It is crucial to learn how to use the features of a forex platform before you start trading on it. Fortunately, traders can test out each platform using a demo account, which means no real money is at risk. Here, we’ll discuss the importance of demo trading and let you know what you should look…
It is crucial to learn how to use the features of a forex platform before you start trading on it. Fortunately, traders can test out each platform using a demo account, which means no real money is at risk. Here, we’ll discuss the importance of demo trading and let you know what you should look for when trying different platforms.
Table of Contents
Every platform is different, so even experienced traders need to learn how they work before trading with real money.
It is generally a good idea to place at least 50 demo trades to figure out how crucial features like stop orders work.
Forex demo accounts can also help traders to learn how good platforms are at recording transactions for tax purposes.
Demo trading is not the real thing, but it can help traders prepare for using live accounts.
Each Platform Is Different
Many brokers offer several platforms. MetaTrader 4 and 5, also called MT4 and MT5, are both popular. Furthermore, most brokers provide additional platforms. However, these additional options may be proprietary to the broker. That means that the platform may not be available from other brokers.
While each platform may function and look slightly different, most provide roughly the same features. These features include forex quotes/prices, charts, technical analysis tools, news feeds, trade history, drawing tools, and functionality for buying and selling currencies.
Some platforms have more features than others. For example, some of them have integrated fundamental analysis tools. That may be important for a long-term investor, but it doesn’t matter for a short-term trader.
The image below is a snapshot of the MT4 platform.
Along the top of the platform, shortcuts go to various tools and settings. Below these shortcuts, there is a charting window to see the price history of a currency pair or other asset. The terminal is beneath the charting window. There are multiple tabs in the terminal, providing access to news, account history, and current trades. Not every platform is set up this way, but most offer the same features arranged differently.
It’s a good idea to place at least 50 demo trades on a platform before trading money to master the specifics of order entry. A trader should never trade live unless he or she can confidently answer all of the following questions:
Can I set a limit and a stop at the time of entry?
Are the spreads on the platform fixed or variable? And what is the typical spread?
What is the lot size that I can trade (100 units, 1,000 units, 10,000 units, 100,000 units)?
Can I mix and match the lot sizes?
Do I have another way to trade if my primary Internet connection goes down?
Some platforms use pop-up order windows, while others allow you to trade by clicking prices directly on a chart. Typically, you can click on the offer part of the quote (the ask) to buy a currency pair. When you want to sell, you usually click on the bid part. Some platforms allow you to choose a market order or limit order after the quote window pops up. However, others force you to make your selection beforehand.
Here is a sample order screen in MT4. Suppose that you want to bring up a detailed order screen like this one. On most trading platforms, you can right-click on a chart or quote and select a new order or new trade.
On the left is a very short-term chart of the currency pair for the trade. This currency pair is also listed at the top of the trade box. Next, input the volume you want to trade. Enter a stop-loss and take profit level for the trade. The trade type can be a market order or a pending order. If you want to buy/sell at the current price, choose the market as the type. If you want to buy or sell at a different price, choose pending.
With a pending order, there are more options, as you need to input the price you want to buy or sell at. You may also choose to put an expiry on the order. Once everything is filled out, place the order.
Learning how to set up a stop-loss order on a platform is vital for most forex traders. That is the surest way for heavily leveraged traders to prevent large losses when exchange rates suddenly move in the wrong direction.
One function that most new forex traders overlook is tax reporting. Because forex is a global market, dealers as a general rule do not provide any documentation to the tax authorities in the trader’s country of residence. Tax reporting is solely the responsibility of the trader. Brokers produce detailed transaction histories from which the trader must then compile their tax reports. Such an arrangement calls for a trading platform with highly organized and flexible reporting functions.
However, reporting quality varies greatly from dealer to dealer. All dealers will provide you with a full transaction report. How those transactions are laid out could mean the difference between spending hours or minutes creating a final report for your accountant. Some forex traders generate thousands of trades in a year. A platform that records all those trades in an easy-to-understand income statement is invaluable.
Tax treatment of currency trading is very much dependent on the individual’s tax status. Most dealers will not advise you regarding tax matters, nor should you take their advice if they do. Most of them lack the particular expertise to deal with the multitude of tax authorities around the world. You should always consult with a tax professional before choosing a course of action.
As a general rule, more intuitive platforms with more organized reporting of your trade history are better for taxes. After having done some demo trading, look through the trade history and account statements. Look at how easy it would be to see your profits and losses for the year. Examining the record of your profits and losses can also help to improve your trading skills.
Trade Like It Is Real
Once you have mastered the basic functionality of a trading platform, use the demo platform to experiment with various strategies. Are you a short-term momentum trader who likes high leverage and tries to capture 10 to 20 pip moves? Or do you prefer using less leverage and holding longer-term positions that could potentially yield hundreds of pips? Demo trading can help you discover what type of trading suits you best.
Demo trading is not the real thing, but it does help prepare you for actual trading. Many people are perfectly calm after sustaining a big loss in a demo account. However, some of them become completely unhinged over even a small loss in a real account. To make demo trading as productive as possible, you need to trade the demo account as if the money were real.
Easing into real trading is often the best way to start. Some forex brokers, such as OANDA, allow you to open an account with as little as one U.S. dollar. When you start trading with even a few hundred dollars, the experience becomes real. Trading small amounts is the natural extension of demo trading.
The Bottom Line
Even after you decide to trade live, demo trading can be very valuable. Many successful traders will test strategies in a practice account before they try them out with real money. Demo trading does not guarantee profits in a live account. However, many traders agree that failure to achieve success in a demo account will almost certainly lead to failure in real life. That is why demo trading is vital to the growth and development of forex traders.
EOS is a cryptocurrency that was introduced in 2017 and is based on blockchain and smart contracts. Its key features are scalability, decentralized apps, and huge throughput (a few million transaction per second).
This is another step towards developing our crypto portfolio.
Our clients do value the flexibility and state of the art technologies we offer them As for us, our mission is meeting their expectations and constantly improving the trading conditions by opening the door to new instruments and opportunities.
says Denis Golomedov, ;Marketing Director at RoboForex.
Roboforex and Cryptocurrency
This Broker has been on the forefront of crypto trading on the Metatrader 4 and Metatrader trading platforms from the beginning and pushing for more and more trad-able assets to be added to their offering .
it took this broker a little bit of time but now that they got them selves into the cryptocurrency trading arena they come to lead the pack. this in combination with their the trading platforms they are offering makes this a broker to take notice of.
as yet there are not enough brokers that offer metatrader 5 and especially one where you are able to trade bitcoin ethereum, litecoin and now also EOS.
RoboForex is a brokerage company catering to clients from various countries. The broker’s focus is providing the traders with access to its own financial market platforms.
RoboForex Ltd is a licensed company (License No. IFSC/60/271/TS/17).
Indicted: Local bitcoin Trader Jailed for Money Laundering
Local Bitcoin trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the LocalBitcoins.com trader has been sentenced to 12 months in prison.
She has also been handed a three-year supervised release and a $20,000 fine. A former real estate investor and stockbroker, the court ordered her to relinquish $292,264.00 in cash, 25 assorted gold bars, and 40 bitcoin.
money launderingTetley pled guilty to one count of operating an unlicensed money exchange business, and another related to money laundering. Her case is the first of its kind in the Central District of California.
Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury.
The agency is responsible for analyzing transactions to curb money laundering and related financial crimes. She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business.
Tetley is said to have traded over $6 million for clients within the United States and charged higher rates as compared to other traders within the LocalBitcoins platform.
Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web.
She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.
According to the report, Tetley’s service was responsible for fueling the growing use of cryptocurrencies to launder money and supported a black market system set up purposely to circumvent the law.
The organizations involved in her investigation included the IRS Criminal Investigation and the Drug Enforcement Administration.
Just One of Many
That said, the government has been committing significant resources to counter the crypto – dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network. Thirty-five suspects were arrested.
One individual, identified as John Edward Monette, was charged with Conspiracy to Distribute a Controlled Substance. He was also alleged to have carried out numerous bitcoin for cash exchange transactions on the dark web, most of them in 2017 and totaling about $19,000.
Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme.
He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.
Blockchain tech – so revolutionary in nature that some are calling it the “new internet.” It has applications in just about every industry, and has completely altered the way we think about internet security, the processing of information, and the speed of transactions.
Blockchain is the technology that supports the digital currency or cryptocurrency called Bitcoin –
however this is not what it is really about as it has a far wider scope of applications and is being commercialized in a growing number of areas.
It has generated much interest in technology circles and beyond, because of the new possibilities it opens up in financial services, the public sector and other areas.
According to sites like BitFortune.net, blockchain tech is definitely worth keeping an eye on due to the myriad of benefits it provides.
Blockchain and Bitcoin are not the same thing – Bitcoin is implemented using blockchain technology, but blockchain technology can be used in contexts much wider than Bitcoin or other cryptocurrencies. so when we are talking about the blockchain we are talking about a combination of a number of technologies, these including:
The blockchain data structure.
Public key cryptography.
Part of what makes it so exciting is that it is completely open source. As a result, there are already a number of interesting blockchain apps, and the number is growing daily.
The technology is so secure that it is already being used by DARPA to secure military data. Various governments around the world are working on ways to use the tech to protect their own data.
The tech is tamper-proof, and the data stored within it is permanent. It cannot be erased or altered, and this is what makes it so enticing to those needing more secure networks.
But there is more, folks. (Okay, so that sounds a bit like an infomercial, but the benefits are real nonetheless.) Transactions can speed across the network – taking only as much time as it takes for them to be authorized.
The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.
The system runs without the need for an intermediary, and this reduces the time it takes to execute transactions. This, and the unique way that the tech works, means that costs are significantly reduced as well.
What makes it so revolutionary is that the information is spread across every computer within the network. With Bitcoin, that means the data is securely “backed up” over thousands of computers.
Now, it is unlikely that banks will entrust their data to a public network in the same way, but they have been working on creating networks of their own instead.
The potential savings in terms of cost and time are extensive. If you want to learn more about these savings, check out the infographic below.
Why You Need to Get Onboard With Blockchain!
Why You Need to Get Onboard With Blockchain!
Visit bitfortune.net . for more interesting Infographics