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Beginner’s Guide to Forex.com Review 2019 – Is it Safe? Pros & Cons

Forex.com has a great deal of experience in the global currency markets, having been founded in 2001. The broker is a global market leader that prides itself on providing traders with superior execution and offers competitive, transparent pricing and a wide range of tools to help them succeed.

Forex.com has a great deal of experience in the global currency markets, having been founded in 2001. The broker is a global market leader that prides itself on providing traders with superior execution and offers competitive, transparent pricing and a wide range of tools to help them succeed.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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The parent company of Forex.com is GAIN Capital Holdings Inc., which is listed on the New York Stock Exchange as GCAP. GAIN Capital is publicly traded and meets the highest available standards of financial reporting, disclosure, and corporate governance. To get an idea of the size and reputability of GAIN Capital, consider the company’s key financial data for Q2 2018. There were total assets of $1.475 billion, a total customer equity of $920.4 million, an available liquidity of $344.3 million, and a minimum regulatory capital requirement of $108.9 million.

The founding of GAIN Capital took place in 1999 with the mission of giving traders low-cost access to the foreign exchange markets. Now, the company provides more than 140,000 institutional and retail investors access to exchange-traded and OTC markets, with clients in 140 countries. In addition to Forex.com, GAIN Capital is the parent company of City Index. It also has a futures group that delivers access to the major derivative and commodity trading on more than 30 global exchanges. The headquarters of GAIN Capital is in Bedminster, New Jersey, and the company has more than 800 staff members in the Asia Pacific, North America, and Europe.

Forex.com Advantages

Forex.com prides itself on operating in an environment that is highly regulated and includes strong oversight into both trading practices and execution. Forex.com will not adjust the execution speed or price of trades. This forex broker also never picks and chooses which trades to accept. All trades are executed accurately and quickly.

Why Forex.com

Why Forex.com

Additionally, Forex.com stands behind all its trades. The broker is a market maker, so it does not outsource the responsibility to a third party. Instead, Forex.com will directly address any concerns or questions following a trade directly.

Forex.com Account Signup

To open an account with Forex.com, simply fill out the form online. You will need to submit a valid, nonexpired photo ID that was issued by the government. This will be used to confirm the residential address, date of birth, and name listed on the application. If the ID you submit does not provide residential address verification, you will need to submit a separate document as proof of residence, such as a bank statement, utility bill, or credit card statement from the past six months. The simplest method of submitting these documents is to upload them via the website. Alternatively, you can mail or email your documents. In the case of a joint account, you need to submit the required documentation for each account holder.

Account Signup

Account Signup

To open an account, Forex.com requires a minimum deposit of a minimum of 50 units of your base currency. However, it suggests depositing a minimum of 2,500 units, so you can have better risk management and flexibility.

What Types of Accounts Does Forex.com Offer?

To appeal to a range of traders, Forex.com offers two main account types. Standard Accounts deliver ultra-competitive spreads without any commissions on forex trades. The cost of the trade is already part of the spread. The other option is a Commission Account, which delivers the tightest forex spreads offered. This includes EUR/USD from 0.2 plus a commission of just $5 for each 100,000 on forex trades. It is important to note that this latter account is not currently available for use on MetaTrader, so if you opt for a Commission Account, you will need to use the Forex.com platform instead. However, it will be available with MetaTrader soon.

Once you open a Standard Account, you cannot change it to a Commission Account or vice versa. However, if you already have a Commission Account or Standard Account and wish to open an account of the other type, you can do so. You should also note that while there are no demos available for Commission Accounts, you can become an Active Trader with a Commission Account.

Forex.com Demo Accounts

As with most brokers, Forex.com does offer a demo account. The main difference between this and a live trading account is that there is no risk associated with trading in a demo account since you use virtual currency. The demo or practice accounts are designed to help you become familiar with the types of trading offered on Forex.com, as well as the platform and trading tools.

Demo accounts last for a full 30 days following your signup, giving you more than enough time to hone your skills. At the moment, Forex.com does not offer the option of renewing a demo account, something which some competitors do.

Demo Account

Demo Account

Account Deposits & Withdrawals

Forex.com offers several funding options for accounts. You can use a credit or debit card or opt for a wire transfer. Withdrawals are done via the same method as funding due to legal regulations.

Forex.com Asset Coverage

Forex.com provides clients with access to currencies, Cryptocurrencies, shares, equity indices, metals, and commodities. Those who opt to use the proprietary Forex.com trading platform get access to 84 currencies, 220+ shares, 17 equity indices, 10 metals, and 11 commodities. Those using MetaTrader 4 will not have access to shares. However, they also will have access to 84 currencies, 17 equity indices, and 10 metals, with the number of commodities reducing to seven.

Additionally, Forex.com offers Bitcoin trading, with the ability to trade against USD, AUD, EUR, and GBP. You can go long on fractional Bitcoin in 0.1 increments, and this method lets you speculate on Bitcoin volatility without having to own the cryptocurrency.

The margins available on Forex.com are up to 200:1, depending on the market that you are trading. The minimum trade size is 1,000 units.

What Platforms Does Forex.com Offer?

To appeal to all trading styles, Forex.com offers several different trading platforms for clients to choose from. The proprietary platform from Forex.com is award-winning and has been optimized to appeal to forex traders. It delivers high performance and advanced tools and is available as a mobile application for Android or iOS, as a browser-based interface, or as a desktop application.

Alternatively, traders on Forex.com can use MetaTrader 4. Forex.com is not only one of many brokers to use MT4 but also the largest MT4 broker based on active MetaTrader servers for each broker. Forex.com’s MT4 is fully optimized to include automated order rules, exclusive commentary and research from Forex.com, and advanced order functionality. It only takes a single download and is always in sync and fully loaded.

The Forex.com Trading Platform

There are three versions of the proprietary Forex.com trading platform. The advanced trading desktop platform is ideal for serious traders who have expertise and want sophisticated analytic tools and trading features. This platform includes dashboards that are highly customizable and the ability to set your trade preferences. There are also powerful charting tools and extensive drawing tools. The advanced trading platform also has advanced analytic tools with integrated trading strategies that include hundreds of predefined indicators you can use. Alternatively, you can create your own indicators. Toggle as well as zoom between 15 different time frames.

Web Trading Interface

Web Trading Interface

There are also more than 100 templates that you can choose from for trading strategies integrated right into the platform, with the ability to create your own or customize a different one. The Development Studio supports Visual Basic, .NET, and C#. Enjoy multiple order types, including advanced orders, like guaranteed stop loss orders or trailing stop orders. This platform also includes hedging tools, partial close functionality, integration of FX trade signals, trained market strategist, and market analysis.

The web platform has been optimized to maximize speed, reliability, and performance across browsers. It also includes integrated trading tools as well as analysis and market commentary. There are more than 50 drawing tools, more than 70 technical indicators, and advanced charting features. The web platform from Forex.com allows for seamless account management, including funding and withdrawal. You can enjoy layout personalization and smart trade tickets that let you set orders based on pips, price, or P&L and view figures at a glance.

Markets

Markets

Finally, the mobile trading platform delivers the full trading experience, including the ability to use multiple order types. This application integrates the analysis, market commentary, and news. It also features real-time alerts as well as notifications. You still get the advanced analysis and charting tools, as well as advanced risk management options and integrated fund management.

MetaTrader 4 Platform

The other platform offered by Forex.com is MetaTrader 4, which is among the most popular trading platforms in the world. As such, it is easy to find support and more information on this trading platform. Trading with Forex.com on MetaTrader 4 gives you access to the largest MT4 broker in the world, so you can enjoy unique trader tools, exceptional trade executions, ultra-tight spreads, and a trusted broker.

In addition to the features of the standard MetaTrader 4 platform, those with Forex.com accounts also get fully integrated research from Forex.com, news from Reuters, Autochartist Trade Ideas, account management tools, and technical analysis from Trading Central. Other exclusives to Forex.com is the ability to get a cash rebate of up to 15 percent each month, as well as waived bank wire fees.

Meta Trader

Meta Trader

This platform even includes free VPS hosting for qualified customers. To qualify for free EA Hosting, you must keep at least $5,000 in your account and execute a minimum of 10 round-trip mini-lots or the equivalent each calendar month. This hosting is done on a secure professional server and is specifically for hosting Expert Advisors. This feature makes it possible to maximize uptime when you run your EA 24/6 in trading hours since they run on a dedicated Unix server. Other Forex.com-exclusives on MT4 include as much as 1.5 percent APY on the average daily available margin and one-on-one support from trained market strategists.

The MT4 platform delivers real-time account data without any third-party bridges. It also supports the use of all expert advisors in an EA-optimized environment that does not rely on auto sync or third-party bridges and offers micro lots (1,000). MetaTrader 4 includes support for multiple devices, including tablets and smartphones from Apple, Android, and Windows.

Quick Trade Executions

Forex.com claims to be a leader in terms of trade execution, and this online broker has the statistics to back it up. In January 2011, Forex.com was the very first broker to introduce their Execution Scorecard. It is still the only U.S. broker that discloses its execution quality, a level of transparency you will not find from competitors.

Sharing this data is important to Forex.com, as the broker understands that fast trade execution directly affects the success of clients and always strives to deliver the best possible experience. Impressively, 99.34 percent of trades on Forex.com are executed in less than one second, a figure that includes all instant execution and market orders. The average execution speed is just 0.06 seconds, which counts the time between the receipt of the market order and its execution. Additionally, 99.98 percent of all trades have been successfully executed, including valid market, limit, stop, and instant execution orders.

Trades

Trades

In addition to displaying the statistics related to execution, Forex.com has done what it can to automate trading to deliver lightning-fast trades that deliver the price that you expect to get or a better one. For limit orders, 52.82 percent of orders are executed at a price that is better than the one requested by traders. One-hundred percent of limit orders are executed at either the requested rate or better. The average improvement for each limit order is 1.06 pips, which is the difference between the requested price and the one that was executed on limit orders where the price improved. This figure does not include situations when the same account placed multiple limit orders at the same price for the same instrument.

Forex.com Fees

Forex.com always aims to ensure its pricing is competitive and clear without any small print or complicated schemes. The broker has spent over a decade working to create a network of partners with liquidity and invest in technology, which has led to it being able to offer tight spreads for most market conditions. This goes along with the quick execution that Forex.com offers, as the broker always executes trades as quickly as possible at the price clients expect or a better price.

Forex.com prides itself on offering accurate, fast pricing. Since every part of the trade process is automated, trades get executed as quickly as possible, either at the price you choose or one that is better. The technology will also automatically pass savings to you if the market moves in favor of your trade on a limit order, executing your trade at an improved price.

Instead of charging a commission, Forex.com makes its profit via spreads, which you can find listed on its pricing page. For each currency pair, you can view the minimum spread, typical spread, and percentage that margins are from. For EUR/USD, the minimum spread is 1, with a typical spread of 1.3 and margins from 0.5 percent.

Spread

Spread

For indices, you can view that the spread pricing is fixed for most, then view the minimum spread, trading hours, and percent that the margin is from. As an example, the Australia 200 CFD has a fixed spread of 1 point with margins from 0.50 percent and the market open 24 hours with breaks. Pricing for shares displays the spread, commission, and margin. For FTSE 100 Shares, for example, the spread is the market with a commission of 0.1 percent at a minimum of 10 Euro and margins from 4 percent.

Commodities display spread pricing, typical spread, and the percentage margins are from. For US Natural Gas, for example, the spread pricing is variable around the market spread with a typical spread of 18 and margin from 3 percent. The same information is available for each metal, with the example of copper being variable around the market spread with a spread of 40 and margin of 1 percent.

Forex.com Rollover Rates

When you hold positions overnight, it is important to consider rollover rates, as they can impact the bottom line. Forex.com’s roll rates are among the most competitive in the industry. This lets the broker maintain rollover costs that are as low as possible when paying on the rollover, which maximizes the credit when earning on the rollover.

From the standpoint of the trader, this means that you can get the most competitive rollover rates within the industry. Additionally, you will always be aware of how much you will pay and earn since the rollover rates are clearly labeled on the platform. To see a rollover rate from the advanced desktop platform, just click on the “i” icon for the particular market.

Forex.com Active Traders

The Forex.com Active Trader program is designed for currency traders who trade high volumes. These traders receive reduced trading costs by as much as 15 percent thanks to cash rebates. Those rebates are as much as $10 for each million traded. These traders also receive reimbursement on the bank fees from wire transfers. They also get one-on-one support from a Market Strategist with experience. To round it all out, Active Traders get VIP access, including previews of products and invitations to exclusive events. Qualifying for the Active Trader program occurs automatically upon opening an account with at least $25,000 or trading a volume of $25 million in a single calendar month.

The cash rebates are divided into five levels depending on the monthly trade volume, with rebates per million ranging from $3 to $10, leading to the average savings of 4 percent to 15 percent. Cash rebates get credited to the account when the following month starts.

Forex.com Trading Tools

Forex.com offers a range of complex and simple order types with top reliability and execution. There is also professional charting using the Forex.com customizable indicators and drawing tools. You can even trade directly from the charts. The platform integrates analysis, trade ideas, and news, so you can enjoy actionable insights.

The Forex.com proprietary platform includes integration with advanced analysis tools, including automated analysis from Recognia, Faraday, and Autochartist.

The use of Autochartist automated scanning tools includes a curated list of the trading opportunities that have the highest chance of success, a feed of current patterns in your traded markets as well as predictions, and volatility analysis.

Recognia Technical Analysis is visible via a portal, displaying short-term trade ideas that include resistance and support levels, pivot points, the reasoning for the trade, and alternatives if something changes.

Charting Tools

Charting Tools

The Faraday Research tools look at forex markets to send you short-term trading opportunities. This includes daily emails with specific exit and entry points as well as the reasoning for a trade, an integrated portal on the Forex.com desktop platform, and real-time push notifications on the app.

If you wish, qualifying customers can also work with a one-on-one highly trained market strategist. Together, you will create a trading plan to meet your needs. These market strategists give you personalized demonstrations of the various advanced trading and charting tools, as well as teach you how to use fundamental and technical analysis, so you can make an informed decision. With ongoing support, they help you improve your trading performance. Forex.com also offers market analysis via its website, so you can see the latest relevant news and how it will affect the market as well as analysis of specific markets.

Market Analysis

Forex.com has a section of its website for market analysis, which includes several subsections. The main page is for the latest research, which will show you top stories, news, and analysis related to trading. There is also an economic calendar in this section, with the ability to filter out events based on various factors. The calendar displays each event; its time; the country/currency affected; and the values for actual, consensus, and previous, as well as whether it is high, medium, or low.

Economic Calendar

Economic Calendar

You also will find live trading sessions in the market analysis section. These include 30-minute webinars led by the Forex.com global analysts. They include real-time insights, market commentary, actionable trade ideas, and live Q&A sessions. These are quite simple to join, as you just fill out the registration form on the relevant page of the website.

API Trading

To remain competitive, Forex.com offers API trading via its REST API. This API delivers access to live streaming prices, as well as advanced order types and trade execution. It also allows for access to more than 180 of the markets that are most traded in the world. The REST API includes full developer resources and access to the full range of currencies, commodities, Bitcoin, and shares. Use algorithms and trading systems to execute trades as well as orders.

The REST API includes automated trading strategies, so you can execute trades as well as a range of orders with live streaming prices using your trading systems or own algorithms. It also allows for integrated account management, including viewing your account balance, active current orders, the available margin, the open positions, and even your historical trades, all in real-time. The API additionally includes charting and analysis thanks to historical market data.

API Trading

API Trading

To round out all the features, the Forex.com API is highly compatible. You can code against the API via any programming language that is network accessible, such as VB.NET, C++, Python, and Perl-script.

To use the Forex.com API, open a Forex.com account and contact the customer service team to request access to the API. From there, you can directly connect to the REST API for developing, testing, and automating trading strategies. There is also plenty of support for the API, including a documentation portal with support tools and sample code, plus an API Member Support Forum.

Alternatively, Forex.com also has a FIX API that is designed for institutions that want their customers to have access to the Forex.com liquidity and markets.

Introducing Brokers Program

As with many competitors, Forex.com offers an introducing brokers program. Those who introduce qualified customers to the broker will earn money as those new customers trade. There are several compensation models to choose from, each of which is generous. There is also a simple-to-use partner portal that makes tracking your growth intuitive.

Education Resources

Forex.com offers a vast section of educational resources for traders of all skill levels. On the education resources page, you can find a quiz that helps you determine the type of trader you are. Based on that information, you can view topics that are relevant to you. Alternatively, you can click on your experience level, either beginner, intermediate, or advanced. This will take you to specific educational resources based on your experience level.

Yet another choice is to browse the educational resources by trading topics. These include managing risk, trading concepts and strategies, technical and fundamental analysis, and platform tutorials for Forex.com and MetaTrader. Each of those topics has dozens of individual articles to help traders understand the concepts involved, such as “Introduction to Order Types” and “13 Characteristics of a Successful Trader.”

Forex.com Customer Support

Forex.com offers multiple methods of contacting its customer support team. There is the choice to chat with customer support at the top of any page on the website. You can also find customer support email addresses and phone numbers, both for client support and account opening.

What Is the New Forex.com?

In mid-September 2018, Forex.com updated its service to add new markets, new powerful platforms, and other updates. This led to the addition of cryptocurrencies and shares. With those updates, Forex.com added the active trader program and expanded the market offerings. It added the advanced desktop trading platform, as well as the mobile apps for improved reliability and speed. Those who opened an account before July 13, 2018, had their accounts automatically transferred over to the improved service. Forex.com offers more information on the updates to the platform and offerings in its support section.

Competitors

Forex.com is in competition with our similar brokers which have covered before, as follows:

Forex.com Licenses & Regulations

The Cayman Islands Monetary Authority (CIMA) regulates Forex.com under the Cayman Islands’ Securities Investment Business Law. Via Forex.com affiliates, the company is also regulated in six additional jurisdictions around the world. The other regulators of Forex.com affiliates include the Financial Conduct Authority (FCA) in the UK, the Financial Services Authority (FSA) in Japan, the Commodity Futures Trading Commission (CFTC) in the U.S., Australian Services and Investments Commission (ASIC), and Investment Industry Regulatory Organization of Canada (IIROC) in Canada. The Forex.com affiliate is also a member of the National Futures Association (NFA) within the U.S.

Regulations

Regulations

Is Forex.com Safe?

Forex.com follows the high standards that are required by the various organizations that regulate and license the broker. Additionally, the broker keeps customer deposit separate from operating funds. For further protection, these funds are distributed across the broker’s global network made up of custodian banks. All money is held in top-tier banks. There are trust letters in place that ensure the client funds always remain segregated from bank assets. The company also enforces robust bank monitoring and review guidelines set by GAIN Capital Holdings Inc.’s Risk Committee. To round it all up, Forex.com never engages in proprietary trading.

Conclusion

Forex.com is one of the leaders in the world of forex trading. In addition to currencies, Forex.com offers trading for popular commodities, cryptocurrencies, and indices.

Forex.com is regulated in multiple jurisdictions to provide clients with peace of mind with their funds. For further peace of mind, Forex.com is a subsidiary of GAIN Capital, a large multinational company with a strong reputation which is listed on the New York Stock Exchange.

The broker offers its own proprietary trading platform for mobile and web trading which is well designed and has a myriad of options. It also has the option of using MetaTrader 4.

The site features a wealth of educational content, trading tools and other information to help get you up to speed an provide everything you need to make your trades.

As with any broker of this type, it’s not for beginners as the risk of losing money quickly is very real. We recommend testing out the free demo account and reading all the material on the site before trading with real money.

Visit Forex.com

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Forex.com

Ease of Use

7.0/10

Reputation

9.0/10

Fees

8.0/10

Customer Support

8.0/10

Payment Methods

9.0/10

Pros

  • Global Market Leader
  • Regulated Broker
  • New York Stock Exchange Listed
  • Tight Spreads
  • Good Trading Platform

Cons

  • No Automated Trading
  • Not for Beginners

12,878

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Neteller Launches Cryptocurrency Exchange Service

Neteller Launches Cryptocurrency Exchange Service

Neteller  one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller  | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill)  announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think

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The basics of trading that one should know

The basics of trading that one should know

Things you should be aware of before you start

The currency trading industry and now also the cryptocurrency trading industry have gone through enormous volatile times the last couple of years. Now with trump and its trade wars. The fast rise and somewhat recline of the cryptocurrencies and the fast pace of international politics and economies that create high rises and steep fall of the currencies.

So what does it all mean and what can you do before start to trade on these news headlines.

Good brokers like LegacyFX and UBCFX provide the traders with the latest market news and updates on a continuous basis but if you are new to trading you still have no idea what to do with this.

You start by understanding that the involves a high degree of risk, including the risk of losing you hard earned money. Besides the ones that were lucky enough to have bought Bitcoin a couple of years back and cashed in in the end of 2017, most people don’t get rich overnight.

You have to understand that you only trade with money that you are able to lose, going hungry because you want to open a trade is not the right wy to go about it.

So, What is Forex?

You should by now understand that the value of currencies goes up and down every day.

This in general becomes apparent the moment you go on vacation and what you bought last year with your money now is not the same amount you get today at the exchange.

This is on a large scale, what a lot of people do not know is that there is a foreign exchange market – or ‘Forex’ for short – or “FX” for even shorter, where you can potentially make a profit from the movement of these currencies.

The most known Trader is George Soros who made a billion dollars in a day by trading currencies. This is of course on a scale that we are not able to reach and you need a huge amount of money to begin with. Still he made a billion in one day!!

The internet has played a huge part in making trading in currencies accessible for the masses. You also do not need huge amounts of money to actually do this. Now keep in mind that if you make 10% profit on your investment but the investment was just $50 you basically just end up with $55. still no bank will give you 10% interest on your money.

Many people and I am talking millions are now trading every day, most do this on the side and don’t do this as a full-time job, but there are today enough people that are full time traders and making enough money to live comfortably.

Retail forex market needed Brokers

The Forex market for the retail market was born, it started around 15 years ago to become more serious as technologies advanced and the stream of information became almost instant, this is important for trading as one second can make the difference between profit or loss.

So, the moment the technology was there the people that wanted to trade were there all that was needed were the Forex brokers that offered the platform for trading.

There are latterly hundreds of companies of not thousands that offer this service and there are good ones like LegacyFX and there are scams (these tend to not last long)

Forex explained in short

The Forex market is the largest financial market on the planet and has been for many years now.

Its average daily trading volume is more than $4 trillion. (just let that number sink in for a second). Of this total amount around 5% is the retail market meaning traders like you and me. Still 5% of 4 Trillion is still a number with a lot of zeros behind it.

If you compare that with the New York Stock Exchange, which only has an average daily trading volume of $55 billion. You truly see the size.

To give you another example:

if you were to put ALL of the world’s equity and futures markets together, their combined trading volume would still only equal a 25% of the daily Forex market. Insane right?

Why does this even matter?

It matters because there are so many buyers and sellers that transaction prices are kept low. To explain how trading the Forex market is different than trading stocks, here are a few major benefits.

  1. Most Brokers don’t charge commissions – you pay only the bid/ask spreads.
  2. There’s 24hour trading – you decide when to trade and how to trade.
  3. You can focus on your currencies and become experts in only those pairs that you follow instead of following and selecting out of 5000 stocks
  4. You can trade on leverage, (something to be very aware of as it can magnify potential gains but also your losses).
  5. Forex is accessible for almost everyone– you don’t need a lot of money to get started
  6. In the Forex market you can trade on Demo accounts to learn before you commit your money

How is Forex traded?

The mechanics of a trade are virtually identical to those in other markets. The only difference is that you’re buying one currency and selling another at the same time.

This is also the reason as to why the currencies are quoted in pairs, like EUR/USD or USD/GBP.

The exchange rate represents the purchase price between the two currencies.

Example:

The EUR/GBP rate represents the number of GBP one EUR can buy (relevant now with all the Brexit issues going on) . If you think the Euro will increase in value against the British Pound, you buy Euros with British Pounds. If the exchange rate rises, you sell the Euros back, and you cash in your profit.

Now the same works for strading Bitcoin, ethereum, Litecoin or other cryptocurrencies. this has become an entire new market and has introduced many people to Forex . you should here be also aware that trading cryptocurrencies is like regular trading so you will be able to lose great sums of money.

the Best thing i found about trading cryptocurrencies is that the Leverage by default tends to be very low which makes the risk of losing it all much smaller.

Sounds simply enough?

Why does not everyone Trade.

The same could be asked as to why not everyone plays poker, you can make money. The comparison between the 2 is actually closer than you might think.

All traders that are successful will tell you that 80% of successful trading is psychology and the other 20% is research. It takes time to get the research down, but it can take a lifetime to master the psychology.

People tend to do things differently when real money is on the line and are accepting losses in the hope that the trend will reverse or taking out profit too early because they don’t want to lose what they just have gained. In short, the psychology is the hard part.

One should be aware that you can loose real money and a lot of it very fast if you don’t know what you are doing.

Now most Good Forex brokers offer some educational tools, some more than others that will teach you how to trade. There is also something that is called social trading that will allow you to follow other traders and see what they are doing in order for you to learn and make money at the same time.

So here are some ground rules for those that look to start trading

  1. Get involved in the market, watch read and listen to the news to understand what is happening
  2. Go through a trading course ( a good one is here)
  3. Open a demo account and trade at least a month (my advice to do this even longer)only on this before you even think about trading with real money.
  4. Check out social trading, there are some options for this, this broker offers this also.
  5. Try with an amount that you are able to afford losing. See this as your tuition money.
  6. Take it slow, don’t become greedy and follow the basic rules

Basic Rules (there are many more but start with these)

  1. The trend is your friend
  2. Don’t add money to a losing position
  3. Don’t trade on too many different currency pairs
  4. Trade only with a good broker
  5. Don’t open to many positions (no one needs 100 positions a day)
  6. Develop your strategy and stick to it.
  7. Know that NO ONE is 100% of the times right, everyone loses some.
  8. Last but not least, don’t trade with money you cannot afford to lose.

Now all that I want to say is good luck.  😊

 

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Wanted Cryptography Experts in China

 Wanted Cryptography Experts in China

The sooner we get to the official launch of China Digital Money. the more Cryptography Experts are needed.

it almost is surreal as they pushed against this from the beginning but now S China digital money may soon be a reality.

The Bank of China (PBOC) is hiring cryptography experts by the masses as reported by the South China Morning Post (SCMP)

this is the latest in the Chinese efforts to have a state controlled cryptocurrency for its own means.

The institution is one which worries a lot about the effect of investor activity in the cryptocurrency market. this in great contrasted to the directive issues in 2014 by the PBOC  that Bans any activity related to the cryptocurrency market.

Yet the Central bank of china started to build their own work force for building and developing their crypto in 2017.

something like if you can beat them , copy them.

in 2017 the Yicai Global reported that this targeted workforce would work from central Beijing as was to be names the  digital currency research institute

This research institute would primarily focus on the latest in digital currency technologies and all the different applications that would benefit from cryptocurrencies.

the former deputy director of the PBOC’s science department, Mr Yao Qiann would be in charge of the overall project

since then they are expending with opening a new research institute expanded in Nanjing . the idea for this center is to create more interest n the technologies and its possible applications.

the pilot programs are to be implemented by state controlled banks and academic institutions which should result in blockchain hubs that would attract new developing talent and additional capital to further develop the cryptocurrencies.

“Beijing’s ideal digital currency must ensure the smooth running of monetary and financial stability policies and at the same time protect consumers.”

Apparently, the ultimate goal for the Digital Currency Research Institute (DCRI) was to clear the path for a national cryptocurrency. Reports indicate that the fintech hubs will serve a purpose higher than initially believed. Reportedly, the hubs will serve as testing ground for China digital money. Here, the currency will undergo tests from prototype phase to future mass production.

and thus we get to the point that they are looking aggressively for new talent in the cryptographers and computer scientists sectors. now that more and more student have said good bey to the united states in the last couple of months after feeling they were less welcome this drive for finding new employment has only intensified and is answered by the large amount of brilliant young people coming back to live in chine after their education abroad.

The salaries are even higher then what they would have earned if they would stayed in the US and gone of to work in some of the companies in the Silicon Valley.

So we could expect that China is now also looking to become a world player in this industry as they have become the leaders in so many other fields.

 

 

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