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Forex trading now has become a common profession across the world. When it comes to Forex trading then you have to choose a Forex broker that meets your expectation.
The regulations, commissions, platforms, minimums, and account fees are just some of the factors to consider when choosing a Forex and CFD broker online which you have to watch when choosing a broker.
The foreign exchange market is the largest financial market in the world, with a turnover of over $ 4 trillion a day. Despite its enormous size, this market does not have a central exchange allowing traders to carry out their transactions.
Instead, Forex traders must conduct their trading activities through an intermediary, the Forex broker. This shows the importance of the broker's role in the negotiation process.
When it comes to choosing a regulated broker, traders literally have thousands of Forex brokers from which to choose on the internet. But the real question is how you can be sure the broker you have chosen is right for your business needs.
To assist you in your broker selection process, we have prepared a guide with a list of key factors that you should consider when choosing a broker.
The first thing to consider when selecting a broker is whether it is regulated by a competent regulator (to learn more about the regulation of Forex and CFD brokers).
By doing business with a regulated dealer, you can be assured that they have met the operating standards set by the regulator. Some of these standard regulatory requirements include adequate capitalization and separate accounts to protect client funds.
In addition, the regulation provides protection for the fund in the event of the company's insolvency and ensures that the broker meets rigorous standards as a financial service provider.
Countries with financial regulatory agencies backed by strict enforcement include:
Australia (ASIC) Eurozone (Mifid and local regulators) India (SEBI) Japan (FSA and JSDA) Switzerland (FINMA) UK (FCA) USA (CFTC and SEC) Trading platform and software
Because the trading platform is your gateway to the marketplace, you want to make sure that the trading platform you use is reliable. Most brokers will offer traders a selection of trading platforms to choose from.
Most of the time, trading platforms are provided by third-party trading solution providers such as MetaQuotes Software. Some brokers have also begun to develop their own trading platforms to try to differentiate themselves from other brokers in the industry.
Often, these proprietary platforms are the best trading platforms because they are specifically designed by the broker's clientele.
Nevertheless, a good broker should be able to provide a good selection of platforms. Indeed, some traders prefer to trade from the desktop and some traders prefer to trade from their smartphone.
Examine the features offered by trading platforms. Do they come with:
The complete package of cartography Wide range of technical indicators One-click trading on the trading platform Risk management tools such as stop loss order and leak stop. Although all these elements may seem innocuous at first, they will later play a crucial role in enabling you to experience a transparent and productive trading experience.
But when it comes to choosing a platform, it's really a matter of personal choice. Most of these platforms will have the same basic functionality.
The best way for you to find the platform that suits you is to try them with the demo account provided by the broker. For brokers who do not provide a demo account, they may not be newsworthy.
Commissions and spreads
This market, unlike other traditional financial markets, operates primarily on spreads rather than commissions. This is the reason why most brokers advertise that their services are without commission.
So, how do brokers earn money?
Simply, they earn by charging the traders. The spread is the difference between the purchase price and the selling price. For example, if the Bid & Ask price of the EUR / USD currency pair is 1.0875 / 1.0878, it means the spread is 3 pips.
As a Forex trader, you will encounter 3 types of trading cost structures charged by a broker:
Spread fixed - when the spread does not change and you know the amount of the spread before trading.
Floating spread - This spread is variable and constantly varies according to the volatility of the market.
Commission Fees - These are calculated as a percentage of the Broker Margin. You must be aware of the amount to pay before negotiating.
As a general rule, for traders looking for transaction costs with certainty, fixed spreads will be favored. Traders looking to pay a smaller spread would prefer floating spreads. In the end, the best choice will depend on your specific business needs.
The type of spread you will receive will depend to a large extent on the type of business model on which the broker operates.
The business model of the broker
During your search for a broker, you will encounter terms such as "STP", "ECN", "NDD" and "Market Maker". All of these terms are actually used to describe the business model used by the broker. So what do they all want to say?
There are two main types of brokers: the trading desk and the non-trading office.
Forex or Market Maker traders process their clients' trading instructions through a trading desk within their company. A transaction broker takes the other side of the transaction, which means that when you open a position such as EUR / USD, the transaction will be executed by the broker and they will then be exposed to this transaction.
A non-trading dealer (NDD) transfers the transaction directly to a third party. There are two types of NDD broker (ECN and STP). They are both essentially the link between you the trader and the market maker or the reseller.
With the first type (ECN) when you press "Buy" on your trading platform, your trading orders will be processed on the broker's computerized trading system and transmitted via the Electronic Communications Network (ECN) without a trading desk. the trading term "non-trading office" (NDD) comes from).
With the second type of NDD broker, upon receiving your transaction orders, he will forward them directly to another party for execution by the market maker's trading desk. In this case, the broker is called Straight Through Processing (STP) broker.
Forex brokers ECN and STP are both intermediaries to several trading desks or market managers in the global Forex market. Market makers or traders will transmit their prices to the ECN or a third-party liquidity provider with the volume for which the quotation is valid.
Why is it important?
The broker's business model is important because it will affect the type of spread you will receive and whether the spread will be fixed or variable.
Forex Broker for Beginners
For beginner traders, look for brokers with the following qualities:
Comprehensive Educational Resources on Trading - Many brokers provide a variety of educational materials to help traders master their skills. These usually include webinars, videos, courses, guides, and articles.
Unlimited access to the demo account for professional traders - most Forex brokers, if not all, provide demo-trading accounts to their clients. This is especially useful if you are new to the world of Forex trading or if you want to test a broker's platform before trading for real.
User-friendly trading platform - there are a variety of trading platforms on the market, some more complex than others. As a novice trader, you do not need a complex platform with features like EA and complex trading strategies. This comes later, but you should now look for a quick and easy platform to grab.
Forex Broker for Professionals
For professional traders, their trading needs differ considerably from those of a novice trader. Generally, professional traders prefer brokers who can provide them with:
Comprehensive Trading Tools - As a professional trader, you will now need several tools, including a commission calculator, an economic calendar and, of course, complex real-time charts to implement trading strategies.
Strong leverage - not for sensitive souls, professionals will seek to use this leverage to multiply their capital. Leverage increases the risk and also increases the reward.
Low spreads - if you trade a lot, you want to make sure your spreads do not eat away at your capital. It is important to check the spreads to pay before choosing a broker. In general, the higher the type of account you use, the lower your spreads.
Forex broker for day trading
Generally, for a day trader, most brokers will be able to meet their trading needs. However, given the shorter period with day traders, it is preferable that the broker be able to provide a range of different instruments for the day trader to look for trading opportunities.
These may include a signal service, tools such as an economic calendar, updating market news and results reports. As you will probably place more trades in the short term, make sure you know the spreads before trading.
Forex broker for Scalping
Scalpers are traders who occupy their positions in the market for an extremely short period of time. Although they only hold a position in the market for a short period of time, the frequency of their transactions is higher than that of the average trader.
Their goal is only to make a small profit on all the trades they do, spread over a large number of trades. Note that not all brokers allow scalping. As such, if you intend to trade as a scalper, you should always check with the broker that you intend to register if it allows scalping.
Types of account
The majority of the sector's foreign exchange brokers offer traders a selection of trading accounts to suit different traders' categories.
Micro Account - The smallest trading account type is the Micro trading account where a transaction lot equals 1,000 units of the traded instrument.
Mini Account - The following trading account type in the hierarchy is the Mini account where a lot represents 10,000 units.
Standard Account - The standard account is a lot equal to 100,000 units.
With Micro and Mini accounts, only a low minimum initial investment is required for you to start trading. With the standard account, although the minimum investment may vary from one broker to another, you will generally need more trading capital.
Given the different minimum investments for each type of trading account, you must select the trading account corresponding to your investment capital.
Most novice traders tend to forget to consider customer service when choosing the broker with which they will sign up. They may not realize the importance of customer service in their overall business experience.
With customer service, it's not about whether you'll ever need their help, but about when you'll need their help. Because no matter the experience or the knowledge of a merchant, it will always be necessary to appeal to the customer service.
At this point, you want to be able to contact the support team without any difficulty. It is therefore important to check whether the broker you intend to register with is able to provide you with reliable customer support.
Check if there are multiple ways to contact customer support. Most brokers will provide their customers in several ways, such as email, live chat and phone, so their customers can contact customer support.
In a sector as competitive as online trading, some brokers will try to differentiate themselves from other brokers by offering additional value-added services such as free market analysis, news feeds and trading signals.
Most of these value-added services are provided free of charge, but some brokers may require you to deposit a minimum amount before you can access these services.
Questions to Ask the Broker
How can I choose a broker?
We are here to help with that! Check out our list above and choose the most appropriate broker for you.
Should I choose a regulated broker?
Yes, you should try to choose a regulated broker with whom to work. This guarantees recourse in the event of litigation or insolvency of your broker. Remember that by using a regulated broker, you will also have access to an investor compensation fund, which ensures your deposit up to a certain amount.
What should I look for when selecting a broker?
You should consider the range of platforms offered and even ideally test the platform you want to use. Take a look at the additional resources offered by this broker, for example.
Signal service, educational tools, copy business. Finally, do not forget to inquire about spreads and types of accounts before depositing a deposit.
As noted above, many factors must be taken into account when choosing your broker. Nevertheless, with the help of this guide that we have provided, you should be able to see which broker is best suited to your needs.
To further facilitate your search, we also conducted extensive reviews and verified each broker on our list of recommendations to ensure it met the required standards.
Once you have found the right broker to work with, you can focus more on your trading activities and trade more confidently, increasing your chances of succeeding in the market.
When it comes to creating a forecast, you have to take into account the percentage of statements in central bank monetary policy.
These statements define the tone of the long-term currencies with the fluctuations of the prices given per day and the adjustments of the volatility according to the main trend creates a new risk.
That being said, I’ll now review the monetary policy statement of the largest economy and tell you how it will affect the foreign exchange market.
The US Federal Reserve has continued to influence the US dollar interest rate since 2018. The interest rate has been raised four times recently. It is helpful to drive the dollars to new highs against a basket of currencies this year.
There was some volatility in the dollar. The interest rate has not been as steady as expected. Performance over the last ten years has reached a multi-year high of 3.25%. It contributed to the dollar's rise, but this return was reduced to 2.75%.
Last year, the Fed raised rates with a healthy economy. The central bank hinted in the latest monetary policy statement that will pause another rate hike in 2019. It will not do so until economic data confirm it.
Current pricing trends do not increase the rates of the Federal Reserve. If this assessment is true, trading will continue at 2.75% benchmark. The US dollar-dominated forex currency pairs. But it is important that you learn the basics of forex before trying your luck.
New Zealand Dollar
Last November's monetary policy statement, the Reserve Bank of New Zealand maintained its official castrate rate at a constant rate of 1.75%. The RBNZ governor, Orr, said the central bank intended to maintain it throughout this year.
OCR will be an expansionary level for a considerable period of time, will help maximize sustainable employment and maintain low and stable inflation.
There will be risks associated with growth and protection against inflation. The timing and direction of the movement will depend on the data. Major consumers remain below 2% at mid-term. The need to continue a supportive monetary policy.
The political meeting, oil prices plunged US Treasury yields. They fell with the stock prices. The New Zealand GDP was below expectations. Still, it's a wearable market for Forex traders.
Several regulated brokers offer excellent packages in New Zealand dollars. Find a good pair and start trading. But you must make sure that you are investing with the right trader. To do your research, visit a Forex Broker review to compare forex brokers.
The Reserve Bank of Australia maintained its official rate at 1.5%. It's a historic low.
The low level of interest continues to support the Australian economy. The continuation of the process reduces unemployment and the goal of returning inflation is expected.
The process is slow, but they take all the available information. The jury that judged this decision did not change position.
The meeting aimed for sustainable growth and achieved the corresponding inflation target. Inflation has remained stable and weak.
Initiation to the CPI was 1.9, but in fundamental terms, it rose to 1.75%. We do not know how that will change in the future, but it will remain positive in 2019.
The RBA is a little optimistic about rising inflation. Consumer spending and the weak housing sector will limit the interest rate. If RBA does not move, it will be a rate cut.
Japanese policymakers disagree on the feasibility of allowing bond yields. It will go to the goal of zero percent. This will reflect division within the board on how to deal with the growing difficulties of prolonged easing.
Decision makers have predicted a collapse and we are seeing the results now. Efforts are being made to make the Japanese yen attractive, but USD / JPY is not the right pair it was before.
So, this was some information regarding how will the world's largest economies affect the Forex market. Do you find it helpful?
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Hello everyone, many of you may not know the term "no deposit bonus" on the foreign exchange market. So today, I will discuss some important facts of the no deposit Forex bonus.
What is a no deposit bonus?
No Deposit Forex bonuses are promotional bonuses that are often used by regulated Forex brokers to attract new customers who want to test their services. This type of bonus gives you a great opportunity to try out broker systems and services without spending a dime.
The Forex No Deposit Bonus account is the same as a regular account because you can enjoy the same experience with a regular trading account. In addition, the implementation of the no deposit Forex bonus is the same as on a direct Forex account.
Thus, no deposit Forex bonus is a safe way to start Forex trading. Forex traders generally offer a Forex deposit bonus of between $ 5 and $ 100. When you visit this online broker website, you can find promotion of a deposit bonus deposited and updated regularly.
What you need to know about no deposit bonuses Forex
If you are new to the world of Forex trading, then a no deposit bonus on Forex is a great opportunity to use it. As we mentioned earlier, some brokers regularly provide this special bonus.
Thanks to the agreement on no-deposit Forex bonuses, a real Forex trading account is assigned to allow you to start trading in the money market without jeopardizing your own money. Of course, no broker will give you free money. There are therefore a number of conditions for all No Deposit Bonus promotions that you must carefully follow in order to withdraw the profit or bonus you make when trading.
Unless the minimum trading volume is reached, the trader can not withdraw the Forex deposit without investing. This is one of the most important conditions that most brokers pursue.
Traders can not simply withdraw bonuses without fulfilling certain conditions, such as volume and trading times. There can also be a maximum amount of Forex profit that traders can withdraw if they have not funded their own account.
Traders need to understand their Forex trading experience at the micro level without the Forex Deposit Bonus. This may actually be different from Forex trading on larger and larger portfolios as the risk involved is greater.
Good trading account management without Bonus Bonus The bonus certainly requires several strategies.
The Forex market is a globally decentralized market for Forex trading. The main players in the Forex market are probably the main multinational banking institutions.
Banking institutions act as anchors to trade regularly with different types of traders. Compare with the stock market where there is a daily turnover and then it's easy to see why the Forex market is the most important financial market in the world.
Basically, Forex is considered an act of buying a currency when you sell another currency at the same time, mainly related to speculation or rumors. The value of currencies continues to rise, but it can also depreciate (decline) because of many variables involving the economy and geopolitics.
The general objective of trading the deposit bonus is to make a profit while observing these variations. Traders must regularly guess the evolution of Forex exchange rates in the near future.
However, in some cases, trading volumes are below standard values, which may help to broaden the market distribution.
Unlike most financial markets, the true free market of Forex has no place for business or perhaps the main market, because it is traded throughout the day thanks to the global participation of companies, companies banking institutions and individuals.
In addition, there are profitable offers for potential customers to engage traders to benefit their organization. That's why the Forex deposit bonus offer is becoming more and more popular.
To get a Forex no deposit bonus, simply create a Forex account and provide personal information. This usually includes downloading your address and some other relevant details.
Once approved, they will deposit money into your account, which will serve as an initial bonus for your new trading account. The level of this agreement is for the most part quite interesting.
The no deposit Forex bonus is highly recommended because you can start trading once you join your broker team and evaluate the system as you learn everything.
Some brokers provide this agreement primarily to promote their business and to get as many customers as possible. A quick Google search can give you a list of no deposit Forex bonuses.
The next step is to read the terms and conditions, as not all brokerage companies will allow people from different countries to join their team.
So here are some important facts about the no deposit bonus on Forex. And if you agree with my opinions, then please let me know.