Depositum og Udtrækning
Styring af dine handelsmidler med FXM Capital er nemt og praktisk. Vi tilbyder en bred vifte af betalingsløsninger hvilket inkluderer kredit-/debitkort, bank overførsler, og depositum med krypto valutaer. FXM Capital tager ikke nogen ekstra gebyrer for depositum og udtrækning.
Depositum proces tid
Alle lande eksklusive Kina, USA, Canada, Hong Kong, og Rusland
Den Europæiske Unions lande
Single Euro Payments Area (SEPA)
Østrig, Belgien, Bulgarien, Kroatien, Cypern, Tjekkiet, Danmark, Estland, Finland, Frankrig, Tyskland, Grækenland, Ungarn, Irland, Italien, Letland, Litauen, Luxembourg, Malta, Nederlandene, Polen, Portugal, Rumænien, Slovakiet, Slovenien , Spanien, Sverige, Island, Liechtenstein, Norge, Schweiz, Andorra, Monaco og San Marino
Alle lande ekslusive USA og Canada
* Proccestid er baseret på tredjeparts betalingsudbyders skøn og FXM Capital er ikke ansvarlig for ændringer på disse skøn.
**Vi trækker ikke nogen gebyrer for bankoverførsler, men din bank kan trække gebyrer for processen
Depositum og Udtrækning FAQs
What is the meaning of financial broker?
In today’s world just like centuries before money makes the entire world go round, so the financial industry will never miss a beat. Controlling everything from money management and personal investments to the global economy, this mighty industry provides a rich array of crucial services to businesses, financial institutions, private individuals, not to mention even national governments throughout the world.(more…)
Financial brokers rating 2019
Due to the constantly growing popularity of Forex trading for the last decade, huge crowds of newcomers have managed to flood the largest market in the world. However, just coming to Forex isn’t enough to become successful. One of the most crucial things in this business is that you should be 100% confident in your Forex broker. Among numerous financial broker names you need to choose a reliable company, you could entrust your money to. So, you’re interested in financial broker ratings. We’d like to help you to figure out which one from this list of financial brokers and dealers ideally suits you. Thus, you will avoid the worst terrible scenario that could happen to your trading deposit.
Apparently, Forex brokers greatly vary, from the well regulated and highly reputable companies such as Fxmcapital, handling a lot of accounts effectively, to those known for their questionable order execution practices. To make things worse, there’s a real danger of coming across outright fraudulent firms, which not only cheat their clients in their daily trades but also hide bad debt from them. In some cases, customer trading deposits are held in segregated bank accounts, suddenly becoming used to pay down other folks’ credit. Those who dared to entrust their money to such brokers ended up losing their funds even before they were able to open their first trading position. Therefore, you need to be extremely attentive when studying a list of financial brokers if you don’t want to become a victim of a fraudulent broker.
Consequently, that’s s basic common sense that all investors need to take their time when picking up their most significant partner, the company that will back their trading aspirations to go ahead – their Forex broker.
You’re currently in the process of choosing such a company. Please, don’t be in a hurry. Urgency is definitely an unnecessary element in this case. Our society is flooded with criminals willing to take your money in a variety of ways, and Forex trading isn’t an exception. Substantial research beforehand will undoubtedly pay off. If financial planning broker-dealer rankings puzzle you or you are reluctant to explore types of financial brokers, you can simply stick with Fxmcapital – a company with high ratings and a constantly growing number of returning fully satisfied clients.
There are a lot of websites, which can facilitate your search. The staff at Fxmcapital has already reviewed a great number of capable brokers and cut the group down to a list of the worthiest nominees. The selection process starts by selecting a minimum of three possible companies, and then following with an evaluation of every candidate and whether they meet your requirements. Having narrowed the whole group down to one final nominee, you might want to start off with a tiny deposit as well as small trade positions to make certain conclusions.
Certainly, the first and most crucial consideration when choosing a Forex trading broker suggests determining whether or not your money will be 100% secure in their hands.
There are four crucial points you need to carefully examine to ensure your funds are safe:
If your broker’s domicile is a major country with highly developed financial regulation, you have a good chance to have your funds recovered if required. Ensure to double-check the company’s domicile even if the address seems to be reputable enough. Sending your funds to a company based in less well-regulated countries, such as Bahamas or Panama will drastically reduce the overall reliability and security of your trades. Trying to protect your legal rights in a jurisdiction of another country can be a very difficult task. Most probably, in the background, you will have no regulatory oversight to back your effort. You need to avoid Forex brokers with a dubious base of operations. It will help you to drastically narrow down your search for a trustworthy Forex broker.
Secondly, you need to make sure that the broker you’re going to work with is well-regulated. You need to know that opening a trading account with a Forex broker who has registered with a regulatory agency is a good idea in general. However, it doesn’t guarantee that this particular broker is fully legitimate or that your capital is safe.
Nevertheless, it’s still a good thing to have a regulatory agency at hand. It ensures you some recourse if the chosen broker suddenly files for bankruptcy or anything else happen, putting the return of your capital at risk. The best way to avoid such a great trouble is to stick with a completely regulated Forex broker, such as Fxmcapital, for example.
It’s another crucial point to check out. You require surfing on the Internet for either positive testimonials or striking complaints about the companies you have picked up for consideration. Special attention should be given to reviews where customers had complained about difficulties in withdrawing their earnings. If you find any evidence of it, stay away from this company.
That’s the final point when it comes to selecting a trusted Forex broker. This point has to do with the financial security of the company. Your funds will always be safer in the hands of a company with decent financial backing.
Needless to say, your broker needs to be well-funded. It should have a trusted parent company or owner. Such supporting relationships are often uncovered on the broker’s official site. As a rule, you can find this information in such tabs as “Press releases” or “About us.” Even if you have a list of well-regulated brokers, you’d better double-check that it’s true. You should come to the website of the regulatory body in the country where the chosen broker is registered.
Watchdogs are used to publishing annual statistics on the capital funding for Forex licensees and whether they comply with requirements or not. Of course, your Forex broker should keep your funds in trustworthy banks. Soundness and safety are major factors when dealing with a Forex broker.
Forex broker commission comparison
A great number of people are eager to try their hand at Forex trading, but many of them have rather an incomplete or distorted understanding of this largest financial market. Let’s view several distinctive features of the foreign exchange market:
- Forex is quite simple: You don’t actually require a sound financial background or any kind of special training to start trading currencies in this market. It’s possible to get started even with just several bucks.
- It’s very convenient: The foreign exchange market is available round the clock, 5 days a week, and anyone can access it from a laptop or handset. It means that you can trade currencies as well as other assets anywhere you want.
- It’s lucrative: Over 5.3 trillion dollars represent its daily turnover. That’s a giant pool of money, from which you can try to take your profit if you’re smart enough. However, this business suggests high risks. Its enormous liquidity can be explained by a large number of its traders. It drives liquidity on a regular basis. Even large orders of trades are filled without any problems and also without any huge price deviations. It completely excludes the possibility of price manipulation as well as price anomalies, ensuring tighter spreads resulting in more efficient pricing. One shouldn’t worry about the extremely high volatility during closing and opening hours or frozen price ranges during the afternoon sessions. It’s another evidence of this market’s giant liquidity. Unless crucial events are anticipated, one can observe similar price patterns across the unstoppable trading.
- It’s stable: In the foreign exchange market, you are actually trading one asset against another. When the price of one asset of a currency pair dives, the other goes up, meaning you have a great chance to grasp a profit in any case.
- It suits any trading style: The foreign exchange market works round the clock, enabling anyone to trade currencies at this convenience. Undoubtedly, it’s extremely advantageous for short-term investors who are prone to taking positions over short periods – from a couple of minutes to several hours. Few traders conduct transactions during complete off-hours. Australia’s daytime turns out to be the nighttime for the East Coast of America. An American citizen can trade AUD during American business hours because little development is anticipated and prices are in a stable band during off-hours for the Australian dollar. Such investors adopt high-volume as well as low-profit trading strategies due to the fact they have small profit margins because of a lack of developments typical to Forex markets. Instead, they try earning revenue on a stable low volatility duration and offset with high volume trades. Market participants can also open long-term positions that can last from several days to a number of weeks. In this regard, Forex trading turns out to be extremely accommodating.
- Low costs: This market is known for its surprisingly low costs (commissions and brokerage). In the real sense, there aren’t any commissions here. The vast majority of brokers earn their revenue from the spreads between assets in currency pairs. So, traders shouldn’t worry about including separate brokerage fees, thus excluding an overhead. Just compare it to equity and other securities trading. In this case, the brokerage structure ranges widely, while market players should take such charges into account.
Taking a detailed glimpse at Forex commissions
As told above, unlike other exchange-driven financial markets, the foreign exchange market doesn’t have any regulatory or exchange fees. It sounds extremely tempting, doesn’t it? However, to a novice market player just willing to break into the trading business, it sounds too good to be the truth. At first sight, trading without transaction fees seems to be a positive thing. However, what may sound like a bargain to newcomers might not be the most advantageous trade available – or even a trade at all. Here below we are going to show you how to properly assess Forex broker fee structures and choose the one, which will suit you. However, if you don’t want to make a detailed Forex broker commission comparison, you can simply opt for Fxmcapital – a broker with a clear commission policy.
Three types of the commission are utilized by Forex brokers in this market. Some brokers come up with a fixed spread, while others provide a variable spread. You can come across brokers that charge a commission built around a percentage of the spread. Certainly, you’d like to know which of those solutions mentioned you should stick with.
At first glance, many consider the fixed spread to be the right choice due to the fact you would know for sure what to expect. Nevertheless, you require considering several points before you take any of them.
The spread can be defined as a difference between the cost the market maker is ready to pay you for purchasing the currency (it’s the bid price) and the price at which it’s expected to be sold to you (the ask price). Perhaps, you might have already seen examples of quotes. For example, “EURUSD: 1.4952/ 1.4955.” It shows a spread made of three pips. That’s the difference between the bid price of 1.4952 and also the ask one, which is 1.4955. When dealing with a market maker, offering you a fixed 3-pip spread, unlike the variable spread, the difference will account for pips all the time, no matter what market volatility it is at the moment.
If a Forex offers you a variable spread, then it’s going to be a spread, which will vary, ranging from just 1.5 pips to up to 5 ones. In this case, the number of pips depends on the currency pair as well as the market volatility level.
Some Forex brokers might also charge a very modest fee, just 0,2 of one pip. After this, the order obtained from you is delivered to a large market maker with whom your broker has ties. In this particular case, you can obtain an extremely tight spread, which only larger market participants could otherwise access.
Commission at different service levels
Each type of Forex commission affects your trades in its own unique way. Considering that all Forex brokers aren’t equal from the very beginning, that’s a difficult question to come up with a definite answer. Well, the reason is that there’re other crucial nuances to be considered when determining what is most beneficial for your trading account.
Not all Forex brokers are capable of making a market equally. The foreign exchange market is an over-the-counter type of market. To put that another way, the primary market makers, financial institutions naturally have ties with other banks as well as price aggregators. These ties are based on the overall capitalization as well as the creditworthiness of every participant. Exchanges or guarantors aren’t involved, except the credit agreement between every market player. Therefore, when it comes to an online market maker, the overall effectiveness of your broker will depend on its relationship with financial institutions and also how much volume the Forex broker has with them. As a rule, the higher-volume market participants boast tighter spreads.
If your market maker has a good relationship with several financial institutions and can grasp up to 12 quotes from them, then the brokerage company will be capable of passing the average ask and bid prices on to its retail clients. Even having moderately widened the spread to account for revenue, the dealer can come up with a more competitive spread on to you than rivals that aren’t capitalized enough.
If you’re dealing with a Forex broker, which can guarantee substantial liquidity at catchy spreads, it can be a nice solution for you. However, you might be eager to use a fixed pip spread being aware of the fact that you’re actually getting at-the-money executions each time you make a transaction. Slippage that takes place when your trade currencies is executed away from the cost you were actually offered, appears to be a cost, which you’re reluctant to handle.
When working with a commission broker, the likelihood to pay a modest commission is based on what else it offers. For instance, your Forex broker charges you a mild fee, just 0.2 of one pip, which amounts to $2.50- $3 per 100,000 transaction, although in return the broker offers you access to its original software platform reportedly superior to what’s offered by its counterparts. Well, here it can make sense to pay a tiny fee for this extra service.
Picking up a Forex broker
As a Forex trader, you need to take into account the whole package when deciding on a firm to trade currencies. Some brokers might come up with amazing spreads, but mediocre trading platforms. When choosing a company for Forex trading, consider the following nuances.
- What’s the capitalization of the company?
- How long has this Forex broker been in the industry?
- Who manages the company and how much experience does this chief have?
- Which and how many financial institutions does the broker have ties with?
- How much does the broker transact monthly?
- What are the broker’s liquidity guarantees based on order size?
- What’s the broker’s margin policy?
- What’s the broker’s rollover policy for holding a trading position overnight?
- Is a spread added to the rollover interest rates?
- Its trading platform: major characteristics.
- Can I utilize multiple order types?
- Are stop losses always executed at the specified price?
- Can I use your dealing desk?
- What should I do with a temporarily unavailable Internet connection? What will happen to my position in this case?
- The broker provides all the back-end office options, doesn’t it?
Even although you might guess you are getting a nice deal when shelling out funds for a variable spread, but indeed you might be sacrificing other virtues. However, there’s one certain thing – you will pay the spread anyway and your Forex broker will always derive a profit from this. In order grasp the best possible deal, you require choosing a reputable Forex broker. This company needs to be capitalized enough and it should have strong ties with the large foreign-exchange financial institutions.
You need to carefully estimate the spreads on the most popular assets. As a rule, they are going to be no more than 1.5 pips, and here a variable spread might turn out to be more affordable than a fixed one.
The cheapest way to trade currencies is to find a trustworthy market maker capable of providing the required liquidity.
Forex broker scam list
If you have ever tried conducting an Internet search on scam Forex brokers (scam broker list), you know for sure that the number of outcomes is really shocking. While the foreign exchange market is gradually getting more regulated, but there are a lot of unscrupulous companies, which shouldn’t be in the industry.
If you relish a thought of trying to trade currencies on your laptop, you need to find a Forex broker you can trust. It should be reliable enough. Stay away from those companies in the Forex market, which make you doubt and hesitate.
To sort out the worthiest companies from numerous mediocre stuff and scams, we should make a series of steps. You shouldn’t deposit your money to your trading account if you aren’t confident with the broker. Forex trading is a serious business, which requires a great deal of intelligence, patience, and dedication. However, when a bad broker implements a number of harmful policies, even a guru of technical analysis won’t be able to earn a profit. Here below we’ll discuss all the intricacies of relationships between brokers and their clients and point out what really matters in choosing a broker. However, if you’re reluctant to dig in a Forex broker scams list or you’re reluctant to memorize 6 ways Forex brokers cheat you, just stick with a ready-made solution – Fxmcapital, a well-regulated Forex broker with an impressive number of returning clients.
True Forex facts versus fiction
When closely watching a potential Forex broker, you require learning to separate true fact from worthless fiction. Well, having viewed all these articles, forum posts as well as disgruntled feedback about a particular Forex broker, you might assume that any trader is a pure scam, unable to let its clients earn a good income. Would it be a sound fact? Here the truth is that literally, anyone who has recently failed to make money in the foreign exchange market can post insulting content on the web blaming the company for his own mediocre strategy.
The Internet is flooded with absurd accusations of Forex brokers. Those who don’t want to find a reason in themselves, prefer merely extending a scam forex broker list, backing it with foolish statements, such as “the market reversed when I opened my trading position.”
It’s quite real that novice Forex players fail to benefit from a well-tested strategy or a sound trading plan. These folks prefer to fully rely on their psychology. They believe they feel where the market is going. However, to say the truth, there’s a 50% likelihood that they will be right. When the novice trader opens a trading position, he bases his decision solely on emotions. Experienced market players certainly know these junior tendencies, and they don’t enter the market when there’s no need to do it. Having failed to move along with the market, traders are more likely to accuse their brokers of hunting down their profits or something like this instead of analyzing the true reasons for their failures.
Of course, it’s possible that a trader can lose his money because of his broker’s fault. It can take place when a broker tires to rack up trading commissions at the trader’s expense. By the way, there have been reports of brokers intentionally moving quoted rates for the purpose of triggering stop orders, while other clients’ rates haven’t even moved to that price. Fortunately, for investors, such a situation turns out to be an outlier. Most probably, it won’t happen again. You need to keep in mind that Forex trading shouldn’t be regarded as a zero-sum game. What’s more, Forex brokers mainly earn from increased trading volumes. In general, normal brokers are interested in having long-term customers who trade on a regular basis. Such clients can only bring them constant profits.
As for the slippage, it can often be explained by behavioral economics. That’s a common thing for novice market players to panic. They’re afraid of missing a crucial market move. Therefore, they impatiently click on their buy button. They can also be afraid of losing everything and open a short trading position for this purpose. In an extremely volatile exchange rate environment, the broker is unable to ensure that this particular order is going to be executed at the specified price. It generates abrupt movements and nasty slippage. It’s also true for the stop as well as limit orders. Well, some Forex brokers can guarantee that all of the client’s limit and stop orders will be executed, while others can’t guarantee it for objective reasons, and they even openly tell about it. Slippage can be noticed even in more transparent financial markets. The matter is that markets keep moving and brokers don’t always obtain the ordered price.
The role of communication between traders and brokers
Real problems can start evolving when communication between a trader and his broker becomes problematic. If a market player fails to get responses from his broker or the company comes up with uncertain answers to the client’s questions, this fact doesn’t speak in favor of the broker. Of course, such problems need to be tackled and explained to the market player, while the Forex broker needs to be helpful and demonstrate good customer relations. Perhaps, the worst thing that can occur between a trader and his broker is the client’s failure to withdraw earnings from his account.
Broker research can protect you
Fortunately, it’s quite possible for you to protect yourself from mediocre brokers and dangerous scams. Just make the following steps:
- Conduct thorough online research of the Forex broker you’re interested in. A generic internet investigation can provide relevant insights on whether downbeat comments could be an irritated client or something more serious. Additionally, a perfect supplement to this type of research will be the BrokerCheck by the Financial Industry Regulatory Authority. It will disclose all legal actions against this company, if the broker has real faults, of course.
- Ensure there aren’t any complaints about not being capable of withdrawing earnings. If there are such negative reviews, you should contact the trader if possible to have him interviewed about his experience.
- Examine all the fine print of the corresponding documents when starting an account. The matter is that incentives to open a trading account are often utilized against traders each time they try to have their earnings withdrawn. For example, you deposit $10,000 and obtain a $2,000 bonus. After this, you lose your funds and try to withdraw some remaining money, but your broker tells that they are unable to withdraw your bonus funds. Don’t forget to read the fine print. Thus, you will guard yourself against nasty pitfalls.
- If you’re fully satisfied with your research on a certain company, start a mini account or any other trading account with a tiny amount of funds. Then, try trading it for a month. After this, you should try to withdraw your earnings. If everything has gone OK, it should be relatively safe to more actively replenish your trading account. In case of having any issues, try to discuss them with your broker. On the contrary, if your experience of working with this broker is negative, don’t hesitate to tell this story online. Thus, you will help other people not to get into this trap.
By the way, you can’t determine the level of risks involved considering only the size of the Forex broker. As a rule, larger Forex brokers grow by simply providing a certain standard of trading services. However, the 2008-2009 financial meltdown taught us that a big or popular company isn’t always a safe solution. If you don’t want to make a thorough financial broker background check on your own, you can always opt for a simpler solution – Fxmcapital. Working with this reputable company r you can forget about Forex broker scams and enjoy the timely withdrawal of your earnings. You will never find Fxmcapital in a Forex broker blacklist
Brokers and their commissions
Forex brokers who are paid commissions for selling and purchasing securities can sometimes fail to resist a strong temptation to effect transactions to earn a commission. Evidently, those who do this too much can be accused of churning. Churning means placing trades for another purpose, different from the client’s one. The Forex brokers caught churning are bound to pay fines. Other punishments include reprimands, dismissal, suspension, disbarment, to say nothing of criminal sanctions.
More about churning
The SEC defines churning as a situation when a broker buys or sells assets in a client’s trading account for generating commissions, which benefit the company. To conduct churning, the broker requires control over the client’s investment decisions. If you notice sales or purchases in your account that you haven’t actually made on your own, that’s churning. It’s an unethical and illegal action, violating numerous securities regulations.
A typical sign of churning is a situation when you notice securities bought or sold in your trading account that doesn’t actually match your investment goal. For instance, if your goal is to earn a stable income, then you shouldn’t see buying and selling positions in your account for small-cap equity or technology equities. As for churning with derivatives, including call and put options, it’s much harder to notice due to the fact these financial instruments can be utilized with the aim of accomplishing a variety of goals. However, selling and purchasing calls and puts should take place only if you demonstrate a high-risk tolerance. Apparently, selling puts and calls can bring current income if it’s carried out rationally.
How watchdogs assess churning
An arbitration panel is expected to consider a number of factors when conducting hearings to figure out whether this particular company has been churning user accounts or not. They are going to assess the trades, placed in light of the customer’s level of education, sophistication, experience and the nature of the trader’s relationship with the company. Moreover, the panel will also estimate the number of solicited vs. unsolicited transactions as well as the dollar amount of commissions, which have been generated against the backdrop of the customer’s losses or profits as a result of these transactions.
However, there are times when it might seem like your Forex broker might actually be churning your trading account. However, it mightn’t necessarily be what you think. If you have any questions as for this or feel uneasy about what your Forex broker is doing with your funds, you shouldn’t hesitate. Instead, you require consulting your securities attorney. Alternatively, you can try filing a complaint on the official website of the SEC.
What to do with a bad broker
To our great regret, you have few options in this case. Nevertheless, you can still try to do the following things:
- Attentively view all the provided documents just to ensure that your Forex broker is doing wrong and against the law. However, if you’ve overlooked something important or neglected reading the documents signed by you, then you’re even in a worse position.
- Talks about the course of action you are going to take if the company doesn’t adequately respond to your questions or it has refused to send back your earnings. Probable measures might include reporting the case to FINRA or another other appropriate watchdog and posting your story online.
While market players might blame their Forex brokers for their decreasing deposits, it’s quite possible that brokers are wrong. As a Forex trader, you need to be thorough. You should conduct research on a suspicious company before opening a trading account with them. If your research appears to be optimistic for this company, you can start with a small deposit, make a couple of trades and then try to withdraw your earnings. You require verifying that your Forex broker is involved in a number of illegal activities against you. For example, it might be churning. Try to reach out to your broker and ask all the necessary questions. If you haven’t been answered, shift to another stage. Come up with complaints and ask reputable watchdogs, such as FINRA, SEC, etc., to help.
How to choose a reliable Forex broker
The foreign exchange market boasts more than $5 trillion traded every day. This impressive fact makes it the largest financial market in the world. Well, since there’s no central marketplace in this particular case, market participants are expected to pick up a Forex broker to assist them in conducting their transactions on a regular basis. Anyone interested in working in the foreign exchange market, including you, should know for sure how to choose a good Forex broker. If you keep reading this article, you will get a bunch of useful tips on how to choose a Forex broker.
A Forex broker: what is it?
Forex brokers can be defined as companies, providing currency traders with direct access to the foreign exchange market via a trading platform. With a Forex broker, you can sell and purchase various foreign currencies with a couple of clicks on your laptop. What’s more, thanks to a Forex broker you have a fantastic opportunity to conduct transactions round the clock, profitably exchanging currencies of all countries. Conventional stock traders of the 20th century could only dream of such a mind-blowing opportunity. If you’re long dreaming of complete financial independence, you can take advantage of Fxmcapital – one of the most reputable Forex brokers in the market.
With a constantly growing number of Forex brokers in the market, it’s getting harder to pick up the worthies one. Eventually, for an average person deeply interested in currency trading, choosing a Forex broker suggests digging through a huge number of Internet ads and magazines. In this review, you’ll get crucial points you need to go through to pick up the right Forex broker.
If you’re starting out as a currency trader or you’re just considering the very idea of Forex trading, working with a reputable broker can be very helpful. Of course, like in any other business, it also involves certain risks. It can be a puzzling thing to figure out where to spot a Forex broker that provides high-quality trading services, and also a bit of a challenge to ensure the broker you’ve just come across is smart and reputable enough to meet your requirements and needs. With rich experience in the industry, Fxmcapital is capable of adapting to even the most sophisticated needs of its clients.
Why do you need a Forex broker?
Just ask yourself what type of company you’d like to reach out to in case of having a trade dispute. The purpose of this question has two aspects. First, you need to know whether it’s a reputable firm, to which you could entrust your money. Secondly, you need to learn whether the company’s funds are properly regulated.
Both regulation and financial transparency are of supreme importance when it comes to how convenient you should feel with your Forex broker. As volatility has drastically picked up in the foreign exchange market, a great number of undercapitalized Forex brokers shut down shop with a minor warning. Do you want to deal with any of such traders? You certainly don’t want to be left in a significant mess. If you properly understand the financial positioning of your Forex broker, it won’t be a big problem to foresee whether this particular company will be able to withstand the fiercest upcoming financial storms or not.
The first point of your search should be conducting deep research with the purpose of figuring out whether this particular firm has a perfect reputation in the Forex market and whether it’s capable of meeting your needs. As a rule, reputable brokers allow their prospective customers to test their services by means of a demo account, so that they could get a general understanding of what the whole system is really like. It would be a good thing for you to test out as many trading platforms as possible before you decide on a certain company. The very purpose of the remainder of this review is to teach you how to recognize a good broker, which can show you the right path to absolute financial independence.
The regulatory compliance of your potential broker
The very first thing you require checking when searching for reputable Forex brokers is their regulatory compliance. For example, in the United States, a trustworthy broker working in the Forex market will 100% have a membership in the National Futures Association. Secondly, such a company will boast an official registration with the US Commodity Futures Trading Commission – it gives grounds to simultaneously act as a retail Forex broker and a futures commission merchant.
The NFA appears to be a solely self-regulatory and industry-wide institution for the futures industry in America. Its primary functions are to work out rules, software tools as well as services to protect the market and its players. Furthermore, the organization is obliged to make sure that various market participants meet strict regulatory responsibilities as well as obligations. Besides this, the CFTC happens to be a completely independent government institution whose function is to regulate the commodity options and futures markets in America. The major mission of this watchdog is to protect investors and anybody else involved in transactions from any kind of manipulation, scam, and abusive practices having to do with the sale of commodities as well as options, and futures.
If you search for good brokers, then you should realize that a professional looking website guarantees nothing. Scams can have enough money to order a catchy website to lure light-minded folks into their traps. Even if you find a company’s website user-friendly and highly informative, it doesn’t automatically mean that it’s under CFTC regulation or has the NFA membership. You can’t get and prove such crucial information by giving a cursory glance.
If the company considered by you appears to be the NFA member and subject to strict CFTC regulations, the broker will certainly state it. If the firm turns out to be the NFA member, it should be displayed on its official website. As a rule, such information can be found in the section “About us.” However, it can also be discovered on any other web page. As told above, every country outside the United States of America has its own financial watchdog. Owing to potential worries as for the safety of particular deposits as well as the integrity of the Forex broker, you should open a trading account only with a company, which is strictly regulated.
Crucial trading account details
Every reputable Forex broker boasts a number of account offerings, including the following:
- Margin and leverage: Those working in the foreign exchange market have access to a variety of leverage amounts based on the company. For example, it might be 200:1 or 50:1. Leverage appears to be a loan extended to a margin account holder by his or her Forex broker. Let’s assume, you have made up your mind to opt for 50:1 leverage. In this particular case, with an account size of about $1,000, you will be able to hold a trading position valued at up to $50,000. As you see, leverage works in your favor when having winning trading positions because the potential for revenue is considerably enhanced. On the contrary, leverage can be an extremely dangerous thing especially for those traders who don’t care about timely placing stop-loss orders. If you’re trading against the market, leverage can easily swallow up your trading deposit. Therefore, it’s up to you to utilize leverage with great caution if you really want not only to preserve but also drastically enrich your capital.
- Commissions and spread: Any Forex broker earns via established spreads and commissions. Your broker can charge a stated percentage for trades. Alternatively, the broker can obtain the difference between the bid and ask prices of the currency pair. However, many Forex brokers claim they aren’t used to charging commissions. Instead, they can earn from wider spreads. For example, the spread could be a fixed one for three pips. It can be also variable based on market volatility. Let’s assume that the currency pair EUR/USD with a quote of 1.3943 – 1.3946 features a three pip spread. It actually implies that as soon as a trader buys at 1.3946, the deal has already lost three pips of its value, since it could be entirely sold for 1.3943. We can say that the wider the spread, the more complex it can be to earn money. Eventually, common trading pairs, including EUR/USD and GBP/USD will feature tighter spreads compared to more thinly-traded currency pairs.
- A starting trading deposit: In fact, most Forex trading accounts can be financed with rather a small initial deposit. It can be even smaller than $50. As we told above, leverage can do wonders even with the smallest deposit. That’s one of the numerous reasons why this business is so appealing to newcomers. Many Forex brokers offer mini, micro, and standard trading accounts. As a rule, all of them have adjustable initial deposit requirements.
- Withdrawal and replenishment of funds: The easier it’s done, the better it is. Every broker has its own account withdrawal and depositing options and policies. As a rule, Forex brokers enable their clients to deposit funds by means of PayPal, ACH payment, wire transfer, credit cards. However, not all brokers support all of the payment options mentioned above. Check it out before deciding to work with this broker.
What needs to be outlined about proposed currency pairs?
While there’re many currencies available for trading, just a few of them deserve much attention and therefore the greatest liquidity. In the foreign exchange market, the majors are represented by USD/CHF, EUR/USD, USD/JPY, and GBP/USD. As a rule, reputable Forex brokers provide a rich selection of currencies pairs for trading.
The importance of customer service
Forex trading is an unstoppable thing. Currency trading takes place 24/7 except weekends, although some assets can be traded even on weekends. As a potential client, you’re interested in a possibility to obtain high-quality customer support at any time. It should be very easy for you to talk to a live person. It’s much better than waste your precious time trying to reach out to a frustrating and stupid auto-attendant.
While considering the most suitable company, a quick call can be a good way to learn what kind of customer service they provide. Thus, you can easily assess the representative’s ability to answer questions about such crucial technical details as leverage, regulation, spreads, etc., in an understandable and concise manner. They should also answer you how long the company has been in the industry. Of course, they shouldn’t hide the real size of their trade volumes.
Assessing their trading platform
Long gone those days when traders didn’t have any trading platforms at all. Today’s traders can’t understand how it was possible. We can’t imagine modern Forex trading without a trading platform. It’s your door to the largest financial market on the planet.
You need to make sure that a trading platform offered to you is easy to use. It doesn’t necessarily need to be visually attractive, although others can find it crucial to the trader’s overall mood. It should have a basic set of fundamental and technical analysis tools. It should ensure a possibility to conveniently enter and exit the market at any time without any freezes.
If you’re fond of simple solutions and you’re reluctant to study complex trading orders, the use of simple “sell” and “buy” buttons would be a great option. What can be better than just press the required button and enjoy the result after a while, if you have forecast the market properly, of course? Such buttons are especially helpful when it comes to trading currencies on a smartphone. Another must-have option is a so-called “emergency button” that can be rapidly utilized to close all of your trading positions. If you forget to place stop-loss orders, this button can come in handy to save you from a complete loss of your trading deposit. You’d better stick with a tried and tested solution. A typical example of it is MetaTrader 4 and MetaTrader 5 (offered by fxmcapital).
Understanding Forex trading for beginners
Evidently, there’s no need for you to be a true daily trader to make the most of the foreign exchange market. Each time you exchange your funds into a foreign currency when traveling overseas, for example, you’re directly involved in the foreign exchange. The foreign exchange market is a quiet giant in the financial world, making its rivals dwarfs in many regards.
Notwithstanding this market’s enormous size, the key principle is simple, when it comes to trading currencies. For understanding Forex trading for beginners, you should continue reading this basic Forex trading guide. Let’s have a look at the key concepts of this business.
Unlike the stock market, with a huge abundance of equities to choose from, in the foreign exchange market, you only require following eight basic economies and then determining which is going to provide the best overvalued or undervalued opportunities. These 8 countries form the cornerstone of the Forex market:
- The USA
- The EU
- Great Britain
- New Zealand
These economies boast the largest and certainly most sophisticated financial markets around the globe. By simply focusing on these eight majors, we are able to get the most relevant information for effective currency trading. You should realize this fundamental thing before we shift to other points including how to understand Forex trading charts and basic Forex trading strategies. Every day economic reports from these majors are published for all market participants, helping traders to estimate the economic health of every key country of this giant mechanism.
Return and yield
Understanding Forex trading suggests that you realize a simple fact that it’s yield, which drives return in the foreign exchange market.
When trading in the foreign exchange spot market (the exact place where trading occurs instantly or in other words on the spot), investors sell or buy two underlying currencies. In this financial market, all currencies are included in pairs for convenient quoting. For instance, with 1.2200 in the currency pair ERU/USD, you’re expected to shell out $1.22 to buy one euro.
In every transaction in the Forex market, you’re purchasing one currency, while selling another at the same time. In fact, traders simply use the proceeds from the currency sold by them to buy another currency.
Moreover, every currency in the financial world is firmly attached to an interest rate. This crucial parameter is set by the major financial institution of the country, the currency of which traders buy or sell in the foreign exchange market. If you decide to make your first steps in the foreign exchange market with Fxmcapital, you will be given an opportunity to undergo substantial training and acquire a number of crucial skills, including understanding Forex trading signals, understanding forex trading graphs, and basic forex trading rules.
As a Forex trader, you’re bound to pay the interest on the asset you’ve already sold, although you also have the right to earn interest on the asset you’ve just purchased. Let’s consider the currency pair NZD/JPY. For example, the major bank of New Zealand has set an 8% interest rate, while Japan’s interest rate accounts for 0.5%. Interest rates are calculated in basis points in the foreign exchange market. A basis point amounts to 1/100th of 1%. Therefore, New Zealand’s interest rate can be expressed in 800 basis points, while Japan’s 0.5% will stand for 50 basis points. When opening a long position in this currency pair, you will grasp 8% in annualized interest, although you will require paying 0.5% for a net return of about 7.5%, which stands for 750 basis points.
The foreign exchange market also provides enormous leverage. A great number of Forex brokers offer a standard 100:1 leverage. It enables the trader to manage $10,000 worth of assets having only $100 at hand. On the other hand, being a double-edged sword, leverage can do a lot with your trading capital. It can bring you huge revenue, but at the same time it can potentially eat up all of your trading deposit if you neglect to place stop loss orders.
You require using leverage wisely, but even if you opt for 10:1 leverage, then a 7.5% profit on the currency pair NZD/JPY suggests a 75% return for you on an annual basis. When holding a 100,000 unit position in the given pair utilizing $5,000 worth of equity, your daily income would amount to $9.40. In this case, you will get up to $94 dollars in 10 days, while you can count on $940 for three months, while the whole year will bring you $3,760. That’s not so bad considering that the same amount of money would only bring you $250 if you tried to save them in a bank with an annual rate of 5%. However, to say the truth, the bank can ensure this amount absolutely risk-free.
The use of leverage is capable of exacerbating any kind of market movements. With great ease, it can generate huge losses or profits. As we told above, the use of stop-loss orders is the only way to prevent losing everything. By the way, nearly all Forex brokers provide a so-called margin watcher. This sophisticated software tool keeps an eye open on your trading position 24/7 and automatically closes it as soon as the broker’s margin requirements are surpassed. In this case, your trading account will never have a negative balance. If you want to progress in your understanding trading in Forex, you’re welcome to study training materials on the official website of Fxmcapital. Here you can also learn 3 basic forex trading strategies for beginners.
Currency values never stand still. Their dynamic nature has made it possible to utilize one of the most popular trading strategies – the carry trade. Carry investors can do more than just earning the interest rate differential within the currency pair. They’re interested in positions expected to increase in value. There have been many opportunities for huge gains in the past. We’d like to illustrate several historical examples.
AUD/USD demonstrated an upbeat yield spread of about 2.5% between 2003 and the end of 2004. You might find it small enough, but 1:10 leverage could extend it to 25%. For that period, the Australian dollar managed to inch up from 56 cents to up to 80 cents versus the evergreen buck that demonstrated a 42% appreciation in the pair. You would have grasped such an impressive profit if you were in that trade. It would have ended up in enormous capital profits in the underlying investment of yours. Just imagine how much various hedge funds earned in that trade, and they did.
Another bright example of the carry trade was observed in the currency pair USD/JPY. In the period of January – December of 2005, the greenback managed to jump from 102 to 121.40 per yen before concluding at 117.80. It’s the same as a 19% jump. It turned out to be more attractive compared to the return of just 2.9% offered by the S&P 500 in 2005. Moreover, simultaneously the interest rate spread between the Japanese yen and the evergreen buck averaged nearly 3.25%. Without leverage, one could have grasped 22.25% over the course of 2005. With 1:10 leverage, traders could have earned a mind-blowing 220% profit. Understanding Forex trading charts can make it a reality for you. Just carefully study the training materials provided by Fxmcapital.
Carry trade success
Perhaps, you think that for a successful carry trade strategy, just pairing up the chosen asset with the highest interest rate versus something with the lowest rate would be enough, but it’s not so. You need to realize that the direction of the spread is more crucial than the absolute spread itself. For successful carry trading, you require being long enough in a currency with an interest rate, which is currently in the process of expanding versus an asset with a contracting or stationary interest rate. Apparently, this dynamic can come true if the main financial institution of the country you’re long in considers lifting interest rates or if the major bank of the state you’re actually short in considers lowering its interest rates.
In that USD/JPY example above, from 2005 to 2006 the Fed was quite aggressively lifting interest rates from 2.25% to 4.25% that stands for a 200-basis point leap. On the other hand at that time, in Japan, the BOJ had been keeping its interest rate intact – it remained at 0%. As follows from this, the actual spread between Japanese and US interest rates rallied from 2.25% to 4.25%. That’s a typical example of an extending interest rate spread.
Keep in mind that currency appreciation can drastically spur the value of your carry trade revenue, but on the other hand, depreciation can eat up all of your carry trade profits.
Being aware of where interest rates are headed is crucial in this business. It requires a proper understanding of the country’s economics. In general, countries performing well and with firm surge rates and soaring inflation are more likely to have their interest rates lifted for the purpose of taming inflation and controlling surge. On the contrary, countries with stagnating economies will most probably reduce their interest rates.
News in Forex trading
Various macroeconomic events and news have a powerful impact on currency prices in the foreign exchange market. It’s essential for you to closely watch the crucial news. Even if you base your trading decisions solely on technical analysis, while neglecting news, nevertheless, it’s highly recommended to at least be aware of when major events are scheduled. This approach will enable you to make rational decisions in the foreign exchange market.
Well, before, during and also after a news publication you have a few choices. Fxmcapital offers the following tips on how to treat news in the foreign exchange market:
- Stay away from opening new positions ahead of crucial news events.
- If the price is near your take profit, you’d better have your trading position closed ahead of high impact news. Gambling with your gains is what you shouldn’t do.
- When being in a trade, you should have your stop loss tightened. The matter is that in times of high volatility your stop-loss orders mightn’t be executed at the actual price level. So, you’d better close your trading positions before a crucial news event.
- You require waiting 30-60 minutes after its publication before you enter a fresh trade. Post-news price volatility can be extremely unpredictable and erratic. Wait for some time until the dust settles and then make your decision.
Another crucial nuance is which news one should take into account. Fxmcapital has a good new calendar, enabling you to learn the most crucial daily news.
Fxmcapital marks the news item depending on their impact-level and shows which asset is most impacted. That’s a list of the top-notch market movers in the foreign exchange market:
- Major bank meetings (BOJ, Fed, BoE, RBA, ECB, SNB);
- Consumer Price Index (CPI) – it gauges inflation;
- Unemployment data, in particular, the US NFP;
- Interest rate decisions – for currencies they’re the key long-term drivers.
It’s what traders call their life. If you don’t have enough margin, you won’t be able to open a trading position. Moreover, with an open trading position moving against you, a margin call can show up – a bitter situation when a trader doesn’t have enough funds to support his trading position.
As you might have already understood, a margin can be defined as the amount of funds required to open a leveraged trading position in the Forex market. For instance, if a broker offers 1:50 leverage and a trader is eager to open a $100,000 position, he has to ensure up to $2,000 of margin. If the trader’s position moves against its forecast to the very point where his account equity gets less than his margin ($2000), the trader will have a margin call. In other words, the broker will ask for more margin to hold the trader’s position.
Due to the widespread availability of electronic trading networks today, Forex trading is currently more accessible than ever before. Fxmcapital will help you to make the most of this largest financial market around the globe.
What is the role of the financial broker?
The term “broker” normally refers to a person or company charging customers a commission for helping to sell or purchase various financial products, such as bonds, equities, real estate and insurance. Every industry has its own financial brokers, respectively services can vary among these specialists within the same market niche.
A great number of people come up with a worn-out question “what does a financial broker do?” If you’re also eager to learn more about the role of broker in the financial market, keep reading this article.
Previously or, to be exact, in the 20th century and earlier only rich people could afford a broker as well as access to the stock market. With the advent of the Internet, brokers became available literally to anybody. Investing in the stock market is no longer a privilege of the rich. So-called discount brokers give investors an opportunity to trade for a relatively low fee. However, they don’t offer personalized advice. If you decide to work with Fxmcapital, you will undoubtedly get a valuable piece of advice on any financial issue of yours.
Financial brokers: the rules they adhere to
In serving their customers, financial brokers normally adhere to the so-called suitability rule, according to which there should be reasonable grounds to recommend a particular financial product. The second crucial rule is “know your client.” Its more known short form is KYC. The rule actually addresses the process of persuading the client to opt for this particular service or product. To effectively convince the client, it’s up to the broker to get as much information about him or her as possible. The broker should find out such crucial details as the client’s tax and financial status, his or her financial goals as well as other relevant information, which can be utilized in providing tips to the customer. As you see, the role of the broker in the financial market is important enough. Once you start working with Fxmcapital, you will be amazed at how your financial life could be optimized and improved.
Full-service investment broker
As a rule, full-service brokers are used to charging the highest commissions. It can be explained by the breadth of services provided. Moreover, they are very effective for those folks looking for detailed assistance in picking up and planning purchases of investments. Eventually, a full-service brokerage company often has a large staff of research experts to assist individuals in choosing portfolio products. Your full-service broker is capable of making direct purchases for you. Other services include managing your portfolio and helping to select and manage retirement accounts. Customers need to conduct interviews when considering this type of broker and check that the company has a proven history, appropriate services, and references. To learn more about the role of broker and dealer in the financial market, you can consult Fxmcapital at any convenient time.
Discount investment broker
Such brokers simply sell and purchase investment products on the behalf of the customer. As a rule, they charge lower commissions compared to the full-service companies, although they don’t provide much assistance in choosing financial products. Such brokers are ideal for those already having a good experience of running market accounts, with a capability of conducting independent research. Customers choosing a discount broker require comparing minimum investment requirements as well as the price for trading that can be high for those traders who make frequent trades.
Such brokers differ from agents. They work for the customer rather than for a particular insurance firm. Insurance brokers help their customers to examine a wide array of insurance policies with the aim of finding the best fit. As for policies, they can be life insurance, health coverage as well as other insurance products.
- Such brokers specialize in one specific type of insurance, such as home, life, auto, car and so on.
- They’re obliged to undergo extensive training. Moreover, they are bound to get formal licenses from the Security and Exchange Commission or any other government associations having to do with investments. As for licensing requirements, they greatly vary among states. However, as a rule, they include a test certifying expertise in the types of insurance expected to be covered by the insurance broker.
Real estate broker
These brokers are capable of assisting customers in selling, purchasing or renting a property.
They duties when backing the seller’s interest might include:
- Advising customers with regard to related matters and offers;
- Determining the market values of properties for sale;
- Presenting the property to potential customers;
- Advertising and listing the property to be sold:
- Submitting offers to the seller to be considered.
These brokers differ from others due to their capability of acting on behalf of a seller or buyer. Real estate brokers frequently act as an intermediary between buyers and sellers and under certain circumstances they can act on behalf of both sides. As told above, each state has its own license, but as a rule, this activity isn’t permitted without a certification examination.
- In spite of the fact, they play a crucial role between sellers and buyers, real estate brokers don’t have the power to make key decisions on the behalf of the customer.
- These brokers should get a formal license before getting down to any deals. Having taken a 90-hour course, they’re obliged to pass an examination on real estate law.
Real estate brokers often have real estate agents, acting as salespersons. They’re expected to help the broker to sell the property.
As follows from the name, their key purpose is to trade equities on behalf of their customers via a brokerage account. The traded stocks included bonds and mutual funds. Such brokers often charge $15 commission per transaction.
This broker’s duty suggests studying and planning the condition of the entire economy. High-end brokers often employ professional analysts. They explore the status of the market, providing tips to their customers as for when it’s high time to sell or purchase this particular asset or property. Such brokers are usually hired by the rich.
They conduct their activity via various brokerage websites. Their key duty is to present investment database information to their customers online. This information normally includes charts, graphs as well as investment tips.Financial brokers rating 2018
Can Forex Trading Make You Rich?
More and more people are becoming aware about forex trading with each passing day, most of whom catch themselves thinking whether or not they should give it a shot. After all, maybe they will get lucky. One of the first things that comes to mind then is “How much money can you earn on the Forex market?” Unfortunately, there are no exact answers. It all depends on the circumstances: the state of the market, the skill of the trader, the size of the deposit, the accuracy of the analysis and many other factors.
Traders who have already tried their hand at trading and could not achieve anything usually convince themselves that no one else can do it either, since they have failed, and begin spreading the word. Naturally, they are very upset. They believe that the market, the broker, something or someone else is to blame, but not themselves. On the other hand, more conscious traders have begun to arrive at the market. They are not trying to look for “freebies”, but to put in some seriously hard work. They understand that they themselves are the ones to blame for failures, just as they are to be proud of themselves when experiencing success. Some people quit a few days after they open a forex trading account simply because they lack the patience for commitment. How you approach this market, the attitude with which you come at it will be a very decisive factor.
“Can forex trading make you rich?” is a question you need to be asking traders that have been at it for years, not those that lost their money after a few weeks. Of course, what you will hear as your answer is a definite “yes”, even if the current state of their financial affairs is not in their favor. Veteran traders are well aware of the reasons for their current failures and will make every effort to ensure that similar situations do not happen in the future.
How Much Money is Typically Made?
In international practice, professional asset management organizations, like various investment funds, show an average annual return on each invested dollar in the amount of 15-20%. The most successful – 30-40%. These numbers can be considered as a benchmark for traders to understand how much profit they can receive. Don’t forget though, that 10% profit from $10,000 is a lot more than 40% profit on $1000. According to the latest statistics, the currency turnover on Forex is an estimated $5 trillion per day. This makes the foreign exchange market the biggest in the world. Given the dynamics of trade in this market, it is predicted that in 5-7 years the turnover will likely increase up to $10 trillion. So do people earn money on Forex? They definitely do.
The Importance of a Trading Strategy
Good market conditions and sufficient start-up capital will not save traders from losses if they lead an ill-conceived and unbalanced trade. Therefore, each trader should develop their own trading strategy and stick to it in their work. Having your own trading strategy is what any trader needs, whether you are a beginner or an experienced veteran of the trade. A trading strategy is your set of personal trading rules that take into account your knowledge of the market, the current state of affairs on the market, and your position on risk-based profitability. A strategy will give you an understanding of what goals you are pursuing, how you plan to achieve them, and how to act in critical situations.
It is important to remember no one will be able to teach you in a single article or video what experts study for years. Experienced traders will never reveal all of their secrets that help them make a profit. You can study forex trading algorithms all year round and still not see any substantial progress. This is a platform where anyone can become successful, just as much as they can fail. It is best that you do not start trading until you study the theory in detail and learn how to earn money using a simulator. Forex is very tough on unprepared beginners and can deprive you of your money in a matter of minutes.
Observing and Studying
It is mandatory to learn and practice via trial and error in order to be able to consistently make a profit from trading on the Forex market. It is difficult for beginners to start earning immediately. Gaining experience in the trade practice takes time. To facilitate your entry into independent trading activities on the market, you can use services that copy other traders’ transactions that are more experienced and successful. Monitoring other people’s trade deals will let you make similar transactions by applying their strategies. Copying those transactions will help you lock in some immediate income.
In the event that you are not confident in your abilities but have money to spare, you can put your funds in a trust. There are a lot of experienced traders on the market who offer their asset management service. While you provide the initial investment capital, they are the ones on the frontline doing all the trading.
Summarizing everything above, it should be noted that no one will give you direct instructions on how to make money on the Forex market. However, complying with the rules of money management, market analysis, having a trading strategy and a reliable broker will significantly improve the odds of you making a profit on the market. How and how much you earn depends only on you. Now that you know how forex trading can make you rich, the question is whether or not you’re willing to commit your time, effort and money for a shot at the good life.
Are Forex Trading Robots Real?
What is a Trading Robot?
Many traders that are invested in the world of the forex market catch themselves searching for ways to not only simplify the work, but to make even more money in the process. This is where forex auto trading robot software comes into play. A trading robot is basically a program written to automate trading. They are also referred to as trading advisors quite often. The main task of any forex trading robot is to simplify the decision-making process, up to the point of its full automation. Therefore, a trading advisor is a program that is able to automatically open and close transactions on Forex, as well as other markets. These robots connect to the trading terminal and can trade for you automatically according to the specified settings.
Statistics show that 8 out of 10 successful forex traders are actually trading robots that implement special market strategies, and only up to 20% of traders in the financial markets are real people. You can find a sufficiently large number of automated trading systems online developed by programmers from all over the world. Naturally, most of them are quite seriously advertised, promising the trader significant profits with minimal effort.
This article is intended to help you understand:
- What a trading robot is;
- The advantages and disadvantages that come with it;
- What kind of advisors there are;
- Determine whether it is worth using them in your work at all.
The Essence of Trading Robots
So, how do forex trading robots work? As it was already mentioned above, a trading robot or advisor is a program designed to integrate with the trading platform in order to automate the trading process. Any trading robot’s workflow is based either on indicators of technical analysis, or on the postulates of the theory of mathematical probability. When creating a robot, a programmer takes one or another technical indicator as a basis and automates its work in such a way that an advisor not only shows and identifies signals, but is also capable of making independent decisions. There are also semi-automated advisors, which we will touch upon.
Typically, there is an indicator or a group of indicators that work in an automatic mode. Special code is written for them in order to integrate with the platform and automate the work. This is a very important moment that needs to be understood, especially for novice traders who have high hopes for trading robots. Often enough, many people mistakenly believe that trading robots analyze something and make some kind of decision based on the input data. In reality, everything is much more mundane and simple.
Types of Trading Robots
If you are wondering what is the best forex trading robot, then you must first understand how they are classified. To classify trading robots, it is necessary to determine the characteristics by which they will be grouped. In general, according to the principle of their work, robots can be conditionally divided into two large groups:
- Automated trading robots;
- Semi-automatic trading robots.
The first group includes robots that are programmed to fully automate the trading process. This means that they not only find the signals themselves, but they can also open deals. Naturally, “full automation” is conditional here. The fact is that the robot still works based on the settings imposed by the trader. This includes things like the volume of the lot, risk limits and capital management.
The second group includes robots, in working with whom the final decision is made by the trader. These kinds of robots independently determine the signals and give the trader the results of their analysis. The trader, taking into account these results, makes a decision in accordance with his risk management and capital management strategies.
What is the best automated forex trading robot? Which type of robot from the classification above is better to use? It’s a matter of taste. There is no single best robot for forex trading. Someone prefers to make the final decisions themselves, and someone wants to achieve maximum automation and not have to sit in front of the computer.
Whether fully automatic or semi-automatic, all trading robots essentially share the same role – to minimize the participation of the human trader in the workflow. With fully automated robots, transactions are opened by via algorithms. Consequently, the trader practically does not participate in the process of trading. Another advantage trading robots have lies in their ability for diversification. You can install any type of robot and work with it. This gives you the opportunity to earn a profit in a wide range of market segments and situations.
An important advantage of robots have over human traders is that they do not have emotions. The trading robot does possess qualities such as greed. It does not experience fear. The robot also never gets tired, it does not have any psychological burden imposed on it. Another important point is that the robot pays attention only to the signals that the indicator gives, the ones that it is meant to follow. It does this objectively, based on the readings of the algorithm.
It is also important to note that the removal of serious stress loads on the trader plays a big role in the long run. Even the most successful and experienced trader’s attention dulls with time. As experience shows, this leads to some of the most elementary mistakes that can be made in the business. Traders then want to correct their mistake and make up for the lost money by taking on unreasonably high risks which either pay off, or lead to even more significant problems. The emotional component, among other human factors, ruined quite a few successful traders.
The disadvantages of trading robots are mostly based on their lack of human intelligence. Artificial intelligence is not yet capable of being equal to humans. Therefore, the robot is capable of making only standard decisions that are embedded in its program. Even beginners should understand that standard solutions and the ever-evolving market are going to have some compatibility issues.
Another drawback is the fact that advisors become more and more obsolete as the market evolves. Any profitable strategy that brings in a good amount of income today will become obsolete after a certain period of time. Soon after, the robot will begin making mistakes more and more often. This is why if you expect to remain profitable, you will likely have to buy newly updated advisors.
Do you charge any fees or commissions?
We do not charge any additional fees and commissions for all account types we offer.
What is a spread?
A spread is the difference between buy and sell prices. At FXMcapital.com we offer both fixed spreads and variable spreads.
Spread is measured in pips.
For example if the buy price for EUR/USD is 1.045 and sell price 1.043, it means that the EUR/USD spread is 2 pips.
When is the market open?
Forex trading begins each day in Sydney and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York.
Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social, and political events at the time they occur – day or night.
Forex market opens on Sunday 5pm EST (10:00pm GMT) and closes on Friday 5pm EST (10:00pm GMT).
What do long and short positions mean?
If you are buying currency, you are opening a ‘long’ position, if selling – ‘short’.
For example, if you buy 1 lot of EUR/USD, you open a long position for 100,000 of EUR against USD.
And if you sell 10 lots of USD/CAD, you open a short position for 1 million USD versus CAD.
What trading strategy can I use?
Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information including news, government-issued indicators and reports, and even rumors.
The most dramatic price movements, however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.
For trading strategies and other information about Forex trading read our articles.
What is the minimum deposit to open an account?
Depending on your account’s established currency, the minimum deposit amount at FXM Capital is either €250 or $250.
What is the minimal deposit to open an account?
Depending on your account’s established currency, the minimum deposit amount at FXM Capital is either €250 or $250.
Do I have to provide any documents to open a real account?
We need at least two documents to accept you as an individual client:
- Proof of identification – current (not expired) colored scanned copy (in PDF or JPG format) of your passport. If no valid passport is available, please upload a similar identification document bearing your photo, such as a National ID card or driver’s licence.
- Proof of address – a bank statement or utility bill. Please ensure that the documents are not older than 6 months and your name and physical address is clearly displayed.
Important note: the name on the proof of identification document must match the name on the proof of address document.
You can conveniently upload your documents directly from your client area or scan and send them to email@example.com
Your documents will be checked by our compliance department within 48 hours. Any deposits will be credited to the account only after your documents have been approved and your client area fully activated.
How can I open an account?
You need to complete a registration form with your name, email address, phone number, etc.
To open a real account click here. The real account allows you to open an account with real money and start trading straight away. You simply choose the account type that best suits you, complete the online registration, submit your documents, and you are set to go.
In both cases a client area will be created. In your FXM capital.com client area you can manage your demo accounts, real accounts, and finances.
What is the minimal deposit to open an account?
Depending on your account’s established currency, the minimum deposit amount at FXM Capital is either €250 or $250.
How can I deposit funds into my trading account?
We offer a variety of deposit options. You can make a quick transaction using your credit card (Visa or MasterCard) or transfer funds by wire transfer. Please click here for more information about funding your trading account.
What leverage is applied to my account?
Leverage available for FXM capital.com trading accounts is from 1:50 and up to 1:500 depending on the account type. For further details please go to our Account Types page on our website.
How can I withdraw funds?
You can withdraw money at any time from the funds available for withdrawal. To request a withdrawal simply login to your FXM capital.com client area and select ‘Withdraw’. Withdrawals are processed within 5 business days.
How can I manage my risk?
The most common risk management tools in Forex trading are limit orders and stop loss orders.
A limit order places a restriction on the maximal price to be paid or the minimal price to be received.
A stop loss order sets a particular position to be automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor’s position.
How can I make a deposit?An account is required in order to be able to make your first deposit. Registering on FXM Capital is quick, easy and free. Just follow this signup link. Once your account is registered, you can deposit additional funds into your trading account by logging into the Members Area, clicking “Deposit”, and choosing the payment method you prefer. There you will find further instructions specific to your payment option.