FOREX versus Futures Market

There are several factors to consider when choosing between forex trading and futures contracts. We will review a few of these in this section.

Futures, the Futures Market and Futures Contracts

The origins of today's futures market lies in the agriculture markets of the 19th century. At that time, farmers began selling contracts to deliver agricultural products at a later date. This was done to anticipate market needs and stabilize supply and demand during off seasons.

The current futures market includes much more than agricultural products. It is a worldwide market for all sorts of commodities including manufactured goods, agricultural products, and financial instruments such as currencies and treasury bonds. A futures contract states what price will be paid for a product at a specified delivery date. When the futures market is played by speculators, the actual goods are not important and there is no expectation of delivery. Rather, it is the futures contract itself that is traded as the value of that contract changes daily according the market value of the commodity

When the futures market is played by speculators, the actual goods are not important and there is no expectation of delivery. Rather, it is the futures contract itself that is traded as the value of that contract changes daily according the market value of the commodity.

In every futures contract there is a buyer and a seller. The seller takes the short position and the buyer takes the long position. The futures contract specifies a buying price, a quantity and a delivery date. For example: A farmer agrees to deliver 1000 bushels of wheat to a baker at a price of $5.00 a bushel. If the daily price of wheat futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 - $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day.

At the end of the contract period, the contract is settled. If the price of wheat futures is still at $4.00 the farmer will have made $1000 on the futures contract and the baker will have lost the same amount. However, the baker now buys wheat on the open market at $4.00 a bushel - $1000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of wheat. Similarly, the farmer must sell his wheat on the open market for $4.00 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference.

The baker, however, is still in effect buying the wheat at $5.00 a bushel, and if he hadn't entered into a futures contract he would have been able to buy wheat at $4.00 a bushel. He protected himself against rising prices but he loses if the market price drops.

Speculators hope to profit by the daily fluctuations in the futures market by buying long (from the buyer) if they expect prices to rise or by buying short (from the seller) if they expect prices to fall.

FOREX

The foreign exchange market (FOREX) has several advantages over the futures market. FOREX is a more liquid market – as the largest financial market in the world it dwarfs the futures market in daily exchanges. This means that stop orders can be executed more easily and with less slippage in the FOREX.

The FOREX is open 24 hours a day, 5 days a week. Most futures exchanges are open 7 hours a day. This makes FOREX more liquid and allows FOREX traders to take advantage of trading opportunities as they arise rather than waiting for the market to open.

FOREX transactions are commission-free. Brokers earn money by setting a spread – the difference between what a currency can be bought at and what it can be sold at. In contrast, traders must pay a commission or brokerage fee for each futures transaction they enter into.

Because of the high volume of trading FOREX transactions are almost instantly executed. This minimizes slippage and increases price certainty. Brokers in the futures market often quote prices reflecting the last trade – not necessarily the price of your transaction.

The FOREX is less risky than the futures market because of built-in safeguards in the trading system. Debits in futures are always a possiblility because of market gap and slippage.

Top Five Economic Indicators that Drive Forex Trading

There are many factors that affect the Forex trading. When learning to trade on the Forex is it important to know and understand the various factors that cause the Forex to fluctuate from day to day. The foreign exchange market will change depending on the several economic factors that play a role in the movement of currency.

When looking at the Forex, economic factors and indicators are released by the government or by private organizations that can look in depth at economic performances. The economic performances from any country can be analysis by these indicators. The economic reports measure a country’s economic health, in addition to government policies and current events.

Most of the time, a reputable broker can look at economic indicators and can give advice on which trades will be the best. Reports on these indicators are released at scheduled times and can tell if a certain country is experiencing improvement in the economy or if it is on the decline. When the prices fluctuate, a great deal one way or the other, the price can be affected.

One of the top economic indicators used when analyzing the Forex is current events and the state of the economy in any given nation. Factors such as unemployment numbers, housing statistics and the current state of a country’s government can all affect the changes in the Forex. When a country is feeling good about the current state of affairs in their country, the prices of the Forex will reflect this. When a nation experiences political unrest, large amounts of unemployed workers and inflation, the rate of the currency will also be reflected. Sometimes, this indicator tends to be overlooked, but can serve as an important gauge in the fluctuations of the Forex.

Another economic indicator that is used when looking at the foreign exchange market is the gross domestic product, also called the GDP. This is normally considered the widest and broadest measure of the economy in a country. The gross domestic product represents the total market value of all goods and services that are normally produced within any given country. This is usually measured in the time frame of a year, and not in weeks or months. Using a larger time period gives good statistics on the products and services that are produced in the country. This indicator is not used alone when forecasting the Forex. Usually the gross domestic product is considered a lagging indicator, meaning that is a measurable factor that changes after the economy has already began to follow a certain trend.

The third economic factor that is often used in analyzing the Forex is the retail sales reports. This is the total receipt of all retail stores in any country. Usually, this measurement is not every single retail sale, but is a sample of diverse retail stores throughout the country. This is considered a very reliable and important economic indicator because of the consumer spending patterns that are expected throughout the year. This factor is usually more important that lagging indicators and give a clear picture of the state of the economy in any country.

The industrial production report is another reliable economic indicator in the foreign exchange market. This shows the fluctuation in productions in industries such as factories, minds, and utilities. The report looks at what is actually produced in relation to what the production capacity can be over a period of time. When a country is producing at a maximum capacity in this way, it can positively affect the Forex and is considered ideal conditions for traders.

The last important economic factor in analyzing the Forex is the consumer price index or the CPI. The consumer price index is the measure of the change in the prices of consumer goods in 200 categories. This report can tell whether or not a country is making or losing money on their products and services. The exports that a country has are very important when looking at this indicator because the amount of exports can reflect a currency’s weakness or its strength.

The Forex is affected by many factors. These factors usually follow a certain trend so it is important to understand how each factor works in forecasting the Forex. Some are good indicators alone while others should be used together for accurate Forex predications.

Forex vs. Stocks

Forex Market Comparison

Advantage Forex Market Stock Market Trade Around the Clock Yes Limited Pay No Commissions* Yes Limited Unlimited Short-selling Yes No Market Information Easily Available Yes Yes

Trade Around the Clock

The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.

Pay No Commissions*

In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customers trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, “no-fee” programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.

* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader. For additional information click here.

No Uptick Rule

Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.

Forex Market Information Easily Accessible

Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.

We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.

To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739.

High Risk Investment

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Profitable Forex Trading System

In this article we will look at a free system that's used by some of the world's top traders and it's proven to make profits. If you use this system you will beat 99% of the forex trading systems sold by vendors online, so let's look at it.

The forex trading system were going to look at was devised by a trading legend - Richard Donchian who is considered the father of modern trend following and is considered a trading legend and has influenced such great traders as Richard Dennis and countless others.

The system is Richard Donchian's 4 week rule.

He originally devised it to trade commodities in the seventies but it's very useful for forex trading because it works well in trending markets and forex markets are great for long term trends. The system is incredibly simple but don't let that put you off, it makes money! The system is very robust and based on timeless logic.

It's a well known fact that the best forex trading systems are simple, as they are more robust than complicated ones that have too many elements to break.

Here are the rules:

1) Close short positions and go take a long position when a price exceeds the highs of the previous 4 weeks.

2) Close long positions and take a short position when a price falls below the lows of the previous 4 weeks.

Thats it!

Now the above will work very well in any trending market but in sideways markets it will get chopped about so you may want to consider a filter to take this into account.

The filter is to enter on the 4 week rule - but exit the position on a shorter time frame and go flat. 1 or 2 week cycles could be used for this; you would then simply re enter on the next 4 week signal.

Now you can test the above system and you will see it works but most traders wont bother using it - Why? Because it takes tremendous discipline to execute it and it's not a system that is particularly worried about price entry levels and most traders are obsessed with this.

It's also very often buying breakouts and most traders hate doing this because they would rather wait for the pullback, this is despite the fact most major trends start from new market highs NOT market lows.

Another problem is traders think it's too simple and prefer trendy systems which are more complicated (which don't work) this system doesn't have the buzz factor of being based on artificial intelligence or a neural network despite the fact it will beat most if not all of them longer term.

The pro traders however know its value and many systems by the great traders over the years have used it as a base - including the legendary turtle traders, who made $100 million in 4 years, with no prior trading experience. So yes it is simple but that doesn't mean it doesn't work it does.

Test it and you will see, so now you have a free forex trading system which since inception, has made traders hundreds of millions of dollars and could make some profits for you to.

A Profitable Forex Trading Strategy

Is the candlestick pattern a profitable Forex trading strategy? Candlesticks patterns were first used in Japan five centuries ago in the Dojima rice exchange. Today, it has become a popular tool for foreign exchange traders to predict currency trends. The system provides data on past and present trading patterns that are used in forecasting movements of various currencies.

The Forex market is a good source of income for people who know how to accurately read currency trends. Because of numerous Forex software and programs that are readily available nowadays, more and more people are given the opportunity to engage in foreign exchange trading. One of tools that have helped people earn money in the currency market is the candlestick pattern.

Before employing candlestick pattern trading, aspiring traders must first know enough about it. There are many kinds involved here and choosing the right one needs some thought. But for the many that are already into candlestick trading, he 30-minute candlestick chart seems to be the best of the lot and they counsel that before engaging in a trade, one must see to it that the pattern has been completed. There is danger in going ahead without getting the final picture first.

There is what traders call the engulfing candlestick patterns. This pattern is considered more reliable than others and the most profitable to use. The term "engulfing" refers to a market situation where the current candle engulfs the previous one. The engulfing patterns consist of the bearish engulfing and bullish engulfing patterns. Both patterns can tell traders which direction a currency will most likely to go after the pattern is completed. The engulfing bullish patterns form when price levels of certain currencies are at their lowest points while bearish patterns will occur when the prices are at their peak.

How does one effectively use candlestick patterns to increase chances of earning? The engulfing patterns actually tell what currencies are on the downward or upward trend, which can provide a trader an accurate idea of when to trade. The best times are when there are strong indications that the trend is running its course. The trend may not be that strong but the candlestick chart must provide evidence that the trend is definitely coming to an end. In this case, the candle will have grown smaller.

What exactly do traders need to see in the candlestick pattern that will let them start trading? When traders see an up candle engulfed by a down candle immediately following it, it means that there is an upward trend and a short trade is advisable. The downward trend works under the same principle.

A profitable Forex trading strategy using candlestick patters entails timing and analysis, but it can certainly make money for traders.

Forex Brokers Comparison

Forex Broker Comparisons^1.0 is a free, unbiased service that compares Forex Brokers' strengths and weaknesses and other details. Forex Broker Comparisons does not offer trading advice and is not responsible for which broker you invest capital into. The information in any of our articles or comparisons is subject to change at any moment. If you need to compare Forex Brokers, this is the site for you! The information on this list is subject to change at any time, please contact us with any errors or omissions, we'll be happy to update the list.

Even though we base our comparison list on a few factors, there are many other criteria you need to consider when choosing a Forex broker that will fit your specific needs and trading style. This list simply is a starting point for you to use, especially if you are new to Forex trading. You can always go discuss any Forex broker you have questions about at Forex Forum broker forum, no question is too silly, it can save you money!

Detailed Information To Know About This List When Comparing Forex Brokers:

Forex Broker Comparison List (Sortable)

Forex Broker	Min Deposit	Commission	Max Leverage		E-Gold?	MT4?	Since
Forex Club	$10	$4/100k	--		N	N	2000
Saxobank	$10	$4/100k	--		N	N	2000
Man Financial	$10	$4/100k	--		N	N	2000
FxPro	$10	$4/100k	--		N	N	2000
HY Markets	$10	$4/100k	--		N	N	2000
dbFX Deutsche Bank	$10	$4/100k	--		N	N	2000
Western Capital Forex	$10	$4/100k	--		N	N	2000
Forex Club	$10	$4/100k	--		N	N	2000
Easy-Forex	$50	N	???		N	N	2001
iFOREX.com	$100	N	400:1		N	N	1996
Hotspot FX	$7500	$3/100k	50:1		N	N	2000
Forex.com	$250	N	200:1		N	N	1998
CMC Markets	$2000	N	100:1		N	N	2003
FXCM	$300	N	200:1		N	N	1999
FX Solutions	$250	N	400:1		N	N	1995
Realtime Forex	€2500	N	50:1		N	N	2001
Interactive Brokers	$5000	$2/100k	50:1		N	N	1998
Oanda	--	N	50:1		N	N	2001
MG Forex	$200	N	400:1		N	N	2000
CBFX	$500	Y	100:1		N	N	2001
GFT Forex	$250	N	400:1		N	N	2001
EFX Group	$400	$5/100k	100:1		--	N	2000
MB Trading	$400	Y	100:1		N	--	2002
LiteForex	$1	N	500:1		Y	--	2004
FX Cast	$1	N	400:1		Y	Y	2005
Dukascopy	$50,000	N	--		N	--	2004
FX Open	$1	N	500:1		Y	Y	--
Marketiva	$1	N	--		Y	N	2005
Swissnet Broker	$200	N	--		N	--	2005
Ava Fx	$100	N	200:1		Y	N	2006
Real Trade Group	$20	N	--		Y	Y	2003
Money Forex	$250	N	???		N	N	--
Forex Web Trader	$250	N	--		--	--	--
IFC Markets	$1	N	--		--	--	--
North Finance	$100	--	500:1		N	Y	2003
INTERBANK FX	$250	--	200:1		N	Y	2001
GFX (Forex.ch)	$2000	--	--		N	Y	2006

Euro Vs US Dollars Predictions

We all know that it's difficult to predict where any currency exchange is going, not to mention the Euro Vs. US Dollars rate since these two currencies represent the 2 biggest economic blocks in the world. However, I will try simply because I believe that there's a lot of money to be made, and lose in trading of this forex pair. Indeed, I believe that some people are going to lose their shirts in the near future.

Anyone who has followed the Forex market in the past few weeks has noticed that the us dollar has plummeted versus the Euro. In fact, the Euro has recently broken records high, and the dollar is crashing against all major currencies in the world. This is due to the financial crisis which the US is facing and which leaves a great deal of uncertainty over the markets.

What will happen between the Euro and the American Dollar?

In the past week I've heard many people say that the worst has passed, and that the dollar will now strengthen gradually. I believe this is false and that these people will lose a lot of money. As far as I can tell, the economic indicators support the continuing strengthening of the euro versus the dollar:

• The European economy has been least affected by the current crisis in the US financial sector
• The European interest is much higher than the American, and while the Fed will likely continue to lower interest rates in the near future, the European central bank shows no signs of following suit.
• We have likely not seen the last repercussion of the financial crisis in America

All of these things say one thing: The euro will become stronger Vs. the US dollar, and not the other way around. I would hold a position on the Euro. It will likely continue to make profit in months to come.

Top 150 Online Forex Brokers

Based upon average web site rankings from Alexa, Compete and Quantcast and number of individual forex trader ratings world wide

Granted, web site popularity is probably not the best way to determine the popularity of an online forex broker. Using total number of individual retail accounts as the measure would probably be better but that information is not always available so we have gone with a combination of web site popularity and the number of ratings given Internet wide by individual traders. Going forward on an annual basis, we will also track whether a forex broker is moving up or down the rankings and how much.

Popularity Rankings are presented for informational purposes only. Best Online Forex Brokers does not recommend online forex brokers based solely upon popularity.

Note: Some brokers offer other trading and investments (options, futures, stocks, etc.) which tends to raise their ranking.

Broker Name (Alternate Name)	Web Site
1. Forex Capital Markets (FXCM) 2. Oanda (FXTrade) 3. Global Forex Trading (GFT Forex) 4. FX Solutions (FX Sol) 5. Advanced Currency Markets (ACM) 6. Interbank FX 7. Capital Market Services (CMS Forex) 8. Interactive Brokers 9. Easy Forex 10. MB Trading	fxcm.com oanda.com gftforex.com fxsol.com ac-markets.com interbankfx.com cmsfx.com interactivebrokers.com easy-forex.com mbtrading.com
11. Saxo Bank London (Saxo Bank) 12. GCI Financial (GCI Trading) 13. FXDirectDealers (FXDD) 14. Dukascopy Swiss FX (Dukascopy) 15. Marketiva 16. GAIN Capital Group (GAIN Capital) 17. Forex Club (FxClub) 18. CMC Markets 19. MG Financial Group (MG Forex) 20. ForexGen	saxobank.com gcitrading.com fxdd.com dukascopy.com marketiva.com gaincapital.com fxclub.com cmcmarkets.com mgforex.com forexgen.com
21. GFX Group (GFX) 23. ODL Securities 24. Deutsche Bank (dbFX) 24. TradeStation Securities 25. iForex 26. MIG Investments (MIG Fx) 27. FXOpen 28. AVA FX 29. Alpari IDC (Alpari) 30. Questrade Inc. (Questrade)	forex.ch odlsecurities.com dbfx.com tradestation.com iforex.com migfx.ch fxegypt.com avafx.com alpari-idc.com questrade.com
31. ForexWebTrader 32. Delta Stock 33. MoneyForex Financial (Money Forex) 34. FOREX YARD (FOREXYARD) 35. Admiral Markets 36. IG Markets 37. LiteForex (Lite Forex) 38. Finotec Trading Inc. (Finotec) 39. thinkorswim 40. E*Trade Financial (ETrade Prof.)	forexwebtrader.com deltastock.com moneyforex.com forexyard.com fxservice.com igforex.com liteforex.org finotec.com thinkorswim.com etradeprofessional.co.uk
41. Realtime Forex SA (Realtime Forex) 42. IFC Markets 43. Windsor Brokers, Ltd. 44. Real Trade Group 45. Pro Finance Group Inc. (PFGFX) 46. HY Markets 47. Neuimex Direct Dealing (Neuimex) 48. InterBank Group 49. The Royal Bank of Scotland (RBG) (formerly ABN AMRO) 50. Dealing24 (formerly PRO-FOREX)	realtimeforex.com ifcmarkets.com windsorbrokers.biz realtrade.lv pfgfx.net hymarkets.com neuimex.com interbankgroup.com marketindex.rbs.com/uk dealing24.com
51. eToro 52. Foreign Exchange Clearing House 53. Ikon Global Markets (IkonGM) 54. Pip Forex 55. Infinity Futures FX (fomerly ProEdge FX) 56. Forex Capital Trading (ForexCT) 57. PFG BEST 58. X-Trade Brokers (XTB) 59. FIBO-FOREX.LT 60. Tradex Swiss AG	etoro.com forex-swiss.com ikongm.com pipforex.com infinityfutures.com forexct.com pfgbest.com xtb.com fibo-forex.lt tradexfx.com
61. Fx Direkt Bank AG (FxDirekt Bank) 62. Master Forex 63. Fxcast 64. MF Global Ltd (Man Financial) 65. SpeedTrader 66. Advanced Markets 67. Noble Trading Worldwide 68. Apex FX Trading 69. FX | Clearing (FX Clearing) 70. Capital Forex	fxdirekt.de masterforex.org fxcast.com mfglobalforex.com speedtrader.com amifx.com nobletrading.com apexfxtrading.com fxclearing.ca capitalforex.com
71. Swiss International 72. FxPrice LLC (FXPrice) 73. TradeFreedom Securities Inc. 74. AvailTradingCorp. (ATC Brokers) 75. Akmos Trade 76. FastBrokersFx 77. Halifax Online (HalifaxOnline) 78. ICAP 79. Trading Intl., LLC (Forexecutor) 80. Investment House International	swissfs.com fxprice.com tradefreedom.com atcbrokers.com akmos.com fastbrokersfx.com halifax.iitech.dk icap.com tradingintl.com ihifx.com
81. My Private Trade (MyPrivateTrade) 82. NTWO Capital Market (N2CM) 83. Cantor FX (formerly BGC FX) 84. KVB Kunlun 85. Advised Trading (AT Switzerland) 86. Global Futures Exchange & Trading 87. Fx-Pro 88. GOForex (formerly Pacific Trader) 89. ATG Marketplex (Aaron Trading) 90. FXTSP	hi.myprivatetrade.com n2cm.com cantorfx.com kvbkunlun.com advisedtrading.com globalfutures.com fx-pro.com pacconsec.com.au aarontrade.com fxtsp.com
91. Global Forex 92. FCMarket 93. FXOnline Japan Co., Ltd (FXOnline) 94. Treasury Mgmt Svcs (TMS Brokers) 95. ADM Derivatives, Inc. (ADM) 96. Hudson Global Capital 97. STIFX 98. Exto Capital 99. Forex Trading USA 100. FxLite	globalforex.com fcmarket.com fxonline.co.jp tms.pl admd.com hudsongc.com stifxonline.com extocapital.com forextradingusa.com fxlite.com
101. FX Trading 102. Sucden 103. RJO FX 104. Fibo Group, Ltd. (FIBO Group) 105. GFS Forex & Futures, Inc. (GFS) 106. Charter FX (CFX) 107. ApexForex 108. GNI Touch 109. Murphy & Williams Financial Group 110. Loyal Group Limited	fxtrading.com sucden.co.uk rjofx.com fibogroup.com gfsforex.com charterfx.com apexforex.com gnitouch.com mwheadway.com loyal-group.com
111. Premier Investments (FXPremier) 112. Forex.ca 113. Finmarket 114. Thales Securities 115. AbleTrend 116. T & K Futures (Uplimit) 117. Plauski Financial Group 118. WH SelfInvest Ltd 119. Market Forex 120. InterForex Inc.	fxpremier.com forex.ca finmarket.com.ua thalessecurities.com uplimit.com uplimit.com plauski.com whselfinvest.com marketforex.net interforex.net
121. Cortal Consors 122. MadaFX 123. Forex Arabia 124. Investscape, Inc. 125. Swiss Finance Corporation (SFC) 126. finlot 127. Titan Financial Group Ltd. (TFG Ltd.) 128. Akforex 129. City Credit Capital Wholesale (CCCapital) 130. Top Star Development Co., Limited (TSD)	cortalconsors.com madafx.com forex-arabia.com investscape.net sfc-uk.com finlot.com titanmoneytrading.com akforex.com cccapital.co.uk topstar-development.com
131. Currency Trading USA 132. FXA Securities Ltd 133. AL Trade (al trade) 134. MVP Financial 135. ActivTrades 136. Friedberg Direct 137. Rosenthal Collins Group (RCG fxtrader) 138. ECNbroker 139. bpforex 140. Spot Trader FX	currencytradingusa.com fxasec.com alforex.com mvpglobalforex.com activtrades.com friedbergdirect.ca rcgfxtrader.com ecnbroker.com bpforex.hu spottraderfx.com
141. GIFG (Jordan) 142. GTL Trading (formerly Global Tradewaves LTD) 143. FOREX Ltd 144. Manduca Trading LLC 145. NordMarkets 146. Mandus Invest 147. Forex Signs, Inc. 148. MFN Group 149. TADAWUL FX 150. Dif Broker	gifgjo.com gtltrading.com forexltd.co.uk manducatrading.com nordmarkets.com mandus-forex.com forexsigns.com mfngroup.com tadawulfx.ch difbroker.com

Euro Key Level Economic News Release Trading Strategy

Forex traders know the importance of economic news releases and how that effects the exchange rate. A positive or negative news announcement in the US morning session can send the EUR/USD rate up or down extremely fast! One way to capture these large moves is to use ENTRY STOP ORDERS.

Entry stop orders are an excellent way to get into a trade long or short AUTOMATICALLY. Often if the market is moving extremely fast (due to an economic news release or geopolitical event) and you want to get into a trade, it
is extremely difficult to get the price you click (live market order) because the exchange rate is moving up or down so fast. It is like trying to jump on a train that is moving at full speed.

An entry stop buy or sell order places an order with the dealing desk of your Forex clearing house to execute your order when the exchange rate touches the level you set the order at. The CMS VT platform guarantees that these types of orders will be filled.

The following link outlines the economic news releases for the week. I find it very helpful because it rates every release in terms of importance on a grading scale of A-D. A denotes very important down to D with little significance to the markets. It even lists what the market expects to happen with the briefing.com forecast.

Click Here for the Yahoo Finance Economic Calendar:

http://biz.yahoo.com/c/e.html

1. Check the economic Calendar

2. Set your entry stop buy or sell at a key level 15-30 minutes before the announcement is released. Set your stop and limit on your order by right clicking the order when it appears on your VT platform.

3. You can also "straddle" the price movement by placing a long and short entry stop or sell order (and subsequent stops) if you aren't sure which direction the news release will send the price.

The above report was taken from the Euro Fractal Trading system, written by Erol Bortucene of the Day Trade Forex Team.

This unique approach to day trading the EUR/USD involves using financial Fractals and no other technical indicators, as outlined in the Euro Fractal Trading System. The Euro Fractal Trading System also teaches how to use key price levels to take entry and exit positions, thus taking the guesswork out of trading.

Top 5 Forex Trading Robots

Forex trading robots make your Forex trading experience easier. They help to take away a lot of the 'manual hassle' of constantly updating, buying and selling. They make observed predictions of the way your Forex pairs will go, and automatically make the sale or buy for your account (also known as an 'automatic Forex trading system). Not all Forex trading robots are of the same quality, though, and by making a poor choice you could lose your Forex trading account. Here are some of the more dependable and well-liked Forex trading robots:

The 200 EMA (Exponential Moving Average) is the staple of nearly all Forex traders diets. It's an easily accessible trading robot that is clearly marked and easy to manipulate. It's also usually the first one that many new to Forex trading begin with- without getting intimidated.

The Bollinger Band System is used to monitor how large or quiet a leap the Forex market takes or trends go, by using visual 'bands' that show increases or decreases. More advanced traders use them for more than monitoring and have tricks to use them to help them build their Forex account.

The RSI (Relative Strength Index) is exactly what the name implies: it shows you when something is over-sold or over-bought, and indicates the probable trends. When the RSI rises, it's over-bought and lower is over-sold. A simple system for a clear and valuable guage.

The MACD (Moving Average Convergence Divergence) is a good Forex trading robot for longer-term, more careful choices within your Forex trading. It has the potential to help boost profits immensely, but it isn't as risky as other Forex robots because it's spread out over more time.

The Fap Turbo is a newbie in the line of Forex trading robots, and less expensive with more 'frills,' maybe- but it does pretty much the same job as the MACD. The main difference is that you have more options for streamlining for your Forex trading purposes.

There they are, the top 5 in Forex trading robots. These are the basic tools anyone looking to even test out Forex trading should have.

How Does the Forex Trading System Work in the U.S.?

There's so much gobbledegook involving Forex. A lot of confusion surrounding the Forex trading system, how it works and what it actually is. Investment, similar to the stock market? More- or less- complicated? How can you trade in currency? Does anyone actually make a profit? Can I become a Forex trader? Here are some simple basics of the Forex trading system in the U.S.:

• The Forex Trading System: The Forex (Foreign Exchange) market is based on currency pairs that get bought and sold online internationally. It might seem like a strange idea to invest in a country's economy, but many traders are successful. The currency pairs are pre-designated (the U.S. dollar to the Swiss franc, for example) and the USD is used as the Forex base of trading.
  
• Forex Is Accessible: The stock markets of each country are still holding strong, but the main reason Forex has exploded onto the investment scene is because it's so accessible. You trade internationally online, it's virtually 'open' 24 hours a day- and the start up can be as little as a few hundred dollars. These smaller accounts (known as minis or micros) can be opened by anyone who has an interest in Forex trading..
  
• Forex Is User-Friendly: Getting started with Forex trading in the States is completely easy. Almost any introductory information is online, with the trading platforms offering tutorials, feedback with experts and demos of Forex trading to give you a feel for how the Forex market works- without losing any money. There are a lot of trader-friendly automated Forex trading programs and robots that make it even less complicated for starting out.
  
• How Forex Works: You decide on a pair of currencies, and you follow their economies and markets to see trends in the values. You buy or sell according to how you assume the trend will go, and the difference between the two amounts is either your profit or your loss. To help you figure out whether or not to sell, you've got indicators and charts to use, and expert brokers that can walk you through the Forex trading system in the U.S...
  
• Forex and Profits: Forex trading in the States is an investment market, which means there's always risk involved. There are many successful traders that not only make a living trading in Forex, but a large profit. The biggest mistake that new Forex traders make is thinking they're going to be instantly rich- it takes time to learn the Forex trading system, and what does or doesn't work...

The Forex trading system has grown so quickly in the U.S. as a popular investment because it's finally available to the average investor, it can be done from anywhere in the world and it's one of the least complicated investment systems that exists.

Top Tips For Choosing a Reputable Broker

There's always a slight paranoia involved in choosing a broker. It doesn't matter if your past experiences have been good or bad, or whether it's your first time: these people are dealing with your money. It's a difficult decision to make. When you're looking for a good Forex broker, there are a few things you should keep in mind and compare before deciding:

• Ask friends and colleagues who they use. You more than likely know someone who's involved in Forex trading. Ask them for broker tips or even contacts. Word-of-mouth is one of the most trusty sources of advertising.
  
• Look around locally or online. If you feel more comfortable with a face-to-face, then find a local broker for Forex. Many brokers work online, though, and it can make communication easier and faster- especially for those quick trades.
  
• Check out their demo trading platforms. It's not an absolute guarantee that if you like the demo, it'll be the same that they offer- but typically this is a good gauge of presentation and what they offer. It gives you a feel for the broker's professionalism and experience.
  
• Look at the broker's forums. When clients are unhappy, they voice it. When they're earning money, thanks to their broker, they're telling others. The forums can give you a sense of the style of Forex trading that's done by the broker, and also how you will be treated if you choose to become a client.
  
• Look at what is offered by the broker. How much will your minimum deposit have to be to start Forex trading with the broker? Do they charge a reasonable commission? How do they manage the security of your deposit? Which pairs do they offer for your Forex trading? What are the spreads? How does their particular trading platform work, and are there any limitations? What are the limits to the leverage? Getting all of the answers you need, before you sign up with a broker, is one of the best ways to choose a reputable broker.
  
• Be wary of scam artists. It seems like the internet is full of scam artists, and the Forex broker's scene is no different. Do remember, though- most are legitimate. Look at the quality of the site; the offerings compared to what they ask you to pay; and do research on their legitimacy if you're still unsure. Forex trading is risky enough without having a bad broker.

These are the tips for finding a reputable, perfect Forex broker. Once you find that unbeatable match, you'll start trading both comfortably and successfully. With mutual trading satisfaction.

Forex Killer Secrets Has the Key to Your Forex Success

There's a lot of hype about the Forex market, and with good reason. It's one of the hottest investment markets around. It's also easy for the average investor to get involved in, with very little start up money. What makes Forex so interesting today is that you can access your account from anywhere in the world. The international Forex market is open 24-hours a day, 7 days a week- and it's no longer an investment market for the elite. To succeed in Forex, you need the inside scoop on Forex secrets, Forex strategies and what to watch out for.

The Forex market is still an investment market, which means you are taking some minimal risks if you don't know what you're doing. Using the best of Forex secrets gives you an edge when you're planning your Forex investment strategy. Being aware of the pitfalls and the latest technology, how to use it and what you need exactly to succeed will give you the tools you need in the Forex market to be one of the lucky investors that profit. Who knows, you may even be able to quit your day job after getting the hang of Forex trading.

Forex Killer Secrets offers you all of the information you'll need when you're starting out in the Forex market, with helpful tips and full disclosure of Forex secrets to success. Getting involved in one of the most exciting ways to invest your money, without the huge headache of typical investment markets, is the best way to go. Using the ideal Forex strategy for you will help you get the most return for your initial investment- with the least risk. The Forex market needs some background and research- it's all here, at the tip of your fingers. Check out the articles here to get started, and begin profiting in the Forex market today.

Best Forex Strategy to Make Money in the Markets

Of course the worst method of trying to make money in the Foreign Exchange Markets (Forex or FX) is not to make money at all, but lose it. There are so many easy ways to make big money, I have no idea why people lose money, it is just too bad. The best Forex strategy is what I call a "Triple Header Confirmation of Forex Indicators." This is a little complicated to follow if you are new to the markets; I will first inform you of some sure fire methods that don't even require you to think to start racking up profits daily.

The first Forex strategy is taught in a currency course named Forex Made E-Z. I found this FX program a few years ago and have been churning out profits with it ever since. It is without question the easiest to understand and simplest to use. Don't worry if you don't know anything about the currency markets, all you have to do is follow what the instructor tells you in this course and you willmake money.

All you do is at two certain times of the day is look at one little thing, if it tells you to buy, you buy. If it tells you to short, you short. If you don't know what short means, again don't worry, he will teach you in the course. It is really effortless. This Forex strategy is called Forex Scalping, which means you get in and out of the market very quickly. This is very good for new investors because it is a few low risk technique. Because it is low risk, does not mean it is not rewarding. Quite to the contrary, since it rarely produces losing trades over time your profits build up very nicely.

The next one I am going to tell you about is not really a strategy; it is just a very easy way to make big money. There is this Forex mentoring program called the Forex Brotherhood. It is taught by a professional Forex investor. You get a great education of the markets with this class, but I have been trading Forex for ten years, I know too much to get me in trouble already.

But, I maintain my membership because you are allowed to trade in real time the same trade the Pro instructing the course is doing. You don't even have to think, just do what he does and you make thousands each month. How much easier does it get than that?

A Forex trading strategy mentioned above does not even require you to think or to know anything about the currency markets to make money. Just do what they do or tell you to do and your entire life style will change. Because you will be rolling in it! Don’t believe me, try it out for yourself, each of these Forex courses are really inexpensive, what do you have to lose.

Best Forex Strategy to Gain 90% of your Trades

This best forex strategy which I am about to tell you was formulated as an improvement to the innovative midnight breakout strategy, but you can also use it to trade on its own or together with the rest of other forex strategy. The initiative here is to separate a large part of untrue breakouts in your trade either over or under the day to day candles.

The breakout method you should make use of is the daily plus the 5 minutes charts, and you should not include any indicators.

Its entry pattern:

You should make use of the rules gotten from the midnight breakout strategy, and be set to enter a trade once there is a gap on the day to day candle’s low or high. Nevertheless, at this period rather than enter for a buy or sell stop order which is either above or below the day to day candle, you should not place any trade. What you should is to hold back till a real breakout begins to happen. It will be a nice idea if you launch an alarm signal right there on your trading platform which will let you know as soon as the initial breakout gets in place.

As soon as a breakout which is above or below the day by day candle occurs on the everyday charts, what you should do is to launch the 5 minutes charts. At this time, what you should do is to hold back till the price completes its initial approach and begin to retrace back.

Below is the trick behind trading breakouts of the breakouts:

As you watch the 5 minutes chart, spot out the initial extreme layer triggered by the price, it should either be the longest high or shortest low based in the breakout way, and enter using a buy stop or sell stop orders plus an additional 10 pips over or beneath its extreme level. This means, your order will be sparked off when the price sustains its movement objectives. If not, then it was an untrue breakout.

Frequently when the breakout on the every charts have completed, the 5 minutes charts of the initial extreme level exposes the actual nature of that breakout. It is likely that price may not arrive at level again or it could return and make twice the top or bottom pattern and then back.

I hope you have learnt one or two things from this effective forex strategy. You will get the best out of it if you try it out using a demo account.

There is another tool which you can include into your forex trading arsenal bag. The name of this tool is called Fap Turbo. Fap Turbo is a forex trading robot which you can use to automate your forex trading. It has a 95% success rate.

Canadian Dollar (CAD) and Oil

Oil is the life blood of the industrialized world and thus a highly watched and traded commodity. While oil is often nicknamed "Black Gold", we prefer to call it "Black Crack".

Many countries that produce "black crack" and hold massive reserves of "black crack" tend to benefit from rises in oil prices, including Canada. We like to call these countries the Black Crack Mafia.

Canada is one of the world's largest producers of oil (black crack dealers) and holds oil reserves (black crack stash) second only to Saudi Arabia, which makes Canada very reliant on its most prized commodity. It is also the largest supplier to the world's biggest oil consumer (black crack addict) - the United States. Because oil is such a big part of the US economy, rising oil prices tend to have a negative affect on U.S. equities and the U.S. Dollar.

Wait a minute! Rising oil prices tend to be good for Canada/bad for the U.S., while falling oil prices tend to be bad for Canada/good for the U.S. - how can we play this idea in the Forex markets? Anyone? USD/CAD??? Right! In fact let's take a quick look at a chart overlaying oil prices and the USD/CAD:

As you can see from the chart above, price movements USD/CAD and Oil are inversely correlated from each other - meaning as oil trends higher, USD/CAD tends to trend lower and vice versa.

Since January 1988, USD/CAD and Oil have had about a 68% inverse correlation to each other. This is a pretty strong correlation. As a currency trader, knowing this can add another tool to your toolbox when analyzing USD/CAD and help you make longer term trading decisions.

US Dollar Index and Gold – Where Will It Go Next?

The Dollar Index and Gold

The Dollar Index has a history, and indeed the charts show we have been at and below current levels before. So now the question is, Will price “Bounce or Break” off of familiar levels?

Looking at the Charts of the US Dollar Index and Gold ETF

US Dollar Index (Symbol DX - eSignal) Monthly and Daily Charts

US - DX: The Monthly Chart (click to enlarge) gives us a text book lesson in Fibonacci retracements and extensions. The Trade Weighted Index made a double bottom which coincides at the 75% Fibonacci retracement level .

Drawing the Fibonacci retracements from the 1993 low to the 1994 high gives us a 38.2 retracement that held the March 2009 high of 89.60 and the 138.2 Extension 0f 70.70.

So this monthly chart looks ominous as a drop to the 1993 lows looks possible.

US - DX: The Daily Chart (click to enlarge) of the US Dollar Index shows the decision point quite clearly. We have extremely strong support at the current level of 76 - which is a 75% retracement of July 2008’s low to the March 2009 high.

78 Would Be Great - 72 What Would You Do?

We can now Bounce or break off of this level - with targets of 78 for a bounce up to the 61.8 Retracement - OR - a drop down to retest the July 2008 low of about 72.

GOLD - GLD ETF - October 9, 2009 Makes Weekly All Time High

GLD - The Weekly Chart above (click to enlarge) shows the GLD Gold ETF shows some text book lessons for technical analysis. The GLD ETF hit a high of 104.15 while spot Gold traded at over $1,060 an ounce.

An inverse Head and Shoulder pattern with a broken resistance “Neck Line” and a Triangle Pattern at the Right Shoulder that is already in play is heading towards the 125% Fibonacci Extension of 108. This would correspond with Spot Gold prices of about $1,100

The Head and Shoulder Pattern has a target at approximately 120, that is convergent with a significant Fibonacci extension of 161.8% This would correspond with Spot Gold prices of about $1,300

The Headline Indicator - Explained

The front page of the Financial Times on Thursday Oct 8, 2009 featured the US Dollar Index “as fear grows over currency”. There is a fundamental-news type indicator that is sometimes quite handy to keep in mind of, the concept being: “If it’s on the front page of the paper and on the lips of people that rarely speak about it… it’s probably over bought - or oversold.

My trading methodology is what I call 90% technical-charting and 20% Fundamental-News but exponentially weighted. (meaning that the fundamental news has a half life of 5-30 minutes for things like GDP reports, and even Non Farm Payroll - Unemployment Numbers).

Headline Surprise - or Expected?

The Headline Indicator has different connotations that traders pick up on after a while. If there is an unexpected event of either extreme negative or positive news that has no precedent, and no one knows just how bad the repercussions can be - then the Headline Indicator may be a catalyst for an extreme move yet to come. However, if Walmart (for example) is picked to be the “Stock of the Year” and it is seen on the checkout line of your favorite shopping place - the likelihood is that it’s made a top.

US Dollar Down - But Not Out!

So, in conclusion: Yes - the US Dollar is being shed - but perhaps it has been punished enough for now, and a retracement is in order. As for Gold, well the paper money has to go somewhere - and hard commodities that are easily exchangeable might just be the new currency of choice for a little while.

The question really is….. Where would you park your money?

GOLD VS. US DOLLAR

Investors who held $100,000 in cash since 9/11 have seen their buying power decrease by over 30%, as measured by the U.S. Dollar Index. In comparison, over the same period, $100,000 held in U.S. Gold Eagles acquired in 2001 are valued at over $300,000 today. Asset allocation from paper assets such as cash, money markets and mutual funds into physical U.S. Gold provides the investor with protection and diversification against the shrinking dollar, inflation and volatile global stock markets.

* Past performance is not necessarily indicative of future results.

Gold Trading And Forex Trading Can Be A Lucrative Combination

Combining forex trading with gold trading can be highly lucrative. If you have been following gold prices, you must know that gold prices have reached their historical peak in the recent times.

FOR IMMEDIATE RELEASE

PR Log (Press Release) – Nov 24, 2009 – Combining forex trading with gold trading can be highly lucrative. If you have been following gold prices, you must know that gold prices have reached their historical peak in the recent times. Gold prices recently broke the historical barrier of $1,000 per ounce and now hovering around $ 1,150 per ounce. Market is anticipating a US Dollar depreciation.

Whenever, the markets become jittery, investors start buying gold as a hedge against the US Dollar. Last year, after the stock market crash, many investors started investing in gold as a safe haven against the turmoil in the financial markets. Gold and US Dollar have an inverse correlation relationship. Try these 1500 pips a day forex signals:


Gold and US Dollar are almost near perfect mirror image of each other. US Dollar depreciation during the global financial uncertainty has been the primary reason for the gold appreciation as it is viewed as the ultimate form of money. Gold is also seen as the primary safe haven commodity. Countries like China, Russia and India are converting there US Dollar reserves into gold. This is putting upward pressure on the gold prices. Gold market has been in fact in a secular bull market for the last many years. Try these cash printing forex signals from heaven:


Now the good news, if you are a forex trader or if you have just started trading forex, then you should know this fact that you can also trade gold alongwith forex. The technical analysis basics for both markets are almost the same. The details may vary but if you can trade forex, you can also trade gold. As said before, US Dollar and the gold prices have an inverse relationship so combining forex trading with gold trading can be a perfect hedge. Both compliment each other. Most of the brokers allow gold trading from the same platform that you use to trade forex. If you want to take part in this latest gold rush, you can start trading gold along with forex.

The Successful Traders Plan

As the old expression goes, most people don’t plan to fail, they only fail to plan. Having a game plan is crucial to your success as a gold trader. You need to understand why you are getting into a position before you decide to jump into a gold trade. You will also need to have an exit strategy before you ever take on a trade. Furthermore, you need to make sure that you follow your plan. Never attempt to take revenge on the market or get into a situation where you beat yourself up over a trade gone badly. There is no room for emotions in the game of trading. Every loss needs to be treated as a learning experience. Here are some helpful tips:

Make some goals for what you want to accomplish

If you are looking for a get rich quick plan, understand that you may find yourself in a get poor quick outcome. Make sure that you have realistic goals for what you want to achieve when you are trading gold. Are you looking to make gold trading a hobby or a professional living? What resources and educational materials are you going to need to acquire and study in order for you to achieve your goals? Be sure to employ proper money management techniques that protect your capital. Like any successful person in life it will take much study and practice to make it to the top and in trading it is only the top percentile that makes any money in this game.

Keep track of your every move

The challenge for all traders is to maintain discipline in their trading plan. A great tool to use is a journal of your trading activity. Weather you use an excel sheet or a paper book to do it, write down every trade you make and also the reason that you made that trade. Over time you will be able to see the progress that you have made as a trader and also be able to recognize further areas for improvement. Once again this all helps you to maintain discipline as a gold trader.

Build your System

Some of the things you will want to incorporate into your gold trading plan are the specific hours you trade in the day, the types of chart analysis that you use, the size of lots that you limit yourself to trading, the percentage of your account that you limit for any given trade. One of the best ways to create a plan is by practicing with a demo account. That way you can test your trading plan before you risk any of your own money.