Feb 13, 2019

Use forex brokers comparison and pay attention to these features

Use forex brokers comparison and pay attention to these features

Anyone who wants to get into the business and want to let off steam in the market, should be very well versed in the world of Forex and Co. Use our forex broker comparison to see exactly which provider could match your needs. Different criteria should be considered. On spreads should be paid as well as security and adequate customer service.
Make sure that the broker can execute the orders very quickly. At best, the broker provides the trader with an automatic execution. Furthermore, you should always pay attention to the fees and find out where they could hide. In any case, you should pay attention to these features in the Forex Broker election:

  • Deposit insurance with banks in Germany, Great Britain, the Netherlands, etc.
  • Market model: ECN / STP performs better than market making
  • Transparent and fair commissions and spreads
  • Regulation: based in a country of the European Union (at best Germany or Great Britain)
  • As low as possible minimum deposits
  • Strong position of the broker at the market
  • Real market interest of the broker - ideally he has a branch in USA or Europe
  • Bonus for new customers
  • English support and web presence
  • User-friendly and stable trading platform with individual functions (social trading or automated trading) and reliable chart tools
  • Temporarily unlimited, free demo account with live courses
  • High leverage for a low equity requirement to the customer

If too few of these characteristics apply, it is not a very good broker and you should consider alternatives. In our clear forex broker comparison, you can quickly see which brokers can be considered for you. We rely on a detailed search and put the individual brokers through their paces.
The supply of brokers is steadily increasing these days and we want to help you keep track and filter out just the right provider for your needs.

The perfect introduction to the forex broker comparison

The perfect introduction to the forex broker comparison: the most important terms

Especially for beginners it is extremely important to know the different technical terms exactly in order to be able to act successfully. Here it may come to no mix-ups, in order not to experience blue miracles. We introduce a few of the most important terms in the Forex Broker comparison:

Spread: The spread represents the difference between the buying and selling price of a currency pair in the respective trading platform. This calculates the fee determined by the broker. The spread is indicated in so-called pips.

Max. Leverage: The leverage is provided by the broker and makes it possible to move significantly more capital than has been deposited. It can therefore be regarded as a loan from the broker.
Leverages make trading activities particularly lucrative. An example: With a leverage of 100:1, you can trade with an amount of 10,000 $ if you deposit 100 $.

Account: The broker determines a certain minimum deposit that must be made. The amount of the payment can be between five and 50,000 $.

Max. Bonus: Numerous brokers advertise with bonuses to attract new customers. In many cases, your first deposit will be credited to your account with a certain percentage. This usually requires some turnover before the bonus can be paid out.

Demo account: As you can see in our overview, most Forex brokers offer the opening of a free demo account. This allows you to trade to your heart's content and without risk, without running the risk of losing money. Get acquainted with the market and forex trading before you get into real trading and get down to business. Many demo accounts have a time limit - after which they are automatically closed again.

Commodities: Many Forex brokers now offer commodities that can be traded. Trading in gold, silver and oil is the most common.

Fees: As a rule, the fees are limited to the current spread. However, some providers charge additional commissions. Attention: Various brokers cleverly hide the fees behind deposits and withdrawals. This is often overlooked.

Mistakes in Forex Trading

Mistakes in Forex Trading

It may sound tempting to open an account with a forex broker with a minimum deposit of 25 euros - but just because it is possible, it is still not recommended.

1. Why Most Forex Traders Fail: The Lever
Most professional Forex traders trade a standard lot for every 50,000 units in their account. Less experienced foreign exchange traders are often more risk-averse. 100k standard lots with a 2,000-unit account are not uncommon. This is a problem that will sooner or later break the neck of most Forex traders. They do not understand how the lever actually works and do not have nearly enough seed capital.

A micro-account should have at least 1,000 euros’ credit, 10,000 euros are necessary for a mini-account and a standard account is only recommended at 100,000 euros. If you cannot raise 1,000 euros, you should renounce forex trading until it can raise this sum without any problems. In the meantime, he can practice in demo accounts to successfully trade forex without taking a risk.

Most new traders do not fully understand the concept of leverage and margin. Trading with leverage means being able to trade a large amount of money while using little or no money at all but lending the rest. Forex brokers offer very high leverage. In this way, it is even possible, for example, with the 25-euro account to trade up to 2,500 euros. As long as the trade develops profitably, this is not a problem. Then the lever can be used to generate significant profits, which will then pass into the hands of the trader. For example, if a trader opened a position and traded 100,000 euros at 1,000 euros, the leverage would be 100: 1. The position closes with a profit of 1,000 euros. The broker gets the borrowed money back and the trader receives his bet plus profit and has made a profit of 1,000 euros. If all the money had belonged to him, he would not have been able to claim a 100% return, but only a 1% return. This is the big opportunity in forex trading and leverage products in general.

General and Interesting Facts About Forex Trading

General and Interesting Facts About Forex Trading

In the meantime, private investors have also discovered currency trading, which was mainly reserved for banks and institutional investors. Individuals need a deposit with a broker. In Forex trading, leverage, margin, volatility and recent analysis and charts play a crucial role.

Those who know the various factors correctly and can draw the correct conclusions will be successful in the market. However, the requirements for the trading platform are greater than in any other trading area. We recommend a distinctive, individually designed learning phase, as well as comprehensive tests to learn the forex expertise with the method "Learning by doing" gradually. Forex is a risky product.
Therefore, special caution: who underestimated the risk or even total miscalculated, can quickly experience a total loss and it may even come to additional funding. You should definitely learn the basics necessary to finally establish yourself successfully as a trader. Use our handy forex broker comparison to get the most out of what the different brokers can offer you.

How do I recognize a good forex broker?

What is the forex trade all about? First of all, the constant learning of financial market-typical functions and developments is at the forefront. Especially in this market, the circumstances change quite quickly, which is why the trader should always keep up to date with current developments. If you put your emphasis on your own competence, on your specific knowledge in the crucial areas, you can optimize your profits - in the long run, this strategy will pay off. This also clearly limits the risk associated with the sale and purchase of currency. A good forex broker also offers the best possible spreads for traders. These increase the chances of a long-term flourishing activity in the market. An important note in this regard: Even as the risk gets smaller - trading in Forex and various other financial products remains a risky business.

Forex Trend Following Strategy

Trend trading is a strategy that is very common in market technology trading. Trends can be up or down. Strictly speaking, trends in courses are always present. Even a sideways phase represents a trend, it is only called not as a trend but as a consolidation. How to do this will be presented in another article. This is about the classic trend.

Trading up or down trends?
Trends all show similarities; they only differ in their volatility from asset class to asset class. Since foreign exchange is the largest and most liquid capital market and global trade takes place 24/5, even currency pairs are volatile, i.e. fluctuation-wide. Nevertheless, they often show stable trends.

Whether you trade up or down depends on your own preferences. Although downward trends are usually more dynamic in stock markets, both currencies' upward and downward movements can be very dynamic. While stock sales are one-way, currency pairs depend on which currency is sold. If the US dollar is sold against the euro for relevant reasons, it can mean a dynamic increase and thus a trend in the EUR/USD currency pair.

How do you identify a trend?
Forex trends are usually influenced by many factors. Each currency has its own weighting in the factors. Some are extremely dependent on commodity prices, others on the economy in China and others on political and monetary policy decisions. It is advisable to know these characteristics, even if you strictly act according to the market technique.

How do you act trends?
Meanwhile, you can trade trends in several ways. It must first be defined how long you want to participate in the trend. You can either try to trade the whole trend, so get in as early as possible and get out as late as possible. This will not always work, as you can often not identify a trend reversal with certainty.

Forex Risk Management

Risk management is probably one of the most important terms a foreign exchange dealer can only counter. However, it is overlooked by many traders and not taken seriously enough. However, if you want to be successful in the forex market in the long term, you cannot avoid dealing with risk management.

However, those who do not conduct risk management and do not properly determine their position sizes basically do nothing but gamble. The focus is then not on being able to record profits in the long term, but to win the "jackpot" at the next trade. Only those who can control their losses in the long run have a chance to be profitable. In the end, forex trading is a number game. This means that the possible loss must also be factored in and, if possible, changed in such a way that a positive picture emerges.

An important part of risk management is the question of sufficient capital. How much is needed to start trading Forex?
The answer depends on how the new entrant wants to tackle the Forex trading.

First, a basic knowledge should be created that makes it possible not to put the entire starting capital pointless. Education is also capital in the form of knowledge, so here should be the main focus at the beginning. There are many ways to learn Forex trading: classes, single-handedly, with mentors, in the exchange over the Internet and many other possibilities and combinations. However, seminars, classes, books or mentors cost money. The advantage is that the learning effect is often much greater than with independent training. This also means that trades can succeed much faster and thus become more profitable sooner.

The second question that needs to be answered to determine the starting capital is whether trading requires special tools such as charting software or newsfeeds. Most of the analysis tools can be used by many Forex brokers at no extra cost.

Forex Demo Accounts

The numerous order additions are only a reasonable argument for why newcomers to currency trading should use a demo account before they risk their capital. It certainly takes some getting used to, until a trader understands all order additions and can apply them correctly. This is especially the case with combined order additions. The full potential can only be exploited if the trader has actually understood which additions have which consequences and when they take hold.

Beginners can test order supplements with free forex demo accounts easily and without any risk. They allow beginners to use the full range of functions and therefore also to try out all order additions. It would be very annoying if a beginner risked money and did not quite understand an order type. Maybe he would risk a lot of money with it. Only then can they be safely used in currency trading with real money.

Conditions for the forex demo account
What conditions a forex broker offers for his demo account is sometimes very different. As a rule, they are limited either in terms of capital or useful life. Often the account can be recharged on demand, however, or the account can be extended again.

Such a demo account is usually free. Usually, the dealer receives a certain amount of play money or can use the account for a limited period of time. If you have never traded foreign exchange, you may need some time at the beginning to deal with the many functions and possibilities. Even those who have already traded Forex online will not find their way on any modern trading platform. A demo account also allows experienced traders to familiarize themselves with the appropriate software. As with Forex trading, as with any other investment, it is important to avoid mistakes due to ignorance or inattention, it is almost essential to test and try the platforms before the first trade.

Forex Contra-trend Strategies

Forex Contra-trend Strategies

The trend sequence is just as prevalent in forex as in the stock market. However, no trend is even. Every trend is accompanied by corrections. As a result, strategies have developed that take this correction trade into account. Often referred to the correction trade as a counter trade, because it is almost against the existing trend. But basically, this is also a trend following trade, but only on a shorter-term basis.

What makes a contrast trend?
On the one hand, as already indicated above, a correction implies a contrast trend, ie a short-term trend within a long-term trend. But it can also be quite that you are looking for a turnaround and want to act a newly established trend. Although this is not a contrast end in the sense, the entry is still in the context of the existing trend in the opposite direction. So we have two types of possible contrast trends that we want to introduce.

Corrective trade as a counter trend
As usual, correction trading needs a large trend that could be identified using indicators or trend lines. In general, trend lines connect the lows and highs of a trend. A trend is confirmed as long as two lows or highs can be connected.

The chart above shows that the NZDUSD currency pair is strongly in a downtrend on a weekly basis. The two lows confirm this trend. However, the chart also shows that the trend is too strong, as the third low is formed much later. Nevertheless, and simplified, a correction could be traded to upper trend line within the context of counter trade.

But how do you do it? Because if you look closely, a fast-low has already been formed some time before. If you had already gotten in there, you would most likely have suffered a loss because the correction did not develop further. In order to avoid such false signals, an optimization by means of filter indicators, such as the RSI, is required.

Create forex trading plan

Create forex trading plan

Creating a trading plan is essential for long-term currency trading success. In addition, it is created with just a few extra steps and gives the dealer the opportunity to significantly improve his performance.

What is a trading plan?
Being an independent trader should be the goal of every forex trader. Each trader has different thought processes, market insights, risk tolerances and market experience. A method that works for another trader and meets all his needs does not have to be suitable for another trader. On the contrary, it could even be detrimental to him.

A trading plan defines when, what, why and how to do it. He is a mirror of personality, expectations, trading systems and principles of risk management. Together with a bit of discipline, he can ensure that profits can be significantly increased and, above all, enables regular evaluation and thus targeted and strategic improvement.

A trading plan is also necessary because the currency trading can be linked to many emotions. This applies both when trades are successful and when the trader has to accept losses. Every trade has an impact on the psyche and favors wrong decisions from the heat of the moment. The best way to prevent this is not having to think. Anyone who has already prepared in advance what he will do in this case will think less about his decision while he is in an emotional state and instead continue to act with a cool head. Short-circuit actions are thus avoided.

A trading system simply indicates when and how a trader opens and closes positions. On the other hand, a trading plan also includes the trading system but everything a trader needs to make meaningful trading decisions - optimally at any time. This means that the analysis, risk management, execution, etc. are all covered by the trading plan.

Binary Options Trading - Tips and Strategies

Binary Options Trading -  Tips and Strategies

If you want to trade binary options, you do not just need a happy hand, you also need the right strategy. Surely anyone can trade with binary options even beginners, but who wants to make a permanent profit, should already have some background knowledge. However, trading binary options requires not only a good strategy, but also a lot of discipline, perseverance and market knowledge, so that trading does not become a stroke of luck. What tips there are when dealing with binary options and what should be considered here, you can find out here.

Money Management - Do not risk too much!

The goal when trading binary options is usually not even to make a profit, but to be permanently successful. That's why disciplined money management is so important that you do not lose too much money on individual trades. For each trade the trader should only use a maximum of 5% of his trading capital.
It cannot happen that they make more losses than planned in a trade. There are many traders who try to compensate for their loss immediately by higher bets. But this can go wrong and you will lose even more money. Always play calmly and deliberately and do not increase the stake in case of loss or profit.
No matter if you have a lucky streak or a losing streak, try to stay calm while trading binary options. There are many traders who get upset about a loss and then lose even more money.

Regular market analysis

If you really want to be successful as a trader in the long run, you should know the market very well. Always keep an eye on the market and inform yourself about the most important news and events in world affairs. It is also advisable to only deal with things you are really familiar with. Do you know a lot about stocks? Then you should also trade in shares.
There is no point in trading things like commodities if you don't know anything about them. If you are familiar with something, inform yourself about the topics and don't have to read things that don't interest you at all.