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Forex Trading in Romania • Forex Strategies • Benzinga

Forex trading in Romania is regulated and legal. Though Romania doesn’t have the largest forex market in Europe, growing access to the market through international brokers has made it easier than ever before to trade forex. If you’ve ever been interested in entering the forex market, our guide to trading in Romania will make getting…

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Forex trading in Romania is regulated and legal. Though Romania doesn’t have the largest forex market in Europe, growing access to the market through international brokers has made it easier than ever before to trade forex. If you’ve ever been interested in entering the forex market, our guide to trading in Romania will make getting started less complicated.  

Get Started with Forex in Romania

You’ll need to open an account with a forex broker before you can trade forex. Thankfully, there are many different forex brokers in Romania that offer access to margin trading and nearly every country’s currency. Here’s how you can get started by opening your first account:

  • Step 1: Connect to the internet. The most important tool that a forex trader can have at their disposal is a solid, stable internet connection. Run a speed test on your device of choice before you open your account.
  • Step 2: Choose a broker. All brokers operating in Romania must submit to a number of regulatory bodies, including the Financial Supervisory Authority. Research each broker’s licensure status, fees and available currencies before you open an account.
  • Step 3: Download a trading platform. Your broker may offer a proprietary platform or you might need to download a 3rd-party trading platform like MetaTrader 4 before you can get started. Check and see which platforms your broker supports before you download a trading platform.
  • Step: 4: Fund your account. After your account has been opened in full, you’ll need to add trading funds. Most Romanian brokers allow you to fund your account using a debit card, direct bank transfer or transfer from an electronic wallet service like Skrill or PayPal. It may take a few days for your funds to clear before you can see them in your brokerage account.
  • Step 5: Make your first trade. As soon as your funds clear, you can place your first forex trade. 

Romania Forex Trading Strategies

Though Romania is a member of the European Union, the country still uses the Romanian leu as its base currency. The leu shows more volatility than reserve currencies like the U.S. dollar and the euro. Forex traders often take advantage of this volatility by using a technical analysis-based strategy.

Technical analysis is a type of currency analysis that relies on the use of charts and patterns to predict how the currency will move in the future. Traders who use technical analysis as their primary trading strategy typically choose a select number of patterns and formations, allowing specific pattern formations to trigger “buy” or “sell” signals.

Let’s take a look at a few of the most common technical analysis strategies that Romanian traders use to capitalize on the leu’s volatility. Though these indicators aren’t guarantees that you’ll earn money trading, they can act as a solid basis around which you can form your own unique trading strategy.  

Triple Bottom

A triple bottom pattern is a bullish indicator that establishes a lower resistance line and signals that the currency you’re trading may show a price trend reversal soon. To act as a true triple bottom, the formation must have an existing downtrend, establish 3 lows roughly equal in price and a significant volume drop as these lows are formed. When trading the triple bottom, you may want to execute up to 3 short-term trades or a single long-term trade, selling when the pattern is complete and the currency shows a new, bullish pattern.   

Reversal Candlesticks

Reversal candlesticks are formations that indicate that a currency may reverse its trend. A reversal candlestick can be bullish or bearish depending on its placement and strength. Most traders consider the length of a candlestick’s tail to be an indicator of how strong the signal is — the longer the tail, the more likely that the reversal candlestick will be confirmed.    

Forex Trading Example in Romania 

How does forex trading work exactly? Let’s take a look at an example of how you might be able to earn money by taking advantage of discrepancies between currencies.

You open an account with L10,000. Your broker offers you 10:1 leverage, which means that you can trade with the power of L100,000 despite only having L10,000 in your account.

You believe that the RON will fall in value in relation to the EUR, so you convert your entire lot of RON into EUR. The euro is currently trading at 1 RON to 0.21 EUR — when you use your entire leverage and initial deposit, you’ve left with 21,000 EUR.

A few days pass and you see that your assumption is correct — the value of the 1 RON has fallen to just 0.20 EUR. You decide to convert your entire lot of EUR back to RON, which leaves you with L105,000. On this trade, you’ve made a profit of L5,000 by strategically converting your currencies when the value of the RON was set to fall. 

Making Money with Forex in Romania

Earning money by trading forex in Romania is completely legal and there are no limitations on the amount of profit that you can take from your trading. The forex trading market of Romania is also exceptionally well regulated when compared to other developing nations. Every broker legally operating in Romania is required to register with the Financial Supervisory Authority (ASF in Romanian). The ASF is responsible for fighting against market manipulation and ensuring that every broker’s credit rating is high enough to ensure that the brokerage firm has enough money to refund all traders’ deposits should the broker go out of business.

Romanian brokers are also subject to a wide range of trader protections under the European Union’s European Securities and Markets Authority. This authority directs EU trading activities, imposes a leverage cap on trading and investigates insider trading. Working together, these authorities greatly reduce the instances of forex scams both in Romania and throughout Europe.

There are a few steps that you can take to protect yourself and your capital when you trade. Be sure that your broker is registered before you open an account and be very mindful of your leverage usage. You should also keep careful records of your profits and the amount of money you move on each trade so you can accurately report your income during tax season. 

Best Online Forex Brokers in Romania 

The forex broker you choose will determine which currencies you have access to, how much you’ll pay to trade, which trading platforms you can use and much more. If you aren’t sure where you’d like to open an account, consider a few of our top choices below.  

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 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

Forex Terminology

Understanding the unique terminology used by forex traders and brokers will give you an advantage when planning your trades and doing your research. Here are a few of the most common terms you’ll hear when you trade forex:   

  • Pip: A pip is the smallest unit by which a currency can change in value. In most cases, 1 pip is equal to 0.0001 of any currency’s value. The only exception to this is the Japanese yen, which is rounded to 2 decimal places.
  • Lot size: Your lot size is the number of units of any currency you’re buying or selling. For example, if you decide to sell L10,000, your lot size is equal to 10,000. Most forex traders consider 100,000 units to be a “standard lot.”
  • Orders: When you place an order through your broker, you tell your broker how many units of currency you want to trade, the price the order should be executed at and which currencies you want to exchange. There are multiple different types of orders, and each order type presents its own challenges and advantages when it comes to liquidity and loss prevention.
  • Call: A call (or a “margin call”) is a risk that comes along with using leverage to trade. If your forex portfolio falls below a certain percentage of its original value when using leverage, your broker will subject you to a call. When you receive a call, you must deposit more capital into your account in order to maintain your position. 

Getting Ready to Make Your First Trade

Though forex trading in Romania is safe and well-regulated, this doesn’t mean that you’re guaranteed to make money exchanging currencies. Be sure to practice your trading strategy using a demo account or paper trading account before you invest. This will help you avoid losses while also sharpening your skills before you enter the market with real money. 

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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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