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Forex Trading in Grenada • Forex Strategies • Benzinga

When most people think about Grenada, the first thing that comes to mind is probably luxury beach resorts, yacht races and white sand beaches. However, forex brokers are now offering service to residents of Grenada — and it’s never been easier to open an account and start trading forex.

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When most people think about Grenada, the first thing that comes to mind is probably luxury beach resorts, yacht races and white sand beaches. However, forex brokers are now offering service to residents of Grenada — and it’s never been easier to open an account and start trading forex. 

Get Started with Forex in Grenada

No matter where you trade from, you’ll need a brokerage account to access the forex market. Here’s how you can open your first account and begin trading.

  • Step 1: Find a device connected to the internet. Almost all forex trading is now done entirely online. You can typically trade from any device with a stable internet connection, including mobile phones, desktop computers and even tablets. Run a speed test on your device of choice and be sure that your connection is private before you trade.
  • Step 2: Find a broker. There are many international forex brokers offering service in Grenada. Compare fees, currency availability and regulatory status before you decide which broker you’d like to work with.
  • Step 3: Open an account. After you choose a broker, open an account online through the broker’s process. You’ll need to provide a bit of personal information (like a scan of your ID and proof of residence) to open an account with most brokers.
  • Step 4: Fund your account. Once your account has been opened in full, deposit trading funds. The specific methods you’ll be able to use to fund your account will vary by broker, but most brokers offering service in Grenada accept direct bank transfers, deposits from an electronic wallet and debit card withdrawals.
  • Step 5: Download your trading platform. Though some brokers offer their own proprietary trading platform, many require you to use a 3rd-party platform. If you aren’t sure which platform to choose, begin by considering MetaTrader 4 or 5. The MetaTrader line of platforms is compatible with most brokers.
  • Step 6: Place your first trade. With your account fully open and operational, you can officially begin trading forex. 

Grenada Forex Trading Strategies

Grenada has a particularly strong local currency thanks to its ties to the USD. Let’s take a look at a few of the differences between these 2 market analysis types and when each is most appropriate.  

Technical Analysis

Technical analysis is a type of currency pair market analysis method that focuses on predicting currency pair price movements by analyzing chart patterns and data. Traders who use technical analysis typically focus on capitalizing on multiple price movements throughout the day or month instead of holding onto their positions for months or years. Some signals that traders using technical analysis might look for can include:

  • Reversal candlesticks that indicate that a currency pair will reverse its prevailing trend
  • Chart patterns that provide a buy or sell signal when a breakout occurs

The ascending triangle pattern is a commonly-followed chart pattern.

To get started with technical analysis, you might want to begin by practicing with a demo account. You should also have a powerful charting software with the ability to draw trendlines.   

Fundamental Analysis 

Fundamental analysis is a type of market analysis method often used by medium- and long-term traders to determine the future direction of a currency pair that attempts to examine the condition of the economy that issues the currency. The goal of fundamental analysis is to pinpoint discrepancies between a currency pair’s traded value and the relative strength of the 2 economies represented by each currency. Some primary sources of information traders using fundamental analysis might examine include:  

  • GDP reports
  • Unemployment rates
  • Consumer confidence indexes
  • Inflation rates
  • Data from political elections

A solid fundamental analysis strategy relies on a variety of primary economic sources.

To get started with fundamental analysis, you’ll need a reliable and unbiased source for international news and economic data for the countries of the currencies you intend to trade. You’ll also need to read and interpret these reports before trading.

Forex Trading Example in Grenada

Forex traders earn money by capitalizing on exchange rate movements between currencies. Currencies frequently change in value when compared to one another due to factors like inflation, gross domestic product (GDP) and unemployment rates. Let’s take a look at an example of a profitable forex trade.

Sabrina opens a forex account from Grenada and funds her account with EC$10,000. Her broker allows her to use 10:1 leverage when trading, which means that she can place trades worth up to EC$100,000 despite only having EC$10,000 in her account. Sabrina believes that the East Caribbean dollar (XCD) is soon going to fall in value in comparison to the British pound (GBP), so she decides to take a position of EC$100,000 into its equivalent in pounds.

In this example, 1 GBP is currently equal to 3.5400 XCD. This means that after her conversion is complete, Sabrina has a position of £28,248.58. Sabrina keeps her eyes on the market and sees that her research was correct. When 1 GBP is equal to 3.6400 XCD, she decides to close her position. Once complete, Sabrina has a position worth EC$102,824.85. This means that she’s seen a profit of EC$2,824.85 on this trade. 

Keep in mind that you are not guaranteed to make money when trading forex. Though earning money through forex trading is possible and legal, many novice forex traders lose money.

Making Money with Forex in Grenada

Since the Investment Promotion Act of 2009, Grenada has had a very lax set of restrictions when it comes to forex trading. You can freely exchange East Caribbean dollars among other currencies, deposit money into an international brokerage account and take profits as you see fit. Traders in Grenada are at a number of advantages when compared to investors in other countries as well. Some of these advantages include:

  • A relatively stable base currency: The East Caribbean dollar is pegged to the USD at a rate of 1 XCD to 0.37 USD. As the USD is the world’s top reserve currency, the USD’s ties to the XCD means that the XCD is comparatively more stable than other non-reserve currencies.
  • A strong internet infrastructure: A component of its rich tourism industry, Grenada has a very advanced internet infrastructure when compared to countries with a similar GDP. This makes it significantly easier to open a forex account and begin trading.
  • A strong electronic banking system: Grenada also has higher-than-average access to electronic wallet and online banking services, which makes it easier to fund your account.

Forex scams do still exist throughout the world. Be wary of any broker offering you very high leverage rates or service without clear oversight from a major regulatory body. 

Best Online Forex Brokers in Grenada

One of the most important decisions you’ll make when you decide to trade forex is which broker you work with. The broker you choose will determine which currency pairs you have access to trade, how you can withdraw your profits and what you’ll pay in fees. This means that it’s well worth the time to compare multiple brokers before you decide where you’d like to open your account.

No clue where to begin? Consider a few of our top choices below. 

Forex Terminology

Forex traders have many unique terms they use to describe currencies, place orders and discuss the market at large. Familiarize yourself with a few of the most common terms below before you trade.

Pip: A single pip movement is the smallest unit by which a currency pair’s exchange rate can change in value. In most cases, 1 pip is equal to 0.0001 of a currency pair’s exchange rate quote. For example, if the value of the USD moves from $1.0050 to $1.0051 in relation to another currency, you could say that its relative value moved by 1 pip.

Lot size: A standardized trading amount equal to 100,000 units of your base currency.

Orders: An order is a specific set of directions you provide to your broker so they can execute trades on your behalf. An order might tell your broker which currency you’d like to purchase, which currency you’d like to sell and what exchange rate the order should be executed at.

Margin calls: If you use margin to trade and the net value of your positions falls below a certain amount such that you lack enough margin money to continue to hold those positions, your broker might subject you to a margin call. If you receive a margin call, you must deposit more money into your brokerage account or immediately close out at least some of your losing positions so that you then have sufficient margin to continue to hold the remaining positions. 

Accessing the Forex Market

With easy internet access and a national currency attached to the world’s top reserve currency, forex trading in Grenada is possible. However, this doesn’t mean that trading in Grenada comes without risk. Always practice your trading strategy using a demo account, research brokers before opening an account and know your margin rates before you put any real money at risk of loss. Doing your due diligence will help you avoid forex scams.

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ECB Minutes show no indication of exit discussion – MUFG

Derek Halpenny, European Head of GMR at MUFG, suggests that the release of the minutes from the September ECB policy meeting were pretty clear with the focus still very much on ensuring continued monetary stimulus.

Key Quotes

“The minutes stated that “there should be no doubt” that the Governing Council is determined to execute asset purchases and also emphasised that it would adopt further measures as required to reach its price stability goal. The minutes also showed that the Governing Council felt it was “crucial” to maintain the high level of monetary accommodation.

Add to that, we had comments yesterday from key ECB Council members to emphasise the maintenance of the current stance. Executive Board member Praet stated that recovery would stall if stimulus was removed prematurely while Constancio was more direct stating that the report on the ECB nearing a taper consensus was simply not correct.

So the stance of the ECB is unlikely to change and we maintain that the ECB will extend QE in December at the current pace with alterations recommended by staff committees allowing for an extension. While that in itself might not drive the euro weaker, it certainly limits the upside as we move toward that key meeting in December.”

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Daily Financial News

Is Your Portfolio’s Performance Satisfactory? (WMT, VOO, BOND)

What’s your investment portfolio’s performance? Do you know? Just 57% of U.S. adults are “financially literate,” according to a study from Standard & Poor’s titled the “2015 Global Financial Literacy Survey.” Another study by a large insurance company found that people are more frightened by planning their finances than dying.  What’s wrong?

Part of the problem is structural: Fewer than half of all U.S. states require high school students to enroll in a personal finance course.

(Audio) Portfolio Report Card on a $4 Million Account for T.R.

The other problem is psychological: People are fearful when it comes to saving and investing money.

Once a person has overcome these obstacles and gotten started with their investment plan, how can they know if their investment portfolio is making progress?

The Case for Benchmarking
The concept of “benchmarking” boils down to measuring the performance of your investments against relevant yardsticks. “Relevant” is key, because measuring performance against irrelevant yardsticks will inevitably lead to irrelevant results.

For example, racing a collie against a field of greyhounds could lead observers to incorrectly assume collies are slow. On the other hand, racing each dog against its corresponding breed will result in a more accurate view of canine speed. If your collie is able to easily outrun a field of competing collies, you have a fast dog. And if he/she can’t outrun a pack of greyhounds, it’s mainly because he/she isn’t a greyhound.

Beyond choosing relevant yardsticks, the exercise of measuring investment performance should become a consistent routine for all investors. Why? Because failing to periodically measure your portfolio’s performance, either by choice or by ignorance, leads to a distorted view of satisfactory results. Moreover, just because you’re comfortable with portfolio’s results doesn’t necessarily make the results satisfactory.

Level 1 Analysis
Benchmarking your investment performance is a layered process. Layer 1 is what I refer to as the “big picture” because it examines your portfolio’s investment performance against relevant passive yardsticks using an asset weighted approach. Let’s look at an example:

Portfolio ABC
30% U.S. stocks
10% International developed stocks
40% U.S. bonds
10% Global real estate
10% Money market (cash)

Comparing the performance results of a portfolio with exposure to different asset classes (like our example of Portfolio ABC shown above) against the S&P 500 (NYSEARCA:VOO) is a common mistake. In this example, the vast majority of Portfolio ABC (70%) has non-U.S. equity exposure, which makes an all U.S. equity benchmark like the S&P 500 an irrelevant yardstick for all but Portfolio ABC’s 30% U.S. equity exposure (NYSEARCA:IWB).

Properly measured, the other assets like bonds (NYSEARCA:BOND) and real estate (NYSEARCA:ICF) should have their performance compared to relevant passive benchmarks over the exact same time frame. And together, the asset weighted returns for the passive benchmarks will explain whether portfolio’s performance has been satisfactory or unsatisfactory. Simply put, outperformance over identical time frames is good whereas underperformance isn’t.

Level 2 Analysis
Analyzing investment performance at level 2 is less “big picture” versus level 1. Why? Because level 2 analysis focuses on the performance examination of individual securities versus their respective peer group. Put another way, level 1 analysis is comparable to using a telescope whereas level 2 is comparable to using a microscope.

Below we use level 2 analysis by comparing the performance of Wal-Mart Stores (NYSE:WMT) against its peer industry group, consumer staples (NYSEARCA:XLP). Over the past 10-years, Wal-Mart has gained almost +103% against a +173.10% gain for the Consumer Staples Sector SPDR ETF. In other words, Wal-Mart has badly underperformed its peer group by a whopping +70% over the past 10-years!

WMT vs XLP

Had we failed to use level 2 analysis on Wal-Mart by simply accepting the fact that its stock has gained +102.97%, we could’ve been easily misled to conclude that Wal-Mart’s 10-year equity performance  has been wine and roses. However, our level 2 analysis explicitly shows that Wal-Mart’s 10-year performance record has been substandard compared to its peers.

Because virtually all individual stocks will have a corresponding peer sector group, comparing the performance of a company’s equity performance isn’t just easier, but mandatory for all serious and truthful stockholders.

Summary
The proper way to determine satisfactory investment performance is to use relevant benchmarks over identical time frames. Level 1 analysis examines the portfolio’s asset weighted performance against passive yardsticks, whereas level 2 analysis focuses on the performance of individual securities.

Level 2 analysis can also be applied to mutual fund holdings, however, the fund’s underlying asset exposures vs. its peer group classification are far more important for correct analysis. This is a similar approach I use with the Portfolio Report Card grading system that I invented.

It’s crucial to remember that investment performance is directly impacted by your portfolio’s cost, risk, diversification, and taxes.  And while performance measurement is an ultra important step,  focusing exclusively on historical performance results and nothing else will tell you most of the story, but not all of it.

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EasyMarkets Demo Account Review for Practicing Trading

easymarkets demo account review
    • A 10+ Year Veteran of the Forex Market with a Strong Presence in Europe and Asia
    • One of the Few Brokers to Provide Guaranteed Stop Losses and Negative Balance Protection
    • Deep Product Coverage with CFDs on 95 Forex Pairs and Vanilla Forex Options on 23 pairs
    • Use Exclusive Tool Trade Controller More Effectively, Set Stop Loss and Profit Points For Your Trades
    • Personal Assistance with Trade Strategy and Order Execution from Dealing Room
  • stablished –2003
  • Domicile –Marshall Islands
  • Regulation –
  • Cyprus – CySEC (License Number 079/07), Australia – ASIC (AFSL 246566)
  • Restricted Jurisdictions –United States
  • Ownership –Privately Held
  • Segregated –Yes
  • Broker Type-Market Maker
  • Web Security –Verisign
  • Negative Balance Protection Policy –Yes

The EasyMarkets demo account review platform with a Demo account and experience simulated trading under live market conditions.

  1. No obligations,
  2. no cost
  3. no risk.

Feel the thrill ofEasymarkets Demo Account Review

 

trading the world’s markets, discover our trading platform and see for yourself just how easy we are.

this is the way to improve your techniques and professional traders to hone their skills. Try their trading simulator now for eight days. If you like them you can always open a live account, you’ll also get your lifetime demo account to practice trading strategies before you open live deals

EasyMarkets Demo Account Review Trading Features

EasyMarkets guarantees trade execution at pre-set stop-loss and profit points.  EasyMarkets is able to offer this because of its time tested risk management systems and procedures.  Brokers who do not provide these protections may execute an order at a very different level than your stop levels (also known as slippage), causing you to have much greater losses than anticipated.  Please note that this guarantee is only available for trades placed via EasyMarkets ’s web trading and mobile platform.

EasyMarkets is one of the few brokers with a negative balance protection policy.  Traders can incur a negative balance if the market gaps quickly and the broker is forced to close out open trades at a loss exceeding the account’s equity.  While some brokers begrudgingly forgave negative balances after the CHF crisis on a one-off basis, EasyMarkets is one of the few brokers offer this protection at all times and include it in its terms of service.

This Broker has more in-depth coverage of the markets than most forex brokers.   It offers CFDs on 95 currency pairs, 16 commodities, and 15 indices.  However, its coverage isn’t as broad as other brokers, some of which also offer CFDs on individual shares, bonds and ETFs.

EasyMarkets is one of the few forex brokers to offer vanilla forex options on the same platform.  This means you don’t have to switch to a different platform or broker when you want to options.  You can also use the same pool of funds for your option trades.

This means you don’t have to deal with  the hassle of transferring funds around and avoid withdrawal and deposit fees from other brokers.  EasyMarkets allows you to trade options on 23 currency pairs.  While there are no margin requirements for options, however, you will not be able to sell options unless you have an existing position in the underlying.

EasyMarkets offers up to 200:1 leverage on most currency pairs.  Automated trading available with Expert Advisors via Metatrader 4.

Market Analysis and Education

EasyMarkets provides a number of exclusive tools to help you optimize your trading.  The Inside Viewer allows you to see which are the most popularity traded currency pairs, the percentage of bullish / bearish traders, and the average stop losses and profit points on Easy-Forex.EasyMarkets demo account review

 

Trade Controller is a great tool which aids you in setting and modifying stop loss and profit points for your trades.  Its intuitive visual display allows to see profit / loss levels as both dollar amounts and exchange rates.

EasyMarkets demo account review

You are also given access to Reuters news feeds, exclusive fundamental analysis from EasyMarkets ’s research team, and technical analysis from leading independent research firm, Trading Central.  You can set SMS alerts for fills on limit orders, trade closings, and exchange rate levels.

this Broker has a nice archive of educational articles, videos, and eBooks.  They also have a well maintained YouTube channel where they provide videos on timely topics in the forex markets.  EasyMarkets also hosts the occasional webinar and in person seminar.

easymarkets demo account review Trading Features

  • CFD’s –Forex, Indices, commodities
  • Currency Pairs –95
  • Leverage –up to 200:1
  • Cryptocurrencies –No
  • Options –Forex Options
  • Trading Signals –Yes, Trading Central
  • Automated Trading –Yes
  • Social Trading –No
  • Phone Trading –No

easymarkets demo account review –  Trading Platforms

EasyMarkets demo account review Platforms 

  • Metatrader 4 (PC), Metatrader Multi-terminal (PC), EasyMarkets Web Trader (Browser), Metatrader 4 Mobile (iPhone, Android), EasyMarkets Mobile (iPhone, Blackberry)
  • Metatrader –Yes
  • Mac Software –No
  • Mobile Trading –Yes

easymarkets demo account review –  Customer Service

  • Online Support –Live chat and email
  • Phone Support –Yes
  • Multi-Lingual Support –Yes
  • Personal Account Manager –Dealing Desk Access for VIP accounts (USD 20,000 minimum deposit)

easymarkets demo account review –  Account Options

  • Minimum Initial Deposit –$25
  • Base Currencies –EUR, GBP, USD, CNY, AUD, PLN, ILS, ZAR, NOK, JPY
  • Minimum Lot Size –5,000
  • Account Types –Standard, Premium, VIP
  • Payment Options –Visa, Mastercard, Skrill, Bank Transfers

Safety and Security

asy-Forex is a respected veteran of the forex industry with 10+ years operating history. Its parent company is a privately held company domiciled in the Marshall Islands. EasyMarkets has offices in major financial centers around the world including London, Shanghai, Limassol, Warsaw and Sydney.

EasyMarkets is currently regulated by CySEC in Cyprus and by ASIC in Australia. They previously held coveted US licenses but decided to withdraw in 2010 after regulatory capital requirements were increased twenty fold during the recent financial crisis.

Over its more than a decade long operating history, EasyMarkets has been subject to a few small regulatory fines from CySEC relating to its advertising practices in 2010 and compliances lapses in 2009. There is an Israeli class action lawsuit alleging that Easy Forex provided investment advice without proper licenses.  There was a similar suit in 2010 that was subsequently settled out of court.  Overall, there hasn’t been regulatory action in recent years and the issues above didn’t endanger client funds or integrity of EasyMarkets ’s trading system.

Customer funds are held in segregated accounts in a number of reputable European banks and ANZ bank.  Online payments are secured by Verisign and EasyMarkets is subject to yearly audits by PriceWaterhouseCoopers.

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Trading Forex, Stocks and CFDs carries risk and could result in the loss of your deposit, please trade wisely.

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