forex trading

Forex Trading Indicators and the Ever Changing Market Conditions
Once you enter the Forex trading world you will immediately notice the need of using technical analysis in order to find trends when looking at the forex charts and also the importance of being aware of when they first develop so you can ride the trend until it ends. The foreign exchange market is a very strong trending market, lots of ups and downs in short periods of time, and it's, therefore, a place where technical analysis can be very effective.

But you should always remember that the indicators are only giving you a high probability behavior the markets may show when you are trading, but will never tell you the behavior of the currency prices with total certainty.

If you want to become a profitable forex trader you will need to use as many technical indicators as you can, or create a personalized trading strategy based on a combination of these indicators, to recognize with the best accuracy possible the trend. In other words, a professional forex trader will try to identify the major trend, the intermediate trend, and the short-term trend and then construct his trades in that direction based on how long their rules allow him to hold a position.

The forex markets are always changing, that's why you should always have an open criterion when using your technical indicators. Markets will be changing and different combinations of indicators may be required with time in order to have the most accurate, highest probability, prediction of future currency price behaviors.

If the action of the market shows your judgment to be correct, then you must consider staying with the market' and look for the maximum profit on each trade, according to your risk-to-reward/equity management rules. If you happen to be in a bad day and the market goes against you, the smart trader will take profits and get out of that trade. In a narrow market, when prices are not going anywhere, but move within a narrow range, there is no sense in trying to anticipate when the next big movement is going to be.

So, you must always be alert and open to use as many and as different indicators in order to stay tuned with the market and become a profitable trader at the end of the day.

by Martin Redhead



Nice plan is a nice forex make nice life.

Are Forex Brokers The Antichrist or is Broker-Bashing one Gigantic Witch Hunt?
In this article we would like to address the flip side to the argument we put forward in our piece 'Choosing the Right Forex Broker'. That article focussed on broker malpractices, but do we have the right to place the blame on these firms or are our expectations of them unrealistic?

Is It Fashionable To Blame The Broker?

There are a few sites scattered throughout the Internet (ours included) that offer you the opportunity to review your broker and it seems that there is a growing trend towards the negative. What I mean is that there are a far larger number of negative reviews than positive ones. There are several reasons for this: There is a tendency to jump on the bandwagon of bad reviews if you have lost money to the market and you have negative feelings associated with this. It may also be prudent to consider the fact that human nature seems to be drawn toward the negative; when you turn on the news how many negative stories are reported compared to positive ones? Is this because more bad things happen or because we find these stories more 'entertaining'? I believe that a lot of this 'broker bashing' is due to the fact that there are currently a larger number of 'bad' brokers than 'good' ones but I also believe that some of these reviews are not entirely fair because our expectations are not realistic in the first place. Let us take a look at and evaluate some of our common complaints.

Slippage

Slippage is the difference between the price at which you set your order for execution (in the case of a stop order) or the price you attempt to have an order executed (in the case of a market order) and the price at which you are actually filled. It should be noted that stop-loss or stop entry orders actually become market orders once active i.e. once the specified price is hit, so they do not guard you against slippage. This is one of the most common complaints made against brokers by furious traders who see potential winners turn into losers and small losers turn into large ones.

A loss is an unpleasant experience at the best of times and if you feel that your broker is the reason for it, or the size of it, you are bound to direct your anger towards them (N.B. Trading Psychology and management of emotions comes into play here). This is where we need to check our expectations and put any complaints into context.

Slippage is generally associated with periods of either extremely high volatility or extremely low volatility. As an added ingredient the size of your order can also contribute. The most common times of high volatility in the forex market are at major news releases and it is no coincidence that this is also the time that traders experience the greatest amount of slippage. This is because economic announcements generate a large amount of interest and everyone is jostling for position at the same time.

Those traders that are active around these times will understand that a few pips here and a few pips there can make all the difference between closing the day with either a profit or a loss. A bad fill can be enough to make the difference and when you experience one it is natural to blame it on your broker for being too slow or for being dishonest and banking your money for themselves. However, the reality is that slippage at news times is very common and in some cases almost inevitable but rather than just blaming the broker there are steps that we can take to minimise or eliminate the bad fills, such as:

Be mindful of the times you trade: If you are not a news trader then you may wish to avoid the most highly anticipated news releases altogether. By doing so you will not be trading during times of massive volatility and your chances of experiencing slippage are greatly reduced. If you are a news trader then there are some precautionary steps that you can take (see below).

Enter with limit orders: A limit order will only be executed at the specified price or better thus eliminating slippage. However, traditional limit orders can only be placed above or below the market which requires you to enter on a retracement. This is an advanced trading technique and requires a good deal of experience. A limit order will only solve the problem of slippage on your entries and does not remove the threat of slippage on your exits if you want to cut your losses or take profit without the use of a fixed target.

Enter after the initial spike: The first move after a data release is oven extremely explosive creating what is known as a 'spike' in prices. If you wait for this move to play out then you are giving the market time to digest the news and you are avoiding the main body of volatility. This gives you time to plan your own trade based on the data released, possibly catching a retrace using a limit entry.

Choose your broker accordingly: If you use a broker with a dealing desk then you are more likely (in theory) to experience slippage than if you use an ECN style broker. It is likely that a human will actually be matching and filling orders on a dealing desk which leaves you open to an added delay, especially at busy times. An ECN broker doesn't have this limitation and that fraction of a second saved can make a huge difference. In conclusion, if you are actively trading at busy times then an ECN broker is probably most suited to your needs. On the other hand if you trade infrequently or you have a small account and cannot afford the commission fees that ECN brokers charge then a broker with a dealing desk may be adequate.

My Broker is Trading Against Me

This is an extremely common complaint that has lead to the conspiracy theory that most brokers actually want you to lose your money because they are on the other side of your trades. Let us step away from this theory for the moment and consider the fact that there is ALWAYS someone on the other side of your trades. For you to go short someone else must go long and vice versa so someone somewhere always wants you to lose! Now, some brokers claim that they match client orders at the dealing desk while others use their dealing desk to offset their clients' trades with their own overall position in the market, which is known as hedging. If a broker is perfectly hedged then they simply collect the spread that you pay them (which is greater than the spread they pay in the interbank market) and that is their profit. The conspiracy theory has come from the notion that most traders lose and so it would be more beneficial for brokers to trade in the opposite direction to their clients rather than go in the same direction and hedge themselves. Experiences of delayed orders, slippage and stop hunting have added fuel to this fire because they can be easily explained as brokers stealing your money rather than potentially legitimate problems incurred at busy trading times.

Conclusion

In this article we have attempted to point out to you alternatives to broker malpractice theories and a few ways in which you can minimise their effects. If you are a firm believer that your broker is trading against you and wants you to lose then you are developing a potentially self-destructive frame of mind. This belief may prevent you from identifying problems closer to home such as trading psychology and strategy inadequacies. But the fact remains that if you are unhappy with your broker or you are experiencing excessive slippage, multiple re-quotes, poor customer service, possible stop hunting, platform freezing and held orders then you should change brokers. At the end of the day the reasons for poor service are of secondary importance behind the effect it has on your trading. It may be that your broker is honest but technologically inept or it may be that you are the victim of a bucket shop but try to keep your complaints within the context of market dynamics. If none of the coping strategies listed above make any positive difference then it is definitely time to find a new broker.

by David Thorpe


Nice plan is a nice forex make nice life.

Choosing the Right Forex Broker
Introduction

When you first start trading the forex market finding a broker is unlikely to be a major concern; aren't all brokers the same anyway? Lets face it if you can find a trading strategy that you are comfortable with and become consistently profitable then that is the battle won, right? Unfortunately it isn't that easy and the shame of it is that there are too many so-called brokers out there who want to rip you off.

Where Does This Mentality Come From?

The retail forex industry has been brought up on the fact that FX is worth $2 Trillion in volume every single day (in reality only a fraction of this comes from private speculators, the vast majority is generated by large banks and multinational corporations). This is quite a lure especially when we are reminded at how this figure completely dwarfs the stock market, and we've all heard how much you can make from stocks. Now add the statistic into the mix that between 90 and 95% (probably closer to 99%) of all retail speculators lose money and you have a bevy of firms climbing all over themselves to get their hands on this cash. Forex is billed as the way to become mega rich, leave your job and live the life you've always wanted but if it was that easy everyone would be doing it!

How do Retail Brokers Position Themselves?

To answer this question we need to briefly explain some market dynamics. The forex market is completely decentralised. This means that, unlike centralised exchanges such as the NYSE and LSE, there is no central location where each transaction can be traced and recorded nor do currencies have specialist market makers responsible for providing quotes for the entire market. Instead, the entities that act as market makers for the currency market are the World's largest banks. These banks carry out transactions between each other on a regular basis, hence the term 'interbank market'. In order for you to deal directly with these large banks you need to establish credit relationships with them which takes a vast amount of money and consequently most people cannot afford to do this. So this is where the retail brokers come in; they connect you with the large banks. Because they are representing many clients they have enough equity to establish credit relationships and deal with these banks, supposedly on your behalf.

This Position is Open to Exploitation

Retail Forex Brokers are the middleman between you and the interbank market so every time you place an order to buy EURUSD for example, your broker alters their currency holding positions with their large bank partners to reflect this. Rightly so your broker charges a fee for this service which usually comes in the form of spread (the difference between the bid and the ask). The spread they offer you is slightly larger than the spread they are offered in the interbank market so your broker can make a small profit on every trade you make. Everything sounds all well and good so far, agreed?

Now let me ask you a question: suppose you work in Las Vegas as a runner placing bets at sports books for several clients. Now you've been doing this for a while and you recognise that some of your clients are good at picking winners and some are good at picking losers. If you could make a little extra on top of your fee for running by doing the opposite of the clients who consistently lose bets would you do it? Now suppose that 99% of your clients lose money over a long enough period of time so all you have to do is bet against them all and you will make a fortune! Sometimes around the really big sporting events you get so busy you can't place your clients' bets and your bets quickly enough so you figure you'll make sure you get in with good odds and then sort out your clients once you are done, meaning they get slightly or sometimes much worse odds than you. This mindset is greedy and unfortunate and you won't have many friends but at least you would make a good retail forex broker!

Sorry to use a gambling analogy here (trading should never be confused with gambling) but it does explain the problem quite nicely. All you have to do to apply it to our situation is switch out a few words: Las Vegas is the interbank market, runner becomes retail broker, sports book becomes large bank, bets become client trades, running fee becomes spread, big sports events are big news items and the difference between the odds you get and the odds your client gets is the slippage you hand out.

Isn't This Slightly Cynical?

Yes the analogy used is slightly cynical; it is not the case that every broker out there is guilty of these 'bucket shop' tactics (rest assured that every brokerage will deny it however) but it is far too common. Even bank traders can experience slippage at volatile times but the degree to which it occurs at the retail level is unacceptable. Furthermore you cannot use volatility as a defence when you begin to hound profitable traders with constant re-quotes, accusations of illegal scalping (no such thing even exists!) and forced account closure. And what about a brokerage going bankrupt without returning your funds? Is it any wonder that this article is questioning the honesty of some retail brokerages?

What About Regulation?

The retail market is still fairly young and therefore loosely regulated. However, there are two organisations that police the sector and they are beginning to step in and protect the consumer on a more regular basis. These organisations are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Of the two the CFTC is most heavily involved in the regulation of fraud, manipulation and abusive trade practices in the retail forex sector. The CFTC.gov website is an excellent source of information on customer protection and on-going legal disputes against brokers and other entities.

Lets Talk About the Positives

It's not all bad out there; certain firms do offer very attractive and honest services. Let us summarise some of the attributes you should consider looking for in a broker:

1. NFA and CFTC registered

2. No dealing desk, ECN style brokers

3. Variable spreads that reflect the volatility at interbank level

4. Firms that charge commission rather than a flat spread (the thinking here is the more you trade the more they make so it is in their interest to see you make profitable trades and continue to trade happily with them — less likely to be on the other side of your trades)

5. Friendly and efficient customer service

6. The offer to insure your capital in a secure bond (will protect client funds in the event of a broker's bankruptcy)

7. Limit entries (your broker allows you to enter the market with a specified 'chase factor' of a few pips. If your order is not filled within the acceptable 'chase factor' your order is either partially filled or not filled at all — prevents ridiculous slippage at times of high volatility)

8. A good reputation within the industry (check independent sites for user reviews)

9. No BS marketing that focuses on the multi millions you will make within months of opening your account (these firms prey on inexperienced traders and gamblers who have no chance of being profitable)

10. Realistic and modest margin/ leverage (firms that offer leverage over 100:1 are encouraging you to trade big and lose you account to them quickly - you may wish to look out for a broker who offers you a choice of margin requirements)

Of course not all of these attributes can be classed as 'golden rules'. If something is perceived as attractive then it is open to exploitation. For example, ECN brokers are becoming very popular and this has lead to several firms advertising an ECN service when they don't really have the technology to provide one.

Do Your Due Diligence

I know it can seem tedious but researching your chosen broker is definitely time well spent. At the very least you should spend time browsing a broker's website. You may like to make a list of things you like the sound of and things you don't (remember, if something sounds too good to be true then it probably is). Contact their customer support and put these issues to their representatives and see if you are offered a satisfactory response (also a great test of their customer service dept. and general professionalism). I would also seriously suggest checking the CFTC website and browsing forums, discussion boards, blogs and user review websites for any information. My last suggestion here is that you share your good and bad experiences within trading communities. Although you will probably never hear about it your efforts will save your fellow trader his/ her time, money and probably a few grey hairs.

Good luck and happy hunting!

by David Thorpe



Nice plan is a nice forex make nice life.

Forex Trading Indicators and the Ever Changing Market Conditions
Once you enter the Forex trading world you will immediately notice the need of using technical analysis in order to find trends when looking at the forex charts and also the importance of being aware of when they first develop so you can ride the trend until it ends. The foreign exchange market is a very strong trending market, lots of ups and downs in short periods of time, and it's, therefore, a place where technical analysis can be very effective.

But you should always remember that the indicators are only giving you a high probability behavior the markets may show when you are trading, but will never tell you the behavior of the currency prices with total certainty.

If you want to become a profitable forex trader you will need to use as many technical indicators as you can, or create a personalized trading strategy based on a combination of these indicators, to recognize with the best accuracy possible the trend. In other words, a professional forex trader will try to identify the major trend, the intermediate trend, and the short-term trend and then construct his trades in that direction based on how long their rules allow him to hold a position.

The forex markets are always changing, that's why you should always have an open criterion when using your technical indicators. Markets will be changing and different combinations of indicators may be required with time in order to have the most accurate, highest probability, prediction of future currency price behaviors.

If the action of the market shows your judgment to be correct, then you must consider staying with the market' and look for the maximum profit on each trade, according to your risk-to-reward/equity management rules. If you happen to be in a bad day and the market goes against you, the smart trader will take profits and get out of that trade. In a narrow market, when prices are not going anywhere, but move within a narrow range, there is no sense in trying to anticipate when the next big movement is going to be.

So, you must always be alert and open to use as many and as different indicators in order to stay tuned with the market and become a profitable trader at the end of the day.

by Martin Redhead



Nice plan is a nice forex make nice life.

Are Forex Brokers The Antichrist or is Broker-Bashing one Gigantic Witch Hunt?
In this article we would like to address the flip side to the argument we put forward in our piece 'Choosing the Right Forex Broker'. That article focussed on broker malpractices, but do we have the right to place the blame on these firms or are our expectations of them unrealistic?

Is It Fashionable To Blame The Broker?

There are a few sites scattered throughout the Internet (ours included) that offer you the opportunity to review your broker and it seems that there is a growing trend towards the negative. What I mean is that there are a far larger number of negative reviews than positive ones. There are several reasons for this: There is a tendency to jump on the bandwagon of bad reviews if you have lost money to the market and you have negative feelings associated with this. It may also be prudent to consider the fact that human nature seems to be drawn toward the negative; when you turn on the news how many negative stories are reported compared to positive ones? Is this because more bad things happen or because we find these stories more 'entertaining'? I believe that a lot of this 'broker bashing' is due to the fact that there are currently a larger number of 'bad' brokers than 'good' ones but I also believe that some of these reviews are not entirely fair because our expectations are not realistic in the first place. Let us take a look at and evaluate some of our common complaints.

Slippage

Slippage is the difference between the price at which you set your order for execution (in the case of a stop order) or the price you attempt to have an order executed (in the case of a market order) and the price at which you are actually filled. It should be noted that stop-loss or stop entry orders actually become market orders once active i.e. once the specified price is hit, so they do not guard you against slippage. This is one of the most common complaints made against brokers by furious traders who see potential winners turn into losers and small losers turn into large ones.

A loss is an unpleasant experience at the best of times and if you feel that your broker is the reason for it, or the size of it, you are bound to direct your anger towards them (N.B. Trading Psychology and management of emotions comes into play here). This is where we need to check our expectations and put any complaints into context.

Slippage is generally associated with periods of either extremely high volatility or extremely low volatility. As an added ingredient the size of your order can also contribute. The most common times of high volatility in the forex market are at major news releases and it is no coincidence that this is also the time that traders experience the greatest amount of slippage. This is because economic announcements generate a large amount of interest and everyone is jostling for position at the same time.

Those traders that are active around these times will understand that a few pips here and a few pips there can make all the difference between closing the day with either a profit or a loss. A bad fill can be enough to make the difference and when you experience one it is natural to blame it on your broker for being too slow or for being dishonest and banking your money for themselves. However, the reality is that slippage at news times is very common and in some cases almost inevitable but rather than just blaming the broker there are steps that we can take to minimise or eliminate the bad fills, such as:

Be mindful of the times you trade: If you are not a news trader then you may wish to avoid the most highly anticipated news releases altogether. By doing so you will not be trading during times of massive volatility and your chances of experiencing slippage are greatly reduced. If you are a news trader then there are some precautionary steps that you can take (see below).

Enter with limit orders: A limit order will only be executed at the specified price or better thus eliminating slippage. However, traditional limit orders can only be placed above or below the market which requires you to enter on a retracement. This is an advanced trading technique and requires a good deal of experience. A limit order will only solve the problem of slippage on your entries and does not remove the threat of slippage on your exits if you want to cut your losses or take profit without the use of a fixed target.

Enter after the initial spike: The first move after a data release is oven extremely explosive creating what is known as a 'spike' in prices. If you wait for this move to play out then you are giving the market time to digest the news and you are avoiding the main body of volatility. This gives you time to plan your own trade based on the data released, possibly catching a retrace using a limit entry.

Choose your broker accordingly: If you use a broker with a dealing desk then you are more likely (in theory) to experience slippage than if you use an ECN style broker. It is likely that a human will actually be matching and filling orders on a dealing desk which leaves you open to an added delay, especially at busy times. An ECN broker doesn't have this limitation and that fraction of a second saved can make a huge difference. In conclusion, if you are actively trading at busy times then an ECN broker is probably most suited to your needs. On the other hand if you trade infrequently or you have a small account and cannot afford the commission fees that ECN brokers charge then a broker with a dealing desk may be adequate.

My Broker is Trading Against Me

This is an extremely common complaint that has lead to the conspiracy theory that most brokers actually want you to lose your money because they are on the other side of your trades. Let us step away from this theory for the moment and consider the fact that there is ALWAYS someone on the other side of your trades. For you to go short someone else must go long and vice versa so someone somewhere always wants you to lose! Now, some brokers claim that they match client orders at the dealing desk while others use their dealing desk to offset their clients' trades with their own overall position in the market, which is known as hedging. If a broker is perfectly hedged then they simply collect the spread that you pay them (which is greater than the spread they pay in the interbank market) and that is their profit. The conspiracy theory has come from the notion that most traders lose and so it would be more beneficial for brokers to trade in the opposite direction to their clients rather than go in the same direction and hedge themselves. Experiences of delayed orders, slippage and stop hunting have added fuel to this fire because they can be easily explained as brokers stealing your money rather than potentially legitimate problems incurred at busy trading times.

Conclusion

In this article we have attempted to point out to you alternatives to broker malpractice theories and a few ways in which you can minimise their effects. If you are a firm believer that your broker is trading against you and wants you to lose then you are developing a potentially self-destructive frame of mind. This belief may prevent you from identifying problems closer to home such as trading psychology and strategy inadequacies. But the fact remains that if you are unhappy with your broker or you are experiencing excessive slippage, multiple re-quotes, poor customer service, possible stop hunting, platform freezing and held orders then you should change brokers. At the end of the day the reasons for poor service are of secondary importance behind the effect it has on your trading. It may be that your broker is honest but technologically inept or it may be that you are the victim of a bucket shop but try to keep your complaints within the context of market dynamics. If none of the coping strategies listed above make any positive difference then it is definitely time to find a new broker.

by David Thorpe


Nice plan is a nice forex make nice life.

Choosing the Right Forex Broker
Introduction

When you first start trading the forex market finding a broker is unlikely to be a major concern; aren't all brokers the same anyway? Lets face it if you can find a trading strategy that you are comfortable with and become consistently profitable then that is the battle won, right? Unfortunately it isn't that easy and the shame of it is that there are too many so-called brokers out there who want to rip you off.

Where Does This Mentality Come From?

The retail forex industry has been brought up on the fact that FX is worth $2 Trillion in volume every single day (in reality only a fraction of this comes from private speculators, the vast majority is generated by large banks and multinational corporations). This is quite a lure especially when we are reminded at how this figure completely dwarfs the stock market, and we've all heard how much you can make from stocks. Now add the statistic into the mix that between 90 and 95% (probably closer to 99%) of all retail speculators lose money and you have a bevy of firms climbing all over themselves to get their hands on this cash. Forex is billed as the way to become mega rich, leave your job and live the life you've always wanted but if it was that easy everyone would be doing it!

How do Retail Brokers Position Themselves?

To answer this question we need to briefly explain some market dynamics. The forex market is completely decentralised. This means that, unlike centralised exchanges such as the NYSE and LSE, there is no central location where each transaction can be traced and recorded nor do currencies have specialist market makers responsible for providing quotes for the entire market. Instead, the entities that act as market makers for the currency market are the World's largest banks. These banks carry out transactions between each other on a regular basis, hence the term 'interbank market'. In order for you to deal directly with these large banks you need to establish credit relationships with them which takes a vast amount of money and consequently most people cannot afford to do this. So this is where the retail brokers come in; they connect you with the large banks. Because they are representing many clients they have enough equity to establish credit relationships and deal with these banks, supposedly on your behalf.

This Position is Open to Exploitation

Retail Forex Brokers are the middleman between you and the interbank market so every time you place an order to buy EURUSD for example, your broker alters their currency holding positions with their large bank partners to reflect this. Rightly so your broker charges a fee for this service which usually comes in the form of spread (the difference between the bid and the ask). The spread they offer you is slightly larger than the spread they are offered in the interbank market so your broker can make a small profit on every trade you make. Everything sounds all well and good so far, agreed?

Now let me ask you a question: suppose you work in Las Vegas as a runner placing bets at sports books for several clients. Now you've been doing this for a while and you recognise that some of your clients are good at picking winners and some are good at picking losers. If you could make a little extra on top of your fee for running by doing the opposite of the clients who consistently lose bets would you do it? Now suppose that 99% of your clients lose money over a long enough period of time so all you have to do is bet against them all and you will make a fortune! Sometimes around the really big sporting events you get so busy you can't place your clients' bets and your bets quickly enough so you figure you'll make sure you get in with good odds and then sort out your clients once you are done, meaning they get slightly or sometimes much worse odds than you. This mindset is greedy and unfortunate and you won't have many friends but at least you would make a good retail forex broker!

Sorry to use a gambling analogy here (trading should never be confused with gambling) but it does explain the problem quite nicely. All you have to do to apply it to our situation is switch out a few words: Las Vegas is the interbank market, runner becomes retail broker, sports book becomes large bank, bets become client trades, running fee becomes spread, big sports events are big news items and the difference between the odds you get and the odds your client gets is the slippage you hand out.

Isn't This Slightly Cynical?

Yes the analogy used is slightly cynical; it is not the case that every broker out there is guilty of these 'bucket shop' tactics (rest assured that every brokerage will deny it however) but it is far too common. Even bank traders can experience slippage at volatile times but the degree to which it occurs at the retail level is unacceptable. Furthermore you cannot use volatility as a defence when you begin to hound profitable traders with constant re-quotes, accusations of illegal scalping (no such thing even exists!) and forced account closure. And what about a brokerage going bankrupt without returning your funds? Is it any wonder that this article is questioning the honesty of some retail brokerages?

What About Regulation?

The retail market is still fairly young and therefore loosely regulated. However, there are two organisations that police the sector and they are beginning to step in and protect the consumer on a more regular basis. These organisations are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Of the two the CFTC is most heavily involved in the regulation of fraud, manipulation and abusive trade practices in the retail forex sector. The CFTC.gov website is an excellent source of information on customer protection and on-going legal disputes against brokers and other entities.

Lets Talk About the Positives

It's not all bad out there; certain firms do offer very attractive and honest services. Let us summarise some of the attributes you should consider looking for in a broker:

1. NFA and CFTC registered

2. No dealing desk, ECN style brokers

3. Variable spreads that reflect the volatility at interbank level

4. Firms that charge commission rather than a flat spread (the thinking here is the more you trade the more they make so it is in their interest to see you make profitable trades and continue to trade happily with them — less likely to be on the other side of your trades)

5. Friendly and efficient customer service

6. The offer to insure your capital in a secure bond (will protect client funds in the event of a broker's bankruptcy)

7. Limit entries (your broker allows you to enter the market with a specified 'chase factor' of a few pips. If your order is not filled within the acceptable 'chase factor' your order is either partially filled or not filled at all — prevents ridiculous slippage at times of high volatility)

8. A good reputation within the industry (check independent sites for user reviews)

9. No BS marketing that focuses on the multi millions you will make within months of opening your account (these firms prey on inexperienced traders and gamblers who have no chance of being profitable)

10. Realistic and modest margin/ leverage (firms that offer leverage over 100:1 are encouraging you to trade big and lose you account to them quickly - you may wish to look out for a broker who offers you a choice of margin requirements)

Of course not all of these attributes can be classed as 'golden rules'. If something is perceived as attractive then it is open to exploitation. For example, ECN brokers are becoming very popular and this has lead to several firms advertising an ECN service when they don't really have the technology to provide one.

Do Your Due Diligence

I know it can seem tedious but researching your chosen broker is definitely time well spent. At the very least you should spend time browsing a broker's website. You may like to make a list of things you like the sound of and things you don't (remember, if something sounds too good to be true then it probably is). Contact their customer support and put these issues to their representatives and see if you are offered a satisfactory response (also a great test of their customer service dept. and general professionalism). I would also seriously suggest checking the CFTC website and browsing forums, discussion boards, blogs and user review websites for any information. My last suggestion here is that you share your good and bad experiences within trading communities. Although you will probably never hear about it your efforts will save your fellow trader his/ her time, money and probably a few grey hairs.

Good luck and happy hunting!

by David Thorpe


Nice plan is a nice forex make nice life.

Forex reserves see $2.51-b spike








Our Bureau


Mumbai, Sept. 26 The foreign exchange reserves increased by $2.51 billion to touch $291.972 billion for the week ended September 19, according to figures released by the Reserve Bank of India’s Weekly Statistical Supplement.

For the week ended September 12, the reserves increased by $650 million to $289.461 billion. In the week under review, foreign currency assets increased by $2.509 billion to $282.811 billion.

A forex dealer attributed the increase in the reserves primarily to the strengthening of the dollar against the euro in the overseas markets. Gold reserves and SDRs were unchanged at $8.692 billion and $4 million respectively.

The reserve position in the IMF increased by $2 million to $465 million.

Bank Credit


Bank credit increased substantially by Rs 32,914 crore to Rs 24,91,248 crore as on September 12. Food credit increased by Rs 847 crore to Rs 45,190 crore and non-food credit increased by Rs 32,067 crore to Rs 24,46,058 crore.


Nice plan is a nice forex make nice life.

Forex Signal Services:What are Forex signals? Forex signals are paid services offered by some brokers and independent Forex annalists. Companies that offer forex signals monitor and analyze the market for you, providing you with their data via desktop alerts, email or even SMS and pager alerts.

Forex signal services analyze several factors when preparing their data. They do a technical analysis of market conditions and use a combination of indicators to identify trends and isolate profitable entry and exit points. They then send you the results via the venue of your choice and you can choose to use the signal in your own trading, or pass on it.

Most forex signal services offer signals for only a handful of the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD, USD/CHF. Occasionally, you can find specialty services that offer signals for other lesser traded pairs. Forex signals can be costly, even upwards of $100 / mth. The benefit of subscribing to such a service is that they analyze and crunch the data for you, saving you time. It should be noted, however that using a signal service is no substitute for a proper education in the Forex markets. Signal services give you data, you still need to know what to do with it.

When shopping for a signal service, make sure that they provide you with historical data so that you can see their track record for yourself. Remember, that like any trader, Forex signal services also have loosing trades. You shouldn't expect a signal service to be a sure ticket to instant Forex wealth, but rather look at them as another tool in your trading toolbox.

by Amber Lowery

Forex Brokers :Helping to Maximize Your Success,A Forex broker is a broker dealing in foreign exchange, just like real estate broker who deals in real estate and properties. Simply, a Forex broker is an advisor who advises you about the forex market. However, the Forex market is not the perfect place to play with as a novice and beginner as there are many criticalities involved along with much risk bearing capacities. Novices can very quickly get their fingers badly burnt. But inexperience is not the only reason to consider using a Forex broker to trade in the high-risk international currencies market.

So, the Forex broker is an advisor who advises you about the forex market and allows you to work for 24 hours a day with major currencies like EUR, JPY, GBP, CHF etc against the US dollar on the spot, i.e. according to the current prices on the forex international exchange market. But the level of profits depends only on your abilities as well as your timely decision.

Although the role of the Forex broker is relatively redundant as a result of technological advancement and increased awareness, we cannot completely underestimate his role. The new paradigm shift has had something of a democratizing effect on the financial markets, and in the years that have followed a plethora of banks and brokerages have extended the range of their services to a new market by packaging up their online trading systems for the retail market, enabling the more modest investor to trade from their own computer screen — even on the previously out-of-reach currency markets. This is where the real role of Forex broker starts.

PIP is nothing special but Price Interest Points. In the forex market, currencies are always priced in pairs. The quoted price is the level where we, acting as the market maker, are willing to buy/sell the currency pair. In the wholesale market, currencies are quoted out to four decimal places, with the last placeholder called a point or a pip. A pip in most currencies is one /10,000th of an exchange rate (in USD/JPY, it is one /100th, likewise you can find for others).

Let's see some more information about Spread. As with all financial products, forex quotes include terms like 'bid' and 'ask"'. The 'bid', in its simplest terms is the price at which a dealer is willing to buy (and clients can sell) the base currency in exchange for the counter currency. The 'ask' is the price at which dealer will sell (and clients can buy) the base currency in exchange for the counter currency. The difference between the bid and the ask price is referred to as the spread. The spread defines the trader's cost, which can be recovered with a favorable currency move in the market. The value of a pip is determined by the pair of currencies being traded, the rate at which the currency pair is trading and the size of the position being traded.

There are many great Forex brokers, like COESfx, who maintains tight, competitive spreads in the four major currencies against the Dollar, and a total of 17 currency pairs including USD/CAD and AUD/USD. Some of the major features of COESfx are:

Real-time streaming prices

Price certainty on market orders

Competitive pricing

Fixed 3-5 pip spreads

by Anthony Trister

Choosing Your Forex Broker Important Facts,the best advice I can give to you is to conduct yourself like a boss interviewing a potential employee. This employee will be making major decision on your financial future (or lack there of) and therefore it is of most importance that you ask the right questions. This decision cannot be taken lightly as must be well thought out. I would interview (more like grill) at least 5 potential Brokers before picking the final two.

When choosing a forex broker there are many factors to take into account.

** Trust

** Experience

** References from past clients

** Level of success

** Amount of advice to be given

** Convenience

** Amount of margin offered

** Speed

All of the above are of course important. In any financial transaction it is important to trust the broker you work with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience.

References from past clients are important. If your broker has helped someone else is successful in the past and that person is willing to speak up for him that says a lot. You can gage the level of success your broker has had by speaking with past clients and seeing how well they did working with this broker. Next, take a look at the amount of advice your broker is willing to give you. Of course, you make your own decisions and will never take another person's word for everything, but it is good to have knowledge to work with, and advice from an experienced broker is key information to factor in. Convenience is also impotent. If you live in California then an Ohio broker might not be the best choice. But in the age of the internet that factor has become less relevant. With fax and email where you and your broker live has become less important.

The amount of margin offered is important. Margin is used to leverage your money. A broker who gives you a 50 to one margin is more valuable than one who gives you 20 to one. And of course speed. Is your broker quick? Does he return phone calls and emails promptly? If so, perhaps you can work with him.

Your broker will b a trusted advisor and someone that you may be working with for years to come so choose the relationship carefully. Ask friends and acquaintances who are active in forex trading what broker they use and how they met. It is quite possible that you can get a referral from a friend or acquaintance you trust and acquire a good forex broker that way.

Another good way to find a forex broker is to go online. There are message forums, chat rooms, and email groups through portals like Yahoo, Google and MSN that contain a wealth of information. Getting onto one of these online communities and asking other people for advice is the way that many people found their broker. If a broker has several clients in an online community who are happy with what he has accomplished for them, then that is a good indication that you might be happy with him as well. Take advantage of the number of people who are on the internet and join some of these online communities. Ask question and you'll probably learn a great deal from the experiences that other people have had. Also find trade journals, magazines and ezines to subscribe to. Read as much as you can about the subject of forex trading before going into it. Become a smart shopper and smarter trader.

Finding a good forex broker is a job in itself. When you visit with a forex broker you are in essence conducting an employment interview to determine if this is the broker you wish to handle your financial affairs, so be thorough. Ask plenty of questions. Ask for references. Don't be shy. Also check with other people in the office of the broker and see if you would trust them to fill in for your broker if he were not available. And, see if the broker is willing to offer you a demo account to use to get in some practice before you actually make an investment. If the broker is able to do so and encourages you then it means that the broker wants educated clients and is not just out for the quick buck. See what kind of training and tutoring the broker is willing to offer. A good broker will offer to answer your questions and help you through the learning process.

by David Mclauchlan

NEW YORK, Sept 19 (Reuters) - The yen fell on Friday and was set for its worst one-day drop versus the dollar in over five months as steps by U.S. authorities to boost morale in distressed financial markets revived global appetite for risky trades.

U.S. Treasury Secretary Henry Paulson urged the government to spend billions of dollars to deal with toxic mortgage assets choking the financial system, while the Federal Reserve said it would provide loans for purchases of high-quality asset-backed commercial paper from money market funds.

Those developments pressured the yen, which had tapped safe-haven flows from the markets turmoil, sparked by the collapse of Lehman Brothers Holdings this week and forced the government to bail out insurer American International Group.

"The picture has changed dramatically and the biggest loser is the yen as risk appetite returns," said Ronald Simpson Managing, director of global currency analysis at Action Economics in Tampa, Florida.

The dollar rose as high as 108.06 yen , a 10-day peak, according to Reuters data. It was last up 1.7 percent at 107.30 yen, its biggest one-day gain against the Japanese currency since early April.

The euro rose to 155.53 yen at one point and closed at $155.46, up 2.8 percent on the day. That buoyed the euro zone single currency against the dollar.

The euro rose 1.1 percent at $1.4490 , after dipping to $1.4150. The euro climbed to a session high of $1.4498 late in the New York session after breaching a technical level and as some investors sold positions ahead of the weekend.

"There was a technical pop above $1.4450 and traders are also taking profits on their long dollar positions ahead of the details of the U.S. government (financial markets) rescue plan," said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto.

STILL SOME SCEPTICISM

Paulson will ask Congress to take action next week on legislation to calm the turbulence on financial markets.

Despite the initial optimism over the rescue plan, traders said the currency market remained sceptical.

"There is a lot of scepticism in the market, and that seems to be evident by the way the euro has rebounded, the pound, Canadian and Aussie dollars too," said Jon Gencher, director of FX sales at BMO Capital Markets in Toronto.

"The market is waiting to see how this whole thing is going to pan out."

Shares on Wall Street .DJI powered higher, while oil CLc1 rose above $100 per barrel in its biggest three-day rally in a decade and gold climbed.

The three-month U.S. Treasury bill rate jumped to about 1.08 percent at one stage from around 0.26 percent in response to the measures to thaw the credit markets.

"It's all part of the program to restore confidence in financial markets. They are absolutely petrified of just a run on financial assets and they came very close to that on Thursday," said Boris Schlossberg, director of currency research at GFT Forex in New York.

"It seems to be working ... Risk aversion for the time being has been stemmed."

Higher-yielding currencies such as the Australian dollar also surged as investors regained some confidence. The Aussie dollar rose as high US$0.8361 versus its U.S. counterpart. It was last up 4.1 percent at US$0.8349.

The Aussie had its best one-day gain against the U.S. dollar in almost 10 years. The Aussie jumped 5.9 percent against the yen to 89.55 yen . (Additional reporting by Gertrude Chavez-Dreyfuss and Lucia Mutikani; Editing by James Dalgleish)

FOREX-Yen drops vs dollar on US govt bad debt bailout plan : reuters



Nice plan is a nice forex make nice life.

6 Critical Factors For Successful Forex Trading
Online, Day trading has exploded across America. Some investors have been very successful and boast of huge gains made in incredibly short periods of time. However, there are many others who experience devastating losses because they have not tapped into the 6 critical factors necessary for successful Futures and FOREX Trading.

Success in any profession can be broken down into a number of critical factors. Trading is no different. A successful trading strategy incorporates the following 6 factors.

1. Determination of An Edge: Trading Futures is a zero sum game. There must be an identifiable edge over the other market participants.

2. Disciplined Execution:There is no point in identifying an edge if there is no discipline to follow thru. Create a plan, stick with it, then determine if the plan is successful. If it is not, change the plan. The important thing is disciplined execution.

3. Money Management: If the risk per trade is too aggressive, then there is the risk of blowing an account. If trades are too conservative, then the opportunity to optimize returns is missed. It is critical to establish the maximum expected draw down of any system and set money management rules accordingly.

4. Create a Trading Plan: A trading plan will determine what will be done in any given situation during the trade day. A plan helps keep one focused on execution and not distractions.

5. Responsibility: Responsibility lies with the trader. Gains, losses, success, or failure is determined by the skill, determination and discipline of the trader.

6. Commitment: There must be commitment to placing every trade according to plan, even through the losing periods where every trade seems to end up a loser. Trading seems to throw up extremes of good times and bad times. One must not be over confident during the good times, and one must not give up in the bad times. There also must be adequate time every day to compare actual performances against the trading plan.

by Roxanne Manning

Mumbai: Forex reserves rose by a modest $650 million to touch $289.461 billion, for the week ended September 12, due to changes in the value of foreign currencies.

More India business stories

In the earlier week, forex reserves had declined by a whopping $6.498 billion to touch $288.811 billion.

According to the Reserve Bank of India’s Weekly Statistical Supplement, for the week under review, foreign currency assets increased by $676 million to touch $280.302 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as euro, sterling and yen held in reserves.

Rupee trims losses as stocks rebound

The euro was weak against the dollar in the period under consideration.

Forex reserves at $295.309 b on Aug. 29

Gold reserves and SDRs were unchanged at $8.692 billion and $4 million respectively.

More India business stories

The reserve position in the IMF fell by $26 million to touch $463 million in the week under review.

Forex News :sify

NEW YORK, Sept 18 (Reuters) - The U.S. dollar trimmed gains against the yen on Thursday, after Wall Street shares surrendered some of their gains led by financial stocks.

The dollar cut gains to 104.78, coming off session peaks at 105.57 yen . The euro has also come off about 200 points from its highs of the session. It last traded at $1.4377 , still up though by half a percent from late on Wednesday.

Shares of Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) tumbled on Thursday, dragging overall U.S. equities lower and weighing on the dollar. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Theodore d'Afflisio)

Forex news about us dollar :Reuters

How To Find A Forex Broker That Won`t Rob You Blind; It`s not always easy to know what to look for in a forex broker, especially in any market, much less a market as complex as currency. But, if you want to trade in the market you need a good firm to work with. While it might be tempting to simply ask the brokers what they can do for you, you can`t always depend on them to give you a straight answer. So instead, I`ve put together a few things to consider when choosing your forex broker. You will want a forex broker that has low spreads. The spread, which is calculated in pips, is the difference between the price at which a currency can be bought and the price at which it can be sold at any specific point in time. Since forex brokers don`t charge a commission, this difference is how they make money. Low spreads will save you money.

Along with this, you should be looking for a forex broker attached to a reputable institution. Unlike equity brokers, they are usually attached to large banks or lending institutions. The firm should also be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC).

Once you`ve narrowed your choices down to brokers that won`t cost you too much, and that are reputable, consider the trading tools that they are offering you. Forex brokers have many different trading platforms for their clients, just like brokers in other markets. These often show real time charts, technical analysis tools, real time news and data, and may even offer support for the various trading systems.

Before you commit to any one company, request free trials of their tools. Brokers generally provide technical as well as fundamental commentaries, economic calendars, and other research to help you make good trades. Shop around until you find a forex broker who will give you everything that you need to succeed.

The next item that you will need to evaluate carefully is the number of leverage options your potential partner has. Leverage is a necessity in forex trading because the price deviations in the currencies are set at fractions of a cent. Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your forex broker will lend you $100 for every $1 of actual capital you have. Many brokerage firms will offer you as much as 250:1. If you have low levels of capital you will need a brokerage with high levels of leverage to make reasonable profits.

If capital is not a problem, any forex broker that has a wide variety of leverage options would be a good choice for you. A variety of options will let you vary the amount of risk you choose to take. For example, less leverage (and therefore less risk) may be preferable if you are dealing with highly volatile (exotic) currency pairs.

Along with different levels of leverage, look for brokers that offer different types of accounts. Many brokers will offer you two or more types. The smallest account is known as a mini account and it requires you to trade with a minimum of around $300. The mini account also generally offers a high amount of leverage.

The standard account allows you to trade at a variety of different leverages, but it requires minimum initial capital of $2,000. And finally, there are premium accounts, which often require significant amounts of capital. They also generally have different levels of leverage available to the traders who use them, and often offer additional tools and services. You will need to make sure that the partner you choose has the right leverage, tools, and services for the amount of capital that you are able to work with.

A brokerage firm that meets all of these needs should be a good forex broker for you, but you still need to be certain that they are honest. Dishonest brokers can be prone to prematurely buying or selling near preset points (commonly referred to as sniping and hunting) or may indulge in other habits that will cost you money.

Obviously, no brokerage firm admits to doing things like these, but there are ways to know if they have. The best ways to find out more about your potential forex broker is to talk to fellow traders. There is no list or organization that reports dishonest activity, but a visit to online discussion forums, or a simple conversation will often reveal who is an honest forex broker.

You should also watch to see if a brokerage firm has strict margin rules. Since you are trading with borrowed money, your forex broker has a say in how much risk you are able to take. You agree to this when you sign a margin agreement for your account. This means your firm can buy or sell at his discretion, to cover the brokerage firm's interests, which could have repercussions for you.

Say you have a margin account, and your position takes a headlong nosedive before it begins to rebound to all time highs. Even if you have enough cash to cover it, some brokers will liquidate your position on a margin call at that low point. This action on their part can cost you dearly. You can only find out whether the firm is prone to this kind of activity by talking to other traders. Being informed on all aspects of a forex broker before you make the decision to trade with them will allow you to start trading the forex market with confidence.

by Jimmy Cox

The yen fell on Friday, tumbling to a 10-day low versus the dollar, as steps by U.S. authorities to boost liquidity and shore up confidence in distressed financial markets revived appetite for risk.

News that U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke plan to work with Congress on a comprehensive plan to deal with toxic bank assets choking the financial system pressured the low-yielding yen, which had tapped safe-haven flows from the markets turmoil.

Those losses were extended as the Federal Reserve said it would provide loans to banks and institutions for purchases of high-quality asset-backed commercial paper from money market funds.

"The picture has changed dramatically and the biggest loser is the yen as risk appetite returns," said Ronald Simpson Managing, director global currency analysis at Action Economic in Tampa, Florida.

The dollar rose as high as 108.06 yen , according to Reuters data. It was last up 2.2 percent at 107.87 yen.

The yen dropped 2.5 percent to 155.16 yen , buoying the euro zone single currency against the dollar. The euro was last up 0.4 percent at $1.4409.

While details of the government's toxic-debt plan are sketchy, analysts are hoping the program, as well as steps by other financial authorities, will finally quell some of the turmoil following the collapse of Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) (LEHMQ.PK: Quote, Profile, Research, Stock Buzz) and the bailout of U.S. insurer AIG (AIG.N: Quote, Profile, Research, Stock Buzz) this week.

"It's all part of the program to restore confidence in financial markets. They are absolutely petrified of just a run on financial assets and they came very close to that on Thursday," said Boris Schlossberg, director of currency research at GFT Forex in New York.

"It seems to be working ... Risk aversion for the time being has been stemmed. The devil is in the details, everyone wants to see what the proposal will be like."

Shares on Wall Street surged at the open, with the Dow Jones industrial average .DJI jumping more than 3 percent. European stocks rallied more than six percent at one point.

Higher-yielding currencies such as the Australian dollar also rose as investors regained some confidence.

The Australian dollar gained 3.0 percent to US$0.8261. (Editing by James Dalgleish)

FOREX-Yen tumbles across the board as risk aversion ebbs
By Lucia Mutikani
Reuters

Nice plan is a nice forex make nice life.

8 Basic Tips on choosing Best FOREX Broker;there are some basic notices that you should consider when you want choosing online forex broker.

#1- Spread Amount

The spread, which is calculated in pips, is the difference between how much you can buy or sell a currency at a specific point in time.

Forex currencies are not traded through a central exchange market, so the spread can be different depending on the forex broker you use. Some online forex brokers have variable spread; some of them have two spread amounts that depend to day and night.

Some of them their spread depends to the position of market. When market is quiet the spread is small and when market is busy the spread is high. I prefer forex brokers that have fixed spread, because over the long term fixed can be safer.

#2- Execution

** How fast is the broker's order execution?

** Do they offer automatic execution?

** How much can you trade before having to request a quote?

** Do they trade against their clients?

The best way to find out is to open a demo account and give them a test drive.

#3- Leverage Options

Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your forex broker will lend you $100 for every $1 of actual capital you have. Leverage is a necessity in forex trading because the price deviations in the currencies are set at fractions of a cent.

Before choosing an online forex broker notice that what is their leverage. Many brokerages offer a flexible margin that allows you to choose the leverage that's right for you.

#4- Account Types

Notice the forex broker you choose has mini account or not. Mini account is designed for those new to online currency trading and those with limited investment capital. There is a smaller deposit required to start trade of just $300 or less.

#5- Trading Platform

Good trading software will show live prices that you can actually trade at, not just indicative quotes. It will offer Limit and Stop orders, and ideally will let you attach these to your entry order. One-Cancels-Other orders are another useful feature ** they mean you can set up your trade and then leave the software to get on with it.

#6- Dealing tools and value-added services

Find out online forex broker that offers the best resources and information to help you make the smartest trading decisions. A good company should offer real-time charts, technical analysis tools, real-time news and data, and software or website support. Be weary of any company that refuses to share information or trial versions before opening up an account. You will want to try out their system before you choose to invest money in it.

#7- Support

Forex is a 24 hour market, so your online forex broker should offer 24 hour support. You should also check if you can close positions over the phone ** essential in case your PC or internet connection crash at a critical moment. You could contact to their Internet help desks to see how quickly they respond to enquiries.

#8- Get Referrals

Ask around and read forex forums to find out which forex brokers other people use and why they selected a specific broker.

by Mostafa Soleimanzadeh

How to Save Yourself from Forex Scam;Forex trading is one of the best home based online business opportunity you can find today. The Big Sharks know that and use the demand for information about Forex market to get every possible dollar in their hands.

Who are they? The answer is always easy : Follow the Money. There is one player on currency market (and in every other market) who never loses his share in every single trade. Brokerage service on Forex trading is claimed to be commission free, right? But you always pay your minimum 3 to 10 pips fee on each trade. Where those 3 to 10 pips go? Make your best guess!

There is almost no chance for a person who has no idea for the forces driving the Info market to save himself from being robbed and abused by those well advertised money machines. You can see their banners on your e-mail provider. You can watch their infomercials on every TV channel.

Be aware about the presence of those Big Sharks and be sure that the information they will try to sell to you is always available for free online. Most of the time the quality and the real value of that free information is much better than the one you will be asked to pay for.

Here is the story of a good friend of mine. He was very excited about Forex when he first time heard about it. That happened to be on one of those popular free seminars, organized by one of the Big Sharks on that field. So he got the bite without paying attention for the hook in it. He went to the next level — two days training for $1,995, only.

He came back more excited. He opened Forex trading account on that seminar, using a special form provided by the Big Shark Company. They honestly declared that by doing that the broker agrees to pay them one pip from each trade made by the customer recruited by them.

My friend started real trading, constantly increasing the amount of his investment until he put all of his savings into that Forex trading account. Everything was fine until one beautiful day of October. On that day he got the news: his broker filed under chapter 11.

He was broke. I asked him how successful was his trading? His answer was that he actually lost 30% of his investment, from trading, only. He was able to realize know that the training was completely inefficient and not even close enough to start trading with real money.

Something big was missing here. He was missing the big picture in the entire game. His trading experience was very frustrating. After each trade he felt like just hit the wall with a car flying with 100 miles per hour.

A few days ago my friend called me on the phone. He was very enthusiastic about a new Forex training package, just delivered to him. I decided to check it by myself, too.

The package is very detailed. All the missing information about the big picture is there. More than 20 hours of free videos are revealing all you need to know about that business. Zooming towards Forex trading is very smooth and on the level every beginner and advanced trader will tremendously benefit of.

The one unbeatable and shocking advantage of this package is that it delivers information, priced from between $3,000 and $10,000, for free.

Finally we got something valuable about Forex trading, very professionally developed, for free.

Probably, that will put the Big Sharks business on hold for awhile, for the good sake to all of us.

So, be careful and keep an eye on the Internet unlimited free resources if you want to self yourself from the Forex scam.

Happy Forex trading!

by Teo Gee

How To Spot Forex Fraud,As the popularity of Forex increases so do the number of scam artists attempting to cash in on the Forex gravy train. Since Forex involves trading money internationally, often over the Internet, a whole new breed of scams have come about. Ironically many of these scam artists are finding their marks through newspaper, television or other print media advertisements.

While these scams are generally easily spotted by experienced traders, new speculators may have problems knowing the difference between what is real and what isn't. It is absolutely essential to thoroughly research Forex trading, and any potential companies you may trade with before making an initial investment. The last thing you need is to find out that the company you have invested with is under investigation by the SEC for fraud. In this type of circumstance it can often be impossible to retrieve your money as the claims from all fraud of participants will be higher than the total payouts the government can guarantee.

One way to spot a scam on Forex is when someone promoting a Forex system guarantees no risk. It is a fact that there is risk with Forx trading, and generally anyone who claims otherwise is a liar, or more likely a criminal. Trading in Forex successfully requires knowledge, discipline, and a trading strategy. But there is no magic software or no risk way to assure that you will make money.

Another red flag indicating a sure sign of a Forex scam is a web site that guarantees profits. Nobody can guarantee profits and Forex trading. It is up to you as an investor to perform. If it were possible to guarantee profits in Forex trading then nobody would need to start a business showing others how to make guaranteed profits. The profit potential for anyone who could guarantee profits would be so enormous in Forex trading, that they would quickly become a billionaire by trades. So why would they waste time teaching others?

Another common tactic of Forex scam artists is to promise employment opportunities for people using their system. This is usually a trick to get you to spend your money with them. They are fishing for people with capital who can fund their enterprise. They typically promise to offer firm money to people using their system. But why would they do this? Instead what happens is they lure people into their training systems and convince people that they have done so well in the training session that they should start using their real money in order to make a fortune.

All reputable Forex trading web sites will be a member of the CFTC or the NFA. Make sure to check the company's claims out and assure that they are members of one of these organizations before dealing with them.

Keep in mind that Forex is a relatively unregulated system of exchanging money. In many cases Forex scams can become highly technical, involving brokers manipulating prices in ways that cannot be tracked by the average trader. Because of this is essential that you not become a mark for such brokers.

In the United States the CFTC is the federal agency responsible for regulating the trade of Forex currency. If you suspect that you have been a victim of some type of fraud contact the CFTC. They have jurisdiction for investigating and enforcing the laws.

by Willie Reynolds

Forex Software : Choosing The Best,When it comes to forex trading the forex software you choose is essential. There are so many forex trading companies all competing for your business that choosing the right forex software can be quite a difficult task. Most of the forex software products available offers live online forex trading platforms but what other components are vital when it comes to your forex software.

Key Elements For Your Forex Software

Before purchasing any forex software there are a few essential items that should be included. The most important is security and your online forex trading software should include a 128 bit SSL encryption which will prevent hackers from accessing any of your personal details and information such as your account balance, transaction history, etc.

Providing the best security for your forex trading will include a company that provides 24 hour technical server support for your forex software, 24 hour maintenance should anything go wrong, daily backups of all information, and a security system that has been designed to prevent any unauthorized access. Along with these security protocols there are also some forex trading companies that use smart cards and fingerprint scanners to ensure that only their employees can have access to their servers.

Another important factor when it comes to choosing your forex software is to check what the company's downtime is like. When it comes to trading forex and particularly your online forex trading you need to ensure that the forex software you choose is reliable and available 24 hours a day. The forex software you choose for your forex trading should also have technical support available at all times should your session be cut short.

Ensuring that all the above features are listed in the forex software you choose will help to ensure your forex trading success.Anyway, a forex software is a must have if you want to earn money.

by Oliver Turner

Choosing A Forex Broker,With currency trading becoming ever more popular, the number of brokers is growing at a rapid rate. What should one look at when deciding which broker to open an account with? These are the important points to consider.

Spread

Because currencies, unlike futures and stocks, are not traded through a central exchange, the spread can be different depending on the broker you use, so it's well worth checking a few out before you open an account. Most forex brokers publish live or delayed prices on their websites so you can compare spreads, but check if the spread is fixed or variable. A fixed spread means exactly that — it will always be the same no matter what time of day or night it is. Some brokers use a variable spread, which might appear to be nice and small when the market is quiet, but when things get busy they can widen the spread which means the market must move more in your favor before you start to make a profit. Fixed spreads are generally slightly wider than the variable spreads are when at their narrowest, but over the long term fixed can be safer.

Execution

Some brokers will show live prices on their trading platform, but will they honor them when it comes to pushing the Buy or Sell button? The best way to find out is to open a demo account and give them a test drive. This will also give you the opportunity to see what the speed of execution is like — when you want to buy, you want to buy now, not sit around waiting for ten minutes whilst your order is confirmed!

Trading Platform

Good trading software will show live prices that you can actually trade at, not just indicative quotes. It will offer Limit and Stop orders, and ideally will let you attach these to your entry order. One-Cancels-Other orders are another useful feature — they mean you can set up your trade and then leave the software to get on with it. And the most important feature of all — can you actually understand the platform? Having all the bells and whistles is of no use if you can't use them, so again, get a demo account and give it a go.

Support

Forex is a 24 hour market, so your broker should offer 24 hour support. You might not be trading at 3am, but that could be what time it is in your brokers head office on the other side of the planet, so make sure there will be somebody there to pick up the phone if things go wrong. You should also check if you can close positions over the phone — essential in case your PC or internet connection crash at a critical moment.

Backing

Finally, before opening an account do a little homework and find out about the company. Forex brokers are regulated, but that doesn't mean they all have equal backing. If the market collapses, you want to know that they've got the reserves to cope with it and will still be around when you decide to withdraw your cash. If a broker is elusive when it comes to questions about their parentage and financial backing, then steer clear.

In Conclusion

Choosing a forex broker isn't difficult, but don't rush the decision. Check out a few, and always get a demo account first to make sure you're happy with the way everything works before sending off your opening balance.

by Geoff Turnbull

Crude prices have plunged through Monday's session. Capping the day at a $7.18 drop, that easily cleared the centennial mark, WTI crude prices were trading down at $94 at the end of the US session. The benchmark commodity is now testing lows that haven't been seen since February 19th. What's more, prices for the necessary good can certainly be said to be in a bear market, as with today's tumble oil is off over 36 percent from the record highs set in July. Naturally, these extreme moves have rekindled the correlation between the commodity and USDCAD. This was the key component in keeping USDCAD bouyant through Monday's session. Can the pair hold through the rest of this week? That will depend on whether oil can continue selling off and/or the financial markets are set for bigger troubles over the coming days

Written by John Kicklighter

Forex traders will find significant event risk this week, as the Federal Reserve will announce their rate decision on Tuesday. Not to be ignored, inflation figures will be released from the UK, Euro-zone, and US, but the British pound will be particularly vulnerable to the minutes from the Bank of England’s most recent meeting and UK retail sales.

• UK Consumer Price Index – September 16
On Tuesday at 4:30 EDT, UK consumer price growth in August is expected to accelerate even faster to a 4.6 percent annual pace, which would mark the sharpest rise since May 1992. Inflation remains of great concern to the Bank of England, especially as the Bank’s Governor Mervyn King forecasts that CPI will rocket above 4 percent. However, the BOE has a dual mandate to maintain price stability and to promote sustainable growth and employment. The UK has already seen indications of a broad economic slowdown, but adding the fragile nature of the UK’s financial sector to the mix puts the Bank of England in a particularly precarious position, as a rate increase meant to fight inflation could easily push the UK into recession and trigger a severe credit crisis. As a result, the UK's MPC will likely continue to sound hawkish on inflation in order to contain consumer inflation expectations, but when it comes down to it, their bark may be bigger than their bite as the Bank of England is highly unlikely to actually raise rates, especially as overnight index swaps actually price in over 75bps worth of rate cuts within the next year. Nevertheless, very strong UK CPI figures could lead the British pound to rally upon release, while soft reading could weigh the currency down.

• US Consumer Price Index – September 16
The US headline consumer price index for the month of August is expected to go unchanged upon release at 8:30 EDT on Tuesday, while the annual rate of growth is forecasted to slip for the first time since April to 5.5 percent from 5.6 percent. On the other hand, the core CPI measure is anticipated to rise 0.2 percent to an annual rate of 2.6 percent, which would mark an 18-month high. If any of these figures surprise to the upside or downside, the markets will respond accordingly and the moves could be dramatic. On the other hand, if CPI is posted in line with expectations, US markets may prove unresponsive ahead of the Federal Reserve Rate decision at 14:15 EDT the same day.

• Federal Reserve Rate Decision – September 16
On Tuesday at 14:15 EDT, the Federal Open Market Committee (FOMC) is widely expected to leave rates at 2.00 percent, though as of Friday fed fund futures are pricing in a slight chance of a 25bp cut. However, the thing to watch will be the FOMC’s policy statement as a gauge of their bias going forward. The minutes from their August meeting said that “members generally anticipated that the next policy move would likely be a tightening,” but if this policy statement suggests that the Committee foresees an easing in price pressures – eliminating the need for tightening – the US dollar could fall significantly. Furthermore, there is potential for bearish comments on the financial markets given the bankruptcy of Lehman and sale of Merrill Lynch. On the other hand, persistently hawkish commentary could reignite the greenback’s rally.

• Bank of England September Meeting Minutes – September 17
The Bank of England’s meeting minutes tend to be a huge market-mover for the British pound, and this time is unlikely to be any different. During the August meeting, the minutes revealed that there was a 7-1-1 vote for the second consecutive month to leave rates at 5.00 percent, with one dissent in favor of a 25bp hike and one in favor of a 25bp cut. The vote this time around could easily be split again, as indicators of growth continue to deteriorate and inflation figures reflect persistent price pressures. However, given the substantial downside risks to growth, I think there’s some potential for additional Monetary Policy Committee members to have voted for a rate cut. Indeed, a 6-2-1 or 7-2 vote count could weigh heavily on the British pound on Wednesday morning, but if there is sufficiently hawkish rhetoric contained within the minutes and votes in favor of increasing rates, the UK currency could actually surge.

• UK Retail Sales – September 18
UK consumer spending is anticipated to have slowed in August, as retail sales are forecasted to fall 0.5 percent upon release at 4:30 EDT on Thursday, dragging the annual rate to a more than two year low of 1.6 percent. The latest BRC retail sales numbers support the case for such a move, as their measure of same-store sales plunged 1.0 percent in August from a year earlier. However, this is not the most reliable leading indicator: last month, the BRC’s figures reflected a 0.9 percent decline from a year earlier, while the UK government’s statistics showed a 0.8 percent monthly gain and a 2.1 percent annualized rise. That said, the Bank of England has said in the past that they may focus more on private surveys over government statistics, as the latter tends to be extremely volatile. As a result, traders should keep in mind that regardless of this upcoming number, the BOE likely still holds a bearish view of UK consumer spending.

Written by Terri Belkas,

Forex Brokers,Most FOREX traders use a broker to handle their transactions. What exactly is a broker? Strictly speaking, a broker is an individual or a company that buys and sells orders according the investor's decisions. Brokers earn money by charging a commission or a fee for their services.

A FOREX broker needs to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

The best advertising is word-of-mouth advertising, and this is just as valid in FOREX trading as it is for any other type of business. Talk to friends and associates to see who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.

You could try selecting a few online brokers and contact their Internet help desks to see how quickly they respond to enquiries and whether or not they answer questions to your satisfaction. Keep in mind, however, that pre-sales service may be better than after sales service. This can be true for any online business, not just FOREX brokers.

Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets.

Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker.

Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.

Trading software is very important for the online FOREX trader. Get a feel for the options that are available by trying out a demo account at a few online brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them.

Other information to find out about includes the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance.

by Simon Harris

Forex Software Packages
If you plan to start trading FOREX online you will of course be using a software system. This system will make it easy for you to get information quickly about market prices and make trades. There are two types of FOREX software available, client based and web based.

As the FOREX market is a fast moving market and you will need up to the minute information to make informed transactions, it is up to you to see you have a high speed internet connection. Dial up internet access will absolutely not work for this. Another consideration could be the location of the servers used by your broker. If your broker's servers are located quite a distance from you, say in another country, this could potentially slow down your transmissions. If you plan to trade online you will need a modern computer and high speed internet connection.

The next consideration would be which type of software, client based or web based? Web based software is housed on your brokers website. You will not have to install any software on your own computer. A web based software program will allow you to log in from any computer that has an internet connection. A client based software program, or one that you download into your own computer will limit you to transactions only on the computer it is downloaded on. Web based software programs are preferred by most brokers who think they are more safe and reliable. Web based software tends to be less vulnerable to attack from viruses and hackers during transmissions than client based software.

Any FOREX software should offer you real-time quotes and offer means to quickly enter and exit the market. These are minimal requirements of any trading software. Upgraded software packages are usually offered at an extra monthly fee by brokers.

Generally brokers will have client information housed on two severs kept in two different locations. This is to guarantee client data is kept as safe as possible. If there is a power failure or a problem with one server the data is sent back and forth from the second secure server and you will not notice an interruption. Regular back ups of these servers is another way that brokers keep financial data safe in case of server failure.

by Ryan Larson