ECN. Used most by professional traders. Difficult platform for beginners
Minimum deposit $10000 (or $3,000 if under 25yo) * Well diversified -Oanda
Market maker. Second largest retail FX brokerage in the US. Easy platform for beginners.
No minimum deposit
Not well diversified, but well capitalized -Gain Capital (whitelabel forex.com) *Market Maker *Fair spreads *Minimum deposit $250 *Well diversified -FXCM Inc
ECN. Largest retail FX brokerage in the US
Minimum deposit $2000
Not well diversified. CAUTION: FXCM nearly went bankrupt in Jan-2015 due to a lack of diversification and low capitalisation. As a result FXCM LLC was bailed out with a large loan which may prove difficult to pay back. Be warned that their business may not be sustainable in the long term. -MBTrading
ECN. Mid-sized retail FX brokerage
Minimum deposit $400
International Only- -LMAX (whitelabel DarwinEx) *DMA broker based in the UK. Note that as a DMA broker LMAX eliminates the ability for LPs to last-look transactions. This may result in reduced liquidity during volatile times as liquidity providers would be likely not to risk posting liquidity to LMAX's pool. *Tight spreads *Minimum deposit $10,000 *Fairly well diversified -Dukascopy *ECN based in Switzerland, but available elsewhere depending on local regulations. *Tight spreads *Minimum deposit $100 *Fairly well diversified -IC Markets *ECN based in Australia *Fair spreads on standard account, tight spreads on professional accounts. *Minimum deposit $200 *Fairly well diversified -Pepperstone *ECN broker based in Australia. *Fair spreads on standard account, tight spreads on professional accounts. *Minimum deposit $200 *Not well diversified Software / Apps: Desktop/mobile
Apps are typically broker dependent. Some brokers have their own proprietary software, while others lease common software like Metatrader or NinjaTrader. Some software has a large development community for indicators and EAs.
Terminology/Acronyms: www.forexlive.com/ForexJargon - Common terms and acronyms FAQ: I need to exchange money, how do I do it? This isn’t what this sub is for. Your best bet is using your bank or an online exchange service. Be prepared to pay a hefty fee. I have money in one currency and need to exchange it into another sometime in the future, should I wait? Don’t ask us this. We speculate intraday in FX and shouldn’t be relied on to tell you what’s best for you. Exchange the money when you need it. I have an FX account, should I start trading demo or live? This is highly debatable. You should definitely demo trade until you have mastered how to use the trading platform on desktop and mobile. After that it’s up to you. Many think that the psychology of trading live vs demo trading is massively different. So it may pay to learn to trade live. Just be warned that most FX traders lose almost their entire first account so start with a low affordable balance. What’s money management? Money management is a form of risk management and is arguably the most important aspect of your trading when it comes to long term survival. You should always enter trades with a stop loss - the distance of the stop allows you to calculate how large of a percent of your account balance will be lost if your trade stops out. You can run a monte carlo simulation to figure out the risk of having a number of trades go against you in a row to drain your account. The general rule is that you should only risk losing 1-4% of your account per trade entered. More on this here: www.investopedia.com/articles/forex/06/fxmoneymgmt.asp www.swing-trade-stocks.com/money-management.html What about automated trading? Retail FX traders have been known to program “Expert Advisors” (EAs) to automate trading. It’s generally advisable to stay away from that until you’re very experienced. Never buy an EA from a developer because the vast majority of them are scams. What indicators are best? That’s up to you to test and find out. Many in this forum dislike oscillating indicators since they fail to capture the essence of what moves price. With experience you will discover what works best for you. In my experience indicators that are most popular with professional traders are those that provide trading “levels” such as pivot points, fibonacci, moving averages, trendlines, etc. What timeframe should I trade? Price action can vary in different timeframes. In longer term timeframes the price action and fundamentals are much more clear. Unfortunately it would take a very long time to figure out whether or not what you’re doing is successful on longer timeframes. In shorter timeframes you can often tell very quickly if what you’re doing is profitable. Unfortunately there’s a lot more “noise” on these levels which can prove deceptive for those trying to learn. Therefore the best bet is to use a multi-timeframe analysis, working from top-down to come up with trades. Should I trade using fundamental analysis (FA) of technical analysis (TA)? This is a long standing argument in these forums and elsewhere. I’ll settle it here - you should have an understanding of both. Yes there are traders who blindly ignore one of the other but a truly well rounded trader should understand and implement both into the analysis. The market is driven in the longer term through FA. But TA is necessary to give traders a place to enter and exit trades from a psychological risk/reward standpoint. I’ve heard trading Binary Options is an easy way to make money? The general advice is to stay away from binaries. The structure of binary options is so that when you lose the broker wins. This incentive has created a very scammy industry where there are few legitimate binary options brokers. In addition in order to be profitable in binaries you have to win 55-65% of the time. That’s a much higher premium over spot FX. Am I actually exchanging currencies? Yes and no. Your broker handles spot FX is currency pairs. Although they make an exchange at the settlement date they treat your position in your account as a virtual currency pair. Think of it like a contract where you can only buy or sell it as a pair. In this sense you are always long one currency while short another. You are merely speculating that one currency will appreciate or depreciate vs another. Why didn't my order fill? Even if price appears to cross over a line on your chart it does not guarantee a fill. Different charting platforms chart different prices - some chart the bid price, some the ask price and some the midpoint price. To fill a limit order price needs to cross your limit's price plus the spread at the time that it is crossing. If it does not equal or exceed the spread then it will not fill. Be wary that in general spreads are not fixed. So what may fill at one time may not at another.
Fundamental Vs. Technical Analysis Technical analysis and fundamental analysis are the two main schools of thought in the financial markets. As we've mentioned, technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Fundamental analysis, on the other hand, looks at economic factors ... Forex analysis is highly dependent on the business or individual doing the trading and may be technical or fundamental in nature. Fundamental analysts are more concerned with the economic ... TECHNICAL VS FUNDAMENTAL ANALYSIS What's better, technical or fundamental analysis? What will make you earn more? What is easier to use? What can ... source . Investopedia. Alpha Investopedia; Beta Investopedia; Derivatives Investopedia; Ebitda Investopedia; Equity Investopedia; Futures Investopedia ; Irr Investopedia ... Technical analysis clearly differs from fundamental analysis in that the stock’s price and volume are the sole inputs. The core assumption is that the price takes all known fundamentals into account. For this reason, there is no real need to pay close attention to them. Technical analysts do not make any effort to measure a security’s intrinsic value. Instead, they use stock charts to ... Fundamental analysis and technical analysis, the major schools of thought when it comes to approaching the markets, are at opposite ends of the spectrum. Here are the differences between the two. Related articles Guide to Stock Trading with Candlestick & Technical Analysis Udemy Forex Technical Analysis: The Advantages of Technical Analysis for Currency Trading There are those who say a day trader is only as good as his charting software. While that’s debatable, it’s certainly true that a key part of a trader’s job – […] Technical analysis Technical analysis involves studying forex price movements, the theory being that, as history repeats itself, statistics generated by past price movements can indicate the future movement of the market. Technical analysis information is generally shown on charts and is updated in real-time throughout the day. One of the advantages of technical analysis is,… Technical analysis is the study of historical price action in order to identify patterns and determine probabilities of future movements in the market through the use of technical studies, indicators, and other analysis tools. Technical analysis boils down to two things: identifying trend ; identifying support/resistance through the use of price charts and/or timeframes; Markets can only do ... Fundamental analysis considers both past and presents data about a stock, whereas technical analysis considers only past data. Fundamental analysis is useful for long term investors. In contrast, technical analysis is useful for day traders and short-term traders who wish to earn profits by selling the stock over a shorter period of time. Fundamental Analysis and Technical Analysis (FA and TA) go hand-in-hand in guiding the forex trader to potential opportunities under ever changing market conditions. Both beginner and veteran traders can benefit from the material that follows, but veterans have learned to make one important distinction. They do not spend an inordinate amount of time on the FA side of the equation, primarily ...
Forex Masterclass - Fundamental Analysis Strategy In Under ...
The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental and technical analysis. Learn the core ... In this interview with Jason Graystone, we will be discussing forex trading, dispelling the myths and teaching you everything you need to know about forex trading! FULL INTERVIEW: https://www ... #supplyanddemandforex #forex #fundamentalanalysis Learn To Trade Supply And Demand https://www.trading180.com Watch The Free Forex Fundamental & Sentiment An... What is the difference between technical vs fundamental analysis, especially with long term sustainable investment goals? Learn to identify and capitalize on price trends of any tradable security ... Investopedia Fundamental vs Technical Analysis Macaron Economics. Loading... Unsubscribe from Macaron Economics? Cancel Unsubscribe. Working... Subscribe Subscribed Unsubscribe 44. Loading ... Practice forex trading: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/26280-fundamentals-vs-technical-analysis-forex-market.ht... Bill Poulos & Profits Run Present: The Basics Of Technical Analysis Explained Simply In 8 Minutes - Duration: 8:38. Profits Run 183,487 views