Account types in List

When you are new to forex trading you could try to have a managed forex account. In this case someone from the forex company will trade with your account for a fee. This system is quite the same as investment advisor. For more details check your Forex Broker.

Bucket shops
Since this type of broker's legality is questioned, it's not suitable for beginners. The shops use currency futures and options, have no connection to the market, and - in fact - bet against the trader. 

Book makers
This type is much alike a bucket shop, only the bookmaker doesn't make a profit by winning the bet. His profit is determined by the difference between the buy and sell price of the trade, called the spread. This is what gave them the name “spread betters” or “spread betting companies” In addition, there is no connection to the market and bookmakers are illegal in the US and many other countries.

Retail market maker
despite the fact that this type of broker represents most brokers on the market, they do not provide the same services and access to the market. A lot of traders choose this type of Dealer(also suitable for beginning traders)Nevertheless, one must be aware of the provided services. This type of Forex Dealer is legal in the US, as well as many other countries.

Institutional market maker
This type of broker has the most direct access to the Forex market and is very suitable for beginners. You can be given more direct access to the Interbank market, when you are willing to pay a larger sum of money.

Institutional Forex
This type of Dealer has the most direct access to the Forex market and is very suitable for beginners. You can be given more direct access to the Interbank market, when you are willing to pay a larger sum of money. 

As you can see, only four of the five mentioned markets are open to individuals. From these four, the Retail market maker is the most appropriate one. Within this type, there are a lot of different types. However, one must take a look at the services provided by the broker he selects. We strongly advise you not to use a Bucket Shop Dealer or Bookmaker.

Forex Trading Top 10 Tips

Tip 1. Gamblers: go to the casino. All spontaneous and impulsive purchases on the Forex market are a pure gamble.

Every attempt to trade on the Forex market without analysis and study is similar to a casino game; It can be fun – you can win money easily, but the chances are much higher that you will lose money.

Tip 2. Never trade with real money on Forex until you have practiced with a Demo account.
We advise to take 2 months practice with a demo account. 90% of new traders lose money because they haven’t had enough practice and discipline. The 10% that have practiced with a demo account make more profit because they are more experienced.

Tip 3. Follow the trends
Follow the trading trends to increase your success rate. Trading against the trend is also an option for those with nerves of steel. This method of trading can turn against you within seconds and lead to great losses, so be careful! If you trade according to the popular trends you reduce the risk of losing money and increase the possibility of a good return on your investment.

Tip 4. Always take a look at the weekly and monthly rate statistics. 
This gives you a good insight on the whole picture of price changes and you can easily see the trend that has the value of a specific rate. If you are trading and only look at the statistics of the last hour, you are taking large risks because there can be huge fluctuations in one day or week. If you are having trouble discovering a trend in the charts, then choose a week chart or a month chart. In this way, there are always trends to be uncovered in a rate. 

Make sure that you know the trend well. Unless you are a Forex scalper, who does not look at trends for one day or one week, or that looks at the trend during the last 5 or 10 minutes. There are obviously great risks involved here, but also huge profits. 

Tip 5. Never deposit a large percentage of your account balance. 
The big difference between success and loss is that you must be able to survive in poor circumstances. It may be tempting to deposit your entire balance; however that will mean that if you lose more money you are out of the game. We advise you to not deposit too much and ensure that you always have money in your account. 

Tip 6. Put your emotions aside and remain calm.
After a loss don’t try and make it better by gambling with large amounts. If you do not stay calm in these moments then you are taking large risks, which will result in larger losses.

Tip 7. Choose the correct time frame to trade in.
Choose a time frame that you feel comfortable with and that will give you enough time to analyze the Foreign Exchange markets. Some people like more action and do not want to wait to see what the market does. They opt for a short time frame, which makes it more difficult to predict what the market is going to do.

Tip 8. Do not trade if you have doubts..
If you are not sure about a purchase then do not do it. If it is not clear what the market is going to do: do not do anything. That is a lot safer than to gamble with the risk of losing your money.

Tip 9. Use the "Stop Loss"
If you have a trade which is currently losing value but you have a feeling that it will improve, you might be inclined to adjust the limit of your stop loss. Try to learn not to rely on feelings. The chances are that your losses will be higher than they already are. Try to accept your loss. In addition it is vital that you do not put more money into a losing trade. Our advice is to set a stop loss and not adjust this value.

Tip 10. Keep it simple.
An excessive amount of information such as charts, news, trends and other sources can give a distorted and more difficult picture of what a trade is going to do. To avoid too much confusion, develop your own simple information system that suits you.

Bonus tip Tip 11. Choose the right day.
Despite the fact that you trading on the Forex market can be done whenever you want, it is still wise to choose the right day. Trading on a Monday is not advised as it is the first day of the week and the trends are yet to be set. Rates can fluctuate unexpectedly. Trading on a Friday afternoon also brings a higher risk due to the amount of trade closures. The best trading days on the Forex market are Tuesday, Wednesday and Thursday.

It not advised as the market has just started and it is still busy forming a new trend, rates can fluctuate unexpectedly. Friday afternoon is also higher risk due to the amount of trade closures. The best days to trade on the forex are Tuesday, Wednesday and Thursday.

Forex Trading Software

The availability of Forex Trading Software has made the market much more accessible to private users. Forex Trading software also gives other benefits such as high process-speeds, freedom of trade and better results! This type of software has enabled 24-hour trading.

There are 2 types of Forex Trading Software available. The first type is known as ‘service side software'. This software enables private users to login and manage their own forex market accounts. You only need a username and password. Users can do whatever they want with their Forex account. The other type of software available is called ‘client-side software'. This software is mostly used by business traders. Both types of Forex software work together. This makes it possible for users to use the software 24 hours a day, 7 days a week, whenever they want.

Using Forex Trading Software benefits users greatly. The software can convert any currency. But the biggest benefit is real-time access to the Forex Market. With these benefits the user can analyze the Forex market, but you'll need to know how to use the software, of course!

Furthermore, Forex Trading Software includes possibilities to link other graphic-software to your system. This and other features ensure maximum support.

Forex Trading Software ensures extra security to users. There are several security installed within the software to keep hackers out of your account, but also from people trying to manipulate or fraud the system. This high security level is very important.. There are several security systems installed inside the software. It won't be easy for hackers to get access to your account, to manipulate the system or to commit fraud. This safety is very important. The software has to maintain the upkeep of a very busy transaction-traffic system. It's vital that software like this is 100% reliable; all the privately stored information must be kept private and safe.

The Forex Trading Software enables view and scan the whole Forex-market in a quick glance. This can come in very handy because the market itself isn't very synoptic. Viewing and scanning the Forex Market is important in order to make profits on the Forex Market. This is why you should use the best software available. If you fully understand and master the software you will find that it gives you an edge over the competition. However if you try to use the software without mastering it, you may lose a lot of money accordingly.

Because of the great popularity of Forex Trading, it is not always easy to find the software that suits you. And when you have finally found the right software, you will need to keep it up to date which is pretty hard to do with new versions coming out every month or so. The conclusion is that you will need to stay on top of things in order to succeed.

If you don't want to use forex broker software, there are also several websites available on which people can analyze the market. However, these websites are not always up to date and reliable. This is why we encourage you to try and the software first. Of course you should not make any money-transfers via this software. There are some good websites but you should always be aware of the security-risks that websites like these carry with them. All in all there are several options on how to make secure transactions over the internet yourself.

You have full access to the market, different buyers and sellers located anywhere in the world. Making a money-transfer is not hard to do, as long as you know what you are doing. If you feel like you need professional help, you can always try and search for it. The best advice we can give you is to keep learning. We cannot guarantee that every person will be successful on the Forex market. But at least you won't be able to blame it on the use of software!

US Employment Data that rocked the US Dollar

The fragile US recovery started showing some cracks last week as the lower than expected jobs data for March Non Farm Payrolls was released at 120k new jobs, verses an expected 210k. Whilst this was disappointing, it wasn't too surprising however the USD did take a hit, bringing talk of quantitative easing (QE), not just from the US Federal Reserve(Fed) but also the Bank of Japan.

Did Warmer Winter Adjusting Job Seasons?

Many reasons for this lower than expected employment have been put forward. Trading Quarter FX strategist John J Hardy commented on Tradingfloor 'There are two ways to spin this as usual: the report is bad because March was still unseasonably warm and should have resulted in strong payrolls growth – or, the report is actually ok, because the even more unseasonably warm weather in January and February robbed March of its potential for maintaining strong jobs growth and this was just a little mean reversion.' So could this mean that this is merely a speed bump in the US recovery?

Campaign Weapons for US Elections

The shape of the US recovery will undoubtedly now be put back under the microscope, especially in light of it being an election year, the Obama camp planning a defence strategy from the coming onslaught from the presidential candidates. All the small cracks in the recovery will be examined and discussed, and used as political campaign weapons, from the surging oil prices to the US's exposure to the European crisis.

Feedback from the Fed

The Boston Globe recently reported that Bernanke had advised of 'New finanical risks', and the exposure to the Eurozone Crisis. With the Fed is still working to address the regulatory failures from the 2008 financial crisis, it makes many of us wonder how it can take nearly 4 years to figure out a solution to restoring a secure financial system. From an economic perspective, it can only dampen the confidence in a full recovery.
A small consolation was with crude oil futures reporting a seven week low as reported by Market Watch. But uncertainty still lingers with this market moving commodity, as the tension from Iran continues.

US Economic Indicators ahead

In talking to my colleague Matti Williamson next week's figures will be interesting such as retail figures, Retail Sales (Monday), and existing home sales (Thurs). This is a good indication of how much confidence people have in the economy, measured by how many homes are bought and sold, and how much people are spending in the retail environment. This should give us all a better indication of the size of the speed bump in the US economy, and the strength of the USD.

Forex Daily Review: The Pennant Will Seal EUR/USD Fate

Spain's 10-year yield breaks above 6.00% but that doesn't seem to affect EUR/USD at the time of this writing. The pair is trading above 1.3120 at the time of this writing. The main focus for the European session would be on the Italian T-bill auction, totalling EUR 11 billion. Results are expected to be published around 10:10am GMT. Weak results will re-generate the risk-aversion mode, which could strengthen USD and JPY as a result.

As you may see from the above chart, despite strong gains posted in EUR/USD failure to break outside the upper end of the pennant could lead to a trend reversal. The graph could be dragged down to 1.3066 and a break outside the lower end of the pennant may confirm the downtrend is expected to continue.
Today's session is relatively light with economic data to the Italian T-bill auction may very well dictate today's trend in the FX markets.
There are great concerns Hungary will be unable to reach a deal with the International Monetary Fund (IMF) concerning an aid package. EUR/HUF gained +1.35% in yesterday's session and any further news from Hungary are likely to maneuver the pair. Talks that efforts to seal the deal have failed may cause steeper gains in EUR/HUF and USD/HUF.

NZDUSD Chart Observation

Risk for reversed head-and-shoulders (H&S).
The pair is building the right-hand shoudler of the reversal pattern. A light drop is expected but as long as 0.8159 manages to contain weakness gains towards 0.8203 are foreseen.

The 60 Minutes look at the Euro Crisis

With the March's US employment report cooling the momentum, this slow and fragile recovery of the US economy looks to be exposed to other factors such as oil prices and the European credit crisis. In a recent 60 minutes segment 'An Imperfect Union', they have a closer look at the potential exposure that the US has to this crisis, with a tough look at the Euro zone.

The US and European comparison

There are many comparisons that can be made between the US and the Eurozone, with about as many similarities as well as differences. The credit crisis in the US in 2008 has crossed continents to the Euro zone both bringing the regions into deep recession. As 'An Imperfect Union' points out, one of the major differences is where the US crisis saw financial institutions facing bankruptcy, the Euro zone could see entire countries going into bankruptcy, using the Greek bailout as point in case.
Just like in the US, Europe has lived beyond its means on credit, eventuating to many of the large European banks having to be bailed out by the European Central Bank with 'easy credit'.
London based financial analyst Louise Cooper highlighted the extraordinary nature of the European crisis with a western country (Greece) defaulting on their loan payments, not seen since the Second World War.

The Euro: The Currency that United is now Dividing

The Euro is one of the world's newest currencies in the world's oldest regions. Europe has thousands of years of history, with many different cultures and countries often at war and dispute with each other.
The Euro zone is described as a 'Loose economic alliance', and compared to the US's Federal Reserve this description (whilst could be viewed as condescending), is not too far from the truth. Even though the currency unites 17 nations, decisions are not made quickly as there is no one European equivalent to a Ben Bernanke. Lack of 'Unity and authority' is seen as one of the biggest structural failures of the Euro zone. With the inability to make swift changes and updates to the Euro's monetary policy has hindered recovery.

Austerity

Whilst the European leaders claim that the austerity measures implemented have averted disaster, the segment points out that a potential change in leadership could see a retraction of these measures, as the 'battle between politics and economics' continues in the EU.

Risk of Spreading Collapse

The domino tumble of southern European nations (Greece, Italy, Portugal and Spain) is still a very real possibility, and just how much the US economy is exposed to further European collapse is clearly a debate that will continue well into 2012.

A Beginners Guide to Forex Trading and the US Dollar

Forex or FX for short, foreign exchange trading is one of the most widely traded markets in the world while all the major currencies trade against the US Dollar. Here, FX Solutions gives a beginner's guide to forex trading and the integrity of the US dollar.

As the largest and most liquid market in the world, the Foreign Exchange market is also the most accessible. Trading 24-hours a day from Sunday evening until Friday night, means you can trade the opportunity as you see it. Whether you're after short-term volatility or long-term price trend, you can trade FX based on international news or economic fundamentals.

In this beginner's guide to FX trading, we outline the benefits of trading currency pairs over other trading traditional stocks and shares while outlining the trading options available as well as how to manage your accounts and the tools which can help to minimise risk.

Currencies Paired with the US Dollar

Historically, the US Dollar has been the most traded currency in its role as the world's primary reserve currency and is involved in around 90% of all currency trades. As a result, the Dollar has the most profound impact on the forex market because it is paired with many major currencies including the EUR/USD, GBP/USD and USD/JPY. There are dozens more major, minor and exotic currencies to be traded, including the Swiss franc, Australian dollars, Canadian dollars and many more..

Multiple Influences on Movement

Forex trades are based on the exchange rate between two currencies, such as EUR/USD. This exchange rate will then move as investors gauge a range of constantly changing factors from economic data, political decisions, social unrest and even natural disasters. As a result FX traders, particularly short term traders, tend to base their currency trades in reaction to significant events in the belief that they will have a pronounced impact on the market.

For example In December, the sharp rise in US Non Farm Payrolls gave stronger signs of the US economic recovery, giving additional strength to the US dollar and pressurizing the value of other currencies which were paired against the dollar.

Flexible Leverage

Forex is a leveraged product enabling you to trade by paying a small fraction of the equity that would be needed to fund a trade. This means you can potentially magnify your returns on an investment. The flexible leverage can also be increased up to 50:1. Remember though that higher leverage can result in losses that exceed your initial deposit. This is why risk management should always play a crucial role in your trading strategy.

Risk Management

Because foreign exchange can be a volatile market and all trades are leveraged, trading currencies requires careful risk management and a considered trading strategy. Your positions can be managed efficiently using stop losses and limit orders to help minimise losses and lock in profits at predetermined levels set by you.

It is also important to outline a profit target and know exactly how much you are prepared to lose before you place the trade. By creating a carefully considered strategy before you start trading, your key decisions are already made, leaving you free to follow the market movements and react to them as they happen.

Learn more about foreign exchange with FX Solutions at: http://www.fxsolutions.com/learn-to-trade/

Forex trading involves substantial risk of loss and is not suitable for all investors. FX Solutions is compensated through a portion of the bid / ask REMOVE.

About FX Solutions:

  FX Solutions is a leading foreign exchange broker with a focus on advanced trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients, white label partners, institutional trading partners and introducing brokers in over 140 countries.

Free Forex Trading Tools for New Traders Entering the Market

Forex trading, commonly known as 'foreign exchange', 'forex' or simply 'FX'; is the act of exchanging one currency for another at an agreed price. Forex is the world's most traded, over-the-counter (OCO) market, with an average turnover in excess of US$4 trillion per day.

New traders looking to enter the foreign exchange market can improve their trading potential through free forex trading tools and education resourses from City Index Australia, whereby they can enhance their financial knowledge; imperative when managing your trading risk.

Traders using these tools can both learn about forex and build their confidence before they start trading.

Through the City Index Australia site, traders have full, free access to their dedicated trading education section; offering webinars, seminars, a demo trading account and guides to managing risk plus more.

These tools aim to help you to fulfill your trading potential, no matter what your level of forex knowledge.

Below, we take a closer look at the free forex trading tools available to you.

Demo Trading Account

It can be a daunting process when making your first trade. With that in mind, it is important to practice first. Through the City Index Australia demo forex trading account you can test all you have learnt through your trading strategy and analysis by trading your chosen market with a virtual cash balance and therefore at zero risk to your capital.

As a new trader looking to start trading forex, opening a demo forex account will let you familiarise yourself with the City Index Australia trading platform before committing to a live forex trading account.

For two weeks, you can trade prices on 37 currency pairs for free using a virtual cash amount of AUD$10,000, across a custom-built, easy-to-use platform with live streaming prices.

With zero obligations, you do not even have to be a City Index account holder to use it.

Risk Management Orders

As mentioned above, managing your risk plays an important part in your trading success, making it fundamental to your trading strategy.

Through the City Index education section, you can learn how to limit potential losses with the various risk management tools available; these tools are also accessible through their trading platform.

It comes highly recommended that you consider these tools when you trade using a live account with your own funds, but also whilst practicing through the demo forex trading account to gain a more realistic experience and familiarise yourself with the tools.

Summary

Trading forex is a popular choice for many traders; as one of the world's largest financial markets, those new to trading are advised

to regularly set time aside to check their positions and manage their demo forex trading account.

Through a demo forex trading account, you can achieve a greater, more realistic, understanding of trading forex and the risks involved.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

 
City Index is a leading global provider of margined foreign exchange and CFD trading. As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide.