Connect with us

Broker news

How to choose your Forex Broker

which broker do you choose

As if there wasn’t already enough to learn when trading forex, the forex broker you choose is actually the biggest trade you’ll ever make. You’re giving all your trading capital to that company, with the expectation that you’ll be able to trade with it and withdraw it when it’s time to take your profits.

You may have great forex strategies, but if your broker runs off with your money, all your hard work and research was for nothing. Follow these five in-depth tips on how to find a great forex broker, so you end up with the right broker that meets your needs, without exposing you to any scams.

Before looking at brokers, assess your own needs. Here are some things to consider:

  1. Are you going to day trade a lot or a little?
  2. Trade very small moves, or capture bigger moves?
  3. If you day trade a whole lot and catch small moves, consider an ECN broker. You’ll pay a commission on trades but the spreads are much tighter, which matters when trading small moves. Search only for “ECN Forex Brokers.”

If you don’t think you’ll need an ECN broker, then you still have a big pool of potential brokers left like Galore pro.

If you’re going to do “scalp” trading, you will need an ECN broker.

How much capital do you have? With a small amount of capital, you have to trade micro-lots. If you have over $5,000 you can start day trading mini lots. Don’t open a standard lot account unless you have at least $50,000.

Choose a broker and account type (lot size) that matches your capital.

When it comes to depositing and withdrawing funds from your account, different brokers offer various methods. Select a broker that aligns together with your needs

What the Broker Should Offer

Now that you know what you want, and have hopefully narrowed the list of potential brokers, look for the following in the agents you’re still considering.

No “dealing desk.” If you’re a day trader you want to be interacting directly with the market, and not sending your order to a trading table which then initiates it in the market. That takes too much time, and often results in “re-quotes.” This is when the price has changed since you placed your purchase, and the broker asks you if you wish to proceed. Because of the time delay, your trade opportunity is likely gone.

Make sure your broker is regulated in a country with a well established financial system. A brokerage regulated in Cyprus, for example, is better than no regulation, but you could still have problems. Pick brokers regulated by U.S., U.K., Canadian, Japanese, New Zealand or Australian authorities, as examples.

You’re a day investor, so demand competitive spreads. For example, if day trading the EUR/USD during a major session expects the spread to be close to one pip (point in percentage) with a non-ECN accounts. Two pips are too high; eliminate that broker as an option. With an ECN account, the spread should be half a pip or less during major sessions.

Look for a broker that’s available when you need them. Open a demo accounts with agents you are interested in, then send them lots of emails with questions. Monitor how fast and how thoroughly they respond. If the customer service isn’t good, get rid of that broker from the set of your potentials.

Be Wary of “Losing Trader” Reviews

Part of your research in choosing a broker should be looking at written reviews of the broker as well as discussion forums.

Be wary of these though. Unless the information comes from a credible source, and most forums are not credible sources, you’re likely to find fake evaluations, both positive and negative.

Most day traders will lose money, and since most investors can’t admit that to themselves, they blame others when it happens to them. Just because someone complains about losing money doesn’t make the broker they were using bad, even though the writer may blame the broker.

Look up what people are saying, but maintain objectivity. Lots of false information gets published with no credible reference.

Personally Test out the Broker

Your list of potential brokers ought to be smaller now. But with therefore much false info out there, don’t make a decision yet. Instead, test out the brokers you are most interested in.

First, open up a demo account and take note of the trading conditions. Your orders should execute instantly. Spreads should be tight and the platform stable, not crashing all the time.
If the demo works well for several weeks, then open a live account, with a fraction of the capital you intend to deposit. For example, if you have $10,000 to deposit, start by only putting in $1,000.
Trade the live accounts with your partial deposit for at least two weeks. During this period, continue to test customer support, asking them queries and assessing how quickly they react.
Initiate a withdrawal for some of the funds in your account. Depending on your withdrawal method, this may cost you several dollars, but it’s worth it to know whether withdrawals can be done easily.
If everything seems good after all this, you’ve done your due diligence. Deposit the rest of your capital and begin trading as usual.

Continue Reading
Advertisement

Broker news

Vanguard Overtakes PIMCO in Bond ETF World

Vanguard Overtakes PIMCO in Bond ETF World

After leading the bond market for the past several years, PIMCO finally lost its position as the world’s largest bond mutual fund provider to Vanguard. This is primarily thanks to the departure of Bill Gross last year that led to massive outflows from PIMCO funds.

According to the reports, investors shed $5.6 billion from the PIMCO Total Return ETF (NYSEARCA:BOND) in April, following $7.3 billion in March and $8.6 billion in February. The withdrawals pulled down the total AUM to $110.4 billion at the end of April. This is much below the Vanguard Total Bond Market ETF (NYSEARCA:BND), which had total AUM of $117.3 billion as of April 30. In fact, the ultra-popular PIMCO Total Return ETF now has just nearly $2.7 billion in AUM.

Beyond PIMCO’s downfall, the success of Vanguard could be traced to its low-cost products and commission-free trades. The expense ratio of Vanguard products is 76% less than the industry average. Further, the growing appeal of the passively managed fund that tracks the indices or other benchmarks has helped Vanguard to become the largest mutual bond fund provider in the world. Earlier in the year, Vanguard overtook Boston-based State Street Global Advisors to become the second-largest ETF sponsor.

That being said, we have taken a closer look at some of Vanguard’s largest bond funds for investors seeking to take advantage of the index-based strategy. Investors should note that about one-fourth of Vanguard’s total asset base came from the ultra-popular Vanguard Total Bond Market ETF, followed by $15.9 billion in the Vanguard Short-Term Bond ETF(NYSEARCA:BSV) and $9.9 billion in the Vanguard Short-Term Corporate Bond Index ETF (NASDAQ:VCSH).

BND in Focus

This fund provides exposure to various corners of the bond market by tracking the Barclays Capital U.S. Aggregate Float Adjusted Index. It holds a large basket of 7,477 securities with effective maturity of 7.80 years and average duration of 5.60 years. From a bond type look, federal debt accounts for about 47% of the portfolio, while corporates and collateralized securities account for the rest (see: all the Total Bond market ETFs here)

Continue Reading

Broker news

Plus500 Review 2020 – Is This Broker LEGIT?

To address this question I will explain two different perspectives about how safe it is to trade CFDs through Plus500. First, we will approach the matter of safety from the perspective of how safe your investment is.

Is Plus500 Safe?

To address this question I will explain two different perspectives about how safe it is to trade CFDs through Plus500.

How safe is it to trade CFDs?

First, we will approach the matter of safety from the perspective of how safe your investment is.

According to the Financial Conduct Authority (FCA), the UK’s financial regulatory body, and the European Securities and Markets Authority (ESMA),  investors who trade CFDs are exposed to a high risk, as trading CFDs involves taking very short-term positions – usually overnight – in highly volatile financial instruments.

In fact, research shows that more than 80.5% of investors who trade CFDs through Plus500 lose money when trading as the high costs associated with these transactions, the amount of leverage used, and the inherent volatility of the markets tends to evaporate their account balances.

In March 2019, ESMA decided to renew a restriction that forbids the marketing, distribution, and sale of CFD products to retail clients in Europe for a period of three months starting on May 1, 2019.

These restrictions included a limit on the degree of leverage that a client could take on various types of CFDs, the minimum required margin that would trigger a margin call, and a restriction on the incentives offered to trade CFDs.

Additionally, the institution enforced the publication of risk warnings that seek to inform investors about the potential of losing money when trading.

Therefore, before you trade CFDs with this provider, you should make sure you understand CFDs.

Furthermore, investors are also advised to invest money they can afford, as the money will be exposed to high risk, either entirely or partially.

How safe it is to trade with Plus500?

Now that we have covered the matter of how safe are CFDs, we can now move forward to review how safe Plus500 is as a trading platform.

Overall, Plus500 is considered to be a safe broker due to the fact that it is regulated by various top-tier financial authorities including the Financial Conduct Authority (FCA) in the United Kingdom (traders are protected under the Financial Services Compensation Scheme (FSCS)),the Monetary Authority of Singapore (MAS), and the Australian Securities and Investment Commission (ASIC). Plus500CY Ltd is authorized & regulated by CySEC (#250/14). You can check out our guide if you are looking for the best broker in Australia. We also ranked the best forex brokers in Australia.

Additionally, Plus500 is a publicly-traded firm listed at the London Stock Exchange (LSE) which adds a significant degree of transparency to its operations, especially when it comes to the company’s solvency and liquidity, which is crucial to protect the money it holds for its investors.

The fact that Plus500 is regulated by different institutions around the world lowers the risk of relying on this broker to make trades, as these regulatory bodies promote transparency and a certain degree of reliability to the company’s operations.

That said, a large percentage of Plus500 accounts lose money due to the inherent risks associated with CFDs and these regulators do not provide any cushion to traders who lose money when trading these financial instruments.

Finally, Plus500 has a Trustpilot score of 4.

Balance Protection Amount

Regulated by

Plus500 Entity

Regulated by the Financial Conduct Authority (FRN 509909)

Plus500UK Ltd

South Africa, New Zealand and South Africa

No balance protection

ASIC (AFSL #417727), Financial Markets Authority (FSP #486026), and FSCA (FSP #47546)

Plus500AU Pty Ltd

EU, Norway, Switzerland (EEA)

Cyprus Securities and Exchange Commission (#250/14)

Plus500CY Ltd

No balance protection

Israel Securities Authority (#515233914)

Plus500IL Ltd

No balance protection

Monetary Authority of Singapore (#CMS100648-1) and the IE Singapore (#PLUS/CBL/2018)

Plus500SG Pte Ltd

Continue Reading

Broker news

Trade Forex & Cryptocurrencies through CMSTrader.


Trade Forex & Cryptocurrencies through CMSTrader.

The first crypto currency, called Bit-Gold, was created by Nick Szabo; and it was designed and based on an encrypted algorithm that draws its value from the numbers of transactions made on the asset.

That currency was not used or traded enough so it disappeared for a while – until on 2009, Satoshi Nakamoto, a computer programmer’s pseudonym, designed a better algorithm that draws the value from the entire cryptocurrency system collectively, making it an all-around secure asset.

Meaning, to hack the new algorithm, you would need to hack every server that contains the cryptocurrency around the world, which is virtually impossible. This has made Nakamoto’s asset safer than money in the bank- he called it Bitcoin.

 

Today, there are more than some 1000 different cryptocurrencies and the block chain technology that they are based on is being implemented in almost every bank around the world!

The idea behind cryptocurrencies is to put the power back in the public hands and loosen the banks’ grip on the financial world.

This of course makes the banks less then happy and governments around the world that are aware that they loose the hold on their financial control of their citizens are trying to implement creative ways to stop them.

But, even thou they keep on spreading news to undermine this development the idea spread like wildfire and some of the currencies jumped from few cents to thousands of dollars.

As cryptos are becoming slowly more mainstream the days of making a killing in just a few weeks are pretty well gone, but for those that rode that wave made enormous amounts of money and a ridiculous return of investment.

The moment this took of the cryptocurrency News site, and cryptocurrency exchange providers were popping up as mushrooms.

It seems as if this is the future and it is already here. 

Trade Forex & Cryptocurrencies through CMSTrader.

How do we know there is not a Cryptocurrency Bubble and everything will come crashing down ?

As you read before, the bitcoin is celebrating 10 years anniversary soon; and just in the last 10 months alone, more than 680 new cryptocurrencies based on the same technology were created.

Think about this , this is a huge amount of companies, developers applications and possibilities.

Add to that the fact that China is banning all cryptocurrencies from the country to keep control in the banks hands by what the finance world is calling “the purge” before the new Chinese crypto’s birth.

Long story short, now is the time and way to take control back from the banks and make money without anyone putting his hand in your pocket.

Trade Crypto currencies

You are able to trade a number of cryptocurrencies as you were and are able to trade regular currencies like the Us Dollar or the Euro. Those forex brokers that understood that there would be an interest in trading these cryptocurrencies entered this arena with their experience and knowledge and strted to provide this cryptocurrency trading experience to their clients.

One such Broker is CMSTrader 

Trade Forex & Cryptocurrencies through CMSTrader.

 

Currency trading and learning Forex with CMSTrader

CMStrader has a full service demo account where you are able to practice and get to know their system .

we advice you to use it s it will show you everything you need to know about this broker.

the fact that they offer one of the best trading signals services in the industry is for new traders a bonus ., these signals in general are not for the demo account but you have a few signals that you can use there , this will also allow you to test these.

The Forex currency trading market is the largest financial market in the world, with trading volume up to 3.5 trillion dollars daily, covering the risks .

Trade Forex & Cryptocurrencies through CMSTrader.

With CMSTrader, all traders with low, medium and large capital can participate and learn Forex in order to become better equipped to handle this massive online market that no one can control the prices or trading of, as seen in local markets. The only way to win in the Forex market is to play it intelligently.

Simply put, this is the global market used to earn profits and take control over one’s own financial situation without a boss telling them what to do, and due to their devotion to your best interests, risks do not stand a chance.

Now I do not think it is wise to take out your pension and start trading without you knowing what you are doing , like anything else you need to educate yourself. This broker offers the tools and support to do just that. At the same time they are in the market famous for their trading signals.

These Trading signals are suggesting you when to trade, what to trade when to get in and when to get out.

Trade Forex & Cryptocurrencies through CMSTrader.

Which, believe me can be very helpful if you just enter this industry.

So, let me give you a rundown of the services they offer

Advantages of trading with CMSTrader: 

  • More than 132 currency pairs ( focus only on a few and know them well but you have here enough choice )
  • You can execute deals with a single click in real time trading. (This saves time and makes it easy)
  • Narrow points difference (fixed-variable-ICN), and competitive prices without commissions or hidden fees. (What you see is what you get, makes them trustworthy)
  • Direct contact with a room
  • The opportunity to change your fortune by earning profit 400 times the value of your account (1:400 leverage).
  • Cash flow, execution with a single click, and flow up to a maximum of $ 20 million per deal.
  • Daily news and information about the market.
  • Access to Forex education resources, get a personal assistant who helps you with learning about the industry

In short this is a broker that will guide you into the industry and if you are already trading they will help you get more out of your activity.

Trade Forex & Cryptocurrencies through CMSTrader.

Trade Crypto currencies through CMSTrader

Continue Reading

Trending