Red Flags to Watch Out for While Placing a Trade in the Forex Market

Trade

Entering the forex market can be both exhilarating and daunting. With its fast-paced nature and high volatility, traders must exercise caution to avoid potential pitfalls that could lead to losses. Read More

Finding Reliable Sources for Forex News: Harnessing Fundamental Analysis and Economic Calendars

Fundamental

Navigating the vast world of foreign exchange (Forex) trading can be daunting, especially when it comes to staying updated with the latest news and analyzing market trends. Read More

How To Select An Oil Trading Broker?

Oil Trading Broker

Just like forex brokers, there are crude oil brokers that help you to observe the changes in oil prices and trade them. There are multiple oil brokers that can help one in oil trading. In this article, we will learn the basics of crude oil trading and tips for choosing a good oil broker. Are you hunting for nas100 calculator? Visit the earlier talked about site.

Who Are Oil Brokers?

Oil Brokers are the intermediates for executing  buying and selling of oils online. Like forex trading, in oil trading, the trading is done on  the fluctuating prices of the oil. Various factors influence the cost of crude oil.The oil prices typically depends on 3 major factors:

  • Weather
  • Economic Conditions
  • Geopolitical Events

Oil brokers provide online oil trading services by closely observing the oil prices and the factors that  influence them. If you are searching for additional details on mt 5 trading platform, just go to the previously mentioned site.

Insight Of Oil Brokers

There are rules and regulations for oil trading, and the regulatory bodies are from oil exporters: South Arabia, America, and Canada. In America, the SEC regulates oil trading, IIROC in Canada, and ESMA is for the EU. With all regulatory bodies and trading rules, there are less  fraud cases in oil trading. Always, choose a regulated oil broker for oil trading that follows all rules, and is registered. 

You can open an account for oil trading in any of the following three accounts:

  1. Micro Account: This is good for new traders. It allows minimum trading of less than $1000.
  2. Mini Account: This account allows a deposit of less than $10,000.
  3. Standard Account: it is a premium account with trading deposits of more than $10,000.

Oil trading mostly takes place in dollars. Some oil brokers also provide VIP trading accounts with additional benefits while other oil brokers deal only with a single trading account.

Oil trading uses two terminologies: Future and spot contracts for trading. The spot price is the current market price at which a particular asset, such as a currency or commodity, can be bought or sold for immediate delivery, while the futures price is the agreed-upon price at which the asset will be bought or sold at a later date. Are you hunting for cfd metatrader 4? Look at the earlier described site.

Tips To Choose Oil Trader

Oil trading has fewer chances of loss,  but choosing the right and genuine oil broker is a challenge for traders. Here are some handpicked tips for choosing the right broker for you.

  • Choose a highly active and regulated  broker.
  • Check the authenticity of the oil broker and verify it with  a proven history of records
  • Check how the oil brokers operate. Do not forget to check trading conditions such as spreads and leverage. 
  • The commission of the oil broker is the turning point of any trading. Compare the trading commission with other charges of the oil broker as well other competitive brokers in the market.
  • Thoroughly ask and check oil brokers or inspect if they have any hidden charges or not

Oil is a volatile asset  and offers plenty of earning opportunities. Before selecting an oil broker, traders must focus on the oil commissions, spreads, leverage, and other charges. Are you hunting about islamic trading account? Visit the before mentioned website.

 

Best Day Trading Brokers

Forex market

The forex market is a breeding ground of millions of retail traders around the world, along with Central Banks, Government authorities, and international business firms. Trading in the forex market is not an easy task. It requires careful market analysis, and strategy formation. One of the most common types of method of trading forex is Day Trading. Forex day trading is a strategy where a trader purchases and sells a currency pair in a single trading day. The idea is to capitalise on minute changes in the market, with trades lasting anything from a few minutes to a few hours. This article covers how a trader can choose the best brokers for day trading.

Who Is A Forex Broker?

The foreign exchange market is an online global market that can be accessible to retail traders only through the platform provided by forex brokers. Independent access to the foreign currency market is not intended for dealers, especially retail traders. To connect these dealers to the financial market, a middleman is required. Brokers—companies that provide financial services—are the intermediates in this situation.

How To Select The Best Day Trading Broker?

Now that you know why we need a forex broker, it’s time we understand what we should look for in a forex broker.

  • Regulatory Compliance

    The firm’s regulation status is a crucial factor to take into account when selecting a forex broker. Each nation has a separate regulatory body. Regulations typically have a number associated with them. For instance, a regulated broker in the US needs to be registered with the National Futures Association.
    If you look at the “About Us” section of a broker’s website, you will see that they either listed their registration number or the name of the organisation with which they are registered. If not, don’t put your faith in that broker. A regulated broker is a crucial step to taking advantage of a secure trading environment where the trader need not worry about the security of their money or personal information.

  • Required Tools and Features

    Different account options are offered by each forex broker. A trader must take into account the following elements of brokers in addition to the special benefits each one offers: initial deposit requirements, commissions and spread, leverage and account margin, and simplicity of deposits and withdrawals.

    • Initial Deposit Requirements

      Standard, mini, and micro accounts are available from many brokers, and the minimum initial deposit requirements vary. Select a broker and account type that are appropriate for your current financial situation, including your risk tolerance.

    • Commissions and Spreads

      The spread is a currency pair’s price discrepancy between the ask and bid prices. While many brokers don’t charge commissions, they display bigger spreads. On the other hand, other brokers provide set commissions and tight spreads. Do thorough research, then shortlist the brokers you believe to be the best.

    • Leverage and Account Margin

      Participants in forex trading may have access to leverage made available in their account, depending on the broker. Some brokers provide high leverage of up to 500:1 or more. But you should exercise caution. Leverage, however, can swiftly wipe out a trader’s account because it increases the likelihood of losses.

    • Deposits and Withdrawals

      Each forex broker has unique funding and account withdrawal rules. Due to the fact that different brokers accept various transaction methods, the depositing and withdrawing process can change from broker to broker. For either service, the broker may also charge a fee. A trader must conduct thorough study to determine which broker’s terms and conditions best suit their preferences.

  • Customer Service

    Customers are important, yet many business owners overlook this. Since forex trading is conducted around-the-clock, a broker’s customer support team should be accessible at all times. A competent broker should make sure that getting in touch with them is simple and easy. Also take into account if the customer service offers calling features.. Email and live chat services should be available as additional communication alternatives.

Conclusion

The forex broker you choose to trade with is one of the most crucial decisions you must make if you want to thrive in the forex market as a day trader. Although the broker choice may not be the main factor in traders’ losses in the forex market, it does have a significant impact on their trading experience. Before engaging in live trades, it is highly advised for new traders to practise on demo accounts. The use of demo accounts will help new traders become familiar with the brokers as well as the market.

Forex Copy Trading: Advantages & Disadvantages

Forex Copy Trading

Copy trading in forex refers to a mechanism that links a client’s trading account with the account of a professional trader after which all the movements of the latter’s account are simultaneously copied into the client’s account. There are numerous platforms which offer copy trading services to their clients.

Is Forex Copy Trading Legal?

Forex copy trading is legal in most countries. You have to choose a trading platform that itself is regulated and offer forex copy trading services. If the broker is regulated and registered under the national trading authority or board of the country, the services provided by it are automatically considered legal. 

How Does Forex Copy Trading Work?

Through forex copy trading, a client can link a portion of their account to the portfolio of an experienced trader of their choosing. All of the experienced trader’s open transactions are copied to the client’s account once they have enabled the copy trading  feature. All future actions taken by the host are also instantly replicated to the client’s account. 

Depending on the trading platform, the client may have varying degrees of influence after they start imitating a trader. Some copy trading platforms have a fixed system whereby all activities done by the experienced trader are duplicated into the client’s account, with the client’s only option being to figuratively cease copying the actions. There isn’t any middle ground like picking a capital, or opting to exit from the trade before the experienced trader closes the trade.

On the other hand, some platforms are liberal enough to grant the copy trader access and rights of choosing the capital for trading, or leverage, or even choosing manually when to stop the trade even before the experienced trader does it. 

Advantages of Copy Trading  

For those who desire access to the forex market but lack the time and resources to study how to trade, copy trading is their saviour! Traders who want to trade in multiple markets can opt for copy trading as well. Not only does this method help in adding diversification to their portfolios, but traders also increase their earning potential. 

Disadvantages of Copy Trading

Copy trading from an experienced trader does not mean that there will be no losses and the copy trader will always be on a winning streak. Even an experienced trader faces losses. Risks are always involved in the forex market because no one can predict the market 100% accurately.

For a novice trader, copy trading is the ideal place to start. It enables a novice trader to immediately benefit from the knowledge of an experienced trader. Copying a skilled trader does not, however, imply that copy trading is risk-free. Hence, a copier should exercise extreme caution when selecting the trading platform and experienced traders to copy.

A Comprehensive Guide To Choosing A High Leverage Forex Broker

Leverage is one of the most appealing features because of which many traders are attracted to the forex market. The forex market offers high leverage that can help traders increase their expected profits. However, leverage is a double-edged sword and should be used carefully, or else a trader can lose heavily. Read More

Regulated Forex Brokers

Regulated Forex Brokers

The popularity of forex trading is increasing, and it is possible because of forex brokers that more and more people can access the forex market. Therefore, it is important to choose a reliable forex broker.  In this article, we will discuss forex brokers and the importance of regulated forex brokers.

What Are Brokers?

When you trade in forex, forex brokers are a point of contact between you and the market. In essence, they act as your agent and handle all the trading on your behalf. You simply have to pay a small commission in return.

In accordance with your needs, a broker helps you connect with the right buyer or seller of currencies to smoothen out your trading process. If you use a forex broker, you can trade currency pairs from all over the world. Forex brokers also provide demo trading accounts as well. You can hone your skills with the help of a demo account without risking any real money. Additionally, you can develop, refine, and backtest various trading strategies in a demo account to avoid losses and get acquainted with the market.

Who Are Regulated Forex Brokers?

Choosing the best forex broker for your trading needs is not easy,  given the abundance of brokers. When choosing your broker, you must be very deliberate and exact. You must first educate yourself on the various account types, spreads, commissions, and broker types.

Keep an eye out for regulated brokers with fair spreads, a demo account, and generally simple deposit and withdrawal procedures. Regulated brokers obtain an operating license after meeting the requirements set forth by the overseeing authority,  such as risk management, infrastructure support, staff training, and financial stability,  so they are trustworthy. Beginners should also check competitive swap rates in addition to spreads and commissions.

Additionally, you can read reviews of the particular broker on various websites that host reviews. Make a wise choice because a regulated forex broker will never defraud their clients and will always be consistent in the services they offer.

Why Is It Crucial To Pick Regulated Brokers?

It is crucial to pick regulated brokers because they process transactions more quickly and transparently. Proper regulation helps to ensure that your forex broker is adequately capitalized in the event of trading losses, upholds fair dealing practices to ensure that your trades are executed at the current market prices, and keeps your money in safe and segregated accounts.

Furthermore, you share a lot of personal data with your broker; hence, regulation aids in ensuring the security of your private data. Regulated Forex brokers are more trustworthy and will act in the best interests of their clients. They don’t manipulate the price or charge you any extra money apart from their service charges. Additionally, these days scams are highly prevalent in the forex market. This is why you need to find a reliable and regulated broker for yourself. There are several ways to assess a broker’s reliability, and it is always recommended that you do your own independent research on the broker rather than relying solely on the information provided on the broker’s website.  

Conclusion

Overall, forex brokers provide trading services that let you engage in the forex market. Before choosing your best fit, take into account your trading needs, goals, and risk tolerance. Open a live account with a broker only after carefully weighing all the options, and take your time doing so. Beginners ought to seek out brokers with fair spreads and easy deposit and withdrawal procedures. Do not proceed until you are completely satisfied with the broker’s trading conditions and services. Also, don’t forget to check to see if the products and tools they offer are actually helpful to you. When you make the right use of the resources and trading services, the chances of success increase significantly.

How To Choose a South African Broker for Forex Trading?

South African Brokers

Forex Trading is legal in South Africa and more than 50+ brokers are giving their services in the forex market. These brokers act as a middleman for buying and selling foreign currency pairs. But, choosing the right South African broken is like finding a needle in sand. In this article, you will learn about forex trading and how to choose a forex broker in South Africa. 

What is Forex Trading?

Forex trading is buying and selling currencies in the forex market to make a profit. The forex market offers trading only in currency pairs like EUR/USD, GBP/USD, and USD/CAD. The prices of currency pairs fluctuate with time, and traders predict the value of the currency pair to accumulate profits. 

You cannot directly start trading in the forex market, you will need a forex broker to help you in currency trading. Now, you must be wondering, what is this Forex Broker? A forex broker buys and sells currency on your behalf, or you can say a forex broker acts as a middleman in the forex exchange market.

Let’s Understand  the Role of a Forex Broker With an Example:

If you want to study in South Africa, you need  to pay all your fees in Rand. To convert your currency into South African currency, you will go to a  bank that will pay an equal amount of your currency value to buy Rand. In this way, you are trading in the forex market by selling your home currency to buy Rand.

Forex trading is emerging as a profitable trading option, and customers are trading (buying and selling currencies) through forex brokers. But, with all the limelight, forex trading has several risks and challenges. If you are a new player in forex trading, you can learn the basics or work to improve your trading skills through a forex demo account.

Advantages of The Forex Market

  1. It provides 24×5 – Monday to Friday,  services that work as per the different time zones.
  2. It provides high liquidity flow.
  3. You can start forex trading with low capital

Disadvantages of Forex Trading

  1. It is an extremely volatile market 
  2. It requires years of experience and knowledge to become a successful trader. 

How to Choose a Forex Broker in South Africa?

Forex Trading is legal for South African citizens, and the government has assigned a regulatory body called FSCA (Financial Sector Conduct Authority) to address legal issues of forex trading. To provide trading services to South Africans, forex brokers need to own an FSP licence. A forex broker can only apply for the FSP licence if it fulfils all its requirements and follows all guidelines. Thus, the number one feature to look for in a broker is regulation.

Here Are Other Features That You Need to Look for in a Forex Broker:

  • Fees and commissions:  A good broker should offer low commissions as well as low spreads. Check all the fees charged by your broker and compare them with other brokers in the market to find out the price differences. 
  • Trading platform: Choose a broker that offers a user-friendly and reliable trading platform. MT4 and MT5 trading platforms are two of the most widely used trading platforms.
  • Customer support: Look for a broker that offers excellent customer support, including assistance with account opening, trading, and any other issues you may have.
  • Educational resources: You can consider a broker that offers educational resources such as trading guides, webinars, and seminars to help you improve your trading skills.

Several best South African Brokers can help to participate in forex trading. Before shaking hands with any broker, thoroughly check its website, authenticity, and brand value. 

CFD Trading for Beginners

CFD or Contract of Difference is an interesting way of trading the financial markets where traders make profits from the price fluctuations as anticipated by the trader without actually owning any financial asset. CFD trading is also considered as derivative trading, as the traders do not have to buy or sell the actual financial asset, instead the profits are derived from the speculation made by them.

CFD trading is an acronym used for “Contract of Difference” which is an agreement or a contract between the trader and CFD broker allowing traders to make money simply by anticipating the market price movement. The profits or losses made in CFD trading depends on the extent to which your anticipation is right. Traders can speculate the price movements in either direction and can benefit from it.

CFD Trading - What Is It & How Does It Work

Features to Know About CFD Trading

Some of the Important Features of Online CFD Trading Are:

Short and Long Trading:

CFD trading allows traders to benefit from price movement on either side of the market. In other words, traders can make profits in bullish as well as bearish markets unlike conventional trading. For eg. If traders depict that the price of any underlying asset is going to decrease, they can place a sell underlying asset order and make profits from the difference in price between when the position was opened and when it closed. In this case, traders will only make profit if the prices go down, and if the prices increase, traders will lose and vice versa. With both long and short trades, profits or losses are realised when the trade is closed.

Leverage in CFD Trading:

CFD trading is leveraged and traders can open large trading positions without committing the full cost of the trade. While leverage can amplify the potential profits, it can also amplify the risks in the trade. This means that both the profits and losses are magnified. Losses can become more than the initial deposits. Therefore, it is very important to keep in mind that the profits or losses will be calculated on the full size of the position. Also consider to pay extra attention to the ratio of leverage used and the risks are affordable.

Margin in CFD Trading:

Leverage is also referred to as “trading on margin” or “margin trading.” Margin is the minimum amount that is required to open and hold a CFD trading position on a CFD account. In CFD there are two types of margins required- first, a deposit that is required to open and maintain the position in case of incurred losses. Second, additional funds in the account. Traders receive a margin call from their CFD broker and traders will be asked to add more funds in the CFD account, and if the required amount is not added, the position gets automatically closed and losses incurred become realised losses.

Hedging with CFD:

CFD can also be used to hedge against the losses incurred in the current portfolio. For eg. If the trader anticipates any short term downfall in the price of the underlying asset, they can go short in the market and limit their potential losses. Hedging like this helps in gaining profits with any drop in prices.

What Financial Instruments Can You Trade via CFDs?

What Financial Instruments Can You Trade via CFDs

With online CFD trading, traders can trade a wide range of markets via CFDs like – CFD forex, CFD indices, CFD Commodities, and CFD Cryptocurrencies. Traders do not need to actually buy the underlying asset to trade them in these CFD markets.

Mechanism of CFD Trading

Commissions and Spreads:

The prices in CFD trading are quoted as buying price and selling price.

  1. Buy Price: Buy price or ask or offer price is referred to as the price at which trader can open a long CFD position
  2. Sell Price: Sell price or bid price is referred to as the price at which the trader can open a short CFD position

Sell price is always slightly lower than the current market price whereas the buy price is always slightly more than the current market price. The difference between the buy/ ask price and sell/bid price is known as the spread.

The trading costs are generally covered in the spreads which means buy and sell prices are adjusted to reflect the overall trading costs.

Position Size:

CFD trading is carried out in standard lots. However, CFD brokers offer traders flexibility in choosing position size of their trade, depending on the underlying asset being traded.

Duration of CFD Trades:

Generally, CFD trading doesn’t have any expiry date, unlike option trading. The CFD trades are closed by opening in the opposite direction to which the trade was opened. For eg. a buy position of any underlying asset is closed by opening a sell position and selling the underlying asset.

If CFD positions are kept open beyond the daily cut-off time, an overnight funding is charged. The cost referred is the cost that is lent to the trader by the provider to open a leveraged trade. With the exception of being a forward contract, it has an expiration at some time, all the overnight funding charges are included in the spreads.

Profit and Loss:

To calculate the profits and losses there is a formula that is used. Deal size of the position is multiplied with the value of each contract, then the figure obtained is multiplied by the difference in points between the price at which the contract is opened and the price at which the contract is closed.

Therefore the formula can be expressed as:
Profit and loss = (number of contracts x value of each contract) x (closing price – opening price)

CFD Markets That Can Be Traded via CFDs:

Online CFD trading has opened a wide range of CFD markets to the traders without owning any of the underlying financial assets. Traders can trade markets including CFD Forex, CFD Indices, Commodities,and Cryptocurrencies.

CFD Markets That Can Be Traded via CFDs

CFD Trading for Beginners:

Beginners might find CFD trading overwhelming, however, traders can consider the following tips helpful trading CFDs

  • CFD Demo

    It is preferable if beginners start out with a CFD demo account to familiarise and get a feel of the CFD platform. Beginners can test their trading strategies using virtual currencies and polish their trading skills, before committing to any real money.

  • Stick to the Financial Market That You Understand the Most

    There are a number of CFD markets for trading and anyone can be chosen to trade with. Traders must stick to the CFD market that they are familiar with. Once you start gaining confidence in one CFD market, you can diversify your portfolio.

  • Start With Small Trade Sizes

    Beginners should start with small trade sizes to avoid facing losses in the initial phase. This will help in limiting the risks. It is better if the risk is limited to only 1- 2% of total CFD account capital.

  • Use Strict Risk Management

    Implying strict stops is very crucial when it comes to CFDs. CFD markets move more rigorously than conventional markets that can lead to losses. It is wise to keep the emotion out while trading CFDs. Successful traders never neglect using strict stops regardless of their trading experience.

The CFD markets being highly volatile are risky. However, traders can make profits if they gain extensive knowledge and skills.

What Is A Leverage Ratio And How Do You Calculate It?

Leverage in forex is a trading approach where traders borrow the money from the broker which allows traders to open and control a larger trading position with a relatively smaller amount of money. In other words, leverage gives traders the power to control something big with something small. Read More