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Forex Trading in Kuwait • Top Forex Strategies • Benzinga

Kuwait is a tiny country in the Persian Gulf that unfortunately rose to global prominence in the early 1990s when Saddam Hussein and Iraq invaded and occupied the country. U.S. forces eventually ousted Saddam in 1991 and the tiny Arabian nation has had plenty of growth and economic stability ever since.

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Kuwait is a tiny country in the Persian Gulf that unfortunately rose to global prominence in the early 1990s when Saddam Hussein and Iraq invaded and occupied the country. U.S. forces eventually ousted Saddam in 1991 and the tiny Arabian nation has had plenty of growth and economic stability ever since. 

Kuwait is one of the wealthiest nations in the Middle East thanks to its deep oil reserves, valuable currency and strong financial sector. The Kuwait stock exchange is home to some successful firms like Yianco Medical and Al-Madar Finance and Investment Company. The Kuwaiti dinar is one of the most expensive currencies in the developed world, too, but it’s difficult to find at most forex brokers. That doesn’t mean currency trading isn’t available for Kuwaiti citizens.

Despite its location in the heart of the Arabian territory, Kuwait has plenty of financial institutions and regulations that aren’t beholden to Sharia law. Islamic accounts are available at most banks and brokerage houses, but regular trading accounts are also readily available. 

Looking to get started with forex trading in Kuwait? Here’s what you need to know.

Get Started with Forex in Kuwait

A forex trading career can get started as long as you have 3 key things — capital, access to the internet and a reliable broker. That’s it! Thanks to online brokers, forex trading can be done 24 hours per day weekdays (Sunday afternoon through Friday afternoon EST) from anywhere in the world. To get started trading forex in Kuwait, follow these steps:

1. Get online

You don’t need a high-tech trading operation to have success in the forex market. All you need is Wi-Fi and a device to connect to your broker of choice. Most forex brokers have a desktop, web browser and mobile app platforms for trading, so you can trade currencies from your laptop or iPhone, among other choices.

2. Choose a suitable online forex broker

Your next step is finding an online forex broker that fits your needs and trading style. And there’s no shortage of options here. Online forex brokers like FOREX.com and OANDA have wide varieties of forex pairs to trade, while other brokers like eToro and Pepperstone have derivatives contracts and cryptocurrencies along with forex trading. Just make sure the broker is licensed with a reputable regulatory agency before attempting to create an account — and make sure they have a relationship with at least 1 financial regulatory agency.

3. Open an account

Once you select a broker, you’ll need to choose an account type. Forex trading accounts are often split into commission and noncommission types. The commission accounts often come with the benefit of low spreads and faster trading. Pick the account type that works best for you.

4. Fund your account

Trading requires capital so before you can swap currencies, you’ll need to put funds into your newly-opened account. One benefit of forex trading is the leverage allowed — sometimes as high as 500:1. But remember, with great leverage comes the potential for greater losses.

5. Download a trading platform

Forex brokers usually offer a few different platforms for trading, which is why a demo account is always a good starting point for testing out platforms. Most brokers offer the powerful MetaTrader platform, where you can create automated trading strategies.

6. Make your first trade

After you’ve got your account funded and platform set up, it’s time to execute a trade. Consult your trading strategies and select a currency pair for trading. If you don’t know any good forex trading strategies, you’ll find some in the following section.

Kuwait Forex Trading Strategies

Forex trading is a different animal than trading stocks or bonds, but commonalities do exist. Despite the fact that major currency pairs typically exhibit lower volatility than blue chip stocks, currencies often follow some of the same patterns and trends that stocks do.

The following are successful forex trading strategies: 

  • Support and resistance
support and resistance

Source: FinViz

One of the cornerstones of technical trading is the idea of support and resistance. Thankfully, these concepts carry over into the world of forex trading as well. Currency traders often have success buying at support levels and selling at resistance levels. 

  • Position trading
position trading

Source: FinViz

When using the position trading strategy in forex markets, you’ll need to practice patience. Position traders take large, long-term positions based on macroeconomic trends and data projections. While many traders like to take advantage of the 24-hour forex trading cycle, position traders are more like the buy-and-hold stock investors on the equity side.

Forex Trading Example in Kuwait

Despite its relative value, finding a forex broker that offers the Kuwaiti dinar is difficult. Even brokers like FOREX.com with 80 different currency pairs don’t allow you to trade Kuwaiti dinars. However, just because dinars are unavailable doesn’t mean Kuwaiti citizens can’t trade forex. Here’s a trading example:

Let’s say you think the economic situation in Europe will improve before the United States does due to lingering coronavirus issues. You predict the euro will increase in value while the U.S. dollar declines. In this scenario, you’d want to buy euros and sell U.S. dollars, which means trading the currency pair EUR/USD.

forex example

Source: Yahoo Finance

Currently, 1 euro is worth 1.17 U.S. dollars. If you purchase EUR/USD and the euro continues to advance, you’ll be rewarded for every fraction of a cent thanks to the leverage used in forex trading. At 500:1 leverage, if the dollar declines a few pennies, you’ll still receive amplified gains for your trade.

Making Money with Forex in Kuwait

Making money with forex trading is possible, but it’s important to understand how it differs from other types of securities like stocks and bonds. Currency moves may look small compared to other asset classes, but don’t get overconfident. High leverage is commonplace in forex trading, and with the markets’ available hours, plenty of opportunities will present themselves. Just remember to be cautious with leverage and never trade recklessly. Using leverage can be a way to find yourself completely depleted of capital.

Best Online Forex Brokers in Kuwait

Here’s a list of the best forex brokers currently available for residents of Kuwait.

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
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

$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

Forex Terminology

Forex trading has a lot of its own lingo that doesn’t carry over to other assets. You’ll see the following terms thrown around a lot in currency trading circles.

Pip: A pip is the most basic unit of measurement when evaluating changes in currency exchange rates. The size of a pip changes depending on the currency pair and is usually measured to the 4th decimal point (0.0001).

Lot size: Usually 100,000 base currency units, the lot size is the standardized amount of currency you buy when you make a forex trade. Since currency moves are so small, you need to buy a lot of currency units to make money. Sizes smaller than 100,000 are available at some brokers (like mini lots of 10,000 units).

Orders: Just like stocks, forex trading has different order types, including market and limit orders. A market order executes a trade immediately at the best available rate; a limit order holds until a specific rate is reached.

Calls: In some instances, currency trading can be done using options, like calls and puts. A call option is purchased if the buyer thinks the underlying currency pair’s exchange rate will rise. A put option might be purchased if the buyer thinks the market will decline.

Kuwait and Currency Trading

Like most firms operating in Middle Eastern countries, brokers open to Kuwaiti residents offer a variety of currency trading vehicles, including products unavailable in the U.S., like contracts for differences. While trading Kuwaiti dinars can be difficult, forex trading in the country is legal. Kuwaiti citizens can access online forex brokers regulated by agencies like the Financial Conduct Authority (FCA). Forex trading comes with risk due to the outsized leverage, but the markets are usually stable and currencies offer opportunities that stocks and bonds can’t supply.

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Daily Financial News

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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