The Foreign Exchange Market

Almost every country does trade in currencies on the Forex. For this very reason, the foreign exchange market is open 5 days a week, 24 hours a day. You can trade currencies somewhere in the world when it is open. The week begins on Monday morning in Sydney, … However, many private individuals do trade on the Forex using a broker. Using the internet and online trading are also very popular today.

Foreign Exchange Basics:

Almost every country does trade in currencies on the Forex. For this very reason, the foreign exchange market is open 5 days a week, 24 hours a day. You can trade currencies somewhere in the world when it is open. … It is possible, however to trade as a private individual while using a broker. Another popular media of trading is online using the internet.

Forex Trading, Currency

Foreign Exchange Market Daily Update The US dollar rally seen yesterday and overnight came to an end as European shares rose and US stock market futures dampened the dollar sentiment.

foreign exchange

What is the best option for cell service for a foreign exchange student that will be here for 1 year? Posted on March 9, 2009, 12:50 pm, by , under Uncategorized. options exchange. Levi W asked: * Would like to not have to sign the contract … Narach I on Can anyone tell me the basic things i need to know for stock trading? John on Can anyone tell me the basic things i need to know for stock trading?

Swiss Franc Rises on a Trade

Forex - Foreign Exchange Blog. Search: … The Swiss Franc, as a result, has appreciated by 9% (on a trade-weighted basis), since the summer. euro-to-swiss-franc-exchange-rate-chart. The Swiss National Bank (SNB), meanwhile, has cut interest rates by 225 basis points over the last six months. If it delivers on a unanimously-anticipated 25 basis point cut at its meeting tomorrow, its benchmark lending rate will stand at a paltry .25%.

Online Forex Trading

Forex Trading Education. Forex or Foreign Exchange is the most liquid and the largest financial market in the world. Unlike other financial market, the Forex market doesn’t have a centralized location.

Forex Hosting

You may have read that purchasing a Forex hosting package is highly recommended when trading forex online. Forex hosting services, sometimes referred to as Virtual Process Servers, are important for individual online traders who desire the extra peace of mind while buying and selling forex currencies everyday. Forex hosting packages not only give individual traders greater flexibility as far as where and when trades can be made but also give traders the ability to execute trades as smoothly as possible.

What exactly is a forex hosting service or a Virtual Process Server? Forex Hosting Services are recommended for online traders because it almost guarantees 100 percent smooth processing of trades. To put it simply, a VPS is a hosting device that will allow you to run your trading platform at all times, 24 hours a day. Purchasing a forex hosting service will give you a back up or “virtual” computer which you can access from any internet connection. With a dedicated forex hosting service, traders don’t have to worry about their computers crashing or their internet service providers suspending or cutting service due to whatever reasons while trying to make critical trades.

Forex Hosting Services are especially recommended for those who purchase automatic trading systems or Forex Robots. Most forex robots require their software to run 24 hours a day. Without a VPS, this would mean you would have to leave your computer on throughout the night and hope that your system doesn’t “shut down,” or “crash” due to a power failure or due to a problem with your PC. Since forex robots can trade at any time during the day or night, you really don’t want to risk missing out on profitable trades because your spouse accidentally turns off the computer. A forex hosting service will eliminate these types of potential mishaps.

Forex Hosting Services can run anywhere from about $24.00 per month to $150.00 a month. The pricing varies depending on the hosting company and the type of package you select. The more memory and processing power required on your “virtual” computer or desktop package, the more expensive the price. Depending on the forex robot you select, you may need more RAM or memory from your hosting provider. For example, if you are running multiple forex robots on multiple forex accounts, you would require more RAM on your virtual machine. The pricier options are more suited for the hardcore forex traders so if you are just starting out, you can certainly opt for the cheaper options.

Forex hosting services will greatly reduce the risk of a missed trade or poor execution. There are many hosting companies that provide virtual process servers but they are not necessarily tailored to forex robots. Perhaps the most convenient aspect is that many forex hosting companies will have trading platforms pre-installed on your machine or can help you with the set up if you are using it in combination with a forex robot. By purchasing this type of service, you will optimize not only your forex robot but also your forex trading capabilities to the fullest.

Forex Market

Click Here to Start Making Money off Forex

Some Basic Facts

The forex market is the largest and most popular financial exchange in the world. The average volume traded on the forex market is 4 trillion dollars a day compared to 25 billion dollars a day on the New York Stock Exchange.

You may already be familiar with some of the main currencies that are traded on the forex exchange but here are just a few: The US Dollar, Euro, British Pound, Swiss Franc, and the Japanese Yen. The players in the forex market are central banks, large commercial banks, hedge funds, brokerage firms, and private individuals.

Forex Market Hours

One of the main reasons why the forex market is so popular is because it is a 24 hour continuous market. Although the sessions on each of the separate exchanges generally open from 10AM to 6PM local time, they overlap each other like a relay race. Therefore, you can trade at any time and you can set your own hours. This is great for those who are not interested in a typical 9 to 5 job or for those who want to start trading on a part time basis.

Equal Opportunity Trading

The forex market is considered part of the Over The Counter, or OTC market, which means it doesn’t have a physical or central location. The forex market is run electronically within a network of banks and is made up of all participants that trade between themselves. The sheer size of the forex market makes it impossible for large investment or central banks to manipulate pricing for extended periods of time. This levels the playing field for all the average joe traders out there.

What it Means for You

Since there isn’t a centralized location and because there is little regulation of the forex market, there is heavy competition between different providers to attract the most traders and volume. It also means that the firm you trade with is your counterpart. The advantages are that you can trade directly with the market and that your transaction costs are kept down. The ability to make large profit off leverage is another advantage to the stock exchange. With some firms, you can trade or borrow up to 200 times the balance in your account. This means that a .5% move in the market can turn into a 100% gain.

The forex market is also popular because it doesn’t cost much to start trading. You have to be in it to win it, as some lotto slogans say. There are some online forex brokers that require as little as $10.00 to deposit in a trading account to get started. In the beginning, only large institutions could trade on the forex market; however the internet has made it possible for smaller investors to trade as well. Due to the popularity of online forex trading, the competition between online forex brokers is fierce. As a direct result, the minimum deposits to trade have now become very low.

Trading in the Foreign Exchange Market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the Forex market. Don’t trade with money you can’t afford to lose.

Forex Market Explained
In the forex market, currencies are exchanged through a floating exchange rate system. The forex market has no central exchange and has no trading floor. It is considered as an 'over-the-counter' (OTC) market and is run electronically within a network of banks known as the interbank market. The FX market runs continuously 24 hours a day from Sunday afternoon to Friday afternoon.

In the past, the forex interbank market was not available to small investors and only the world’s largest banks were allowed to trade openly. Since the introduction of the internet, forex brokers have emerged to cater for the needs of almost any individual with the use of online forex currency trading platforms. The trading platform is where you will execute all of your trades with your broker with just a few clicks of the mouse.

Individual traders like you and I are known as “Retail Traders”, and must go through retail brokerage firms in order to buy and sell currencies on the foreign exchange market. Today, however, you can buy and sell currencies at the click of a button, in much the same way as you buy and sell stocks. Everything has been automated and linked up electronically. Exchanges in the Forex market happen instantaneously.

You should know up front that online retail trading by individuals (represented by online retail brokers) is still in its infancy. Prior to the Internet, and subsequent availability of real-time market data, it was virtually impossible for the average person to get involved in the foreign exchange market with any degree of success.

The aim is to exchange one currency for another in the expectation that the currency you bought will increase in value compared to the one that you sold. Currencies are traded through a forex broker and the currencies are always quoted in pairs, for example (EUR/USD).

In any currency pair the base currency is the first one displayed and will be the one that is going up in value if the currency pair is going up and if the currency pair is going down then the base currency is weakening.

The most widely traded currency pairs are known as the ‘majors’ due to their volume and liquidity in the market. They are (EUR/USD) (USD/JPY) (GBP/USD) (USD/CHF)

You will soon learn that it is normally cheaper to trade with these pairs. Currency that trades against the U.S. dollar is the most popular because it is the most liquid and volatile. There are many different currency pairs to choose from however to get started with forex currency trading, you only need to concentrate on the majors.

What is Forex Currency Trading?

The term 'Forex' or 'FX' is short for 'foreign exchange'. What is being exchanged on this market is not stocks or bonds, but currencies from around the world. In other words, the Forex market is the place where U.S. dollars, Euros, Yen and other major currencies are bought and sold.

It represents the largest financial market in the world by volume. Starting with the simplest example of currency exchange that most people are familiar with is that of exchanging one currency for another when travelling overseas.

Sometimes you get more for every dollar you exchange than other times. You will notice that foreign exchange rates never remain the same and are constantly changing. This volatility in exchange rates can enable you to make a lot of money in the forex market with forex currency trading.

Forex Currency Trading is Investing in the World's Largest Financial Market

Forex currency trading has rapidly gained popularity around the globe in the past decade as there are very little barriers to entry for the small investor to participate. With the help of forex currency trading resources available online, forex currency trading is something that anyone can do to earn money.

If you are new to forex currency trading, but not to stock investing, then this guide should help you to get a feel for the differences between trading on the foreign exchange market versus trading on the traditional Stock market. If you are new to investing in general, then this site can open your eyes to a world you never knew existed.

Managed Forex Service

Forex Introduction

Forex is the name given for the direct access to Forex online currency trading of the Forex currency market. With an average daily volume of over $1.9 trillion, that turn over trading volume is more than 5 times the amount of the U.S. Stock market and U.S. Treasury markets combined and for that reason, it makes it extremely difficult for governments and currency brokers that trade for large financial institutions and banks to be able to control the direction of the Forex currency market which is the world's largest and most liquid financial market in the world today. In the past, Forex online currency Trading was once limited to large banks, major money centers and the large financial institutions through out the world, including our own federal reserve bank. But in just over the past decade, with today’s vast technology of Forex online currency trading and the advances in communications, information now flows around the world in a matter of seconds no longer days These new technologies and the development of Forex online currency trading platforms, allow investors and currency brokers to place currency trades of all sizes to get instantaneous execution and total price certainty on orders up to one million dollars in size including stop-loss and limit orders as well. This allows you to respond and enter trades with confidence off of real-time buy or sell quotes. Forex currency market is a true 24-hour market that literally follows the sun around the world, from the United States to Australia and New Zealand, to Hong Kong, the Far East, Europe and then back again to the United States. The around the clock 24-hour global activity and the unmatched liquidity no matter what the economic world Conditions are, individual speculators and currency brokers can respond to all market conditions at any time; unlike stock and futures trading. This is what makes the Forex currency market the ideal perfect market for speculators and currency brokers.

Forex Market Hours

The Currency Forex Market hours will please most traders used to traditional stock trading. Unlike with stock markets, trading occurs all day long. Forex traders work 24-hours a day, five days a week. No more waiting to make trades after the weekend, or trading according to a market's hours -- the currency Forex market is never closed.

With a daily dollar volume of $3 trillion in 2007, according to the 2007 Triennial Central Bank Survey of Foreign Exchange and Derivative Market Activity, the Forex capital markets are the largest and most liquid markets in the world. The number of currencies traded during Forex market trading will ensure a high level of what currency traders call "volatility" on a day-to-day basis. In layman's terms, this means there will always be currencies that are moving rapidly up or down, offering opportunities for profit (and of course for risk) to currency market traders. Thankfully, just like the more standard equity markets, Forex offers financial instruments to moderate risk for traders, and to allow the individual to profit in both rising and falling markets. Forex also allows highly leveraged (or "credit") trading with low margin requirements -- much lower than stock market trading. The best news of all for day traders used to the stock market, Forex market trading requires nodealing commission payments.

Many of the trading moves utilized in Forex capital markets, such as spread betting, forwards and futures, options, the spot market, and contracts for difference, are very similar to those used in more traditional stock trading markets. Since the "financial instruments" of the Forex capital markets tend to maintain minimum trade sizes relative to a base currency, the use of "margin trading" is absolutely essential for the person trading these instruments. For example, the spot market requires a minimum trade size of 100,000 units of the base currency. That's a ton of margin.

SigmaForex Explains The Concept Of Fair Value

SigmaForex devotes serious effort to serve the emerging retail segment of the Forex community. Its commitment to providing an excellent customer service, innovative currency trading technology, and dealing practices, establishes SigmaForex as a notable force that traders look forward to for an advanced Forex charting, Forex news, and fund safety.

If you want to understand forex markets and trade them for bigger profits, then you need to understand the concept of fair value. Most traders don’t - but if you do, you can turn this to your advantage and make huge long term profits.

So what moves forex markets? Here is a simple equation:

Forex Fundamentals + Investor Perception of them = Price.

It’s a fact that the fundamentals are unimportant by themselves - it’s how investors perceive them, that is vital to understanding price. We all have the same facts to look at but we all draw our own conclusions about them, colored by the emotions of greed and fear.

Over the longer term prices tend to respond to the long term fundamentals - but in the short term traders always push prices to far up or down with there emotions and we see prices spike away from fair value.

You can see them easily on a forex chart and these forex price spikes never last and prices eventually come back to more realistic levels. This is simply the way any free market works not just forex markets but how do you take advantage of fair value and how do you judge it?

One of the simplest ways to judge fair value is to use a longer term moving average.

In big bull trends the 40 ma will normally act as great support for the longer term trend and dips back to the 18 day ma, are normally a good area to load in positions in the direction of the prevailing trend.

Look at any trend and you will see how effective these averages are to buy or sell into, after a surge up or down.

When prices dip to these averages you don’t just buy into them, you wait for momentum to turn up in the direction you wish to trade. Here you should use some momentum indicators to time your trading signal.

There are a lot of them and we have written frequently about them - but the stochastic and the RSI, are good ones to use so check them out.

The trend is your friend, as the old saying goes and a trend in motion is more likely to continue than reverse.

This is why this strategy works. Check a forex chart and you will see how often buying back to key moving averages supported by momentum works. Forex trends last for months or years and by buying back to these areas of fair value, you can make a lot of money.

A forex trading strategy that buys back to fair value can make you a lot of money.

This is a simple forex trading strategy and it’s highly effective, when a market is trending and you want to get in on the direction of the major trend at the best price in terms of risk to reward.

In part 2 of this article series, we will look at how to take advantage of price spikes to initiate counter trend trades which, can offer spectacular profits with low risk.

It's Important to Find the Right Regulated Forex Broker

When selecting a forex broker it is important to do some research to find an efficient and reliable online broker. Care must be taken to avoid any dishonest and fraudulent brokers. A good forex broker must be regulated so choose a broker that has been approved by a government authority in a strong regulated country.

Forex Brokers
Countries such as the United States, United Kingdom, Canada and Australia have their own regulatory authorities that stipulate the regulations that forex brokers must abide by. In the United States regulated forex brokers are governed by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). Ensure that you verify the registration of the forex broker before opening an account. You can visit the NFA's website at www.nfa.futures.org to confirm the registration of the broker.

There are several important criteria to consider before registering with a forex broker. Competition between forex brokers is fierce so ensure you take advantage of that by shopping around for the best broker. It is beneficial to check and compare their services and any optional extras they provide such as:


* Training material that teaches you certain trading strategies as well as how to use the trading platform. Look for full disclosure of trading strategies.

* Platform: Each broker has a different platform. Depending on your preferences you can find a platform that requires software to be downloaded to your computer or a platform that requires you to go to a web page and log in. The website based platform is preferable and considered more safe and reliable. Does the platform contain charts, prices and news? Trial a few different platforms and find out which one is more comfortable for you to use. Check the reliability of the trading platform. An incorrect trading platform can cost you time and money.

* Guaranteed stop loss and limit orders.

* Minimum slippage. Slippage is the difference between your quoted price, and what your order is filled at. You can test the platform with your free demo account to determine how quickly the forex broker will execute your orders after you have pressed the buy or sell buttons. Look for automatic execution.

* Are there any minimums? This is something that tends to be set by the brokers themselves. Ask about their policies on minimum account balances or minimum trading contract sizes. You should always talk to the brokers to find someone that will fit your budget and needs. Knowing that you can reasonably afford the minimum is critical. If the minimum that you are told at first is not suitable, always feel free to look for a different broker who can fit all or your needs.

* How competitive are their fees? This is based on the spread width, (the difference between the buy and sell price) is it fixed or variable? Competitive fixed spreads are normally between 2 to 5 pips per currency pair, check whether mini accounts get charged more. The lower the fees the lower your trading costs will be. It's less crucial for swing trading.

* How much leverage is provided? It is best not to use more than 100:1 leverage for a regular (100k) account and 200:1 leverage for a mini (10k) account. Firms offering much higher leverage may not be acting in your best interest.
What are the forex broker's policies on margin lending and interest payments on account balances, and do the margin requirements change under certain circumstances?

* Check for transparency of the transactions and make sure the forex brokers do not overcharge you.

* Does the brokerage firm have financial backing? In the event of bankruptcy how secure will your funds be?

* Service: This should be high quality. You want the forex broker to have good 24-hour customer support and enough staff to provide you with prompt support that you need.

Forex Broker Information

What is a forex broker?

A forex broker is an institution, often a bank or a big financial company, that allows you to trade currencies in the forex market.

What is important to check when choosing a forex broker?

• 1. Spreads - make sure the company is giving tight spreads. A spread is the difference between the buying price and selling price at a certain time, and the lower it is, the easier it is for you to profit.

• 2. Supported currencies - all forex brokers support "the majors" - the currencies with the highest trading volume: the US Dollar (USD), the Euro (EUR), the British Pound (GBP), the Japanese Yen (JPY), and the Swiss Franc (CHF). Most brokers also support additional currencies, even exotic ones (such as Polish Zloty, PLN, and Israeli Shekel, ILS). However, when trading currencies other than the majors, it's important to check the spreads, since they are often much higher than the spreads on the majors.

• 3. Required invetment - some brokers, such as Easy-Forex, allow you to open an account with as little as $25. It is NOT recommended to start with such small capital, but if you do not have much to invest in a forex account, see what is the minimum deposit before opening an account.

• 4. Technical support - all forex traders, beginners and experts, run into trouble. It's very important to check whether a forex broker offers a good technical support, especially if you are a beginner.

8 Basic Tips On Choosing Best Brokers For The Forex Markets

There are some basic notices that you should consider when you want choosing online forex broker.

#1- Spread Amount

The spread, which is calculated in pips, is the difference between how much you can buy or sell a currency at a specific point in time.

Forex currencies are not traded through a central exchange market, so the spread can be different depending on the forex broker you use. Some online forex brokers have variable spread; some of them have two spread amounts that depend to day and night.

Some of them their spread depends to the position of market. When market is quiet the spread is small and when market is busy the spread is high. I prefer forex brokers that have fixed spread, because over the long term fixed can be safer.

#2- Execution

– How fast is the broker’s order execution?

- Do they offer automatic execution?

– How much can you trade before having to request a quote?

– Do they trade against their clients?

The best way to find out is to open a demo account and give them a test drive.

#3- Leverage Options

Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your forex broker will lend you $100 for every $1 of actual capital you have. Leverage is a necessity in forex trading because the price deviations in the currencies are set at fractions of a cent.

Before choosing an online forex broker notice that what is their leverage. Many brokerages offer a flexible margin that allows you to choose the leverage that’s right for you.

#4- Account Types

Notice the forex broker you choose has mini account or not. Mini account is designed for those new to online currency trading and those with limited investment capital. There is a smaller deposit required to start trade of just $300 or less.

#5- Trading Platform

Good trading software will show live prices that you can actually trade at, not just indicative quotes. It will offer Limit and Stop orders, and ideally will let you attach these to your entry order. One-Cancels-Other orders are another useful feature – they mean you can set up your trade and then leave the software to get on with it.

#6- Dealing tools and value-added services

Find out online forex broker that offers the best resources and information to help you make the smartest trading decisions. A good company should offer real-time charts, technical analysis tools, real-time news and data, and software or website support. Be weary of any company that refuses to share information or trial versions before opening up an account. You will want to try out their system before you choose to invest money in it.

#7- Support

Forex is a 24 hour market, so your online forex broker should offer 24 hour support. You should also check if you can close positions over the phone – essential in case your PC or internet connection crash at a critical moment. You could contact to their Internet help desks to see how quickly they respond to enquiries.

#8- Get Referrals

Ask around and read forex forums to find out which forex brokers other people use and why they selected a specific broker.

Choosing the right Forex broker can be a daunting task which is why we've assembled this list of considerations to assist you.

Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commision Merchant (or FCM) and regulated by the Commodity Futures Trading Commission (or CFTC). You can find this and other financial information and statistics about a forex brokerage on its website or on the website of its parent company.

Low Spreads - The spread, calculated in units known as "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena. Remember, lower spreads save you money in the long term.

Extensive Tools and Research - Forex brokers offer a wide variety of different trading platforms for their clients - just like stock brokers or brokers in other financial markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems****. Before committing to any broker, be sure to request free trials from your online Forex broker to test different trading platforms. Brokers usually also provide technical and financial commentaries, economic calendars, and other research meant to give their customers insight into the world of Forex.

Wide Range of Leverage Options - "Leverage" is kind of like credit between you and your Forex broker. Leverage is the name of the game in Forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call (when your forex broker adds more of your money to an account when it drops to a certain level), but lower leverage can also mean less bang for your buck. The opposite is also true -- working with an online Forex broker willing to give you high leverage increases your chance of a margin call, but also increases your potential profit. If you have a limited supply of cash, make sure your online Forex broker offers high leverage. If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile or unusual currency pairings.

Account Types - Many trading Forex brokers offer at least two different types of investment accounts. The smallest account is known as a "mini account", and requires you to trade with a minimum of around $250. This account is usually offered with a high amount of leverage, which you will certainly need in order to make money with so small an initial investment. The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,000. Finally, there are the so called "premium accounts", which often require significant amounts of capital at your first investment. These premium accounts let you use different amounts of leverage and often offer additional tools and services that smaller accounts don't have access to. Make sure the online Forex broker you choose has the right leverage, tools, and services you need as it relates to your initial investment.
Watch out for certain sneaky or even unethical practices that some Forex brokers use. Not everyone in this business is honest. Specifically, be mindful of a broker's margin rules and any rumors of "sniping".

Strict Margin Rules - When you are trading with borrowed money, or leverage, your trading Forex broker has a say in how much risk your account should take. Remember that your broker can buy or sell when it deems it necessary -- this can be a bad thing for you. Let's say you have a margin account, and your investment takes a nose dive before rebounding to a new high. Working with a Forex broker who follows strict margin rules, even if you have enough cash to cover the crash this broker will likely liquidate your investment when it hits that low number. This action on their part can cost you plenty of money. Talk to potential trading Forex brokers in person or visit online discussion forums to find out who the honest brokers are. You have to do the footwork, there's no other way around it.

Sniping -- also known as "hunting", this refers to the practice of prematurely buying or selling near preset value points. This is an underhanded behavior committed by some less than reputable brokers to increase their own profits. As a rule, no broker admits to committing acts of hunting, but rumors about certain brokers who have been "sniping" or hunting is common in online discussions and among Forex traders. The only way you can determine which brokers hunt and which brokers don't is to talk to your fellow traders. Thankfully, the Internet has made communicating with Forex traders around the world as easy as logging onto a Forex discussion board. There is no blacklist or organization that reports sniping activity, so you'll have to talk to other traders in person or visit online discussion forums to find out who the honest brokers are.

It's Important to Find the Right Regulated Forex Broker

When selecting a forex broker it is important to do some research to find an efficient and reliable online broker. Care must be taken to avoid any dishonest and fraudulent brokers. A good forex broker must be regulated so choose a broker that has been approved by a government authority in a strong regulated country.

Forex Brokers
Countries such as the United States, United Kingdom, Canada and Australia have their own regulatory authorities that stipulate the regulations that forex brokers must abide by. In the United States regulated forex brokers are governed by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). Ensure that you verify the registration of the forex broker before opening an account. You can visit the NFA's website at www.nfa.futures.org to confirm the registration of the broker.

There are several important criteria to consider before registering with a forex broker. Competition between forex brokers is fierce so ensure you take advantage of that by shopping around for the best broker. Take the time to select the right broker for all of your needs so you will be able to use their experience to your benefit. It is beneficial to check their services and any optional extras they provide such as:

* Training material: There are some Forex firms that help new traders in becoming more skilled in Forex trading by giving free demos, guidance, and helpful Forex news. Brokers can help you in developing trading strategies or in finding efficient trading systems. Aside from that, a good broker can also help you with fundamental and technical analysis of relevant data.
* Platform: Each broker has a different trading platform and most are provided for free. Does the platform contain charts, prices and news? You need to make sure that it has charting software with the ability to plot the indicators used in your trading strategies. Trial a few different platforms and find out which one is more comfortable for you to use. Check the reliability of the trading platform by opening a demo account first. An incorrect trading platform can cost you time and money.
* Guaranteed stop loss and limit orders.
* Minimum slippage. Slippage is the difference between your quoted price, and what your order is filled at. You can test the platform with your free demo account to determine how quickly the forex broker will execute your orders after you have pressed the buy or sell buttons. Look for automatic execution.
* Are there any minimums? This is something that tends to be set by the brokers themselves. Ask about their policies on minimum account balances or minimum trading contract sizes. You should always talk to the brokers in order to find someone that will fit your budget and needs. Knowing that you can reasonably afford the minimum is critical. If the minimum that you are told at first is not suitable, always feel free to look for a different broker who can fit all or your needs.
* How competitive are their fees? This is based on the spread width, (the difference between the buy and sell price) is it fixed or variable? Competitive fixed spreads are normally between 2 to 5 pips per currency pair, check whether mini accounts get charged more. The lower the fees the lower your trading costs will be. It's less crucial for swing trading.
* How much leverage is provided? It is best not to use more than 100:1 leverage for a regular (100k) account and 200:1 leverage for a mini (10k) account. Firms offering much higher leverage may not be acting in your best interest.
* What are the forex broker's policies on margin lending and interest payments on account balances, and do the margin requirements change under certain circumstances?
* Check for transparency of the transactions and make sure the forex brokers do not overcharge you.
* Does the brokerage firm have financial backing? In the event of bankruptcy how secure will your funds be?
* Service: This should be high quality. You want the forex broker to have good 24-hour customer support and enough staff to provide you with prompt support that you need.

Whenever I mention Forex trading to someone, the first question I’m usually asked is, “What the heck is Forex trading?” Well, I’m prepared to answer that question right from the beginning: Forex trading--also known as the foreign exchange market or FX--involves the buying of one nation’s currency and the selling of another nation’s currency. These units of currency are always expressed in pairs, such as EUR/USD for the Euro and the US Dollar. The currency being purchased will be listed first, while the currency being sold is listed second.

Forex trading usually revolves around the world’s major currencies, with more than 80 percent of the market devoted to the Australian Dollar (AUD), British Pound (GBP), Canadian Dollar (CAD), Euro (EUR), Japanese Yen (JPY), Swiss Franc (CHF) and the US Dollar (USD). Trading takes place 24 hours a day, as one session begins when another one ends. Major trading centers are located in London (the largest), Tokyo, New York, Singapore and Hong Kong, although others do exist. Trading is closed on the weekends.

While the average person can participate in Forex trading, the majority of the moves are made by major players such as governments, corporations, and investment banking institutions. Leading currency traders include: Deutsche Bank, Barclays Capital, UBS AG, Royal Bank of Scotland, Citi, Morgan Stanley, Goldman Sachs, HSBC, and Lehman Brothers. There’s a lot of money to be made, and the daily turnover is over $3 trillion (with a 41% increase between 2007 and 2008, alone).

Many savvy investors find Forex trading preferable to that of the traditional stock market. The usual reasons given are twofold:

1. Simplicity - Okay, Forex trading isn’t exactly simple, but there are a lot fewer commodities to keep track of. If you combine the New York Stock Exchange and the NASDAQ, there are over 8,000 stocks to monitor and analyze. With the foreign exchange market, there are only four major currencies and thirty-four second tier currencies. 38 is a lot more manageable of a number than 8,000.
2. Stability - As you probably know, the traditional stock markets are prone to wild swings due to fluctuating interest rates and the general Bear/Bull mentality; this isn’t the case with Forex trading. If one currency isn’t performing up to expectations, the trader can always look to make a profit with another one.

Forex Trading Terms

Forex trading terms can often seem complicated to the uninitiated. In this section, we’ll be taking a look at some of the most basic Forex trading terms.

• Bid Price - The price at which a buyer is willing to purchase a currency. Always expressed as a 5 digit number.
• Ask Price - The price at which a seller is willing to sell a currency. Always expressed as a 5 digit number.
• Spread - The difference between the bid price and ask price.
• Margin - Collateral for a position. This comes into play when the market moves in a downward direction and the forex trader requires additional funds. This is done by requesting a “margin call.”
• Long Position - The trader buys a currency at a certain price, expecting to sell it later at a higher price.
• Short Position - The trader sells a currency with the expectation of buying it back later at a lower price.
• Spot - A two-day delivery transaction which indicates a direct exchange of currencies.
• Forward - In this style of exchange, money does not change hands until an agreed-upon date in the future.
• Future - Currency which matures at a future date and usually carries a three-month contract.
• Swap - The swap is the most common type of forward transaction. In these cases, two parties agree to swap currencies and then swap them again at a future date.

Information on Forex Trading Currency

Forex dealing is all about playing with stocks and money from other countries and corresponding forms of products. One nation’s money is considered against the money from another country to figure the value. The entire value is taken into review when buying and selling stocks on the FX markets. Most countries have management over the total worth of their country with regards to monies. Individuals speculating in the FX markets include banking institutions, large businesses, international administrations and finance companies.



So what makes the forex market different from the stock market? A forex market transaction is a trade between two countries, and occurs all over the world. The two countries are 1, the country of the investor of the funds and 2, the country the money is being invested in. Most all transactions taking place on the forex stock exchange will likely be qualified through an experienced broker such as a bank.

What is involved in the forex stock exchange? The overseas market is combined from various types of dealings and nations. For those invested in the forex exchange tend to trade in boastfully large volumes along with gigantic sums of money. For those deep into the forex stock market probably have financial businesses or are in businesses where assets are bought and sold quickly. While the US stock exchange is immense you would be right to imagine the forex stock market as even more immense than the stock market in any one country overall. Those involved in the forex market are trading 365 days per year, twenty-four hours a day and sometimes on the week-ends.

It may surprise you to see the number of people who issue trades on the forex exchange. In the year 2004, almost two trillion dollars was the mean forex trading volume This is an immense number of trades for the number of daily transactions to take place. Think about how much a trillion dollars really is then double that, and this amount is the average that is traded on any given day on the forex exchange!

The forex market is not something new, as it has been used for over thirty years but with the introduction of computers, and the global web, the forex exchange is growing exponentially as growing numbers of investors begin to see how easy trading on the forex exchange can be. Forex only accounts for about ten percent of the sum of all trades between two countries but as the popularity in this market continues to grow so could that number.

Forex – What is it? The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies, evaluated for instance in US dollars, fluctuate towards its higher and lower meanings.

Forex signals are very important in Forex trading. They help the individual Forex investor in his decision. They let him know what is going on in the Forex market without the necessity to continuously keep an eye on the trade market. So that such Forex signals are very reliable and dependable.

There are many companies that provide services on Forex signals. Picking out the best among them may be hard, especially for those who are new in the forex signals. one can do this by checking the results of the forex signals that it has provided.


However there are many different and reliable ways by which the Forex signals may be delivered to the customers. Such as email alerts, pop-up pages in the computer, instant messages in chat, and messages in mobile phones or any other way that suits the customr habit and interest.

For more information about forex see the links...............

A broker or forex broker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency on behalf of investors.

Forex Currency is defined as the currency in which the forex trade is running on ,also Forex traders can use currency to their advantage when pairings are similar to each other.Standing for the Foreign Exchange Market, Forex consists of simultaneously buying and selling funds of different currencies. If done in an informed manner, Forex can produce sound investment returns.

Online Forex trading sites are easy to find by surfing the Internet. Most of them provide a wealth of information for the first time trader. You can find out about the history of Forex trading,tips on being successful, etc. One can also start trading with as little as $100 in your account. For anyone who is interested in currency or trading.It is a very good choice to know about online Forex trading before investing any money and doing any trading. It is a fact that informed investors do better than those who dont know much about what they are trading. So get the fact before you dive in. You might just make a little money in a very currency exchange.

For more information see the given links on below.......

Forex or foreign exchange is a currencywhich is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily.Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Today, importers and exporters, multinational corporations, speculators, day traders, long-term holders all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

Margin Trading in SigmaForex

Forex market trading of moves by several major and defining principle - one of them is trading through margin (margin - margin). The idea is relatively small deposit (margin account) to gamble with many more items. Brokers determine the amount of margin that can range from 1 percent to 10 percent of position, which run on Forex market.

Example - if you want to buy 15 000 USD with the idea that the dollar will rise in Forex market and mardzhinat is 1 percent, then you are asked to deposit only 150 USD, which cover your position. The remaining 99 percent are covered by brokers, ie to build a Forex market is needed only 1 percent real capital. Exactly Forex Margin trading makes the market less attractive and accessible to small market participants.

Margin trading is done through the holding of two major items - Long (Long) and short (Short). Long position reflects the purchase of a quantity of currency to obtain speculative profit from a rise in the exchange rate. The short position - to make a profit if the price declines.

Sigma Forex is leading European professional online trading Brokers registered in the Switzerland and most of the EU countries. It was founded by professional private investors including (banks, traders, brokers, and software developers), which enabled Sigma to identify the essential needs of the Forex participants from the start.

Since 2003, Sigma’s aim has been to provide the best, powerful and most suitable currency trading technology along with superiority in execution, competitive services, and dependable customer service. Over the past years, Sigma has quickly become one of the world’s leading online retail currency trading institutions, providing integrated global trading systems, analysis techniques and the most reliable and sophisticated online trading software. We offer internet trading through Meta Trader. This trading platform is very stable and reliable. It is highly regarded and very popular among traders.