on the online trading platforms are also written that the investors should not trade with money they can not afford to lose.

What should an investor invest in and gain a future profit?

It is always a good idea investing in a well-known item as the likelihood earning a profit is higher; an example is trading currency pairs; the volume in the market is highest when the New York market and London market are open at the same time; the high volume makes the price trends less volatile and easier predicting the price fluctuation.

Trading CFD in currency pairs, stocks, commodities and indices are different markets which means the items and the price fluctuations are divergent; if an investor would like to trade in one of the market's he should follow the fluctuations and the volatility in the market and the item he would like to invest in; an example of an item is the currency pair EURUSD or the stock Goggle.

When the investor monitor the markets he will discover that the prices are different which means that an investment in a stock is more expensive than buying a currency pair; the equity trading a stock is higher than trading in a currency pair.

He will also discover that it is difficult finding an item he would like to trade in even if he know the items; one way to learn how to trade is to be a part of a social investment network; it is a net where traders follow and copying other traders and interact. The advantages being a part of a network is that it is possible to learn how different currency pairs or other items fluctuate and when to enter a trade as the traders on the social platform can follow other trader's open and closed positions.

One of the main advantages of a social network is the copy trade; a copy trade is copying another trader's open position and gain the profit he will bring in on the position. One of the social investment networks has announced that 64 percent of their open positions are copy trades.

All in all, it is always a good idea investing in a well-known item as the likelihood earning a profit is higher; if it is a copy trade is it also a good idea knowing the performance of the trader before copying it.

Basics Of Choosing A Good Online Forex Broker

There are literally tens of thousands of brokers online. However, not all of them may provide the same level of service. It is important to choose a good online Forex broker in order to secure your money and to get the highest possible returns on investment. Here are a few basic tips on choosing a…

There are literally tens of thousands of brokers online. However, not all of them may provide the same level of service. It is important to choose a good online Forex broker in order to secure your money and to get the highest possible returns on investment. Here are a few basic tips on choosing a reputed online Forex broker.

Size

Not every broker would be able to provide you with the same price and quality of execution. Only brokers who have a high trading volume and good financial backing would be able to do that. So go for a large company with a good reputation and experience.

Customer Service

Customer Service is probably the most important factor you need to consider. Since the Forex market is open round the clock, you need to choose a broker who can provide customer support 24/7. Choose a broker who responds promptly and efficiently to all your questions and needs.

Rollover

When you hold positions overnight, you may end up paying or earning money based on the difference in interest rates and currency pair fluctuations. When you pay interest, it is known as a negative rollover, and when you earn interest, it is called a positive rollover. Not all Forex brokers may offer a positive rollover. So you might need to choose one that does.

Scalping

Scalping is a strategy where you keep the trade open only for a very short period of time. Some brokers may have strict rules against scalping. If you use scalping as your trading strategies, then you need to choose a broker who allows this practice.

Hedging

Hedging is one of the most effect solutions to reduce the risk of trading in a market. However, contrary to popular belief, hedging can not prevent losses, it can only contain or minimize them. In 2009, a regulation was adopted in the US that disallowed traders to practice hedging on the same trading account. If you are interested in hedging, see what policies your broker advocates towards this practice.

Leverage

Most traders use the power of leverage to place larger trades with a smaller deposit in their account. Although leverage can help a trader see good profits, it can also wipe out an account when things go wrong. Some brokers offer a high level of leverage whereas most offer a nominal amount of leverage. Choose a broker according to the level of leverage you require for trading.

These are some of the important factors that you need to consider while choosing a Forex broker.

Investment: Risk

Investing in an item is the hope of gaining a profit in the future; in recent years are CFD trading in currency pairs, stocks, commodities and prices a popular investing method on the internet. CFD trading on the internet is trading “contract for differences” which is buying an item at one price and hope the…

Investing in an item is the hope of gaining a profit in the future; in recent years are CFD trading in currency pairs, stocks, commodities and prices a popular investing method on the internet.

CFD trading on the internet is trading “contract for differences” which is buying an item at one price and hope the price will rise in the future; the word hope is not the right word to use in this context as trading CFD is not speculation but analyzing the market ahead of opening a position.

“Contract for differences” are traded on an online trading platform; the brokers are easy to find on the internet and they often offer a bonus or a gift card for signing up at the platform; some of the trading platforms are platforms where the trader trades on his own; others are social trading platforms where the traders interact, follow and copying each others position in a network.

In the disclaimer in connections to the online platforms are written that trading CFD has a potential reward but also a potential risk; it means that trading on an online platform has a risk. When a trader opens a trade he will realize that he has a deficit as the buying and selling rate is different; the gap is the price the online platform earns on each trade. The gap depends on the item; examples are the EURUSD where the gap is 2 pips and the USDCHF where the gap is 4 pips.

Another risk is knowledge in the market as success in trading “Contract for differences” depends on background, dedication, desire and motivation; an example of why it is central knowing the market and knowing how the price rate increase and decrease are the EURUSD and the USDCHF; the two currency pairs often move in reverse direction; if the EURUSD is increasing is the USDCHF often decreasing and if the EURUSD is decreasing is the USDCHF often increasing.

The risk is the changes in the pips as the EURUSD and USDCHF example illustrated; but changes in the pips can be lower or higher depending on the amount invested in the trade; in currency trading are the traders dividing the trades in lots; micro lots are pips with a value of 10 cents; mini lots are pips with a value of 1 dollar and standard lots are pips with a value of 10 dollars.

All in all, investing has risk but can be lowered with knowledge in the market and investing with micro lots or mini lots instead of standard lots.

An “Easy” Way to Earn Millions Sitting on a Couch

The term 'currency' refers to any form of money in circulation. The process of buying and selling currencies of different countries is called currency trading. For example, you are a US citizen and want to make a trip to Germany. So you need Euros in order to buy things and services, ie the currency of…

The term 'currency' refers to any form of money in circulation. The process of buying and selling currencies of different countries is called currency trading. For example, you are a US citizen and want to make a trip to Germany. So you need Euros in order to buy things and services, ie the currency of the destination place. That is why you go to a bank and process an exchange operation where the bank functions as a currency broker, the transaction being part of the currency markets. Let us take another example. Commercial organizations from the European Union want to purchase some goods from the United States, so they need US dollars to pay for them. This situation raises the demand for US dollars over a short period of time causing the value of the dollar versus Euro to increase. People and organizations involved in currency trading (individual day traders, trading companies, financial and non-financial entities, banks and etc.) have an excellent opportunity to make profits by selling US dollars at increased prices.

Such operations are most commonly conducted at currency markets. The largest currency market is the foreign exchange market (FX, Forex) which is a decentralized, continuously operating, geographically dispersed market for trading currencies.

The major currency markets are:

§ EUR -> USD – The Euro to US Dollar exchange rate

§ GBP -> USD – The British Pound (Sterling) to US Dollar exchange rate

§ EUR -> GBP – The Euro to British Pound exchange rate

§ CAD -> USD – The Canadian Dollar to US Dollar exchange rate

§ AUD -> USD – The Australian Dollar to US Dollar exchange rate

§ EUR -> CHF – The Euro to Swiss Franc exchange rate

Trading currencies includes taking great risks, since the factors affecting currency rates are numerous and hard to predict. However, a lot of individuals find it an exciting and quick way of earning large sums of money. Many strategies including conservative risk management, using future markets combination of fundamental and technical analysis, use of the pyramiding method of building up a position in a currency pair have been developed throughout the years by currency brokers to avoid risks of currency trading and earning large revenues . There are Forex courses and programs worldwide which help people improve business and financial skills.

However, to earn a sufficient sum of money you have to have one at your disposal in the first place.

Top 10 Tips to Choose a Trading Agent

It's agreed that no trading agent is the perfect one for every investor; but at the same time this does not negate the need to choose the best one amongst them! Yes, never mind if they are not 100% fitted for you. You can at least ensure that they hover the nearest to that point…

It's agreed that no trading agent is the perfect one for every investor; but at the same time this does not negate the need to choose the best one amongst them! Yes, never mind if they are not 100% fitted for you. You can at least ensure that they hover the nearest to that point by checking them against certain strict selection criteria.

Before you begin your selection process, you can save time and energy by dividing your checklist into 2 parts-the first part will contain the must-haves and the second one would combine the desired qualities that are manageable without though. That is, the second set can be compromised with a little.

Even though it's not possible to prescribe a universal checklist, it depends on your needs to choose from the following list what you think is significant for you and arrange them accordingly:

1. User reviews

Barring a few deliberately written reviews, you can get a real picture about the agent through the experiences of genuine customers that have deal with them in the past or continue to do so previously.

2. Reputation

Even though many years of experience may not be a true indicator of their profitability, yet it does add some credibility to their professional image.

3. Regulation

Some agents claim to have a multinational presence; but, what needs to be checked is whether they are regulated by the government or not. Every country has its own regulations. So, never take the risk of dealing with an unrecognized trading mediator as you might lose your money forever. There is no legal protection you can avail in such a case!

4. Capital assets

Check their capitalization thoroughly. Some of them may suddenly announce insolvency, which means you lose your investment permanently.

5. Expertise in trading platforms

Although sometimes traditional practices are relevant some operations, it is better to choose an assistant with an updated knowledge about the popular trading platforms like MT4 to simplify your investment process.

6. Commissions and spreads

This is a very valid point to evaluate the worthiness of such a professional. Make sure they are not frauds aiming at just personal gratification and ditching your investment goals just in the nick of the moment. Check their commission rates and spreads so that they are correct and affordable for you too.

7. Value-added services

This is the hallmark of a top-notch professional. Ask if they provide you news, analysis and reports of signals to watch out for in addition to keeping you updated about what's happening to your investment.

8. 24×7 Help and support

Customer service should be offered at all times so that you can immediately solutions in case of any hiccup.

9. Types of accounts offered

Most of the times, you can get a suitable account by choosing a demo, micro or mini. The more the size of the account is, the less the spread charged is.

10. Leverage

They should guide you in selecting the apt leverage ratio, such as 100: 1, to minimizeize risks.

There is no hard and fast rule to define a perfect trading agent; neverless, you can hope to reduce the risks involved in choosing the wrong person for this job by doing your homework diligently!

Opening a Position in The Forex Market

The purpose of Forex trading is to make money and diversify your investment portfolio. The mechanism is very simple. You purchase and sell different currency pairs. If you purchase a currency and its price increases, you can sell it at a profit. In this case, you sell the base currency and purchase the quote currency.…

The purpose of Forex trading is to make money and diversify your investment portfolio. The mechanism is very simple. You purchase and sell different currency pairs. If you purchase a currency and its price increases, you can sell it at a profit. In this case, you sell the base currency and purchase the quote currency. The value of a currency in the pair purchased is compared with the value of the other. Therefore, there is a close relationship between them. The treaties are always bought and sold in pairs. In practice, when you trade in the Forex, you exchange one currency to another, expecting the price of the purchased currency increases compared to the price of the currency sold. A position is called long when you want to purchase the base currency and sell the quote currency. It is called short when you want to sell the base currency and purchase the quote currency.

If you buy a base currency and you hold it for a while, you have an open position. Its value changes depending on the fluctuations in market interest rates. The trade of the currency pairs is simultaneous and symmetrical. This means that you will always have long in one currency and short in another.

The unit used to measure the size of transactions in the Forex is the lot. In general, brokers recommend two types of account: standard and mini. The size of a standard lot is $ 100,000, while the size of a mini lot is $ 10,000. There are also brokers that allow you to open micro accounts and nano accounts. The size of a micro lot is $ 1,000, the size of a nano lot is $ 100.

We often talk about trading on margin, which is equivalent to borrow money from a bank or a broker to buy a currency pair. The margin depends on the leverage provided by the broker and represents the guarantee required to control a certain amount of money. For example, if you use a 100: 1 leverage, you can control a lot of $ 100,000 with only $ 1,000 on the margin. A higher leverage allows you to control greater amounts of money, but this is dangerous as it can generate significant losses.

The so-called levels of stop-loss and take-profit are commonly used in the various trading strategies. They can be set when you open a position, or subsequently. You can cash partial profits or move the entry prices, waiting for stop-loss or limit orders. These are different ways to manage trading.

A position will be automatically closed to the achievement of the levels of stop-loss or take-profit previously set up. It can also be closed manually through the platform provided by the broker. When you close a position manually, you are subject to the same condition as when you open a position at the market price, such as re-quotes, if the prices have changed. Positions may also be closed by opening an opposite position on the same currency pair. For example, if you open a long position on a lot of a certain currency, you can close it by opening a new short position on a lot of the same currency.

The pip is the smallest price movement of a currency pair. Its value depends on the currency pair traded and the corresponding exchange rates. Only in the case when the pair contains the dollar as the quote currency, the pip value is always the same. To calculate the loss or gain of a particular operation, it is necessary to establish the value of a pip and multiply it by the variation of pips that the pair has undergone. If the price of the base currency increases relative to the quote currency, you will get a profit equal to the difference between the current value in pips and the value in pips at the time when the base currency has been bought.

It is important to point out that if the quote currency is the dollar, the value of one pip is always equal to 0.0001 US dollars for every dollar traded.

The value of one pip is generally calculated in US dollars, as this is the main currency used in most trading accounts. However, some brokers allow you to open accounts in local currency. In this case, the calculation of the value of one pip must take account of exchange rates.

A market order is an order to buy or sell a particular currency at the current market price. This type of order should be used with caution, since in highly volatile markets there may be a difference between the price seen at the time when the order is given and the actual price of the transaction. This phenomenon is called slippage. It is the difference between the estimated cost of the transaction and the amount actually paid. Slippage can cause a loss or a gain of several pips.

A limit order is the order to buy or sell a given currency when the price reaches a specified limit. It is commonly used to buy a currency below the market price or sell a currency above the market price. In case of limit orders there is no slippage. This type of orders contains two variables, price and duration. The trader specifics the price to buy or sell a certain currency pair and the period of time in which the order should remain active.

A stop-loss order is commonly used to limit losses if the market moves in the opposite direction to that expected by the trader. The latter establishes a minimum level of price to the achievement of which the position will be closed. It contains two variables, price and duration. The main difference between a limit order and a stop-loss order is that stop-loss orders are used to limit a potential loss while limit orders are used to enter the market at the best time.

The OCO orders (One Cancels The Other) allow simultaneous use of a limit order and a stop-loss order. If either is executed, the other is cancelled. This allows the trader to make a transaction without monitoring the market.

The concepts above are very important. A beginner should study them before opening a position in the Forex. In the currency market, such as in all financial markets, it is very easy to lose money. The study of fundamental concepts, together with a period of training on demo platforms, is a must for each investor.

How to Safeguard the Success of Your Trading?

Forewarned is forearmed! Yes, as an ambitious trader, seeking to earn profits in the stock market or any such investment domain, you will do a world of good for your plans by making efficient use of those tools available for Market trend analysis Comparison and evaluation of profitable avenues Avoiding probable risks Learning about the…

Forewarned is forearmed! Yes, as an ambitious trader, seeking to earn profits in the stock market or any such investment domain, you will do a world of good for your plans by making efficient use of those tools available for

  • Market trend analysis
  • Comparison and evaluation of profitable avenues
  • Avoiding probable risks
  • Learning about the recent winners and losers
  • Gaining first-hand knowledge about the latest techniques introduced for buyers and sellers

In this context, it is worth noting that there are comprehensive forecasting techniques that have been tested and proven by experts. Remember, it's your money that is put at stake and since you should be extremely cautious to be not only alert but also proactive in your thinking and actions. For this, you can:

1. Watch out for the signals sent out by the buyers and sellers in the market

There are many service providers offering this facility either free of cost or for a fee. You can get the latest updates and news related to the market in the form of news reports, e-mails or sms. You can even opt for daily or weekly updates by subscribing to their services.

2. While setting out to choose a signal, you need to ensure that there is no duplication of data as it might lead to confusion and taking the wrong decisions at the wrong time.

3. There are many types of signals, such as MACD and Moving Averages. Each of them has distinct benefits like near-to-perfect prediction of the market trends that are likely to happen, measuring the volatility of the market in general, evaluating the oversold or over bought transactions, assessing the potential areas that are most likely to yield positive ROIs to you.

There are other types of points, such as:

Bollinger bands
Stochastic and
Fibonacci.

Apart from these guidelines, it will be helpful for you to learn about the definite advantages of following reputed and reliable trading points. They:

  • They are popular and broadly used as they point towards the current trends in the market such as when it is the right time to buy or sell and who can be trusted for your transactions
  • Help you in choosing the apt time for the currency pair (s) you select for your trade
  • Aid in minimizing risks and prevent them from cutting into your profits
  • Assist you in judging the trends correctly and taking wise and well-informed decisions

Prevention is better than cure-before investing a huge amount, it is always advisable for you to study and grasp the behavior (trends) of the players in the market.

Key Takeaways From the July NFP

The July non-farm payrolls release showed a weaker than expected employment change figure of 162,000 instead of outpacing the projected 184,000 increase in hiring. On top of that, the June figure was revised down to show a 188,000 rise in employment from the initial estimate of 195,000. However, the good news is that the jobless…

The July non-farm payrolls release showed a weaker than expected employment change figure of 162,000 instead of outpacing the projected 184,000 increase in hiring. On top of that, the June figure was revised down to show a 188,000 rise in employment from the initial estimate of 195,000.

However, the good news is that the jobless rate ticked a couple of notches down from 7.6% to 7.4%, just 0.9% away from the Fed's 6.5% unemployment rate target. This was enough to convince some market watchers that the Fed is still on track to taper bond purchases by next month.

A closer look at the underlying figures reveals that most of the increase in hiring was a result of part-time jobs. As it turns out, the increase in part-time hiring was nearly twice as much as the increase in full-time jobs for July.

One reason that explains this is the recently implemented law that requires employers to give healthcare benefits to its full-time staff. As a result, some firms may have opted to scale down operations and put some workers in contractual jobs in order to cut costs.

Another takeaway from the recent non-farm payrolls release is the drop in average hourly earnings and weak personal income. Average hourly earnings are down by 0.1% instead of printing a 0.2% uptick while personal income increased by only 0.3% instead of the estimate at 0.5%. Personal spending came in line with consensus at 0.5%.

Some have questioned the ability of the consumer sector to sustain its progress in the coming months as the higher payroll tax could take its toll on spending. With the recent drop in average earnings, US consumers might not be able to contribute as much to growth as it used to.

Still, an increase in hiring is still positive and it might be enough to convince the Fed that the economy is still recovering. Several banks are still keeping their forecasts that the Fed will reduce bond purchases as early as next month while some are foreseeing a taper by the last quarter of the year.

For now, USD is trading cautiously as market watchers are looking for more economic clues. The ISM manufacturing PMI recently showed an improvement in its staffing component and traders will be curious to find out if the non-manufacturing version of the report would also show promising results.