ABC FOREX ALL YOU NEED TO KNOW

noreply@blogger.com (Taseen Ali) — Wed, 2 Dec 2009 15:24:00 -0800

In this blog, i will advise Forex traders novice and professional what to look for and what they need to be successful in Forex and online trading.

First step is for you to find your financial broker which is the base of all investment. You cannot make a plan of your investment or decide strategies if you do not have a broker or if you do not know the conditions your broker offers also you need their advices or research since they have more experience than you do. It is let’s say buying a car before even getting its driving license. This task of finding your broker is the most important step. In fact you have to look for the following points.

1) SAFETY OF FUNDS

For me as a professional I look first for the safety of my funds. Look at the best banks in the world especially after the financial crisis of 2008. UBS, LEMAN BROTHERS, also in 2005 the fall of the biggest Futures brokers in the world REFCO. They all had problems and some of them went bankrupt. This is to say that you have to choose a good REGULATED broker, NOT A BVI BROKER but more an EU regulated broker or UK or US. Switzerland is now under restructuration with the FINMA and all brokers have been forced to apply for a banking license but the few brokers that applied are under the EU, UK, and US jurisdiction illegal brokers since they are not regulated yet. As they say, they are in pending regulation, which means if one of these brokers goes insolvent the customers will not have any help or indemnity.

The top regulated Brokers I am currently working with are:

EU: www.tadawulfx.com
UK: www.gnitouch.com

The EU and UK regulated brokers have a guarantee for their retail customers. As you may know TDFX is under the umbrella of MIFID. This means that all their retails categorised customers have they accounts guaranteed in case of insolvency. The indemnity the customer will get is a maximum of 20'000.00 EUR. This is called, compensation fund. GNI TOUCH has the same regulation since FSA Licensed companies are also under MIFID.

Conclusion: Always work with respected brokers with good reputation and the most important good regulations. Save your Time, Time is money.

2) RESEARCH AND MARKET INFORMATION

Tadawul Fx (TDFX) and GNITOUCH offer excellent market news and analysis, brief and very instructive. As an ex banker, I am sometimes annoyed to read ten pages of prediction and news.
We all want precise information already digested by pros. We want to take decisions based on the following points: Markets announcements, Pivot points, Support and Resistance level.

Daily market news of Tadawul Fx: http://www.tadawulfx.com/v2/services/forex-news.html
ALL FREE NEWS AND MARKET ANALYSIS

Daily market new of Gnitouch: http://www.gnitouch.com/Research/ResearchLogin.aspx
FREE BUT NEED TO REGISTER FIRST

In addition thanks to youtube brokers start to provide their news in videos. so less time consuming. Tadawul Fx video: http://www.youtube.com/user/forexproductions#p/a/u/3/CeoCxF_f7J0

Conclusion: Use always brief reports, long reports are always vague and leadign you to 0 results.

3) CONDITIONS

A good Forex broker is not the one that provides the lowest spread. Normally people offering 0.5 as many brokers claiming they are ECN and so on use this marketing tactics to get you in and once you are in your will never see the price of 0.5. Let’s think about it. the best banks, RBS, MORGAN STANLEY, BARCLAYS, DEUTSCHE BANK and so on will provide brokers in the best case scenario during LND trading time between 0.5 to 1. As a broker offering 0.5 to you how and when he will get the price to cover you. Also think if you came via an introducing broker, the introducing broker will get his commission and then the 0.5 the broker is offering you is actually a 0 pip since the IB is taking his commissions. This is to say that the lower the spread is the higher is the chance for your broker to trade against you.

My Forex broker is Tadawul Fx.
Spreads fixed from 1 to 3 pips. (three accounts types, mini at 3 pips, standard at 2 pips and premium at 1 pip) this is exactly reflecting the market rates and not trying to go under to attract customers.
My Future broker is GNI Touch.
Futures trading with GNI is just amazing. Spread is variable (this is futures) and most of the time between 1 to 2. during volatile market hours it will widen, normal practice.

Conclusion: You have to know the behind of the scene in order to know which broker to choose.
Small spreads does not mean more money but more problems during volatile markets. try to also find fixed spreads this will help you a lot.

4) SERVICE AND CUSTOMER SUPPORT

Most of the brokers, once the prospect is converted into a live customer, do not give as much attention as when you were a prospect. My experience is that with both the companies I am trading with, is that the service is outstanding, follow ups, VIP customer care, personalised news for my trading and the most important is that they listen to you. Before opening with these two brokers I made many searches about them and the only thing I was reading is that their service is outstanding. I tried it and now I can confirm like thousand of traders. As an advice, you should test your broker every day.

ABC FOREX AND ONLINE TRADING

ABC FOREX ALL YOU NEED TO KNOW