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Forex Trading in Bermuda • Forex Strategies • Benzinga

The forex market is exceptionally accessible from Bermuda, and Bermudian traders enjoy a number of benefits when trading currencies. With a strong regulatory system and a currency pegged to the United States dollar, there’s little question why more and more forex brokers extend their services to Bermuda. If you’re curious about trading forex in Bermuda,…

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The forex market is exceptionally accessible from Bermuda, and Bermudian traders enjoy a number of benefits when trading currencies. With a strong regulatory system and a currency pegged to the United States dollar, there’s little question why more and more forex brokers extend their services to Bermuda. If you’re curious about trading forex in Bermuda, use our guide to forex trading strategies and brokers to get started. 

Get Started with Forex in Bermuda

As an investor in Bermuda, you have your choice of forex brokers, funding methods and tradable currencies. Let’s take a look at some of the basic steps you’ll go through when you open your first account to trade forex.

  • Step 1: Connect to the internet. A stable, consistent connection to the internet is a must-have when trading any asset or currency. Run a speed test on your device of choice and make sure that your connection is private before proceeding.
  • Step 2: Choose a broker and open an account. Bermuda law allows both local and internationally licensed brokers to offer services to investors located in Bermuda. All legitimate domestic brokers must be licensed by the Bermuda Monetary Authority but international brokers may still operate legally within the country with oversight by a recognized international body like the Australian Securities and Investment Commission. Be sure to ask about licensure status and oversight compliance before you open your brokerage account.
  • Step 3: Download your trading platform. Many forex brokers don’t offer their own proprietary trading platform. However, these brokers typically support popular 3rd-party platforms like MetaTrader 4 or 5. Check and see which platforms are compatible with your broker and download your software.
  • Step 4: Add trading funds. After your account has been opened, deposit funds into your new brokerage account before you begin trading. Most brokers in Bermuda support a range of transfer methods, including direct bank transfers, credit and debit card transfers and deposits from an electronic wallet.
  • Step 5: Make your first trade. It might take a few days for your transfer to be fully deposited into your account. After it clears, you can officially begin forex trading. 

Bermuda Forex Trading Strategies

Thanks to a strong base currency, there are a wide range of trading strategies that you can use to profitably trade forex in Bermuda. Most trading strategies are divided into 2 categories: fundamental analysis and technical analysis. Let’s take a look at how these strategies differ and which might be right for your needs as an investor.  

Fundamental Analysis

Fundamental analysis is a method of examining the forex market by identifying and studying underlying market forces that move the value of a currency. Some primary sources of information that a trader who uses a fundamental analysis strategy might use include:

  • GDP reports
  • Reports on unemployment rates
  • Inflation and federal interest rate data
  • Election results
  • Consumer confidence and business sentiment indexes

Traders who use fundamental analysis look at economic indicators to predict how currency values will change. 

Fundamental analysis is best used by traders who take a long-term approach to forex investing. To begin with fundamental analysis, you’ll need a consistently updated, unbiased source for international news. 

Technical Analysis

Technical analysis is a type of currency examination that looks at charting patterns, price movements and discrepancies in volume to determine how the currency’s price will move in the future. Unlike fundamental analysis, traders who use technical analysis typically don’t spend much time researching economic situations or political movements. Instead, they identify patterns and formations that have led to buy and sell signals in the past.

Traders who use technical analysis search for charting patterns that predict future currency movements. 

Traders who use technical analysis as their primary trading strategy usually hold onto their currencies for much less time than traders who use fundamental analysis. Some technical analysis strategies can be complemented with automatic trading software programs that buy or sell currencies on your platform as soon as a preset indicator is triggered.  

Forex Trading Example in Bermuda

How can you earn money trading forex? Forex traders rely on discrepancies between the value of different currencies. They sell their dollars when the Bermudian dollar is strong, and they buy back their dollars when the value falls in comparison with their converted currency. Let’s take a look at an example.

Imagine that you believe that the Bermudian dollar will soon fall in value in comparison to the Japanese yen. You fund your trading account with $10,000, and your broker offers you 10:1 leverage on your trade. $1 BMD is currently equal to ¥106.47 JPY, so converting your entire lot plus leverage leaves you with ¥10,647,000.

A few days later, you see that the value of the yen is rising. When $1 BMD is equal to ¥105.30 JPY, you decide to cash out and convert your money back to your base currency. After the order is filled in full, you’re left with about $101,111.11. This means that you’ve profited about $1,111.11 on this trade. 

Making Money with Forex in Bermuda

The Bermudian dollar is pegged to the United States dollar at a rate of 1:1. This means that $1 USD will always be equal to $1 BMD, regardless of changing economic conditions. The United States dollar is the strongest reserve currency in the world, which means that Bermudian traders own a very valuable base currency.

It’s completely legal to earn money forex trading in Bermuda. The forex market of Bermuda is well-regulated, with oversight from the Bermuda Monetary Authority. There are no limitations on the amount of money that you can deposit into your brokerage account, and you don’t need any special permissions or license to begin.

While forex trading is possible, this doesn’t mean that it’s a guaranteed source of income. Before you risk any of your money, be sure to practice your trading strategy with a demo account. You should also only work with brokers that are licensed by the Bermuda Monetary Authority or a comparable international authority. 

Best Online Forex Brokers in Bermuda

There are many reliable, safe and reputable forex brokers offering services to investors in Bermuda. You can choose to work with either a local broker or an international broker extending its services to residents and travelers in Bermuda. If you don’t already know where you’d like to open your account, consider a few of our top picks below. 

Forex Terminology

Understanding some of the most common forex terms before you enter the market will enhance your trading and help you explore more educational resources. Below, you’ll find definitions for a few terms you’ll see over and over again when you learn to trade forex.

  • Pip: A pip is the smallest calculatable unit of any currency. In most cases, a single pip is equal to 0.0001 of a currency. The only exception is the Japanese yen, which is rounded to only 2 decimal places.
  • Lot size: Your lot size is the number of units of currency you’re moving on a single transaction. For example, if you’re converting $100,000 BMD into its EUR equivalent, your lot size is equal to 100,000.
  • Orders: An order is a set of instructions that tell your broker which currency you’d like to buy or sell, your lot size and the price that the trade needs to be executed at. There are multiple types of orders and you can combine order types to limit loss and automatically take profits.
  • Calls: If you use leverage to trade and your portfolio value falls, your broker might subject you to a margin call. If you receive a margin call, you must deposit more money into your account or close out of your position. Even a single margin call can wipe out large amounts of profit, so be very careful before you trade on margin. 

Trading from Bermuda

Trading forex in Bermuda is safe and easy to begin with. However, this doesn’t mean that you’re guaranteed to earn money exchanging currencies. Taking steps to protect yourself by thoroughly researching any brokers you work with and practicing with a demo account can save you from getting involved with a forex scam. Though these scams are less present in Bermuda than they are in other countries, they still exist.  

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Broker news

Donald Trump blasts ‘fools’ who oppose good Russian ties

US President-elect Donald Trump has posted a progression of tweets censuring the individuals who contradict great relations with Russia as “‘dumb’ individuals, or nitwits”.

Mr Trump promised to work with Russia “to comprehend a portion of the numerous… squeezing issues and issues of the WORLD!”

His remarks came after an insight report said Russia’s leader had attempted to help a Trump race triumph.

Mr Trump said Democrats were to be faulted for “gross carelessness” in permitting their servers to be hacked.

In a progression of tweets on Saturday, Mr Trump said that having a decent association with Russia was “no terrible thing” and that “lone “idiotic” individuals, or simpletons, would believe that it is awful!”

He included that Russia would regard the US increasingly when he was president

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Broker news

Bulls and Bears Took on More Currency Exposure in Week Through January

he most striking improvement among theoretical situating toward the finish of a year ago and the primary session of 2017 is not that modification were little. There was just a single gross theoretical position modification of more than 10k contracts. With sterling apparently not able to maintain even humble upticks, the bears added 13.1k contracts to the gross short position, lifting it to 120.2k contracts.

Or maybe, it is eminent that examiners for the most part added to positions, long and short, as opposed to close positions at the very end of the year. Examiners added to net long outside cash prospects positions, aside from in the Japanese yen and Swiss franc where 2.6k and 2.5k contracts were exchanged separately. Examiners likewise added to gross short positions. Here there was just a single exemption, the Japanese yen. Despite the fact that the dollar shut comprehensively higher in front of the end of the week, every one of the monetary forms we track here, spare the Mexican peso, picked up against the dollar in the three sessions since the finish of the CFTC reporting period.

Every once in a while it is helpful to review why many market members take a gander at the theoretical situating in the cash fates advertise. It is not that the outside trade is essentially a prospects showcase. It is principally an over-the-counter market in which every day turnover midpoints in abundance of $5 trillion a day.

Trade exchanged monetary forms and alternatives represented around 3% of the normal day by day turnover as indicated by the BIS study. Be that as it may, past reviews have discovered some contemporaneous connection between’s market heading and net position changes. We think it additionally offers knowledge into a specific market section of pattern supporters and energy brokers. It is not by any means the only device, yet one of a few data sources.

One ramifications of this is albeit theoretical positions in the money fates market are moderately extensive, it is still little contrasted and the money showcase. Along these lines, it is difficult to see the genuine essentialness of a record vast position, as though there is some market top. At some point, examiners are not driving the costs, possibly there is another fragment, national banks, enterprises, as well as genuine cash that is more essential at any given minute.

We invest some energy taking a gander at gross positions instead of just net theoretical positions, which is the more customary approach. We think a more granular look is frequently fundamental. There is a distinction between short-covering, for instance, and new purchasing, however it appears to be identical in the net. Additionally, the gross position is the place the introduction is not the net position. A net position of zero does not mean the market is nonpartisan. Net positions could be huge, which implies a short press or a negative stun could in any case troublesome. The positions that must be balanced are captured in the gross measure not the net figure.

We find numerous customers are likewise keen on theoretical situating in the US Treasuries and oil. The net and gross short theoretical Treasury position has swelled to new records. The bears added 23.8k contracts to the as of now record net short position, lifting it to 616.2k contracts. The bulls attempted to pick a base and added about 20k contracts to the gross long position, which now remains at 471.2k contracts. These modification prompted to a 3.8k contract increment in the net short position to 344.9k contracts.

The bulls delayed in the oil prospects toward the finish of 2016. They exchanged short of what one thousand contracts, leaving 608.1k gross in length contracts. The bears added 4.1k contracts to the gross short position, giving them 168k. These conformities trimmed the net long position by very nearly 5k contracts to 440.1k.

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Broker news

3 ways to profit in the ‘year of the dollar’

In December, the Federal Reserve raised loan fees for the second time since the Great Recession and included the desire of a 2017 financing cost climb to its gauge. Furthermore, only a couple days prior, the abundantly anticipated minutes from the most recent Fed meeting demonstrated the most hawkish tone from the national bank in two years.

In the meantime, Europe has been dove into political turmoil after a year ago’s Brexit vote and the later abdication of Italy’s leader. Somewhere else, the Bank of Japan proceeds down the way of negative rates and forceful security purchasing.

Put it all together, and it isn’t astounding that the U.S. Dollar Index is up against 14-year highs.

Speculators may have missed so much discussion on account of babble about the Dow Jones Industrial Average at the end of the day almost hitting 20,000. Be that as it may, paying little respect to your assignment to stocks or your venture skyline, this sort of huge picture incline in the dollar implies right now is an ideal opportunity to position your portfolio to benefit and, maybe most critical, to keep away from a portion of the pitfalls that can originate from a solid local cash.

Here are a couple ideas dollar exchanges ought to consider:

Residential plays over multinationals

There’s a considerable measure of seek after shopper stocks in 2017 on account of an enhancing work market and any desires for a jolt under a GOP-controlled Congress and President Donald Trump. In any case, remember that not all retailers are made equivalent especially those with abroad operations that are adversely affected by the wide dissimilarity in monetary standards at this moment.

For example, retailer Wal-Mart Stores Inc.(WMT) said troublesome money trade rates shaved very nearly 2.5% off profit for each partake in the second quarter of 2016. On the other hand consider that in the monetary final quarter of 2016, athletic attire goliath Nike Inc.(NKE) saw its income development cut down the middle because of forex weights, from 12% year-over-year in consistent cash measures to only 6% including real money changes.

To take advantage of the “reflation” exchange that numerous financial specialists are counts on in 2017, you need to represent the headwinds that a solid dollar are making for multinationals at this moment. The most ideal approach to do that is to consider customer plays that do by far most of their business here in the U.S. – for example, Foot Locker Inc.(FL), which has been an uncommon splendid spot in retail throughout the most recent couple of years.

Supported money ETFs

Obviously, in the event that you need a steady portfolio, you can’t just purchase just local centered values. Geographic expansion is similarly as imperative as enhancement crosswise over parts and resource classes. Such a large number of financial specialists keep on holding worldwide plays in light of a legitimate concern for a balanced portfolio, regardless of the possibility that it implies battling a daunting struggle as a result of a solid dollar.

The uplifting news, notwithstanding, is that you don’t need to leave yourself to torment through a solid dollar and a powerless euro when you put resources into Europe. Nor do you need to stress over the yen-dollar conversion standard when you put resources into Japan. That is on account of there’s an entire group of cash supported ETFs to permit financial specialists to put their cash in outside business sectors yet keep away from forex issues.

Consider that Japan’s Nikkei 225 file is up around 25% from its July 2016 lows. The WisdomTree Japan Hedged Equity Fund(DXJ) is up 35% in a similar period on account of assurance from forex issues and a somewhat better-performing rundown of stocks – while the non-supported iShares MSCI Japan ETF(EWJ) is up only 10% in a similar period because of battling a difficult task against a solid dollar.

In the event that you need to differentiate your portfolio comprehensively, you ought to consider supported assets that incorporate the Japan-centered DXJ, the WisdomTree Europe Hedged Equity Fund(HEDJ) to play Europe or the iShares money Hedged MSCI EAFE ETF (HEFA) for developing markets.

Dollar list ETF

In the event that you are searching for an immediate play on a rising dollar as opposed to putting resources into stocks, figuring out how to exchange remote trade can appear like an overwhelming undertaking. Gratefully, there’s the PowerShares DB US Dollar Index Bullish Fund(UUP).

This ETF is attached to the U.S. Dollar Index, which is a measure of the greenback against a wicker container of other worldwide monetary standards including the yen and the euro. It’s a straight money play, however that doesn’t make it straightforward or hazard free. In the event that the dollar debilitates, you’ll lose cash similarly as though you’re putting resources into a stock that has fallen on difficult circumstances. Furthermore, obviously, PowerShares takes a little cut of your speculations en route that indicates 0.8% yearly, or $80 a year on each $10,000 contributed.

Still, in the event that you need to conjecture on the dollar or support against a solid U.S. cash keeping down other worldwide ventures on your rundown, it’s maybe the least demanding approach to do as such for generally financial specialists.

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