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Forex Trading in Estonia • Forex Strategies Benzinga

As a member of the European Union, forex traders in Estonia enjoy a host of protections both locally and when working with international brokers. Strong protections, a strong base currency and government-enforced regulations make Estonia an excellent base to trade forex. Our comprehensive guide to trading forex in Estonia will help you enter the market…

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As a member of the European Union, forex traders in Estonia enjoy a host of protections both locally and when working with international brokers. Strong protections, a strong base currency and government-enforced regulations make Estonia an excellent base to trade forex. Our comprehensive guide to trading forex in Estonia will help you enter the market safely. 

Get Started with Forex in Estonia

Retail forex trading careers begin by opening a brokerage account. While this might seem complicated, the truth is that you can quickly open a forex trading account online by following a few simple steps.

First, decide how you’d like to trade. You can trade forex with nearly any device that connects to the internet. Some of the most popular trading devices include:

  • Desktop computers
  • Mobile phones
  • Tablets
  • Laptops

Choose your device and make sure that you have a stable, private connection to the internet. You might want to run a speed test on your device to ensure that you won’t experience any service interruptions.

Next, it’s time to choose which broker you’d like to work with. Though there are very few locally based forex brokers operating within Estonia, there are many international brokerage firms offering services to Estonian investors. Some of the factors you may want to consider when you compare brokers include:

  • Currencies available to trade
  • International and domestic licensure status
  • Leverage availability
  • Supported trading platforms
  • Trading and account maintenance fees
  • Mobile trading availability

When you find a broker that fits your needs, open an account online using the broker’s process. You might also need to download a 3rd-party trading platform like MetaTrader 4 or 5 before you can fully open an operational account.

After your account is opened, deposit your brokerage funds. Most brokers in Estonia support a variety of deposit methods, including:

  • Direct bank transfer
  • Credit or debit card payment
  • Electronic wallet transfer

It might take a few days for your trading funds to appear in your account. Once they arrive, you can officially begin forex trading by placing your first order. 

Estonia Forex Trading Strategies

As a beginner trader in Estonia, you might want to begin your forex trading career by trading the EUR/USD currency pair. Both the USD and EUR are reserve currencies with relatively stable values. The EUR/USD pair is also a widely traded currency pair, which means that you’re very unlikely to run into liquidity issues.

Let’s take a look at 2 of the most popular trading strategies used by investors who trade the EUR/USD pair. Though these strategies aren’t guaranteed ways to earn income, they can provide you with an excellent place to begin building a strategy of your own. 

Simple Moving Average Crossover

A simple moving average takes the average closing price over a set number of days. To use the triple moving average crossover strategy, first decide on a period of time you’d like to calculate an average for — 21 is a common choice. Then, choose 2 more periods of time — 1 longer than your original period and 1 shorter than your original period. For example, a very common combination is a base period of 21 days, then subsequent periods of 13 days and 55 days.

Calculate the average closing price for each period, recalculating as a successive bar is added on each day. A buy signal is triggered when the 13-day moving average “crosses over” above the 21-day signal and the 55-day signal. The buy signal is confirmed when the 21-day signal crosses over the 55-day signal. 

Simple Moving Average Crossover

Breakout Strategy

The breakout strategy is a frequent strategy choice for new traders because there’s no complicated math involved to get started. Trade when your base currency is showing little volatility — for the EUR/USD pair, this is usually during the Tokyo trading session. Look for a period when your base currency is moving in a sideways pattern and determine an upper and lower limit for it. When a candlestick “breaks out” of these limits, a buy or sell signal is triggered. 

Breakout Strategy

Forex Trading Example in Estonia 

How exactly does forex trading work? Forex traders earn money by taking a position in a currency pair that then appreciates in value. This can be done either by buying low and then selling high or by selling high and then buying low. Let’s take a look at an example.

Imagine that you believe that the value of the United States dollar is soon going to rise in relation to the euro. You deposit 10,000 euros into your account, and your broker offers you up to 10:1 leverage. You see that 1 euro is currently equal to $1.14. Using all of your initial deposit and your maximum leverage, you exchange 100,000 euros into USD, which allows you to control a short of $114,000.

Soon, you see that the value of the U.S. dollar is rising. When 1 euro is equal to $1.12, you decide to short your lot back to your base currency. This leaves you with a total of about 101,785 euros, which means that you’ve made a profit of 1,785 euros.

Making Money with Forex in Estonia 

Trading forex is completely legal in Estonia and investors in Estonia enjoy a number of advantages over traders in other countries. Some of the benefits of Estonia’s forex system include:

  • A strong base currency: The euro is one of the world’s most prominent reserve currencies, which increases your power when trading.
  • A strong regulatory system: Forex brokers in Estonia are regulated by both the Estonian Financial Supervision Authority and the European Securities and Markets Authority that oversees all EU member states. 
  • Limitations on leverage usage: In accordance with EU regulations, brokers may only offer up to 30:1: leverage for major currency pairs. This prevents you from losing large amounts of money quickly by controlling too much currency on margin.

Though Estonia does offer a well-protected forex landscape, this doesn’t mean that you’re guaranteed to earn money when you trade. Be sure to practice using your broker’s tools and test your strategy on a demo account before you trade with real money.

Best Online Forex Brokers in Estonia

Local forex brokers in Estonia must be registered with the Estonian Financial Supervision Authority. Forex brokers in Estonia are also subject to regulations from the European Securities and Markets Authority, which controls the currency markets of countries tied to the European Union.

Though there are few local options for investors in Estonia, there are many international brokers offering services to traders residing in or traveling through the country. Below, you’ll find a list of our favorite forex brokers offering services to traders in Estonia. 

Account Minimum

$100 USD (or equivalent)

Pairs Offered

69

Account Minimum

$100 USD (or equivalent)

Pairs Offered

69

1 Minute Review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service. 

Best For
  • Investors who want a customizable fee schedule
  • Traders comfortable using the MetaTrader platform
  • Islamic traders who need swap-free accounts that don’t build interest
Pros
  • Wide range of currency pairs available
  • Excellent selection of educational tools
  • $0 deposit and withdrawal fees
Cons
  • Not currently available to traders based in the U.S.
Account Minimum

100 EURO

Pairs Offered

50+

Account Minimum

100 EURO

Pairs Offered

50+

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Account Minimum

$50 USD

Pairs Offered

47

Account Minimum

$50 USD

Pairs Offered

47

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum

100 of your selected base currency

Pairs Offered

80+

Account Minimum

100 of your selected base currency

Pairs Offered

80+

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account

Forex Terminology

When you first begin to trade forex, you’ll need to master the unique terminology that traders use to describe their investments and place their orders. Let’s take a look at a few of the most common forex trading terms you’ll hear again and again and what they mean:

  • Pip: A pip is the smallest movement in the exchange rate quote, usually calculated to the 4th decimal place.
  • Lot size: A lot size is a standardized trading amount. A standard lot is equal to 100,000 units of the currency you are trading. 
  • Orders: An order is a set of instructions that you provide to your broker that tell your broker that you’d like to buy or sell currency at a specified lot and price. Because individuals cannot directly access the forex market themselves, orders allow them to trade in foreign currencies by working through a broker. There are multiple different types of orders and you can combine order types as your trading needs change.
  • Calls: A call (or “margin call”) is a notice from your broker that requires you to deposit more trading funds into your account or close out a position. In most cases, you’ll only receive a call if you trade on leverage and your portfolio value decreases. 

Entering Estonia’s Forex Market

As a member of the European Union, Estonian investors enjoy both domestic and international regulations that control and supervise forex brokers. However, this doesn’t mean that forex scams have been completely eradicated. Before you work with any broker, ask if it’s licensed with the Estonian Financial Supervision Authority or an international equivalent. If it doesn’t have any licensure, move on.

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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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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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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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