Connect with us

news

Forex trading: Understanding account types and differences

Instaforex: See what different account options are available to FX traders  There are a number of different account types available in the FX sphere and this article will run you through some of the most popular account options there are and outline some of the key advantages and disadvantages.

Instaforex: See what different account options are available to
FX traders 

There are a number of different
account types available in the FX sphere and this article will run you through
some of the most popular account options there are and outline some of the key
advantages and disadvantages.

The first account type we will discuss
is the entry point account that all traders begin with; the demo account.

Demo account, the entry account for
all traders

A demo account is a brilliant way to
start trading and is offered by virtually all brokers. This is a demo or
‘virtual’ account that gives you a nearly identical experience of trading, but
without the risk of losing capital,

Advantages

Trade with
liberty: The absence of capital risk means
that you can trade with freedom. You can allow trades to develop exactly the
way you want them and practice following

Forgiving of
mistakes: If you lose your demo account, you
can just re-set it and start again. All capital risk is artificial and without
consequences to your income or lifestyle.

Disadvantages

Easy to trade incorrectly:
You can misuse a demo account by not treating it as a demo. The whole point of
a demo account is to trade it with liberty and freedom. Trading it like a real
account will not allow you to practice the necessary skills you need for your
longer-term trading development. 

Advantageous spreads: Sometimes a demo
account will give you unrealistic spreads and fills. Real market conditions may
be radically different to the artificial demo account environment.

Mini trading account

A mini trading account allows you to
start investing in trading Forex with a small personal investment up to about
$500. You can then use leverage, with some brokers offering high levels of
leverage, which would enable a trader to access a large trade size relative to
the capital in their account. Here are some of the advantages and disadvantages
of the mini account.

Mini car

Advantages

Small
capital at risk: the key advantage of this type of
account is its accessibility. Many traders are easily able to afford this
account and the use of leverage means that, for the experienced trader, some
money can still be made on a comparatively small initial outlay.

Low risk: This is an excellent option for beginner traders who would
like to try and graduate from a demo account. A mini account offers a great
first step to graduate from a demo account and begin to experience the emotions
involved with a live account

Risk
management: The skills needed to manage risk on a
large account can be practiced here on the mini account. The reality is that if
you can manage your risk responsibly on a small account then you can do exactly
the same on a larger account

Disadvantages

Limited
gains: Although an excellent entry into the
forex trading world, you are not going to be able to make a living trading a
mini account.

Standard trading account

The most common trading account which goes from around $1000 up to around $10000.
Different brokers require different capital requirements in order to open a
standard account. Again, let’s go through the different advantages and
disadvantages of this account

Advantages

Potential
for genuine gain: The larger deposit size, coupled
with the use of leverage does allow for a potential larger gain.

More
services from the broker: The greater commission generated
from the standard trading account means that the broker is motivated to keep
their client trading successfully with them. A number of brokers will offer
additional services for standard account holders.

They may include, but are not limited
to, a provision of an educational service, a dedicated account manager, access
to professional FX services and a cash bonus deposit bonus.

Disadvantages

Potential
for significant loss: However, the use of leverage and
larger capital requirements means that this is only suitable for experienced
traders. Trading takes time and rushing it will end in some kind of disaster,
sooner or later.

Larger
capital requirements: 
Minimum capital requirements in opening a standard FX account varies
from broker to broker. Expect minimum requirements to sit somewhere between
$2000 – $10000.

Managed trading accounts

This is a trading account where you
provide the capital requirements, but another trader, or robot, executes the
trades. There is an increasingly varied way of doing this from social trading
platforms, to professional FX traders and in-house broker services which link
other traders to your account automatically.

Once again there are pros and cons of
using a managed service. Here are some of the key advantages and disadvantages

Advantages

Potential
for profitability: If you are unable to trade
profitably, having someone who can trade for you can mean that you are making,
rather than losing, money in your account.

Get away
from the screen: Trading can be absorbing, and time
consuming, Having someone else trade for you means that you gain freedom to do
something else

Disadvantages

The price of
freedom: You will obviously have to pay a
premium to have someone else manage your account. This could be paying via a
monthly subscription, a profit share basis or some other commission structure,
either way, it is a luxury you will have to pay for

Placing your
trust in someone else: Ultimately, whether it is a man or a
machine, you will be putting your trust in something other than yourself. This
can mean that the good trade you can see may not be taken. It also means that
you may incur large losses due to human or machine error.

It can be hard to accept losses that
comes this way and some people prefer to have their own control over their
account at all times.

A couple of closing points

Metatrader 4, Metatrader 5, and web
trading

Some accounts offer access to MT4 or
MT5 accounts. The main difference between MT4 and MT5 accounts is that the MT5
platform has a wider range of instruments, including currencies, but also
including stock CFD’s.

Web trading options can be good, but
you need to check that platform is reliable. MT4 has been around for years and
has been proven over time.

Different spread options

Some brokers will allow you to pay
commission in different ways, as suits your trading style. So, for example, you
may have the option of a fixed spread. This means that you know in advance the
cost of trading a particular currency or instrument.

The cost is fixed for each trade you
take. By contrast, a variable spread option will give you a variety of prices
throughout a trading day. The price available to the broker is constantly
changing, so a variable spread reflects that change.

A raw spread option would be where you
pay the minimum spread, but you pay a round commission on the trade. So, it
could be something like, $5 per round commission plus the raw market spread.

Which is best? It depends on your
trading style, trading volume and time you trade. If you trade during busy
market times then a variable spread would be good for you. If you only ever
trade in the quiet Asian session then a fixed spread will probably be the best
way to go.

This
article was submitted by
Instaforex.

Continue Reading
Advertisement

news

Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

Continue Reading

news

CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

Continue Reading

Daily Financial News

Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

Continue Reading

Trending