Fx Online Trading

There are lots Forex brokers to choose from when trading currencies online – and finding the right one to work with us critical, if you’re going to maximize your FX trading profits.

Here are 9 points to consider when choosing a Forex broker.

1. Pip Spreads Offered

Spreads between brokers vary dramatically and the difference can be as much as double so first and foremost when trading FX you need a tight spread

Transaction costs mount up – especially if you are trading frequently and impact on your profits and add to your losses. The tighter the spread, the more profits

you will make.

Today, many brokers offer 3 – 5 pips – and this is what you should look for.

2. Deposit Online & ease of account operation

Look for a broker who will take online payments to your Forex account via and secure online payment method. This is great for funding your account quickly – and getting your trading profits back to.

3. Negative Balance Protection

Leverage or gearing is one of the main reasons that people are attracted to online currency trading. Of course, leverage is a double-edged sword – and where there are high rewards, there is high risk.

With this in mind many Forex brokers now offer guaranteed stops and negative balance protection which is a big comfort to those traders who are new to the market or want to have a finite risk.

Fees for the service tend to be quite competitive and their a popular option with many traders

4. Leverage Offered

The leverage brokers will give you varies from broker to broker, but today 100 – 200:1 leverage is common and some brokers will go as high as 400:1 meaning you have the potential to leverage your account for greater FX profits

5. Other Charges & Broker assist accounts

Your only transaction cost should be the currency spread – you should NOT pay other commissions.

Avoid broker assisted accounts where a broker supposedly will help you make money from Forex trading they wont! If brokers were good traders they wouldn’t be brokers!

If you trade in this way you will lose and you will extra commissions to.

You are responsible for your FX profits so accept this fact and go with an execution only broker.

6. Investment Minimum

Today, currency trading is not just the preserve of wealthy individuals and banks – anyone can get involved and minimum deposits have dropped dramatically.

You can open a trading account online with some Forex brokers with as little as $100.00.

This means that novice traders can start off with small amounts.

7. Trading Platform

If you are trading online, you will go through a Forex trading platform.

You want ease of use and reliability – Many brokers offer demo accounts so try them out.

8. FOREX Trading Education

While you should always make your own investment decisions, it’s good to get some freebies that can help you with your Forex trading strategy such as:

• FREE trading guides

• Forex trading seminars

• Trading news and charts

• Trading recommendations & ideas

• Forex trading systems

• Trading books etc

9. Look at the overall package

When choosing a Forex broker you have a lot of choice and the above tips will help you while there are a lot of small brokers around and many are good go for someone who has been around for a while and is established.

Forex brokers are not all the same and some are far better than others in what they offer and if you use the above tips you will find one that will help you maximize your online currency trading profits.

This article is all about using technical analysis the RIGHT way – and using Forex charts to make big consistent profits.

Here we are going to look at some proven ways of analyzing forex charts and some great indicators.

You can then use them to generate trading signals, to zero in on the low risk high profit opportunities all traders want.

1. Trend Lines

You need to start and learn to draw basic trend lines to spot opportunities, it may sound old fashioned but itâ??s the best way to spot trends.

2. Support and Resistance

The basis of most of the top trading systems.

Support and resistance is simply defined as levels where prices move to and then reverse.

In a rising market prices rise to resistance levels and fall while the exact opposite occurs in a bear market.

When prices break above or below significant support or resistance, a good trending move could be on the way – especially if the resistance or support is valid.

So how do you know if support or resistance is valid?

Look for lots tests – and look for how many different time periods tests have occurred in – by looking back at your Forex charts and also the distance in time between them.

3. Breakouts

If prices break through important support or resistance, then the odds are that the supply and demand position is changing and a new trend will develop.

Trading with breakouts, and trading in the direction of the break is profitable but most traders canâ??t do it.

Why?

Because most traders like to buy low and sell high.

They wait for a pullback to buy at a better price – and it doesnâ??t come and the move is missed.

Most major currency trends start from new market highs – NOT market lows.

To catch the trend you need to go with the break and forget about buying low, however not every breakout will work but how do you spot the ones that do?

You need to watch price changes in terms of momentum and volatility.

Volatility Changes

Volatility is a term used to describe the magnitude, or size, of day-to-day price fluctuations – regardless of their direction.

Generally, changes in volatility give clues to changes in price. A breakout that is accompanied by high volatility, is the ideal set up.

An indicator you should look at to determine volatility is the Bollinger band.

Bollinger bands can also help you identify support, resistance and targets for the move and are an essential indicator.

Price Momentum

Momentum is a general term used to describe the speed at which prices move over given time-periods. Momentum indicators can therefore determine the strength or weakness of a trend by looking at shifts in price momentum.

If price momentum increases on a break, then the odds are that the break will continue and a new trend will develop.

There are two good indicators for looking at changes in momentum:

The Stochastic and Relative Strength Index (RSI).

There is not enough room here to go into how they work simply see our other articles or look them up on the net, both give a highly visual picture of changes in price momentum and are easy to use.

Finally

If you can draw trend lines, spot breakouts and use volatility and momentum indicators that we have outlined above you could soon be on your way to making big consistent profits with your forex charts.