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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.

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RoboForex adding EOS Cryptocurrency

RoboForex adding EOS Cryptocurrency

RoboForex announced today adding EOS, a cryptocurrency which is now available for trading with the broker on both MT4 and MT5 platforms.

Roboforex added EOS CryptocurrencyCurrently, RoboForex clients have 7 crypto instruments to choose from.

RoboForex keeps expanding its crypto portfolio.

The latest addition is EOSUSD, which is already available to the clients through MT4 and MT5, alongside with six other crypto pairs:

BTCUSD, ETHUSD, BCHUSD, DSHUSD, LTCUSD, and XRPUSD.

The EOSUSD trading conditions are the following:

  • minimum lot size: 100,
  • minimum increment: 0.01,
  • leverage 5:1.

EOS is a cryptocurrency that was introduced in 2017 and is based on blockchain and smart contracts. Its key features are scalability, decentralized apps, and huge throughput (a few million transaction per second).

This is another step towards developing our crypto portfolio.

Our clients do value the flexibility and state of the art technologies we offer them As for us, our mission is meeting their expectations and constantly improving the trading conditions by opening the door to new instruments and opportunities.

says Denis Golomedov, ;Marketing Director at RoboForex.

Roboforex and Cryptocurrency

This Broker has been on the forefront of crypto trading on the Metatrader 4 and Metatrader trading platforms from the beginning and pushing for more and more trad-able assets to be added to their offering .

it took this broker a little bit of time but now that they got them selves into the cryptocurrency trading arena they come to lead the pack. this in combination with their the trading platforms they are offering makes this a broker to take notice of.

as yet there are not enough brokers that offer metatrader 5 and especially one where you are able to trade bitcoin ethereum, litecoin and now also EOS.

About RoboForex

RoboForex is a brokerage company catering to clients from various countries. The broker’s focus is providing the traders with access to its own financial market platforms.

RoboForex Ltd is a licensed company (License No. IFSC/60/271/TS/17).

 

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Local bitcoin Trader Jailed for Money Laundering

Indicted: Local bitcoin Trader Jailed for Money Laundering

Local Bitcoin trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the LocalBitcoins.com trader has been sentenced to 12 months in prison.

She has also been handed a three-year supervised release and a $20,000 fine. A former real estate investor and stockbroker, the court ordered her to relinquish $292,264.00 in cash, 25 assorted gold bars, and 40 bitcoin.

money launderingTetley pled guilty to one count of operating an unlicensed money exchange business, and another related to money laundering. Her case is the first of its kind in the Central District of California.

Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury.

The agency is responsible for analyzing transactions to curb money laundering and related financial crimes. She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business.

Tetley is said to have traded over $6 million for clients within the United States and charged higher rates as compared to other traders within the LocalBitcoins platform.

Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web.

She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.

According to the report, Tetley’s service was responsible for fueling the growing use of cryptocurrencies to launder money and supported a black market system set up purposely to circumvent the law.

The organizations involved in her investigation included the IRS Criminal Investigation and the Drug Enforcement Administration.

Just One of Many

That said, the government has been committing significant resources to counter the crypto – dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network. Thirty-five suspects were arrested.

One individual, identified as John Edward Monette, was charged with Conspiracy to Distribute a Controlled Substance. He was also alleged to have carried out numerous bitcoin for cash exchange transactions on the dark web, most of them in 2017 and totaling about $19,000.

Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme.

He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.

Article Originally Published:

By ELIZABETH GAIL at Coincentral

 

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Why You Need to Get Onboard With Blockchain!

Why You Need to Get Onboard With Blockchain!

Blockchain tech – so revolutionary in nature that some are calling it the “new internet.” It has applications in just about every industry, and has completely altered the way we think about internet security, the processing of information, and the speed of transactions.

Blockchain is the technology that supports the digital currency  or cryptocurrency called Bitcoin –

however this is not what it is really about as it has a far wider scope of applications and is being commercialized in a growing number of areas.

It has generated much interest in technology circles and beyond, because of the new possibilities it opens up in financial services, the public sector and other areas.

According to sites like BitFortune.net, blockchain tech is definitely worth keeping an eye on due to the myriad of benefits it provides.

Blockchain and Bitcoin are not the same thing – Bitcoin is implemented using blockchain technology, but blockchain technology can be used in contexts much wider than Bitcoin or other cryptocurrencies. so when we are talking about the blockchain we are talking about a combination of a number of technologies, these including:

  • Distributed ledgers.
  • The blockchain data structure.
  • Public key cryptography.
  • Consensus mechanisms.

Part of what makes it so exciting is that it is completely open source. As a result, there are already a number of interesting blockchain apps, and the number is growing daily.

The technology is so secure that it is already being used by DARPA to secure military data. Various governments around the world are working on ways to use the tech to protect their own data.
The tech is tamper-proof, and the data stored within it is permanent. It cannot be erased or altered, and this is what makes it so enticing to those needing more secure networks.

But there is more, folks. (Okay, so that sounds a bit like an infomercial, but the benefits are real nonetheless.) Transactions can speed across the network – taking only as much time as it takes for them to be authorized.

The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.

William Mougayar

The system runs without the need for an intermediary, and this reduces the time it takes to execute transactions. This, and the unique way that the tech works, means that costs are significantly reduced as well.

What makes it so revolutionary is that the information is spread across every computer within the network. With Bitcoin, that means the data is securely “backed up” over thousands of computers.

Now, it is unlikely that banks will entrust their data to a public network in the same way, but they have been working on creating networks of their own instead.

The potential savings in terms of cost and time are extensive. If you want to learn more about these savings, check out the infographic below.

 

Why You Need to Get Onboard With Blockchain!


Why You Need to Get Onboard With Blockchain!


Visit bitfortune.net . for more interesting Infographics

Guys did an amazing job and was allowed to share.


 

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