This collection of Forex trading strategies and techniques is dedicated to help traders in their research and developing of workable trading styles and trading systems.
Attention all traders: trading strategies are posted for their educational purpose only. Trading rules may be subject to interpretation. Planned risk levels may be increased dramatically under extreme market conditions. Use the ideas and/or modify them to suit your trading style, but only at your own risk. We recommend testing your trading system on demo account before investing real money.
Simple trading systems are good for skilled beginners and intermediate traders, but may not suit more experienced traders. Either way, do not skip those strategies as they will preserve consistency in your learning progress.Advanced strategies were all at some point simple, but later were improved by traders. So, learning the basic ideas behind simple strategies will help you in the long run to advance in your own strategy making.
Info:Edward Revy
петък, 13 август 2010 г.
Basic Strategies
Basic strategies - where the education for all beginner traders starts.
Basic strategies use simple chart pattern recognition rules and one or two basic indicators. By learning to recognize and trade simple patterns, novice Forex traders will be able to make a much smoother transition to more advanced trading systems and methods.
We start from the very basic Forex trading strategies that will help beginner traders to identify entry and exit points and foresee market turns; and we will gradually advance to more advanced Forex trading systems.
Before we start: two words about Stop Loss orders – they should be set either in fixed amount of pips (you may try to use 20-30 pips with those simple Forex systems) or, if chart permits, slightly over the last highest/lowest price swing point
Attention all traders: trading strategies are posted for their educational purpose only. Trading rules may be subject to interpretation. Planned risk levels may be increased dramatically under extreme market conditions. Use the ideas and/or modify them to suit your trading style, but only at your own risk. We recommend testing your trading system on demo account before investing real money.
Info:Edward Revy
Basic strategies use simple chart pattern recognition rules and one or two basic indicators. By learning to recognize and trade simple patterns, novice Forex traders will be able to make a much smoother transition to more advanced trading systems and methods.
We start from the very basic Forex trading strategies that will help beginner traders to identify entry and exit points and foresee market turns; and we will gradually advance to more advanced Forex trading systems.
Before we start: two words about Stop Loss orders – they should be set either in fixed amount of pips (you may try to use 20-30 pips with those simple Forex systems) or, if chart permits, slightly over the last highest/lowest price swing point
Attention all traders: trading strategies are posted for their educational purpose only. Trading rules may be subject to interpretation. Planned risk levels may be increased dramatically under extreme market conditions. Use the ideas and/or modify them to suit your trading style, but only at your own risk. We recommend testing your trading system on demo account before investing real money.
Info:Edward Revy
Risks of FOREX Trading
Every FOREX currency trading system has inherent risks
Despite the claims you may see on some FOREX web sites, FOREX is not risk-free. You are trading with substantial sums of money and there is always a possibility that trades will go against you. There are several trading tools, however, that can minimize your risk, and with caution, and above all education, the FOREX trader can learn how to trade profitably and while minimizing losses.
Scams
FOREX scams were fairly common a few years ago. The industry has cleaned up considerably since then, but you still need to exercise caution when signing up with a FOREX broker. Do some background checking – reputable FOREX brokers will be associated with large financial institutions like banks or insurance companies and they will be registered with the proper government agencies. In the United States brokers should be registered with the Commodities Futures Trading Commission (CFTC) or a member of the National Futures Association (NFA). You can also check with your local Consumer Protection Bureau and the Better Business Bureau.
Risks
Assuming you are dealing with a reputable broker, there are still risks to FOREX trading. Transactions are subject to unexpected rate changes, volatile markets and political events.
Exchange Rate Risk – refers to the fluctuations in currency prices over a trading period. Prices can fall rapidly resulting in substantial losses unless stop loss orders are used when trading FOREX. Stop loss orders specify that the open position should be closed if currency prices pass a predetermined level. Stop loss orders can be used in conjunction with limit orders to automate FOREX trading – limit orders specify an open position should be closed at a specified profit target.
Interest Rate Risk – can result from discrepancies between the interest rates in the two countries represented by the currency pair in a FOREX quote. This discrepancy can result in variations from the expected profit or loss of a particular FOREX transaction.
Credit Risk – is the possibility that one party in a FOREX transaction may not honor their debt when the deal is closed. This may happen when a bank or financial institution declares insolvency. Credit risk is minimized by dealing on regulated exchanges which require members to be monitored for credit worthiness.
Country Risk – is associated with governments that may become involved in foreign exchange markets by limiting the flow of currency. There is more country risk associated with 'exotic' currencies than with major currencies that allow the free trading of their currency.
Limiting Risk in your FOREX currency trading system
FOREX trading can be risky, but there are ways to limit risk and financial exposure. Every FOREX trader should have a trading strategy – knowing when to enter and exit the market and what kind of movements to expect. Developing strategies requires education - the key to limiting FOREX risk. At all times follow the basic rule: Do not place money in the FOREX that you cannot afford to lose.
Every FOREX trader needs to know at least the basics about technical analysis and how to read financial charts. He should study chart movements and indicators and understand how charts are interpreted. There is a vast amount of information on FOREX trading available both on the Internet and in print. If you want to be successful at FOREX, know what you are doing.
Even the most knowledgeable traders, however, can't predict with absolute certainty how the market will behave. For this reason, every FOREX transaction should take advantage of available tools designed to minimize loss. Stop-loss orders are the most common ways of minimizing risk when placing an entry order. A stop-loss order contains instructions to exit your position if the currency price reaches a certain point. If you take a long position (expecting the price to rise) you would place a stop loss order below current market price. If you take a short position (expecting the price to fall) you would place a stop loss order above current market price.
As an example, if you take a short position on USD/CDN it means you expect the US dollar to fall against the Canadian dollar. The quote is USD/CDN 1.2138/43 - you can sell US$1 for 1.2138 CDN dollars or sell 1.2143 CDN dollars for US$1.
You place an order like this:
Sell USD: 1 standard lot USD/CDN @ 1.2138 = $121,380 CDN
Pip Value: 1 pip = $10
Stop-Loss: 1.2148
Margin: $1,000 (1%)
You are selling US$100,000 and buying CDN$121,380. Your stop loss order will be executed if the dollar goes above 1.2148, in which case you will lose $100.
However, USD/CDN falls to 1.2118/23. You can now sell $1 US for 1.2118 CDN or sell 1.2123 CDN for $1 US.
Because you entered the transaction by selling US dollars (buying short), you must now buy back US dollars and sell CDN dollars to realize your profit.
You buy back US$100,000 at the current USD/CDN rate of 1.2123 for a cost of 121,223 CDN. Since you originally sold them for CDN$121,380 you made a profit of $157 Canadian dollars or US$129.51 (157 divided by the current exchange rate of 1.2123).
Despite the claims you may see on some FOREX web sites, FOREX is not risk-free. You are trading with substantial sums of money and there is always a possibility that trades will go against you. There are several trading tools, however, that can minimize your risk, and with caution, and above all education, the FOREX trader can learn how to trade profitably and while minimizing losses.
Scams
FOREX scams were fairly common a few years ago. The industry has cleaned up considerably since then, but you still need to exercise caution when signing up with a FOREX broker. Do some background checking – reputable FOREX brokers will be associated with large financial institutions like banks or insurance companies and they will be registered with the proper government agencies. In the United States brokers should be registered with the Commodities Futures Trading Commission (CFTC) or a member of the National Futures Association (NFA). You can also check with your local Consumer Protection Bureau and the Better Business Bureau.
Risks
Assuming you are dealing with a reputable broker, there are still risks to FOREX trading. Transactions are subject to unexpected rate changes, volatile markets and political events.
Exchange Rate Risk – refers to the fluctuations in currency prices over a trading period. Prices can fall rapidly resulting in substantial losses unless stop loss orders are used when trading FOREX. Stop loss orders specify that the open position should be closed if currency prices pass a predetermined level. Stop loss orders can be used in conjunction with limit orders to automate FOREX trading – limit orders specify an open position should be closed at a specified profit target.
Interest Rate Risk – can result from discrepancies between the interest rates in the two countries represented by the currency pair in a FOREX quote. This discrepancy can result in variations from the expected profit or loss of a particular FOREX transaction.
Credit Risk – is the possibility that one party in a FOREX transaction may not honor their debt when the deal is closed. This may happen when a bank or financial institution declares insolvency. Credit risk is minimized by dealing on regulated exchanges which require members to be monitored for credit worthiness.
Country Risk – is associated with governments that may become involved in foreign exchange markets by limiting the flow of currency. There is more country risk associated with 'exotic' currencies than with major currencies that allow the free trading of their currency.
Limiting Risk in your FOREX currency trading system
FOREX trading can be risky, but there are ways to limit risk and financial exposure. Every FOREX trader should have a trading strategy – knowing when to enter and exit the market and what kind of movements to expect. Developing strategies requires education - the key to limiting FOREX risk. At all times follow the basic rule: Do not place money in the FOREX that you cannot afford to lose.
Every FOREX trader needs to know at least the basics about technical analysis and how to read financial charts. He should study chart movements and indicators and understand how charts are interpreted. There is a vast amount of information on FOREX trading available both on the Internet and in print. If you want to be successful at FOREX, know what you are doing.
Even the most knowledgeable traders, however, can't predict with absolute certainty how the market will behave. For this reason, every FOREX transaction should take advantage of available tools designed to minimize loss. Stop-loss orders are the most common ways of minimizing risk when placing an entry order. A stop-loss order contains instructions to exit your position if the currency price reaches a certain point. If you take a long position (expecting the price to rise) you would place a stop loss order below current market price. If you take a short position (expecting the price to fall) you would place a stop loss order above current market price.
As an example, if you take a short position on USD/CDN it means you expect the US dollar to fall against the Canadian dollar. The quote is USD/CDN 1.2138/43 - you can sell US$1 for 1.2138 CDN dollars or sell 1.2143 CDN dollars for US$1.
You place an order like this:
Sell USD: 1 standard lot USD/CDN @ 1.2138 = $121,380 CDN
Pip Value: 1 pip = $10
Stop-Loss: 1.2148
Margin: $1,000 (1%)
You are selling US$100,000 and buying CDN$121,380. Your stop loss order will be executed if the dollar goes above 1.2148, in which case you will lose $100.
However, USD/CDN falls to 1.2118/23. You can now sell $1 US for 1.2118 CDN or sell 1.2123 CDN for $1 US.
Because you entered the transaction by selling US dollars (buying short), you must now buy back US dollars and sell CDN dollars to realize your profit.
You buy back US$100,000 at the current USD/CDN rate of 1.2123 for a cost of 121,223 CDN. Since you originally sold them for CDN$121,380 you made a profit of $157 Canadian dollars or US$129.51 (157 divided by the current exchange rate of 1.2123).
Forex Basics
Introduction
Foreign Exchange
The simultaneous transaction of one currency for another.
Foreign Exchange Market
The Foreign exchange market is a large, growing and liquid financial market that operates 24 hours a day. It is not a market in the traditional sense because there is no central trading location or “exchange". Most of the trading is conducted by telephone or through electronic trading networks. The primary market for currencies is the “interbank market” where banks, insurance companies, large corporations and other large financial institutions manage the risks associated with fluctuations in currency rates.
Spot Market
The market for buying and selling currencies at the current market rate.
Rollover
A spot transaction is generally due for settlement within two business days (the value date). The cost of rolling over a transaction is based on the interest rate differential between the two currencies in a transaction. If you are long (bought) the currency with a higher rate of interest you will earn interest. If you are short (sold) the currency with a higher rate of interest you will pay interest. Most brokers will automatically roll over your open positions allowing you to hold your position indefinitely.
How to calculate rollover interest
Rollovers in Forex
Exchange Rate
The value of one currency expressed in terms of another. For example, if EUR/USD is 1.3200, 1 Euro is worth US$1.3200.
Currency Pair
The two currencies that make up an exchange rate. When one is bought, the other is sold, and vice versa.
Base Currency
The first currency in the pair. Also the currency your account is denominated in.
Counter Currency
The second currency in the pair. Also known as the terms currency.
ISO Currency Codes
USD = US Dollar
EUR = Euro
JPY = Japanese Yen
GBP = British Pound
CHF = Swiss Franc
CAD = Canadian Dollar
AUD = Australian Dollar
NZD = New Zealand Dollar
For a full list, see ISO Currency Codes
Currency Pair Terminology
EUR/USD = "Euro"
USD/JPY = "Dollar Yen"
GBP/USD = "Cable" or "Sterling"
USD/CHF = "Swissy"
USD/CAD = "Dollar Canada" (CAD referred to as the "Loonie")
AUD/USD = "Aussie Dollar"
NZD/USD = "Kiwi"
FCM
Futures Commission Merchant. An individual or organisation licensed by the U.S. Commodities Futures Trading Commission (CFTC) to deal in futures products and accept monies from clients to trade them.
Dealing Desk
A dealing desk provides pricing, liquidity and execution of trades.
Market Maker
A market maker provides pricing and liquidity for a particular currency pair and stands ready to buy or sell that currency at the quoted price. A market maker takes the opposite side of your trade and has the option of either holding that position or partially or fully offsetting it with other market participants, managing their aggregate exposure to their clients. If a market maker chooses to keep the trader's position without offsetting it in the market, the trader's profit is the market maker's loss and vice versa, leading to a possible conflict of interest between the trader and his market maker. A market maker earns their commission from the spread between the bid and offer price.
Example of Market Makers
NDD
An acronym for 'No Dealing Desk'. A no-dealing desk broker does not have a dealing desk but instead uses external liquidity providers to provide pricing and liquidity for its clients. The liquidity providers send in competing bids and offers into the platform, resulting in the best bid and offer being displayed to the client. Some no-dealing desk brokers may display the market depth which is the amount of liquidity available at each price. A greater number of liquidity providers providing pricing to the no-dealing desk broker leads to tighter spreads. A no-dealing desk broker may increase the spread to earn its commission.
Example of No Dealing Desk Brokers
Forex ECN Broker
ECN is an acronym for Electronic Communications Network. A Forex ECN broker does not have a dealing desk but instead provides a marketplace where multiple market makers, banks and traders can enter in competing bids and offers into the platform and have their trades filled by multiple liquidity providers in an anonymous trading environment. The trades are done in the name of your ECN broker, thereby providing you with complete anonymity. A trader might have their buy order filled by liquidity provider "A", and close the same order against liquidity provider "B", or have their trade matched internally by the bid or offer of another trader. The best bid and offer is displayed to the trader along with the market depth which is the combined volume available at each price. A greater number of marketplace participants providing pricing to the ECN broker leads to tighter spreads. ECN's typically charge a small fee for matching trades between their clients and liquidity providers.
Example of ECN Brokers
Counterparty
One of the participants in a transaction.
Sell Quote / Bid Price
The sell quote is displayed on the left and is the price at which you can sell the base currency. It is also referred to as the market maker's bid price. For example, if the EUR/USD quotes 1.3200/03, you can sell 1 Euro at the bid price of US$1.3200.
Buy Quote / Offer Price
The buy quote is displayed on the right and is the price at which you can buy the base currency. It is also referred to as the market maker's ask or offer price. For example, if the EUR/USD quotes 1.3200/03, you can buy 1 Euro at the offer price of US$1.3203.
Spread
The difference between the sell quote and the buy quote or the bid and offer price. For example, if EUR/USD quotes read 1.3200/03, the spread is the difference between 1.3200 and 1.3203, or 3 pips. In order to break even on a trade, a position must move in the direction of the trade by an amount equal to the spread.
Pip
The smallest price increment a currency can make. Also known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.
Pip Value
The value of a pip. Pip value can be either fixed or variable depending on the currency pair. e.g. The pip value for EUR/USD is always $10 for standard lots, $1 for mini-lots and $0.10 for micro lots.
How to Calculate Pip Values
Pip Value Calculator
Lot
The standard unit size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency, 10,000 units if it's a mini, or 1,000 units if it's a micro. Some dealers offer the ability to trade in any unit size, down to as little as 1 unit.
Standard Account
Trading with standard lot sizes, generally 100,000 units of the base currency. e.g. The pip value is $10 for EUR/USD.
Mini Account
Trading with mini lot sizes, generally 10,000 units of the base currency. e.g. The pip value is $1 for EUR/USD.
Micro Account
Trading with micro lot sizes, generally 1,000 units of the base currency. e.g. The pip value is $0.10 for EUR/USD.
Margin
The deposit required to open or maintain a position. Margin can be either "free" or "used". Used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions. With a $1,000 margin balance in your account and a 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $100,000. This allows a trader to leverage his account by up to 100 times or a leverage ratio of 100:1. If a trader's account falls below the minimum amount required to maintain an open position, he will receive a "margin call" requiring him to either add more money into his or her account or to close the open position. Most brokers will automatically close a trade when the margin balance falls below the amount required to keep it open. The amount required to maintain an open position is dependent on the broker and could be 50% of the original margin required to open the trade.
Leverage
Leverage is the ability to gear your account into a position greater than your total account margin. For instance, if a trader has $1,000 of margin in his account and he opens a $100,000 position, he leverages his account by 100 times, or 100:1. If he opens a $200,000 position with $1,000 of margin in his account, his leverage is 200 times, or 200:1. Increasing your leverage magnifies both gains and losses.
To calculate the leverage used, divide the total value of your open positions by the total margin balance in your account. For example, if you have $10,000 of margin in your account and you open one standard lot of USD/JPY (100,000 units of the base currency) for $100,000, your leverage ratio is 10:1 ($100,000 / $10,000). If you open one standard lot of EUR/USD for $150,000 (100,000 x EURUSD 1.5000) your leverage ratio is 15:1 ($150,000 / $10,000).
Understanding leverage Part I
Understanding leverage Part II
Calculate Leverage
Manual Execution
An order which is executed by dealer intervention.
Automatic Execution
The order is executed automatically without dealer intervention or involvement.
Slippage
The difference between the order price and the executed price, measured in pips. Slippage often occurs in fast moving and volatile markets, or where there is manual execution of trades.
Drawdown
The decline in account balance from peak to valley, measured until a new high is reached, usually reported in percentage terms.
Support
Support is a technical price level where buyers outweigh sellers, causing prices to bounce off a temporary price floor.
Resistance
Resistance is a technical price level where sellers outweigh buyers, causing prices to bounce off a temporary price ceiling.
Common Order Types
Market Order
An order to buy or sell at the current market price.
Limit Order
An order to buy or sell at a pre-specified price level.
Stop-Loss Order
An order to restrict losses at a pre-specified price level.
Limit Entry Order
An order to buy below the market or sell above the market at a pre-specified level, believing that the price will reverse direction from that point.
Stop-Entry Order
An order to buy above the market or sell below the market at a pre-specified level, believing that the price will continue in the same direction.
OCO Order
One Cancels Other. An order whereby if one is executed, the other is cancelled.
GTC Order
Good Till Cancelled. An order stays in the market until it is either filled or cancelled.
Common Trade Types
Long Position
A position in which the trader attempts to profit from an increase in price. i.e. Buy low, sell high.
Short Position
A position in which the trader attempts to profit from a decrease in price. i.e. Sell high, buy low.
Common Trading Styles
Technical Analysis
A style of trading that involves analysing price charts for technical patterns of behaviour.
Technical Analysis Books
Fundamental Analysis
A style of trading that involves analysing the macroeconomic factors of an economy underpinning the value of a currency and placing trades that support the trader's long or short-term outlook.
Trend Trading
A style of trading that attempts to profit from riding short, medium or long term trends in price.
Sniper Forex Trend Trading System
Forex Trend System
Range Trading
A style of trading that attempts to profit from buying and selling currencies between a lower level of support and an upper level of resistance. The upper level of resistance and the lower level of support defines the range. The range forms a price channel where the price can be seen to oscillate between the two levels of support and resistance.
Article: Identifying Trending & Range Bound Currencies
News Trading
A style of trading whereby a trader attempts to profit from fundamental news announcements on a country's economy that may affect the value of a currency, usually seeking short term profit immediately after the announcement is released.
Scalping
A style of trading that involves frequent trading seeking small gains over a very short period of time. Trades can last from seconds to minutes.
Day Trading
A style of trading that involves multiple trades on an intra-day basis. Trades can last from minutes to hours.
Forex Day Trading Systems
Swing Trading
A style of trading that involves seeking to profit from short to medium term swings in trend. Trades can last from hours to days.
Carry Trading
A style of trading whereby the trader attempts to profit from holding a currency with a higher rate of interest and selling a currency with a lower rate of interest, profiting from the daily interest rate differential of the position.
Position Trading
A style of trading that involves taking a longer term position that reflects a longer term outlook. Trades can last from weeks to months.
Discretionary Trading
A style of trading that uses human judgement and decision making in every trade.
Managed Discretionary Accounts
Automated Trading
A style of trading that involves neither human decision making nor involvement, but uses a pre-programmed strategy based on technical or fundamental analysis to automatically execute trades via an automated software programme.
Automated Trading Systems
Managed Automated Accounts
Example Trade
Assume you have a trading account at a broker that requires a 1% margin deposit for every trade. The current quote for EUR/USD is 1.3225/28 and you want to place a market order to buy 1 standard lot of 100,000 Euros at 1.3228, for a total value of US$132,280 (100,000 * $1.3228). The broker requires you to deposit 1% of the total, or $1322.80 to open the trade. At the same time you place a take-profit order at 1.3278, 50 pips above your order price. In taking this trade you expect the Euro to strengthen against the U.S. dollar.
As you expected, the Euro strengthens against the U.S. dollar and you take your profit at 1.3278, closing out the trade. As each pip is worth US$10, your total profit for this trade is $500, for a total return of 38%.
Foreign Exchange
The simultaneous transaction of one currency for another.
Foreign Exchange Market
The Foreign exchange market is a large, growing and liquid financial market that operates 24 hours a day. It is not a market in the traditional sense because there is no central trading location or “exchange". Most of the trading is conducted by telephone or through electronic trading networks. The primary market for currencies is the “interbank market” where banks, insurance companies, large corporations and other large financial institutions manage the risks associated with fluctuations in currency rates.
Spot Market
The market for buying and selling currencies at the current market rate.
Rollover
A spot transaction is generally due for settlement within two business days (the value date). The cost of rolling over a transaction is based on the interest rate differential between the two currencies in a transaction. If you are long (bought) the currency with a higher rate of interest you will earn interest. If you are short (sold) the currency with a higher rate of interest you will pay interest. Most brokers will automatically roll over your open positions allowing you to hold your position indefinitely.
How to calculate rollover interest
Rollovers in Forex
Exchange Rate
The value of one currency expressed in terms of another. For example, if EUR/USD is 1.3200, 1 Euro is worth US$1.3200.
Currency Pair
The two currencies that make up an exchange rate. When one is bought, the other is sold, and vice versa.
Base Currency
The first currency in the pair. Also the currency your account is denominated in.
Counter Currency
The second currency in the pair. Also known as the terms currency.
ISO Currency Codes
USD = US Dollar
EUR = Euro
JPY = Japanese Yen
GBP = British Pound
CHF = Swiss Franc
CAD = Canadian Dollar
AUD = Australian Dollar
NZD = New Zealand Dollar
For a full list, see ISO Currency Codes
Currency Pair Terminology
EUR/USD = "Euro"
USD/JPY = "Dollar Yen"
GBP/USD = "Cable" or "Sterling"
USD/CHF = "Swissy"
USD/CAD = "Dollar Canada" (CAD referred to as the "Loonie")
AUD/USD = "Aussie Dollar"
NZD/USD = "Kiwi"
FCM
Futures Commission Merchant. An individual or organisation licensed by the U.S. Commodities Futures Trading Commission (CFTC) to deal in futures products and accept monies from clients to trade them.
Dealing Desk
A dealing desk provides pricing, liquidity and execution of trades.
Market Maker
A market maker provides pricing and liquidity for a particular currency pair and stands ready to buy or sell that currency at the quoted price. A market maker takes the opposite side of your trade and has the option of either holding that position or partially or fully offsetting it with other market participants, managing their aggregate exposure to their clients. If a market maker chooses to keep the trader's position without offsetting it in the market, the trader's profit is the market maker's loss and vice versa, leading to a possible conflict of interest between the trader and his market maker. A market maker earns their commission from the spread between the bid and offer price.
Example of Market Makers
NDD
An acronym for 'No Dealing Desk'. A no-dealing desk broker does not have a dealing desk but instead uses external liquidity providers to provide pricing and liquidity for its clients. The liquidity providers send in competing bids and offers into the platform, resulting in the best bid and offer being displayed to the client. Some no-dealing desk brokers may display the market depth which is the amount of liquidity available at each price. A greater number of liquidity providers providing pricing to the no-dealing desk broker leads to tighter spreads. A no-dealing desk broker may increase the spread to earn its commission.
Example of No Dealing Desk Brokers
Forex ECN Broker
ECN is an acronym for Electronic Communications Network. A Forex ECN broker does not have a dealing desk but instead provides a marketplace where multiple market makers, banks and traders can enter in competing bids and offers into the platform and have their trades filled by multiple liquidity providers in an anonymous trading environment. The trades are done in the name of your ECN broker, thereby providing you with complete anonymity. A trader might have their buy order filled by liquidity provider "A", and close the same order against liquidity provider "B", or have their trade matched internally by the bid or offer of another trader. The best bid and offer is displayed to the trader along with the market depth which is the combined volume available at each price. A greater number of marketplace participants providing pricing to the ECN broker leads to tighter spreads. ECN's typically charge a small fee for matching trades between their clients and liquidity providers.
Example of ECN Brokers
Counterparty
One of the participants in a transaction.
Sell Quote / Bid Price
The sell quote is displayed on the left and is the price at which you can sell the base currency. It is also referred to as the market maker's bid price. For example, if the EUR/USD quotes 1.3200/03, you can sell 1 Euro at the bid price of US$1.3200.
Buy Quote / Offer Price
The buy quote is displayed on the right and is the price at which you can buy the base currency. It is also referred to as the market maker's ask or offer price. For example, if the EUR/USD quotes 1.3200/03, you can buy 1 Euro at the offer price of US$1.3203.
Spread
The difference between the sell quote and the buy quote or the bid and offer price. For example, if EUR/USD quotes read 1.3200/03, the spread is the difference between 1.3200 and 1.3203, or 3 pips. In order to break even on a trade, a position must move in the direction of the trade by an amount equal to the spread.
Pip
The smallest price increment a currency can make. Also known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.
Pip Value
The value of a pip. Pip value can be either fixed or variable depending on the currency pair. e.g. The pip value for EUR/USD is always $10 for standard lots, $1 for mini-lots and $0.10 for micro lots.
How to Calculate Pip Values
Pip Value Calculator
Lot
The standard unit size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency, 10,000 units if it's a mini, or 1,000 units if it's a micro. Some dealers offer the ability to trade in any unit size, down to as little as 1 unit.
Standard Account
Trading with standard lot sizes, generally 100,000 units of the base currency. e.g. The pip value is $10 for EUR/USD.
Mini Account
Trading with mini lot sizes, generally 10,000 units of the base currency. e.g. The pip value is $1 for EUR/USD.
Micro Account
Trading with micro lot sizes, generally 1,000 units of the base currency. e.g. The pip value is $0.10 for EUR/USD.
Margin
The deposit required to open or maintain a position. Margin can be either "free" or "used". Used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions. With a $1,000 margin balance in your account and a 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $100,000. This allows a trader to leverage his account by up to 100 times or a leverage ratio of 100:1. If a trader's account falls below the minimum amount required to maintain an open position, he will receive a "margin call" requiring him to either add more money into his or her account or to close the open position. Most brokers will automatically close a trade when the margin balance falls below the amount required to keep it open. The amount required to maintain an open position is dependent on the broker and could be 50% of the original margin required to open the trade.
Leverage
Leverage is the ability to gear your account into a position greater than your total account margin. For instance, if a trader has $1,000 of margin in his account and he opens a $100,000 position, he leverages his account by 100 times, or 100:1. If he opens a $200,000 position with $1,000 of margin in his account, his leverage is 200 times, or 200:1. Increasing your leverage magnifies both gains and losses.
To calculate the leverage used, divide the total value of your open positions by the total margin balance in your account. For example, if you have $10,000 of margin in your account and you open one standard lot of USD/JPY (100,000 units of the base currency) for $100,000, your leverage ratio is 10:1 ($100,000 / $10,000). If you open one standard lot of EUR/USD for $150,000 (100,000 x EURUSD 1.5000) your leverage ratio is 15:1 ($150,000 / $10,000).
Understanding leverage Part I
Understanding leverage Part II
Calculate Leverage
Manual Execution
An order which is executed by dealer intervention.
Automatic Execution
The order is executed automatically without dealer intervention or involvement.
Slippage
The difference between the order price and the executed price, measured in pips. Slippage often occurs in fast moving and volatile markets, or where there is manual execution of trades.
Drawdown
The decline in account balance from peak to valley, measured until a new high is reached, usually reported in percentage terms.
Support
Support is a technical price level where buyers outweigh sellers, causing prices to bounce off a temporary price floor.
Resistance
Resistance is a technical price level where sellers outweigh buyers, causing prices to bounce off a temporary price ceiling.
Common Order Types
Market Order
An order to buy or sell at the current market price.
Limit Order
An order to buy or sell at a pre-specified price level.
Stop-Loss Order
An order to restrict losses at a pre-specified price level.
Limit Entry Order
An order to buy below the market or sell above the market at a pre-specified level, believing that the price will reverse direction from that point.
Stop-Entry Order
An order to buy above the market or sell below the market at a pre-specified level, believing that the price will continue in the same direction.
OCO Order
One Cancels Other. An order whereby if one is executed, the other is cancelled.
GTC Order
Good Till Cancelled. An order stays in the market until it is either filled or cancelled.
Common Trade Types
Long Position
A position in which the trader attempts to profit from an increase in price. i.e. Buy low, sell high.
Short Position
A position in which the trader attempts to profit from a decrease in price. i.e. Sell high, buy low.
Common Trading Styles
Technical Analysis
A style of trading that involves analysing price charts for technical patterns of behaviour.
Technical Analysis Books
Fundamental Analysis
A style of trading that involves analysing the macroeconomic factors of an economy underpinning the value of a currency and placing trades that support the trader's long or short-term outlook.
Trend Trading
A style of trading that attempts to profit from riding short, medium or long term trends in price.
Sniper Forex Trend Trading System
Forex Trend System
Range Trading
A style of trading that attempts to profit from buying and selling currencies between a lower level of support and an upper level of resistance. The upper level of resistance and the lower level of support defines the range. The range forms a price channel where the price can be seen to oscillate between the two levels of support and resistance.
Article: Identifying Trending & Range Bound Currencies
News Trading
A style of trading whereby a trader attempts to profit from fundamental news announcements on a country's economy that may affect the value of a currency, usually seeking short term profit immediately after the announcement is released.
Scalping
A style of trading that involves frequent trading seeking small gains over a very short period of time. Trades can last from seconds to minutes.
Day Trading
A style of trading that involves multiple trades on an intra-day basis. Trades can last from minutes to hours.
Forex Day Trading Systems
Swing Trading
A style of trading that involves seeking to profit from short to medium term swings in trend. Trades can last from hours to days.
Carry Trading
A style of trading whereby the trader attempts to profit from holding a currency with a higher rate of interest and selling a currency with a lower rate of interest, profiting from the daily interest rate differential of the position.
Position Trading
A style of trading that involves taking a longer term position that reflects a longer term outlook. Trades can last from weeks to months.
Discretionary Trading
A style of trading that uses human judgement and decision making in every trade.
Managed Discretionary Accounts
Automated Trading
A style of trading that involves neither human decision making nor involvement, but uses a pre-programmed strategy based on technical or fundamental analysis to automatically execute trades via an automated software programme.
Automated Trading Systems
Managed Automated Accounts
Example Trade
Assume you have a trading account at a broker that requires a 1% margin deposit for every trade. The current quote for EUR/USD is 1.3225/28 and you want to place a market order to buy 1 standard lot of 100,000 Euros at 1.3228, for a total value of US$132,280 (100,000 * $1.3228). The broker requires you to deposit 1% of the total, or $1322.80 to open the trade. At the same time you place a take-profit order at 1.3278, 50 pips above your order price. In taking this trade you expect the Euro to strengthen against the U.S. dollar.
As you expected, the Euro strengthens against the U.S. dollar and you take your profit at 1.3278, closing out the trade. As each pip is worth US$10, your total profit for this trade is $500, for a total return of 38%.
Forex Market Overview
Introduction
The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2007. 54 central banks and monetary authorities participated in the survey, collecting information from approximately 1280 market participants.
Excerpt from the BIS:
"The 2007 survey shows an unprecedented rise in activity in traditional foreign exchange markets compared to 2004. Average daily turnover rose to $3.2 trillion in April 2007, an increase of 71% at current exchange rates and 65% at constant exchange rates...Against the background of low levels of financial market volatility and risk aversion, market participants point to a significant expansion in the activity of investor groups including hedge funds, which was partly facilitated by substantial growth in the use of prime brokerage, and retail investors...A marked increase in the levels of technical trading – most notably algorithmic trading – is also likely to have boosted turnover in the spot market...Transactions between reporting dealers and non-reporting financial institutions, such as hedge funds, mutual funds, pension funds and insurance companies, more than doubled between April 2004 and April 2007 and contributed more than half of the increase in aggregate turnover." - BIS
Structure
Decentralised 'interbank' market
Main participants: Central Banks, commercial and investment banks, hedge funds, corporations & private speculators
The free-floating currency system arose from the collapse of the Bretton Woods agreement in 1971
Online trading began in the mid to late 1990's
Source: BIS Triennial Survey 2007
Trading Hours
24 hour market
Sunday 5pm EST through Friday 4pm EST.
Trading begins in the Asia-Pacific region followed by the Middle East, Europe, and America
Size
One of the largest financial markets in the world
$3.2 trillion average daily turnover, equivalent to:
More than 10 times the average daily turnover of global equity markets1
More than 35 times the average daily turnover of the NYSE2
Nearly $500 a day for every man, woman, and child on earth3
An annual turnover more than 10 times world GDP4
Info: http://www.goforex.net
The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2007. 54 central banks and monetary authorities participated in the survey, collecting information from approximately 1280 market participants.
Excerpt from the BIS:
"The 2007 survey shows an unprecedented rise in activity in traditional foreign exchange markets compared to 2004. Average daily turnover rose to $3.2 trillion in April 2007, an increase of 71% at current exchange rates and 65% at constant exchange rates...Against the background of low levels of financial market volatility and risk aversion, market participants point to a significant expansion in the activity of investor groups including hedge funds, which was partly facilitated by substantial growth in the use of prime brokerage, and retail investors...A marked increase in the levels of technical trading – most notably algorithmic trading – is also likely to have boosted turnover in the spot market...Transactions between reporting dealers and non-reporting financial institutions, such as hedge funds, mutual funds, pension funds and insurance companies, more than doubled between April 2004 and April 2007 and contributed more than half of the increase in aggregate turnover." - BIS
Structure
Decentralised 'interbank' market
Main participants: Central Banks, commercial and investment banks, hedge funds, corporations & private speculators
The free-floating currency system arose from the collapse of the Bretton Woods agreement in 1971
Online trading began in the mid to late 1990's
Source: BIS Triennial Survey 2007
Trading Hours
24 hour market
Sunday 5pm EST through Friday 4pm EST.
Trading begins in the Asia-Pacific region followed by the Middle East, Europe, and America
Size
One of the largest financial markets in the world
$3.2 trillion average daily turnover, equivalent to:
More than 10 times the average daily turnover of global equity markets1
More than 35 times the average daily turnover of the NYSE2
Nearly $500 a day for every man, woman, and child on earth3
An annual turnover more than 10 times world GDP4
Info: http://www.goforex.net
Forex Guide - An Introduction to Forex Trading
Getting Started: Self-Traders
Your first step should be to educate yourself about the market and trading in general. Read books, take a course, learn strategies, and practice, practice, practice! Most brokers offer demo accounts which will allow you to practice trading without risking real money. The downside of that is that you often don't trade the same way that you would if you were trading with real cash! For a general background on the foreign exchange market, see the Forex Market Snapshot.
Trading Tips
Rule #1. Learn or Develop a Profitable Trading Strategy
This is rule #1. Without it, you are not going to go anywhere! For strategies and system ideas, please visit forex ebooks, forex courses, forex books and manual forex systems sections.
Rule #2. Use Low Leverage
Using excessive leverage may be the most common reason why many traders blow out their accounts. A good rule of thumb would be not to leverage your account more than ten times its value. For example, if you had a trading account of $1,000, you would not open trades worth more than $10,000. For a more detailed explanation of leverage, see forex basics.
Rule #3. Only Use Risk Capital
What this means is that you should only use money that if lost, would not affect your lifestyle in any way. Though it has been said many times before, this is a simple rule that can avoid any harsh lessons being learned further down the track if learnt now.
Choosing a Broker
Surprisingly, this may be one of the most important decisions you make outside of developing or learning a profitable strategy and not over-leveraging your account. You need to find an ethical broker who will not play tricks with their pricing and stop you out of your trades in order to fatten their wallet. This is typical behaviour of unethical market makers who have an economic incentive for you to lose when they are on the opposite side of your trade. Not all market makers behave in this way, so it is a good idea to do your research on all market makers and brokers before opening an account with them. Visit the Forex Broker Ratings section of this site for some useful assistance!
Managed & Semi-Managed Investments
Some market participants may prefer not to take the self-trading route but instead opt for a managed forex account, automated trading system, auto-trading platform or trading signal provider. Each one of these approaches doesn't require much input from you, as most of the decision making process of when to open and close trades is left up to others. Your decision making rests with choosing a system, adjusting your leverage, placing trades, or determining which trading signals to take. If you choose to open a managed account, find out how much leverage they use when they trade your account. Excessive leverage could lead to large drawdowns that could wipe out your account.
If you decide to use an automated system, autotrading platform or forex trading signal provider where you set the level of leverage, be sure to keep it to a manageable level. See rule #2 above for more information.
It is a good idea to diversify your investments amongst several managed account providers and/or systems to even out your returns - When one account is up, the other may be down, and vice versa.
There are of course many other factors and questions to consider when opening a managed forex account or choosing an automated system or signal provider, however, these ones should hopefully help you avoid any unforeseen circumstances!
With those ideas in mind, this site has been arranged in a way to take you through many aspects of the retail spot forex market so you can learn at your own pace and visit the sections that interest you most.
Site Structure
This site is categorised into five main sections:
Forex Products - This section provides more indepth forex education and specialty investment products, including ebooks, courses, manual systems, software, automated systems, forex books and the like.
Forex Services - This section provides range of services for those already in the market looking to assist them in their trading and/or invest in the forex market as well as services for professionals.
Forex Brokers - This section covers how to choose a broker, broker listings, comparisons, ratings and reviews.
Forex Education - This section provides a background to the forex market to help you learn, discover and become informed about various aspects of the foreign exchange market.
Forex Resources - This section provides a wide range of free resources.
Good Luck and Happy Trading!
Your first step should be to educate yourself about the market and trading in general. Read books, take a course, learn strategies, and practice, practice, practice! Most brokers offer demo accounts which will allow you to practice trading without risking real money. The downside of that is that you often don't trade the same way that you would if you were trading with real cash! For a general background on the foreign exchange market, see the Forex Market Snapshot.
Trading Tips
Rule #1. Learn or Develop a Profitable Trading Strategy
This is rule #1. Without it, you are not going to go anywhere! For strategies and system ideas, please visit forex ebooks, forex courses, forex books and manual forex systems sections.
Rule #2. Use Low Leverage
Using excessive leverage may be the most common reason why many traders blow out their accounts. A good rule of thumb would be not to leverage your account more than ten times its value. For example, if you had a trading account of $1,000, you would not open trades worth more than $10,000. For a more detailed explanation of leverage, see forex basics.
Rule #3. Only Use Risk Capital
What this means is that you should only use money that if lost, would not affect your lifestyle in any way. Though it has been said many times before, this is a simple rule that can avoid any harsh lessons being learned further down the track if learnt now.
Choosing a Broker
Surprisingly, this may be one of the most important decisions you make outside of developing or learning a profitable strategy and not over-leveraging your account. You need to find an ethical broker who will not play tricks with their pricing and stop you out of your trades in order to fatten their wallet. This is typical behaviour of unethical market makers who have an economic incentive for you to lose when they are on the opposite side of your trade. Not all market makers behave in this way, so it is a good idea to do your research on all market makers and brokers before opening an account with them. Visit the Forex Broker Ratings section of this site for some useful assistance!
Managed & Semi-Managed Investments
Some market participants may prefer not to take the self-trading route but instead opt for a managed forex account, automated trading system, auto-trading platform or trading signal provider. Each one of these approaches doesn't require much input from you, as most of the decision making process of when to open and close trades is left up to others. Your decision making rests with choosing a system, adjusting your leverage, placing trades, or determining which trading signals to take. If you choose to open a managed account, find out how much leverage they use when they trade your account. Excessive leverage could lead to large drawdowns that could wipe out your account.
If you decide to use an automated system, autotrading platform or forex trading signal provider where you set the level of leverage, be sure to keep it to a manageable level. See rule #2 above for more information.
It is a good idea to diversify your investments amongst several managed account providers and/or systems to even out your returns - When one account is up, the other may be down, and vice versa.
There are of course many other factors and questions to consider when opening a managed forex account or choosing an automated system or signal provider, however, these ones should hopefully help you avoid any unforeseen circumstances!
With those ideas in mind, this site has been arranged in a way to take you through many aspects of the retail spot forex market so you can learn at your own pace and visit the sections that interest you most.
Site Structure
This site is categorised into five main sections:
Forex Products - This section provides more indepth forex education and specialty investment products, including ebooks, courses, manual systems, software, automated systems, forex books and the like.
Forex Services - This section provides range of services for those already in the market looking to assist them in their trading and/or invest in the forex market as well as services for professionals.
Forex Brokers - This section covers how to choose a broker, broker listings, comparisons, ratings and reviews.
Forex Education - This section provides a background to the forex market to help you learn, discover and become informed about various aspects of the foreign exchange market.
Forex Resources - This section provides a wide range of free resources.
Good Luck and Happy Trading!
Forex Brokers
Forex Brokers
MetaTrader 4 Forex Brokers — a list of Forex brokerage firms that support MetaTrader 4 Forex trading software as their trading platform.
PayPal Forex Brokers — a list of Forex brokers accepting PayPal on-line payment system as a way to deposit/withdraw money to/from customers' accounts.
WebMoney Forex Brokers — a list of Forex brokers that accept WebMoney e-currency system as the fast deposit/witdhrawal method, offering high security combined with the fast transfers.
Oil Trading Forex Brokers — those Forex brokers that allow trading commodities, and more specifically, oil, are listed in this category.
Gold Trading Forex Brokers — if you wish to find a Forex broker that offers precious metals trading then this list will help you.
Muslim Friendly Forex Brokers — a list of Forex brokers that try to be friendly to Muslim Forex traders offering "no-interest" margin accounts.
Forex Brokers with Web Based Platform — a list of Forex brokers that fully support Forex trading without installing any trading software.
Moneybookers Forex Brokers — a list of Forex brokers that accept Moneybookers electronic payment system as for trading funds transfers.
Forex Brokers with CFD Trading — a list of Forex broker companies that allow their traders to trade not only Forex, but also CFDs (Contracts for Difference).
Forex Brokers with Advanced Trading Platform — a list of Forex brokers with unique and powerful Forex trading software.
Institutional Forex Brokers — a list of on-line Forex brokers that are backed by strong and respected off-line financial companies.
ECN Forex Brokers — a list of on-line Forex brokers that act as ECNs (Electronic Communication Network) offering Forex traders highly competitive spreads.
Liberty Reserve Forex Brokers — a list of Forex brokers that accept Liberty Reserve payment system as the method of depositing/withdrawing funds to/from the trading accounts.
This is a full list of retail Forex broker companies that offer on-line Forex trading services. Click on the broker's name to get more details about it and read traders' reviews:
Sort by: Order | Minimum Account | Traders' Rating | Name
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
InstaForex $1 + + + - + + 4.7
EXNESS $100 + + + - + + 5.7
eToro $50 - + - + + + 5.1
Forex4you $1 + + + - - + 5.3
LiteForex $1 + + + - - + 5.6
Easy-Forex $200 + - - + + + 5.2
FXOpen $1 + + - - + + 5.9
FXcast $10 + + - - + + 4.3
E-Global $20 + - + - + + 5.2
ForexHunt $1 + + + - + + 4.9
Ava FX $100 - + + - - + 5.3
FxCompany $100 + + + - + + 4.3
MasterForex $1 + + + - - + 5.8
Marketiva $1 - + - - + + 5.1
FastBrokers $500 + - - - + + 3.9
IncoNeon $10 + + + - - + 5.2
ACM $2,000 + - - + + - 5.7
Alpari $200 + - - - + + 5.7
CMS Forex $200 - - - - + + 5.0
Deutsche Bank FOREX $5,000 - - - - + - 5.7
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
Forex.com $250 + - - + + - 5.1
FX Solutions $250 + - - - + - 5.3
FXCM $2,000 + - - + + + 5.7
GFT Forex $250 - - - - + + 4.5
Interactive Brokers $5,000 - - + + + + 5.5
Interbank FX $250 + - - - + - 5.7
MB Trading $400 + - - - + - 5.7
OANDA $1 - - - + + + 5.8
Realtime Forex $3,000 - - - - + + 3.0
Saxo Bank $2,000 - - + - + - 4.9
Tadawul FX $500 + - + - + + 5.1
X-Trade Brokers $2,000 + - + - + - 3.1
Forex.CH $2,000 + - - - + - 3.2
Finotec $200 - - + - + + 5.5
Hotspot FX $7,500 + - - - + - 3.8
ECN broker $200 - - - - + + 5.5
PFG Forex $1,000 + - - - + + 5.3
Dukascopy $1,000 + - - + + - 5.5
Real Trade $20 + + + - - + 3.1
Forex Club $10 - - - + + + 5.4
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
MIG Bank $5,000 + - - - + - 5.0
RCG Direct $5,000 - - - - + - 5.5
Questrade FX $250 - - - + + - 5.0
IKON GM – Royal Division $2,500 + - - - + - 3.4
ODL Securities $2,000 + - + - + + 3.6
MGFOREX $500 - - - + + + 3.6
MF Global $10,000 - - + - + - 4.0
IG Markets $200 - - + + + + 5.6
CMC Markets $2,000 - - + - + - 5.7
IFC Markets $1 - + - - + + 5.2
Neuimex $400 + + + - + + 4.7
MFN $500 - - + - - + 3.5
iFOREX $100 - - - + - + 5.2
FIBOGroup $300 + + + - - + 4.8
FXDD $500 + + - - - + 5.0
ActivTrades €250 + - + + + + 5.1
ABN AMRO marketindex £1 - - + + + + 5.8
GCI Financial $2,000 + + + + + + 4.6
Forex Trading Edge $1,000 + - - + + + 4.9
VarengoldBankFX $1,000 + - + - + - 5.3
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
FxPro $500 + - + + + + 5.2
GFS Forex & Futures $500 - - - - + + 5.2
DeltaStock $100 + - + + + - 5.6
Forex-Metal $1 + + + - + + 5.6
TradeView Forex $100 + + + - + - 4.1
One Financial $250 + - + + + - 5.0
Exto Capital $1,000 - + + + + + 4.9
NobleTrading $250 - - - + + + 3.7
NordMarkets $1,000 + - - - + - 5.7
FXCM Micro $25 - - - - + + 5.7
FXD24 $250 + + - - - + 3.4
Ingot Brokers $100 + - - - + - 3.4
ForexGen $250 + - - - - + 2.7
Latitude FX $1,000 + - - + + + 3.1
FXTSwiss $2,000 + - - - - + 4.8
Apex FX Trading $2,000 + - - - - + 2.8
GOMarkets $1 + - + - + + 5.6
ATC Brokers $3,500 + - - - + - 5.2
Windsor Brokers $25 + - + - + - 3.4
ForexYard $100 - - - + - + 4.7
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
HY Markets $50 - - - + + + 5.0
Arab Financial Brokers $2,000 + - - - + + 5.0
WH SelfInvest €2,500 - - + + + - 5.4
Sucden £5,000 - - + - + - 4.0
FOREX UKRAINE $100 + + + - - + 3.0
FX|Clearing $10 + - - - + + 5.5
Admiral Markets $10 + + + - - + 3.5
EMPFX $300 - - + - - + 3.3
Bulbrokers $50 + - + - + - 3.5
HMS Markets €10,000 - - + - + - 4.8
FXCH $2,000 + + + - - + 5.3
BroCo $100 + + + - + - 3.3
ATG $25,000 - - - - + - 5.7
Advanced Markets $2,500 - - - - + - 3.4
AL Trade $200 + + + - - + 5.2
TeleTRADE $2,000 + - + - - + 5.3
WSD $1,000 + - + - + - 5.4
NTWO $2,000 + - + - - + 5.5
Gallant FX $500 + - - - + + 5.3
Wall Street Brokers $10 + - + - - + 3.8
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
FXM Financial Group $100 + + - - + + 5.6
StartForex $100 + - - + - + 3.0
UFXBank $100 - + - + - + 5.1
SwissDealing $0 - - - - - + 3.6
MRC Markets $100 + + + - + + 5.6
FXGreece $2,000 - - - + - - 1.8
RFXT $1,000 + - - - + + 2.1
FX Trading $500 + - - - - + 2.8
United World Capital $25 + - + - + + 4.9
Azurite Markets $100 - - + + + - 3.4
1pipfix $100 + + + - - + 5.9
Basel Financial $50 + + - - + + 3.2
Forex Systems $250 + - + - + + 3.8
IamFX $500 + - - - - + 5.3
Aurora Global Markets $1,500 - - + + + - 5.3
CitiFX Pro $10,000 + - - + + - 4.8
Forex Capital Trading $100 - - - + + + 5.1
Forex Place $1,000 + - + - - + 3.6
IS Markets $250 + - + - + + 3.3
OneCorpFX $1,000 + - - - - + 4.2
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
FXG Bank $100 + - - + - - 3.4
Global Futures $250 + - + - + + 5.5
KF-Forex $150 - + + - + + 3.1
AC Trading $5 + + + - - + 2.8
IKON Brokers $10 - + - - - + 3.6
Vantage FX $100 + - - - + + 4.5
Renesource Capital $2,500 + - + - + - 5.5
DfxTrade $200 - - - - - + 3.4
Investors Europe $250 + - + + + - 2.4
2pipfixed $100 + + + - - + 4.6
Fx Innova $500 + - - - - + 4.5
Lionstone Investment Services $1 - + - - - + 3.2
TFI FX $1,000 + - + - + - 5.6
bforex $500 + - + - - - 3.8
Akmos Trade $1 + + - + + - 4.8
FBS $5 + + + - + + 5.5
Persepolis Capital Management $500 - + + + + - 3.5
FXGM $250 - - - - + + 4.2
FOREX MMCIS $100 + + + - + + 4.8
Gedamo Investment €2,000 + - - - + + 4.3
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
10Pips $100 - + + - - + 5.0
Boston Merchant Financial $100 + + + - + + 5.1
BTrader $25 + - - + - + 5.0
EFOREX $250 + - - - - + 3.3
Finexo $100 + - - + + + 5.5
Forex WebTrader $25 - - - + - + 3.0
InvestTechFX $100 + - + - + + 5.4
Plus500 $50 - - + - + + 4.9
Prime4x $100 + - + - - + 5.5
Xforex $100 - - - + - + 5.2
Info: http://www.earnforex.com/forex-brokers/
MetaTrader 4 Forex Brokers — a list of Forex brokerage firms that support MetaTrader 4 Forex trading software as their trading platform.
PayPal Forex Brokers — a list of Forex brokers accepting PayPal on-line payment system as a way to deposit/withdraw money to/from customers' accounts.
WebMoney Forex Brokers — a list of Forex brokers that accept WebMoney e-currency system as the fast deposit/witdhrawal method, offering high security combined with the fast transfers.
Oil Trading Forex Brokers — those Forex brokers that allow trading commodities, and more specifically, oil, are listed in this category.
Gold Trading Forex Brokers — if you wish to find a Forex broker that offers precious metals trading then this list will help you.
Muslim Friendly Forex Brokers — a list of Forex brokers that try to be friendly to Muslim Forex traders offering "no-interest" margin accounts.
Forex Brokers with Web Based Platform — a list of Forex brokers that fully support Forex trading without installing any trading software.
Moneybookers Forex Brokers — a list of Forex brokers that accept Moneybookers electronic payment system as for trading funds transfers.
Forex Brokers with CFD Trading — a list of Forex broker companies that allow their traders to trade not only Forex, but also CFDs (Contracts for Difference).
Forex Brokers with Advanced Trading Platform — a list of Forex brokers with unique and powerful Forex trading software.
Institutional Forex Brokers — a list of on-line Forex brokers that are backed by strong and respected off-line financial companies.
ECN Forex Brokers — a list of on-line Forex brokers that act as ECNs (Electronic Communication Network) offering Forex traders highly competitive spreads.
Liberty Reserve Forex Brokers — a list of Forex brokers that accept Liberty Reserve payment system as the method of depositing/withdrawing funds to/from the trading accounts.
This is a full list of retail Forex broker companies that offer on-line Forex trading services. Click on the broker's name to get more details about it and read traders' reviews:
Sort by: Order | Minimum Account | Traders' Rating | Name
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
InstaForex $1 + + + - + + 4.7
EXNESS $100 + + + - + + 5.7
eToro $50 - + - + + + 5.1
Forex4you $1 + + + - - + 5.3
LiteForex $1 + + + - - + 5.6
Easy-Forex $200 + - - + + + 5.2
FXOpen $1 + + - - + + 5.9
FXcast $10 + + - - + + 4.3
E-Global $20 + - + - + + 5.2
ForexHunt $1 + + + - + + 4.9
Ava FX $100 - + + - - + 5.3
FxCompany $100 + + + - + + 4.3
MasterForex $1 + + + - - + 5.8
Marketiva $1 - + - - + + 5.1
FastBrokers $500 + - - - + + 3.9
IncoNeon $10 + + + - - + 5.2
ACM $2,000 + - - + + - 5.7
Alpari $200 + - - - + + 5.7
CMS Forex $200 - - - - + + 5.0
Deutsche Bank FOREX $5,000 - - - - + - 5.7
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
Forex.com $250 + - - + + - 5.1
FX Solutions $250 + - - - + - 5.3
FXCM $2,000 + - - + + + 5.7
GFT Forex $250 - - - - + + 4.5
Interactive Brokers $5,000 - - + + + + 5.5
Interbank FX $250 + - - - + - 5.7
MB Trading $400 + - - - + - 5.7
OANDA $1 - - - + + + 5.8
Realtime Forex $3,000 - - - - + + 3.0
Saxo Bank $2,000 - - + - + - 4.9
Tadawul FX $500 + - + - + + 5.1
X-Trade Brokers $2,000 + - + - + - 3.1
Forex.CH $2,000 + - - - + - 3.2
Finotec $200 - - + - + + 5.5
Hotspot FX $7,500 + - - - + - 3.8
ECN broker $200 - - - - + + 5.5
PFG Forex $1,000 + - - - + + 5.3
Dukascopy $1,000 + - - + + - 5.5
Real Trade $20 + + + - - + 3.1
Forex Club $10 - - - + + + 5.4
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
MIG Bank $5,000 + - - - + - 5.0
RCG Direct $5,000 - - - - + - 5.5
Questrade FX $250 - - - + + - 5.0
IKON GM – Royal Division $2,500 + - - - + - 3.4
ODL Securities $2,000 + - + - + + 3.6
MGFOREX $500 - - - + + + 3.6
MF Global $10,000 - - + - + - 4.0
IG Markets $200 - - + + + + 5.6
CMC Markets $2,000 - - + - + - 5.7
IFC Markets $1 - + - - + + 5.2
Neuimex $400 + + + - + + 4.7
MFN $500 - - + - - + 3.5
iFOREX $100 - - - + - + 5.2
FIBOGroup $300 + + + - - + 4.8
FXDD $500 + + - - - + 5.0
ActivTrades €250 + - + + + + 5.1
ABN AMRO marketindex £1 - - + + + + 5.8
GCI Financial $2,000 + + + + + + 4.6
Forex Trading Edge $1,000 + - - + + + 4.9
VarengoldBankFX $1,000 + - + - + - 5.3
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
FxPro $500 + - + + + + 5.2
GFS Forex & Futures $500 - - - - + + 5.2
DeltaStock $100 + - + + + - 5.6
Forex-Metal $1 + + + - + + 5.6
TradeView Forex $100 + + + - + - 4.1
One Financial $250 + - + + + - 5.0
Exto Capital $1,000 - + + + + + 4.9
NobleTrading $250 - - - + + + 3.7
NordMarkets $1,000 + - - - + - 5.7
FXCM Micro $25 - - - - + + 5.7
FXD24 $250 + + - - - + 3.4
Ingot Brokers $100 + - - - + - 3.4
ForexGen $250 + - - - - + 2.7
Latitude FX $1,000 + - - + + + 3.1
FXTSwiss $2,000 + - - - - + 4.8
Apex FX Trading $2,000 + - - - - + 2.8
GOMarkets $1 + - + - + + 5.6
ATC Brokers $3,500 + - - - + - 5.2
Windsor Brokers $25 + - + - + - 3.4
ForexYard $100 - - - + - + 4.7
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
HY Markets $50 - - - + + + 5.0
Arab Financial Brokers $2,000 + - - - + + 5.0
WH SelfInvest €2,500 - - + + + - 5.4
Sucden £5,000 - - + - + - 4.0
FOREX UKRAINE $100 + + + - - + 3.0
FX|Clearing $10 + - - - + + 5.5
Admiral Markets $10 + + + - - + 3.5
EMPFX $300 - - + - - + 3.3
Bulbrokers $50 + - + - + - 3.5
HMS Markets €10,000 - - + - + - 4.8
FXCH $2,000 + + + - - + 5.3
BroCo $100 + + + - + - 3.3
ATG $25,000 - - - - + - 5.7
Advanced Markets $2,500 - - - - + - 3.4
AL Trade $200 + + + - - + 5.2
TeleTRADE $2,000 + - + - - + 5.3
WSD $1,000 + - + - + - 5.4
NTWO $2,000 + - + - - + 5.5
Gallant FX $500 + - - - + + 5.3
Wall Street Brokers $10 + - + - - + 3.8
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
FXM Financial Group $100 + + - - + + 5.6
StartForex $100 + - - + - + 3.0
UFXBank $100 - + - + - + 5.1
SwissDealing $0 - - - - - + 3.6
MRC Markets $100 + + + - + + 5.6
FXGreece $2,000 - - - + - - 1.8
RFXT $1,000 + - - - + + 2.1
FX Trading $500 + - - - - + 2.8
United World Capital $25 + - + - + + 4.9
Azurite Markets $100 - - + + + - 3.4
1pipfix $100 + + + - - + 5.9
Basel Financial $50 + + - - + + 3.2
Forex Systems $250 + - + - + + 3.8
IamFX $500 + - - - - + 5.3
Aurora Global Markets $1,500 - - + + + - 5.3
CitiFX Pro $10,000 + - - + + - 4.8
Forex Capital Trading $100 - - - + + + 5.1
Forex Place $1,000 + - + - - + 3.6
IS Markets $250 + - + - + + 3.3
OneCorpFX $1,000 + - - - - + 4.2
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
FXG Bank $100 + - - + - - 3.4
Global Futures $250 + - + - + + 5.5
KF-Forex $150 - + + - + + 3.1
AC Trading $5 + + + - - + 2.8
IKON Brokers $10 - + - - - + 3.6
Vantage FX $100 + - - - + + 4.5
Renesource Capital $2,500 + - + - + - 5.5
DfxTrade $200 - - - - - + 3.4
Investors Europe $250 + - + + + - 2.4
2pipfixed $100 + + + - - + 4.6
Fx Innova $500 + - - - - + 4.5
Lionstone Investment Services $1 - + - - - + 3.2
TFI FX $1,000 + - + - + - 5.6
bforex $500 + - + - - - 3.8
Akmos Trade $1 + + - + + - 4.8
FBS $5 + + + - + + 5.5
Persepolis Capital Management $500 - + + + + - 3.5
FXGM $250 - - - - + + 4.2
FOREX MMCIS $100 + + + - + + 4.8
Gedamo Investment €2,000 + - - - + + 4.3
Forex Broker Name Min. Account Size MT4 WebMoney CFD Browser-based
Platform Registered
with any Regulator Easy On-line
Account Opening Rating
10Pips $100 - + + - - + 5.0
Boston Merchant Financial $100 + + + - + + 5.1
BTrader $25 + - - + - + 5.0
EFOREX $250 + - - - - + 3.3
Finexo $100 + - - + + + 5.5
Forex WebTrader $25 - - - + - + 3.0
InvestTechFX $100 + - + - + + 5.4
Plus500 $50 - - + - + + 4.9
Prime4x $100 + - + - - + 5.5
Xforex $100 - - - + - + 5.2
Info: http://www.earnforex.com/forex-brokers/
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