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Forex Trading in Puerto Rico • Forex Strategies • Benzinga

With the U.S. dollar as a base currency and advantageous tax laws, Puerto Rico’s forex trading market has exploded in recent years. Are you interested in discovering more about how you can learn to trade forex? Our guide to forex trading in Puerto Rico will help you get started safely.

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With the U.S. dollar as a base currency and advantageous tax laws, Puerto Rico’s forex trading market has exploded in recent years. Are you interested in discovering more about how you can learn to trade forex? Our guide to forex trading in Puerto Rico will help you get started safely. 

Get Started with Forex in Puerto Rico

There are many international forex brokers accepting clients trading from Puerto Rico. Here’s how you can get started on your forex trading journey by opening a brokerage account online.

  • Step 1: Find a stable internet connection. A consistent, reliable internet connection is the most important tool you can have at your disposal as a forex broker. Make sure your desktop computer or mobile device is connected to the internet and that your connection is private and secure before you proceed.
  • Step 2: Choose a broker. Most forex traders choose to work with an internationally licensed broker offering services to clients in Puerto Rico. Compare a few brokers’ fees, available currencies and trading tools before you decide where you’d like to open an account.
  • Step 3: Download your trading platform. Though some brokers do offer their own proprietary platform, many also require you to download a 3rd-party trading platform like MetaTrader 4 or 5. Check to see if your broker offers its own platform before you choose which to download.
  • Step 4: Fund your account. After you open a brokerage account, you’ll need to add trading funds. Most brokers operating in Puerto Rico allow you to quickly fund your account with a direct bank transfer, but many also support the use of electronic wallets and debit card funding as well.
  • Step 5: Place your first order. Once you’ve funded your account and your funds are cleared, you can officially place your first order through your brokerage platform. 

Puerto Rico Forex Trading Strategies

There are 2 major types of forex trading strategies that traders use to determine which currencies to buy and sell: fundamental analysis and technical analysis. Because Puerto Rico uses the USD as its base currency, you can choose from both trading strategies and see profitable trades thanks to the high liquidity of the dollar.

Let’s take a look at a few of the differences between fundamental analysis and technical analysis, how each is used and what you’ll need for each trading strategy.

Fundamental Analysis

Traders who use fundamental analysis as their primary trading strategy focus on the underlying economic and political factors that can cause a currency’s value to fluctuate. Some factors that traders using fundamental analysis might consider before they place an order include:

  • GDP reports
  • Consumer confidence indexes
  • Non-farm payroll data
  • Trade balance sheets
  • Manufacturing indexes

Fundamental analysis can be popular with traders taking a long-term approach to currency trading and those who aren’t interested in learning the mathematical calculations required for technical analysis. To perform well using fundamental analysis, you must have a consistent, up-to-date source for international political and economic news. 

Technical Analysis

Traders who use technical analysis as their primary trading strategy rarely examine the political and economic statuses of the countries whose currencies they trade. Instead, they focus on charting patterns and volume changes that may indicate that a currency will change in value. Some factors that traders using technical analysis may focus on include:

  • Candlesticks that indicate a price reversal
  • Cascades of candlesticks that indicate a certain price movement
  • Volume changes that predict how a currency will move

Investors who use technical analysis typically take short-term or mid-term positions when trading. To get started with technical analysis, you’ll need a solid understanding of candlestick reading and a powerful trading platform. 

Forex Trading Example in Puerto Rico

Is it really possible to make money trading forex? Yes! No matter where you are, you can take advantage of movements in currencies to capitalize on changing values. Let’s take a look at an example of how you might make money trading forex.

You decide to open a brokerage account and fund it with $10,000 USD. You believe that the value of the Japanese yen will rise in comparison to the USD, so you decide to invest your entire lot of USD into the yen. Your broker offers margin trading and you choose to use 10:1 leverage — this means that you can purchase $100,000 worth of yen while only maintaining $10,000 in your account.

The yen is currently trading at $1 to 107.12 JPY. You convert your entire lot of USD (including your leverage) into JPY and are left with a little over 10.7 million JPY. Soon, you see that the USD is dropping in value. When $1 USD is equal to 107.01 JPY, you decide to sell. You exchange your entire lot back to USD and are left with about $100,196. After accounting for the leverage you used, you saw a profit of about $196 on this trade. 

Making Money with Forex in Puerto Rico

The government of Puerto Rico has taken multiple steps to make the country more inviting for day traders and traders who rely on capital gains as their primary source of income. Puerto Rico’s Act 22 (also known as the “Act to Promote the Relocation of Investors to Puerto Rico”) completely exempts individuals from paying local taxes on income generated from passive investment strategies so long as they reside in Puerto Rico for at least half of the year.

Introduced to draw high net-worth individuals to Puerto Rico and boost the country’s faltering economy, many investors consider Puerto Rico to be a tax haven. However, this lack of oversight and intervention comes at a price. Puerto Rico’s forex market is significantly less regulated than the markets of countries like the United States, Germany, Japan and others. This means that currency scams are more common.

It’s possible to make a profit trading forex in Puerto Rico, but you need to take steps to protect yourself and your finances. Observing the following safety best-practices can help you keep yourself safe.

  • Work with a licensed international broker. Most traders in Puerto Rico choose to work with an internationally licensed broker, which helps ensure that your deposit is back and protected.
  • Limit your margin usage. There are no legal limitations on the amount of margin you can use in Puerto Rico. However, you should make it a practice to use as little margin as possible to prevent yourself from falling into debt.
  • Practice on a demo account first. Many brokers allow you to practice your trading strategy using a demo account. Practice making trades and using your broker’s platform before you invest any of your money.

Best Online Forex Brokers in Puerto Rico 

There’s a general sentiment among many traders that forex brokers in Puerto Rico are unsafe and risky to work with due to a lack of government oversight. This isn’t necessarily true. Though forex scams and fraud are more common in Puerto Rico, investors can freely access registered international brokers. These brokers must adhere to international laws set by the United States, European Union and other regulatory authorities, providing an enhanced level of safety to Puerto Rican traders.

Choosing the right forex broker for your needs is incredibly important. Take a look at our list of suggested brokers before you open an account. 

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

$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 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

Forex Terminology

Before you can trade forex, you need to understand the lingo. Forex traders have their own set of unique terminology they use to describe trades, orders and other parts of the market. Start by familiarizing yourself with a few of the most common terms listed below.

  • Pip: A pip is the smallest movement of any given currency value. In most instances, a pip is equal to 0.0001 of a currency. For example, if the USD moves in value from $1.0000 to $1.0001, we’d say that the value increased by 1 pip.
  • Lot size: Your lot size is the number of units of currency you’re buying or selling. For example, if you place an order to sell $10,000 USD, your lot size is equal to 10,000. Most forex traders consider 100,000 to be the standard lot size.
  • Orders: An order is a set of instructions you place with your broker when you want to execute a currency trade. Your order tells your broker how many units of currency you want to buy or sell, the price you’re willing to accept and more. Using multiple types of orders can help you automatically limit your losses and maximize your profits.
  • Calls: A call (or “margin call”) is a requirement from your broker to deposit more money into your account to maintain your position. Most of the time, you’ll be subject to a margin call only when the total value of your portfolio falls below a certain percentage and you’re using leverage. A single margin call can wipe out a significant amount of your profits, so be very careful when calculating how much leverage you can afford to use. 

Maximizing Your Profits in Puerto Rico

Puerto Rico’s advantageous tax laws for U.S. citizens were designed to help improve income from high-value traders and digital nomads. However, it’s important to remember that forex scams and crime are still regular occurrences in Puerto Rico. Work only with a licensed broker and never deposit more money than you can afford to lose into your forex account. 

Hire a Pro: Compare Financial Advisors In Your Area

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Neteller Launches Cryptocurrency Exchange Service

Neteller Launches Cryptocurrency Exchange Service

Neteller  one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller  | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill)  announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think

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The basics of trading that one should know

The basics of trading that one should know

Things you should be aware of before you start

The currency trading industry and now also the cryptocurrency trading industry have gone through enormous volatile times the last couple of years. Now with trump and its trade wars. The fast rise and somewhat recline of the cryptocurrencies and the fast pace of international politics and economies that create high rises and steep fall of the currencies.

So what does it all mean and what can you do before start to trade on these news headlines.

Good brokers like LegacyFX and UBCFX provide the traders with the latest market news and updates on a continuous basis but if you are new to trading you still have no idea what to do with this.

You start by understanding that the involves a high degree of risk, including the risk of losing you hard earned money. Besides the ones that were lucky enough to have bought Bitcoin a couple of years back and cashed in in the end of 2017, most people don’t get rich overnight.

You have to understand that you only trade with money that you are able to lose, going hungry because you want to open a trade is not the right wy to go about it.

So, What is Forex?

You should by now understand that the value of currencies goes up and down every day.

This in general becomes apparent the moment you go on vacation and what you bought last year with your money now is not the same amount you get today at the exchange.

This is on a large scale, what a lot of people do not know is that there is a foreign exchange market – or ‘Forex’ for short – or “FX” for even shorter, where you can potentially make a profit from the movement of these currencies.

The most known Trader is George Soros who made a billion dollars in a day by trading currencies. This is of course on a scale that we are not able to reach and you need a huge amount of money to begin with. Still he made a billion in one day!!

The internet has played a huge part in making trading in currencies accessible for the masses. You also do not need huge amounts of money to actually do this. Now keep in mind that if you make 10% profit on your investment but the investment was just $50 you basically just end up with $55. still no bank will give you 10% interest on your money.

Many people and I am talking millions are now trading every day, most do this on the side and don’t do this as a full-time job, but there are today enough people that are full time traders and making enough money to live comfortably.

Retail forex market needed Brokers

The Forex market for the retail market was born, it started around 15 years ago to become more serious as technologies advanced and the stream of information became almost instant, this is important for trading as one second can make the difference between profit or loss.

So, the moment the technology was there the people that wanted to trade were there all that was needed were the Forex brokers that offered the platform for trading.

There are latterly hundreds of companies of not thousands that offer this service and there are good ones like LegacyFX and there are scams (these tend to not last long)

Forex explained in short

The Forex market is the largest financial market on the planet and has been for many years now.

Its average daily trading volume is more than $4 trillion. (just let that number sink in for a second). Of this total amount around 5% is the retail market meaning traders like you and me. Still 5% of 4 Trillion is still a number with a lot of zeros behind it.

If you compare that with the New York Stock Exchange, which only has an average daily trading volume of $55 billion. You truly see the size.

To give you another example:

if you were to put ALL of the world’s equity and futures markets together, their combined trading volume would still only equal a 25% of the daily Forex market. Insane right?

Why does this even matter?

It matters because there are so many buyers and sellers that transaction prices are kept low. To explain how trading the Forex market is different than trading stocks, here are a few major benefits.

  1. Most Brokers don’t charge commissions – you pay only the bid/ask spreads.
  2. There’s 24hour trading – you decide when to trade and how to trade.
  3. You can focus on your currencies and become experts in only those pairs that you follow instead of following and selecting out of 5000 stocks
  4. You can trade on leverage, (something to be very aware of as it can magnify potential gains but also your losses).
  5. Forex is accessible for almost everyone– you don’t need a lot of money to get started
  6. In the Forex market you can trade on Demo accounts to learn before you commit your money

How is Forex traded?

The mechanics of a trade are virtually identical to those in other markets. The only difference is that you’re buying one currency and selling another at the same time.

This is also the reason as to why the currencies are quoted in pairs, like EUR/USD or USD/GBP.

The exchange rate represents the purchase price between the two currencies.

Example:

The EUR/GBP rate represents the number of GBP one EUR can buy (relevant now with all the Brexit issues going on) . If you think the Euro will increase in value against the British Pound, you buy Euros with British Pounds. If the exchange rate rises, you sell the Euros back, and you cash in your profit.

Now the same works for strading Bitcoin, ethereum, Litecoin or other cryptocurrencies. this has become an entire new market and has introduced many people to Forex . you should here be also aware that trading cryptocurrencies is like regular trading so you will be able to lose great sums of money.

the Best thing i found about trading cryptocurrencies is that the Leverage by default tends to be very low which makes the risk of losing it all much smaller.

Sounds simply enough?

Why does not everyone Trade.

The same could be asked as to why not everyone plays poker, you can make money. The comparison between the 2 is actually closer than you might think.

All traders that are successful will tell you that 80% of successful trading is psychology and the other 20% is research. It takes time to get the research down, but it can take a lifetime to master the psychology.

People tend to do things differently when real money is on the line and are accepting losses in the hope that the trend will reverse or taking out profit too early because they don’t want to lose what they just have gained. In short, the psychology is the hard part.

One should be aware that you can loose real money and a lot of it very fast if you don’t know what you are doing.

Now most Good Forex brokers offer some educational tools, some more than others that will teach you how to trade. There is also something that is called social trading that will allow you to follow other traders and see what they are doing in order for you to learn and make money at the same time.

So here are some ground rules for those that look to start trading

  1. Get involved in the market, watch read and listen to the news to understand what is happening
  2. Go through a trading course ( a good one is here)
  3. Open a demo account and trade at least a month (my advice to do this even longer)only on this before you even think about trading with real money.
  4. Check out social trading, there are some options for this, this broker offers this also.
  5. Try with an amount that you are able to afford losing. See this as your tuition money.
  6. Take it slow, don’t become greedy and follow the basic rules

Basic Rules (there are many more but start with these)

  1. The trend is your friend
  2. Don’t add money to a losing position
  3. Don’t trade on too many different currency pairs
  4. Trade only with a good broker
  5. Don’t open to many positions (no one needs 100 positions a day)
  6. Develop your strategy and stick to it.
  7. Know that NO ONE is 100% of the times right, everyone loses some.
  8. Last but not least, don’t trade with money you cannot afford to lose.

Now all that I want to say is good luck.  😊

 

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Wanted Cryptography Experts in China

 Wanted Cryptography Experts in China

The sooner we get to the official launch of China Digital Money. the more Cryptography Experts are needed.

it almost is surreal as they pushed against this from the beginning but now S China digital money may soon be a reality.

The Bank of China (PBOC) is hiring cryptography experts by the masses as reported by the South China Morning Post (SCMP)

this is the latest in the Chinese efforts to have a state controlled cryptocurrency for its own means.

The institution is one which worries a lot about the effect of investor activity in the cryptocurrency market. this in great contrasted to the directive issues in 2014 by the PBOC  that Bans any activity related to the cryptocurrency market.

Yet the Central bank of china started to build their own work force for building and developing their crypto in 2017.

something like if you can beat them , copy them.

in 2017 the Yicai Global reported that this targeted workforce would work from central Beijing as was to be names the  digital currency research institute

This research institute would primarily focus on the latest in digital currency technologies and all the different applications that would benefit from cryptocurrencies.

the former deputy director of the PBOC’s science department, Mr Yao Qiann would be in charge of the overall project

since then they are expending with opening a new research institute expanded in Nanjing . the idea for this center is to create more interest n the technologies and its possible applications.

the pilot programs are to be implemented by state controlled banks and academic institutions which should result in blockchain hubs that would attract new developing talent and additional capital to further develop the cryptocurrencies.

“Beijing’s ideal digital currency must ensure the smooth running of monetary and financial stability policies and at the same time protect consumers.”

Apparently, the ultimate goal for the Digital Currency Research Institute (DCRI) was to clear the path for a national cryptocurrency. Reports indicate that the fintech hubs will serve a purpose higher than initially believed. Reportedly, the hubs will serve as testing ground for China digital money. Here, the currency will undergo tests from prototype phase to future mass production.

and thus we get to the point that they are looking aggressively for new talent in the cryptographers and computer scientists sectors. now that more and more student have said good bey to the united states in the last couple of months after feeling they were less welcome this drive for finding new employment has only intensified and is answered by the large amount of brilliant young people coming back to live in chine after their education abroad.

The salaries are even higher then what they would have earned if they would stayed in the US and gone of to work in some of the companies in the Silicon Valley.

So we could expect that China is now also looking to become a world player in this industry as they have become the leaders in so many other fields.

 

 

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