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Choosing a Forex and CFD Broker

Trading too big

Playing the Forex or investing in CFDs requires the intermediation of a broker to take care of and execute your orders. How to make the right choice?

Versatile supply of brokers’ services

The market’s versatile supply of Forex brokers’ services is both a problem and an opportunity for novice traders. You may choose from among great many brokerage platforms that allow you to play the Forex. They differ in many factors, which means that they can be selected to match your trading style, amount, technical knowledge, and preferences concerning financial instruments.

Make sure you check it out: Forex – what is it?

Mentor in FT

Types of Forex Brokers

Three basic groups of brokers can be distinguished on the international Forex market:

Market Makers

brokers who require a low minimum deposit, offer a fixed spread, and do not normally direct orders to the Forex interbank market, but conclude transactions with clients instead, reflecting the prices from this market. In a sense, MM brokers make a market of their own, hence the name. They accept trading with high leverage, but their disadvantage is a high spread. An MM broker is recommended for novice Forex and CFD traders, as well as for those who start with little investment capital.

Straight Through Processing

brokers who refer transactions directly to the Forex market (as opposed to MM brokers), to entities known as the liquidity providers. This role is usually assumed by banks, other brokers, investment corporations and hedge funds. Even without high capital, STP brokers may be a channel for traders to enter the real Forex market and benefit from a spread which is relatively low, though dependent on the current market situation. What needs to be taken into account is the fact that STP brokers charge commissions for trading every now and then.

Electronic Communications Network

Brokers who refer orders directly to the Forex market, to other market participants – private investors, companies, brokers, and banks. They enable all types of transactions available and ensure anonymity on the Forex. They use low spreads, no requotes, and ensure high safety of your funds. On the downside, such brokers charge commissions on trading, their spread depends on the market situation, and the minimum deposit is high.

Trends Will Keep Moving Unless There's a Catalyst Opposing It

How to Make a Choice?

Before entering into a contract with a selected broker, you need to ask and answer yourself a few important questions. How much do you want to spend initially on Forex trading? It’s not worth spending all your savings on this, especially if you’re a novice trader. You always have to leave a buffer for financial security.

It is advisable to enter into cooperation with a broker whose activity is regulated by a financial supervisory authority. Brokers should hold bank guarantees, ensure separation of clients’ funds from their own, and simply enjoy a good reputation in the industry.
What will be crucial for novice traders is whether a demo account is offered by a broker on their platform on which to learn the Forex trading strategy without having to take any financial risks? Experienced traders, on the other hand, will certainly expect a broker to provide access to Premium accounts that offer lower spreads, better service, and customized services.

A good Forex broker will offer a low spread and low commission on trading, especially if you are going to spend a lot of time playing the Forex and trade often. It should be important for you to have access to a wide range of Forex and CFD financial instruments. A brokerage platform should offer multiple currencies for trading and the opportunity to invest in gold, silver, oil, indices, and stocks. While access to leverage is important, please remember that the larger a leverage, the greater the risk involved in using it. Experienced traders with a history of trading on their brokerage account may have access to the maximum leverage, which is not available to novice traders.

By taking into account all the above factors in your choice of a broker, you will be able to find brokerage services to match your individual needs and expectations as a trader.

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Selecting the Best Forex Team for You

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Finding the right forex trader for you can be a test of patience and frustration. The rapidly changing forex market produces more traders faster than it can dump discouraged ones right back on the street. With all this confusing action, it may seem that a good trader is as hard to find as becoming one yourself.

You now find yourself asking if you should employ the services of a trusted company of experienced traders that you can trade with and who will help you manage your account. Finding the right team would require the same process you should follow when researching any company offering financial services.

You’re looking for a team of traders that will not only work for you but with you. Do they offer daily support? Can they offer other services like educating their clients, offering short tutorials so that you’re not completely in the dark, having blind faith in your trader as you entrust them with your hard-earned money? Can they offer live analysis for their clients every day?

Here’s what you can do to can gauge if the company you are considering trading with can offer all these additional perks and is reputable, reliable, reasonable, and reachable:

Begin with Research

Channels In Forex Trading

First and foremost, you will want to check the qualifications of your potential team of traders. This includes going through their documents, regulations, management team and business licenses with a fine-toothed comb. Publicity is a huge part of a professional forex team. Enter the name of the company you are considering into the Google query box along with the term reviews. You should receive a good idea of what to expect from reading over the comments from past clients.

Is the Trading Team Credible?

You should be looking for a team of traders who have made a reputation for themselves and can provide you with their customers’ feedback through public forums and websites open for trading discussions.

Find a team that practices transparency. The company, Live Traders, has a live analysis room where you can interact with other members, monitored by a moderator. You can have your questions answered by live traders. With live trading rooms, you get real support, provided by a community of traders all wanting to learn from each other. With live trading, you see real trading and real results in real-time.

How Much Does Trading Cost?  

Trading too big

There are other trading services that charge as much as $150 a month for the analysis room and a separate charge of $150 for signals. Live Traders offer their live forex trading room for only $97 a month. This service includes swing trading signals, education, and training in a room, live audio from traders, real-time updates on trade management and the access to chat in real-time with other traders.

If I Have a Question, Where Do I Go?

So many bad experiences can be prevented by asking this simple question. It is hard to sufficiently emphasize how important it is that communication is given priority. Especially when working with people who will be handling your money.

In our line of work, we have heard numerous tales of bad situations that arise from miscommunications. The team of traders may actually be doing a good job; the problems begin to surface when it comes time to ask a simple question.

Without an effective customer support team in working order, questions don’t get answered; sometimes phone calls are answered by people who can’t provide an answer, or at least not in proper English. Needless to say, this is a bad situation caused by shoddy forex traders.

Making sure your forex team of traders is on call to answer your concerns and questions any time of the day or night is greatly beneficial. Forex teams with a high level of customer service can actually help their aspiring traders deal with the uncertainty of the market and illustrate the ‘bigger picture’; being aware of long term goals and progress helps to lighten the sting of minor losses that beset any forex portfolio.

A good way of finding out how fast they will contact you as a valued client is to drop them an email or send messages over a social media channel. How long did it take to receive a reply? What was their customer service like?

What is Your Trading Style and What Additional Services Do You Offer?

5 Important Candlesticks Observations and Tips

An amateur or aspiring trader may not need to ask this, but after time and experience have been accumulated, you will want to consider inquiring about the various financial instruments their team employs. Ask about the various trading platforms on which they operate and even the various account types and their various advantages.

There is a huge variety of services available depending on the specific needs of the trading team and the client themselves. It is a huge advantage to find a team that will take the time to match their service to your specific needs and trading styles.

In Conclusion — the advantages of a reputable team of traders are no less than higher dividends and far less stressful journeys along the way. If you are interested in knowing more about finding your perfect team, visit Live Traders and get some advice from the experts.

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The Rising Popularity of Binary Options in Nigeria

The Rising Popularity of Binary Options in Nigeria

For years now Nigeria has been one of the most developed economies on the African continent. Its divisiveness can be attested with advances in communications, stock exchange, legal, financial, transportation and abundant natural resources.

However, like many neighboring countries in Africa, the situation does not stay stable for long. Increased inflation which started back in November 2018 has greatly affected the way people live in the country. It has affected the cost of food and the local currency.

Thus people in Nigeria have started looking to alternative ways of making a living. Trading alternatives have become a valuable source of income for regular people who are just looking to get by. Binary options in Nigeria are on the rise now and people are also looking into cryptocurrency trading just to find a better future for them.

5 Important Candlesticks Observations and Tips

Nigeria’s Economic Crisis

Policymakers in Nigeria are trying to tighten up their monetary stance in the wake of an ongoing financial crisis.

However, as reported, much of the crisis is due to the spending for the upcoming election which is happening soon. Add to that disbursement of the national crisis and you can be to understand what the causes for this bad situation have been.

The result is rising inflation in Nigeria which has affected the price of bread, milk, cereals, jam, cheese, and other food items.

Binary Options are a Solution

Many of Nigeria’s citizens are a part of the oil and the agricultural sector of the country. These are the two major parts of Nigeria’s economy and earners of foreign exchange.

But due to the financial crisis in the country, these fields have become barren and people have started looking into alternatives and earn some passive income. This is what gave rise to binary trading. It gained momentum in the past couple of years and forex and cryptocurrency trading have become massively popular in this African nation.

But the problem starts with the fact that Nigeria does not have any local binary brokers so they have to rely on off-shore brokers. This makes trading a lot harder and many Nigerian people are concerned about the reliability of brokers that they need to deal with.

That is why they need to employ certain tactics or take measurements to ensure that the trade goes well.

What they need to do first is to always find and use a broker that is regulated by a major regulatory body, which includes FCA and CySEC. There are also other alternative brokers that they could use and work with them.

Giving up in FT

Other Countries Have Joined in

However, the bad financial situation is not affecting Nigeria only. Some neighboring counties are also affected by the economic crisis and inflation of their own. What they did is to copy the Nigerian solution and have started their own trade in binary options.

If you look at the average for deposits of binary options in the last year you will see a lot of African countries on the list. Some of them include South Africa, Ghana, Zambia, and Kenya.

There is no telling how much longer this trend will continue on, but it does sound like a viable and sustainable option for people who have no other choices. The situation in Nigeria will take more time to stabilize and there is no telling about how long other countries will need.

But it shows that binary options can be a feasible way for the future and are the solution for underdeveloped areas to strengthen their economy in some way.

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Automated Forex Trading – How It Works

How to Find a Trading Job

Automated Forex trading is proof that the future is here. About 75% of daily transactions in a foreign exchange market are concluded by algorithmic, automatic trading software. But why automation has such a high influence on trading and why is it useful to understand how it works?

If you do not have any experience with trading in a foreign exchange market, the main objective of it is the exchange of currencies in the expectation of price changes. By tracking the prices of currencies, you can buy some currency, wait for it to increase in value and sell it for a profit.

forex trading software

At first glance, this might look like a pretty self-explanatory process, but although it is easy to learn, it is also pretty difficult to master. If you have any experience in Forex trading, you probably already know how tiring and unpredictable the whole process can be if everything does not go according to plan.

A perfect trader always looks for intelligent, logical trades that result in profit and are not influenced by emotions. This lack of emotion and the precise execution of profitable trades are the robotic features every successful trader utilizes daily. Finding such a trader can be almost impossible, but there is another way to utilize these traits in your trades – using automated trading software.

Automated trading is often utilized in a wide range of markets. Algorithmic trading allows precise analysis of the market and automatically opens a trade without the need to carry it out manually. By simply turning on your trading terminal, you will be able to simply monitor the work of your software while it executes trades for you. Let’s dive deeper into how automated trading software works.

Usage of automated forex trading software allows us to automatically analyze specific market information, which will be used to make the right trading decisions. Influential information like economic news, major world events, irregular market activity, and currency price charts. By collecting and analyzing this data, the software can automatically execute trades following the desired criteria set by the trader.

10 Highly Effective Habits of Successful Traders

Forex automated trading software can thoroughly analyze the market and execute trades based on your strategy. If your desired conditions are met, the software will automatically open a trade. Algorithmic software is also capable of closing open positions based on your conditions and minimize your risk by limiting the size or quantity at any time. Automated Forex trading allows you to trade 24/7, but no matter how great algorithmic trading is, it does not guarantee a profit.

If you are interested in automated Forex trading on a bigger scale, you might be interested in a VPS Forex Trader. Virtual private server hosting, or VPS, allows utilizing fast internet access for much faster, precise trading. By isolating your automatic Forex trading software, you protect the constant flow of trades from security breaches and various disruptive inconveniences, such as power shortage. Utilization of VPS Forex Trader with an automated trading software will help make a profit on a foreign exchange market.

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