Online Forex Brokers – a Fantastic Idea for Novice Traders
Will you make money at currency trading? This is a question most traders try and answer by trading a demo account – but the problem with demo accounts is there is no pressure, i.e no money on the line and it proves nothing.
Most traders who make money with demo account lose when they open an account with a forex broker. Now there is a fantastic way for traders to see if they have what it takes. There is a new account called a protected account and it acts as a bridge between a demo and a full trading account. The concept is:
The Protected Account works as a funded demo account in which the client pre-determines their risk level. Among its features are:
-Trade up to 100 times your initial deposit, even with a negative balance.
- Make as many trades as desired, 24 hours a day, using any currency pair.
- At the end of the a set period, (normally two weeks) any positive balance is the clients to keep the broker covers the losses.
This has significant advantages over a demo account, as it simulates the feeling of trading real money on the Foreign Exchange and let’s face it when money is on the line we feel and act differently.
Trading is probably 20&% method and 89% mindset and it’s a fact that most traders fail because they don’t trade with discipline.
To make money you not only need a method but you need the discipline to follow your method when the going gets tough. Its easy to score a penalty goal in your back garden but not so easy when its a huge game and you have to score to win and have 100,000 people watching you!
The Protected Account acts as a bridge between a demo account and a real one, providing an authentic trading experience, but of course the risk is managed and a huge advantage is – even if you go debit on the first day you can still keep trading so you get plenty of trades and plenty of practice.
These accounts are being now provided by forex brokers and they are a fantastic way to get your feet wet, before progressing to a full trading account and will help you determine if you have what it takes to become a successful forex trader.
Also you can see the video related to online forex brokers
www.GeckoSoftware.com Day trading online Forex, through Forex brokers, with the top Forex Course. Start Forex currency trading now, with a top Forex strategy for the Forex Market with Forex Education on Forex Trading using a Forex Signal with the best Forex trading software.
Here some answer the question about online forex brokers
Does anyone know any good online forex broker? thx.?
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- Forex Brokers – an Essential, Low Risk Service for Novice Traders
- Forex Demo Accounts – are They Useful for Novice Traders?
- Online Forex Brokers – a Service All Novice Traders Should Use
- Forex Brokers – Friend or Foe? What to Look for From Brokers
- Understanding the Protected Forex Trading Account
August 20th, 2009 at 8:53 pm
Wouldn't it be great to have one broker that does it all?
But a stock broker doesn't have a license to trade commodities, and vice versa.
And wouldn't it be great if you could afford the best in the business, the most advanced technologically, on the cutting edge of online trading?
TerraNova is such a broker. Now you can have your cake and eat it too, and trade anything you wish from one broker, albeit, not from one account. Obviously, the laws cannot be broken. Their subsidiary, or is it parent company, Townsend Electronics, is the one that electronified and digitized the NASDAQ, and I believe they're getting ready to do the American Stock Exchange next.
You'll be amazed at their trading software. I've been using RealTick for over a year, and still haven't learned how to use all of the features.
It's all really incredible. I am just a Day Trader in index futures, and have no association with any of these companies, and have nothing to gain by applauding them; they simply deserve the applause, and you should take the opportunity to check them out.
August 20th, 2009 at 9:10 pm
Oanda allows you to trade a number of what they call "exotic" currencies including the USD/CNY. The last time I checked though the spread was fairly high.
Good luck.
Paul Upp
August 21st, 2009 at 4:25 am
I use Interbank FX and GFT. I don't find their spreads to be any better or any worse than anyone else but I appreciate their customer service and user friendliness of their apps.
InterbankFX has another cool feature and that is the ability to use their credit or debit cards in order to quickly access money from your account. One word of caution is that all brokers make it very each to put money in….and many make it extremely difficult or time consuming to get money out. I guess they like that float.
The third reason that I like Interbank FX is that they have actually developed an EA for us that monitors my account balance and automatically closes all my positions and locks in my profits using either a profit target or a trailing stop setup. It is very cool waking up and seeing that you have just made $800 while you were asleep.
Lastly, we have negotiated institutional interest rates with both of these firms that are not available to other retail clients.
I hope this helps.
paul
August 22nd, 2009 at 8:49 am
When choosing a forex broker you need to find reliability and security as well as competitive pricing. The main factors you want to take into account is the leverage offered and the spreads on the forex pairs.
I have been trading forex for years and found a few brokers to be very reliable while most forex brokers are not trustworthy. You can find a list of the best brokers at http://www.forexlane.com/brokers.html
August 22nd, 2009 at 8:54 am
Ultimately, you can check with the Securities and Exchange Commission: http://sec.gov/
I use FXDD and they're for real.
If you already have a futures broker, you can also trade Currency Futures. I also trade the Forex, but I get better fills on the futures.
Actually, I trade the Forex through PermiereTrade software, and most of their customers (over 1,000 on the Message Board) trade through FXDD. But I can choose any broker.
If you don't already have charting software and a data feed, this may well be what you should be concentrating on. Of the legitimate brokers, they're all pretty much the same, if the spreads are comparable. You shouldn't pay over 2 or 3 pip spread on the majors, definately something to ask about.
On the futures, you pay a commission, rather than a spread difference, and they are in points, rather than pips. The currency futures are just like any other commodity. I use a very professional charting and trading platform called RealTick, through TerraNovaOnline; state-of-the-art stuff, technically oriented. TerraNova is the home of the Day Trader. I can trade currency futures for $11 roundtrip, which is not possible on the Forex. I pay $200/month for RealTick, but I think you can get their Investor package for free, which is RealTick just sized down to one screen. I use five 21" monitors. But Investor would be a good starting point. Check out their free trial offer.
http://terranovaonline.com/
Here is PremiereTrade's website:
http://www.premieretradeai.com/index.php
The great thing about PremiereTrade is their Message Boards and their Live Trader Commentary, and the ability to speak with their traders at any time. Keeping you informed is their business, and this is real unusual. They do not tell you when to trade, the software does that, but you are always informed; a definate plus.
Other Forex sites:
http://www.dailyfx.com/
http://www.forexnews.com/
Here's a good Forex educational site:
http://www.babypips.com/forex-school/market-hours.html
And here's another legitimate broker, this one international:
http://www.gftforex.com/land/index.asp?aid=500
August 24th, 2009 at 3:58 am
I have traded both MB Trading and FXCM live and have not had significant liquidity issues with either. However, to answer your question as to whether "most online brokers" are good at "hitting your limit buy and sell orders" mainly depends on the position size your attempting to enter the market with, the time of day and currency pair your attempting to trade.
And to answer your question whether your "simulator" will work with "one of these brokers" really depends on which code the simulator was created in. Is it an Expert Advisor coded for Metatrader? If so, MB Trading does not yet support the Metatrader software ( though are Rep there tells us they are working on it). MB uses the MBT Navigator which is much more difficult to create auto trading software for. FXCM recently began using Metatrader in conjunction with their FX Trading Station 2.0. Their Metatrader platform has huge drawbacks including not allowing demo accounts, not supporting multi-user accounts, and reportedly experiencing problems communicating between their FX Trading Station trade servers and their Metatrader Trade servers. I would recommend you google "Metatrader broker reviews" and find the brokers that best works for your situation.
August 24th, 2009 at 7:05 am
I enter nothing but hedge positions with both Interbank FX and GFT.
You can also place conservative hedge positions when you buy two currency pairs at the same time such as the USD/CHF and the GBP/USD. This can pay you a net positive interest each day and as a general rule, the two pairs tend to move in opposing directions with each other. Keep in mind though, that the forex market sometimes has a mind of its own and you should never participate without fully understanding and accepting the inherent risks.
Hedge trading is a very intriguing way to participate in the Forex market and very few people actually understand the benefits.
Good luck.
Paul
August 24th, 2009 at 7:07 am
FXCM. Go see for yourself.