Online Forex Currency Trading Info

There is too much online forex currency trading info available, sometimes it can be very difficult to decipher what is genuine and useful information and what is essentially rubbish. It is no great secret that currency trading is one of the most lucrative areas to be involved in currently and it is important to have the right information and the right tools at your disposal before you begin trading.

As mentioned there is an absolute wealth of online forex currency trading info sites around and it can be difficult to decide what is genuine and what is not. Here are some pointers which might help you quickly decide whether or not the information is useful:

Seek Sites Created By Actual Experienced Forex Traders

You would be surprised but there are a wealth of online forex currency info sites created by inexperienced forex trader's pr even worse by people who know nothing about trading. Keep an eye out for testimonials and qualifications,

Avoid Sites Full Of Google Advertisements

This is a sure fire sign that the webmaster is looking only to monetize the site via visitors clicking on banner ads. More than likely the content has been stolen or plagiarised and may be of little to no value

Money Back Guarantees On All Products

Another thing to watch out for, specifically if you are considering some form of forex trading software from a site, always ensure that there is a 100% money back guarantee. Personally I would also be wary of paid monthly subscriptions to forex trading services unless you believe the product to be highly reputable.

Conclusion

There is a wealth of online forex currency trading info on the internet, hopefully this article has given you some ideas on what to look for and what to avoid.

Friday, August 1, 2008

What is a Forex Broker?

The Currency / Foreign Exchange market is the world’s largest and most dynamic market. Nearly $1.8 trillion is traded every day. The word Forex is derived from the words Foreign Exchange.

A Broker is an individual or firm that acts as an intermediary between buyer and seller. Forex brokers are firms that deal in foreign exchange. The foreign exchange market is quite similar to the equity markets, except that typical forex brokers do not charge a commission. However, forex brokers are required to have a license.

Forex brokers earn money from the spread (also called “pip”). The spread is the difference between the prices at which a currency is bought and sold. A pip is the smallest price increment in a currency. For example, in Euro/US Dollar (EUR/USD), a move from 0.9008 to 0.9009 is one pip. In US Dollar/Japanese Yen (USD/JPY), a move from 127.41 to 127.42 is one pip.

Forex brokers can be compared on the basis of the spread they charge. Most forex brokers publish live or delayed prices on their websites so that the investor can compare the spreads. It is, however, necessary to check if the spread is fixed or variable. Variable spreads appear small and attractive when the market is quiet, but when the market gets busy the forex broker widens the spread, meaning that the investor will gain only if the market is favorable.

Forex brokers are usually tied to large banks or lending institutions. This is because of the huge sums of money traded in the foreign exchange markets. Forex brokers are required to register with the Futures Commission Merchant (FCM), and are regulated by the Commodity Futures Trading Commission (CFTC).

A new trend among forex brokers is the emergence of online forex brokers, who offer trading facilities to “retail traders” using advanced technology. With these facilities, anyone with a computer and an Internet connection can trade in the forex markets.

Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.

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