Is Online Forex Currency Trading for Me?

How do you know if online forex currency trading is for you? What are the characteristics that make one fit for successful forex trading online?

Forex trading online has become enormously popular – and for many reasons. The ease of use, ability to make fast profits, and readily available resources combined have made forex trading online one of the most common means of financial trading on the internet, second only to online stock trading.

But, not everyone is cut out to participate in online forex currency trading. Some people probably would not prefer to trade in this area, and may prefer other financial instruments. Others may not have the skills necessary to turn a profit. Regardless, there are ways to tell if online forex currency trading is for you, and if you would be a good at forex trading online.

An Overview of Online Forex Currency Trading

Forex trading online, like many other online financial trading industries, can be stressful, complicated, and risky. You are subject to lose money just like with any other financial enterprise, and there is no guarantee that you will be able to turn a profit. With that being said, forex trading online is actually one of the easier trading methods out there.

The asset you are trading – a currency against another currency – is subject to global news events that can be pretty easily followed. Plus, you do not have to evaluate the fluctuation of your currency versus thousands of others, or against a sector as a whole – like with stock trading. Instead, online forex currency trading involves one currency against the other.

If this interests you, the following traits will help you.

Forex Trading Online: Knowledge and Learning

One trait that is helpful with online forex currency trading is the ability to quickly learn about forex trading online, including how to place trades, how to work a platform, how to use economic indicators, and how to trade strategically. This is mostly a function of how well you pick up on concepts and build upon your knowledge.

Forex Trading Online: Grasp of Macro-economic Fundamentals

A good grasp of macro-economic fundamentals is also important for online forex currency trading because you will need this knowledge to understand global financial events and how they impact your currencies. What does a stock market movement in a country mean for that country’s currency? What trade reports can you read to get an edge on what the euro will do? Fortunately, if you can learn the basics and follow an economic calendar, you will be fine.

Forex Trading Online: Fast-Paced Decision-Making Skills

Finally, any successful entrepreneur in online forex currency trading needs to have fast-paced decision-making skills. Forex prices move quickly, at fractions of a dollar, and the faster you can react, the more you will be able to bank a profit instead of lose money. If you thrive on fast-paced situations, and are not prone to indecisiveness, then you could possibly become quite good at forex trading online.

These are the main traits when it comes to deciding if online forex currency trading is for you. The best way to know for sure, though, is to sign up for a forex trading online demo account and play around with fake money. Visit : forexguidehowto.blogspot.com/

Are Forex Trading Brokers Reliable?

Should you trust forex trading brokers? That is a very good question – one that many traders have today. In fact, forex traders spent a lot of time trying to find the best forex trading broker on the market in terms of reliability, simply because money is at stake and there are a lot of suspicious forex trading brokers on the market.

Fortunately, it is possible to find at least one of the best forex trading brokers on the market. The best forex trading broker is subjective and varies from person to person, but on a whole, there are forex trading brokers who have built up reputations for reliability and trustworthiness.

We will talk about what makes a forex trading broker one of the best forex trading brokers around in terms of consumer trust, and then discuss a few of the best forex trading brokers around in terms of reliability and security.

Finding Reliability in Forex Trading Brokers Today: Common Issues

There are several factors to consider when finding forex trading brokers. After all, it is easy these days to defraud investors, because of how vulnerable the internet can be. The lure of easy money has led to some forex trading brokers engaging in deceptive practices – like hiding their true spreads, changing spreads, and other behind-the-back actions to steal your money.

Plus there’s always the thought of forex trading brokers secretly selling information to other third parties and violating your trust.

Needless to say, these forex trading brokers should be avoided at all costs. The best forex trading brokers are regulated by national regulatory agencies that oversee financial trading in a country. This regulation requires certain disclosures and audits, and makes it less likely that fraud will be perpetrated.

The best forex trading brokers also operate on fixed spreads, and generally make these spreads known. That way, you do not have to wonder as to how the broker makes its money.

Below are a few of our choices for best forex trading brokers in terms of reliability and trust.

Best Forex Trading Brokers: FXOpen

FXOpen has developed a reputation for being one of the more reliable forex trading brokers online today. They offer transparent trading as an ECN broker, which also gives you client anonymity. They also charge commission, so there is no manipulation of spreads.

Furthermore, many best forex trading brokers reviews state that FXOpen has secure data transmission with few issues of violating customer trust.

Best Forex Trading Brokers: HotForex

This forex trading broker has become popular lately and has developed a reputation for trustworthy trading. It does use spreads but advertises the spreads and does not appear to use secret spreads or spread manipulation. It is also regulated and has customer service that is praised throughout best forex trading brokers reviews online. Payments are also fast and reliable, another common concern among forex traders.

Best Forex Trading Brokers: FXCM

FXCM is a popular forex trading broker, and has a reputation for powerful trading systems and platforms. It is also, though, pretty reliable and is used by a lot of people who trust it to be an honest broker with their money. It is also regulated by the National Futures Association, which is an industry regulatory body that oversees several forex trading brokers. This is one of the reasons why some view FXCM as among the best forex trading brokers in the business.

What Brokers are the Top Forex Brokers Online Today?

There are plenty of forex brokers online today in the market, giving you a plethora of possible brokers you can choose from in order to find the top forex brokers for your trading career. Finding ways to compare forex brokers and narrow down the considerable list to something more manageable – your true top forex brokers – takes a bit more work.

To help you compare forex brokers and find the right one for you, we will look at five top forex brokers listed below and give you an insight as to what makes them unique – in an effort to help you better compare forex brokers yourself using information you can obtain easily from the internet.

Top Forex Brokers: FXCM

If you want to compare forex brokers to find a trusted, reliable broker, then FXCM may be the broker for you. This broker is one of the largest brokers online today and has developed a reputation for trustworthy and reliable trading. Their trading platform is very stable, and their processes and customer service are well above average. For this reason, FXCM is one of the top forex brokers online.

Top Forex Brokers: Forex.com

Long one of the top forex brokers in business today, Forex.com has one of the most powerful and capable platforms around – the FOREXTrader Pro platform. You also have access to MetaTrader 4 and eSignals, which are two top-tier online forex charting tools. The mobile trading applications also help make this one of the top forex brokers around in terms of sheer capability.

Top Forex Brokers: Markets.com

One factor used to compare forex brokers is the amount of information that you receive in order to trade. Markets.com has a wealth of resources for you to use when it comes to gleaning valuable nuggets of info and data from a variety of news sources. Markets.com offers daily briefings, technical analysis, live market updates, and a variety of trading signals – as well as a pretty handy economic calendar – for your forex trading needs. With Markets.com, we trust you’ll have the knowledge you need.

Top Forex Brokers: CMSFX

Another factor used to compare forex brokers is to look at the spreads that are a part of what the broker offers. A spread is the difference between the Bid (the price you sell a currency) and the Ask (the price you purchase a currency). Brokers use spreads to make money, and the lowest spreads can save you cash. CSMFX has some of the lowest spreads around, some as low as 0.9 pips on currencies like EUR/USD and USD/JPY. That is pretty remarkable, and something that could help you better compare forex brokers.

Top Forex Brokers: Easy-Forex

Another one of the top forex brokers today is Easy-Forex. One factor we use to compare forex brokers is ease of use. This factor is more important for beginners who want to learn the trade, but even some advanced traders will benefit from it. Easy-Forex is one of the easiest top forex brokers to use, with a very simple and intuitive trading platform that can do what you want efficiently and quickly. 

The top forex brokers listed above are all good choices for different reasons. Use those factors to help you compare forex brokers on this list with others out there to find the best fit for your needs. Other factors that may help you compare forex brokers include commissions, regulation, and asset availability. The above, though, should help you on your way to compare forex brokers for the perfect fit.

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Forex News Trading

One of the most popular ways traders determine entry and exit points in the forex market consists of trading off of major economic news events. The USD forex news generally gives the trader the most possibilities for profitable trades.

As an example, a trader expecting an improved GDP number for the Australian economy, might buy AUD/USD before the release of the economic data. Once the data is released, the exchange rate AUD USD will generally rise sharply if the number comes out better than expected.

The experienced trader will often take profits immediately upon the release of the data, taking profits regardless of their longer term opinion, and reestablish a position once the news is out.

Major News Items Which Influence the Forex Market

Of course, the online forex news is full of trading opportunities. Nevertheless, news trading relies on timely releases and reacting quickly to buying and selling opportunities.

Basically, realtime forex news is more consistent with a news trader’s objectives in initiating and timing entry and exit points when trading. A news trader is generally very selective in the type of economic releases or news items they choose upon which to make transactions.

Some of the more popular economic releases that traders choose for making forex transactions include:

• GDP – the Gross Domestic Product of any nation is of utmost importance to the value of their currency. The GDP represents the sum total of all products and services produced in the country and have a profound effect on the exchange rate of their currency in relation to the currencies of other nation’s currencies. The release of the GDP number of any major nation — especially the United States — presents trading opportunities for many seasoned professionals that keep a keen eye on the USD forex news. 

• Interest Rates – the value of a nation’s currency versus other currencies is strongly influenced by their central bank’s monetary policy. Interest rates exert enormous influence in the value of the currency as higher rates attract foreign investment, while lower rates send investors holding large amounts of money looking for a higher return elsewhere. A Euro currency forecast would not be complete without a careful analysis of the ECB’s monetary policy towards interest rate. 

• Employment Numbers – a nation’s level of employment gives a clear indication on the health of their economy. If a large sector of the population is employed, then the nation’s productivity increases raising the GDP of that nation. Many forex traders use employment numbers to determine whether to hold or short certain currencies. 

• Inflation Numbers – numbers such as the Consumer and Producer Price Indexes give traders an idea of how the central bank of that nation will implement monetary policy. Generally, high inflation is dealt with by central banks by tightening credit, while low inflation is commonly adjusted by a looser interest rate policy.

A seasoned forex trader will take into consideration all of the above fundamental indicators when making a USD Euro forecast for example. By the same token, many day and short term directional traders will take the opportunity of initiating trades based on the realtime forex news releases of these and many other fundamental indicators. 

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EURUSD: The World’s Most Liquid Currency Pair

Since its beginning, when the Euro was introduced as an accounting currency on January 1st, 1999, the common currency has grown to be the second largest reserve currency on the planet, after the U.S. Dollar.

The online forex news covers the movement of the EURUSD rate on a constant basis because the currency pair makes up the most liquid and heavily traded currency pair in the world.

The Euro has been actively traded since January 1st, 2002 when coins and bills were issued to replace the original 14 currencies which made up the former European Currency Units or ECUs.

Since then, six other currencies have joined the original 14 with the Estonian Kroon the latest currency to be replaced with the Euro.

EURUSD Trading

USD forex news generally contains detailed information about trading the currency pair with many news agencies offering both a Euro currency forecast and a USD Euro forecast.

Spreads in the EURUSD currency pair is generally one pip, and sometimes among dealers and for large transactions can be less than one pip. Nevertheless, depending on economic releases and world events in the realtime forex news, spreads can widen considerably if the volatility of the currency pair increases.

Making a Euro Currency Forecast

Generally, research on the Euro focuses mainly on the exchange rate against the U.S. Dollar, since the forex USD rate is the most actively traded and hence important. Nevertheless, the Euro is also actively traded against the British Pound or GBP, the Japanese Yen or JPY and the Swiss Franc or CHF.

A typical Euro currency forecast will often include the ECB or European Central Bank’s monetary policy and interest rate outlook, historical price action in the EURUSD exchange rate and any pertinent news that might affect the Euro.

USD Euro Forecast

Many websites which offer online forex news, will also contain a USD Euro forecast. This forecast will highlight the U.S. Federal Reserve’s interest rate policy, as well as the ECB’s interest rate policy.

In addition, the USD forex news will also highlight major economic and political events which might possibly influence the value of the Greenback against the Euro, as well as other major currencies like the Australian Dollar or AUD/USD.

The EURUSD currency pair offers both beginning and seasoned traders ample opportunities to make profitable trades. With the depth of the market and the constant coverage of the rate on the online forex news, EURUSD can be the most accessible and viable currency pair, especially for new forex traders.

Trading in EURUSD is perfect for forex day traders, range traders and especially scalpers and short term traders that can take advantage of the narrow bid/offer spreads.

Other currency pairs may also provide traders with opportunities for profitable trades, such as AUD/USD, however the exchange rate AUD USD often has much wider bid/offer spreads and often trades with a considerably more volatility.

While the Euro generally trades in long sweeping moves, recent events have added volatility to the EURUSD exchange rate. Sovereign debt concerns in addition to the bailouts of Greece and Ireland have made trading the EURUSD rate much more interesting and profitable — if the trader is on the right side of the move. Nevertheless, EURUSD continues being the most traded and liquid currency pair in the forex market.