Recommended Forex Brokers

The bad thing about all brokers is that they can’t make you trade better in Forex. The best thing that they can do for a trader is to offer him enough freedom, tools and support to bring his trading strategy to life. Here is the list of those brokers that try not to interfere with the ways that a trader chooses:

FXOpen — some people say that they have too many traders to be efficient but, in my opinion, the amount of traders using this broker proves its quality. After all, it has a nice set of features:

* Contests among traders
* Bonus programs
* Alternative payment methods: WebMoney, LibertyReserve, CashU, E-Bullion and other payment options
* 2 pips spread on EUR/USD

InstaForex — a some sort of competition to FXOpen, this broker offers so many bonus and contest promotions to its traders that this alone is enough to make some traders join. But there are more advantages:

* Trade with MetaTrader platform
* Leverage your trades up to 1:500
* Deposit and withdraw funds via WebMoney, Moneybookers and other ways
* Earn interest on deposit
* Low minimum account size

AvaFX — original Forex broker with almost 4-year history of satisfied customers. Except traditional Forex trading provides also CFD, gold and oil trading:

* 1:200 leverage
* Custom trading platform
* Trade oil, gold and other commodities
* WebMoney, PayPal and many other ways to fund your account

Forex4you — relatively new Forex broker that tries its best to keep up with the competition and offers extra-high quality level of service. See for yourself:

* More than 50 trading instruments
* Free news feeds from leading news agencies
* Cent trading (if you feel cheap)
* MetaTrader platform
* Up to 12.5% yearly interest on trade balance

Top 10 Myths about Forex

Forex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another.
Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there also many myths surrounding the foreign exchange market:
1. Forex trading is easy. Many people that want to dive into the world of the foreign exchange market believe that the Forex trading is easy — you just read a book or two and then you will be able to earn daily profits with just 2-3 hours trading daily. Others think that they can buy a profitable strategy and it will make them rich in Forex. In reality that’s just a myth. Succeeding in Forex isn’t easier than mastering any other profession — it takes time, money and a lot of practice.
2. "I will make money in Forex, if I can trade stocks successfully." Success in stock market doesn’t imply that you will get success in Forex market — there are many differences between trading stocks and the spot currencies. First of all, Forex market requires a lot of hard work and dedication as this market is open for 24 hours a day. You cannot just sit in front of your computer for the whole day and night, so the best way is that you should find the most suitable time periods for trading. Second, “buy&hold„ strategy simply won’t work in Forex market. Third, you don’t have that much information about currencies as you can get from the companies’ reports and statistics.
3. "I can make profit whenever I want if Forex market is open 24 hours a day." Once again, you won’t be sitting in front of your PC for the whole day to be able to trade 24 hours. You’ll have to develop automated trading software to get the advantage of 24 hours a day working schedule.
4. "I can be a successful Forex trader just following someone else’s signals." Many beginning traders get burned by the blind signal-following. That’s like putting away the whole responsibility for your actions to someone else. That may sound cool, but in reality you end up with the huge losses. Learn to rely on your own knowledge and skills. Remember that there were no great signal-followers in any financial market.
5. No commission is to be paid in Forex market. You only have to pay the spread, but you don’t have to pay the commission. And what’s spread? It is the difference between the buy and sell price of the currency pair at the same moment. You may end up with the major part of your profits in the broker’s hands if you plan to rely on the short-term trading.
6. Forex is a scam. Some skeptics and disappointed traders think that Forex is just some new fad to scam people for their hard earned money. Although there are many scams that are hiding behind the "brand" of Forex, that doesn’t mean that the Forex itself is a scam. There are many institutional Forex brokers, regulated Forex account managers and other solid companies in the market to whom you can trust.
7. "I need to exactly predict the market outcome to be profitable in Forex." There is no scientific method to know something in advance in the market with a 100% certainty. There would be no Forex market if you could know the exact currency rates beforehand. Trading is not the game of certainties; it’s a game of odds. One of the first things that new traders learn is to think in the terms of probabilities and risk-to-reward ratios.
8. "I need to use a very complex strategy to be successful in Forex." It’s a popular myth, in which many on-line sellers would want you to believe. The main requirement to be successful in Forex is a self-discipline and money management. There are many traders that make consistent profits with rather simple and old strategies.
9. "I need to have a lot of starting capital to get profit in Forex." Big capital investment won’t help you in Forex. You don’t need a lot of money to diversify in currencies and you can’t move the currency rates with your trading orders (you’d need billions of dollars to do that). Actually you can trade with a very a little capital, because Forex trading is almost always leveraged with the broker’s money.
10. Forex is gambling because it’s completely random. Although there is no certainty in Forex (as in any financial market) it doesn’t mean that it’s completely random. And it’s certainly not a gambling, since your success in this market depends mostly on your skills and experience, not on your luck.
Knowledge is power — so it’s better for you to learn distinguishing some stereotypical myths from the real thing. Don’t fall for the promises of getting some easy profits in Forex, but don’t be afraid of the market just because some people think it’s not possible to earn there. Be rational — this quality will help you either if you are going to trade in Forex or not.

Online Forex Treding

Online Forex trading has the potential of being exceptionally profitable. You can learn forex trading by opening an online forex account and start by using learning account without real money. This will help you to know the Forex trading method and how currencies are influenced by different parameters that are occurring on a global scale.
Forex is a global exchange market to buy and sell various currencies from around the world. An investor has the facility to buy and sell these currencies in order to make profits. The forex market is open from Monday at 0:00 GMT to Friday at 10:00 GMT. Forex traders are not limited to the common time restrictions of the New York Stock Exchange or NASDAQ.
This flexibility draws many investors to befall as Forex traders. The most attractive feature is the liquidity of the Foreign Exchange Market as deals range from 1 to 1.5 trillion dollars daily.
Foreign Exchange Trading is just the purchase and sales of currency derived from the power of the currency and the fluctuation in the value of that currency. Forex offers the possibility of huge profits in relatively short periods of time.
Forex marginal accounts are very attractive as they permit Forex traders to take large positions without having to make a large deposit. One can finance a marginal account with 0.05% of the face value. There are two systems used in deciding the Foreign Exchange trades. They are fundamental and technical analysis.
Technical analysis is the most generally used practice and employs the hypothesis that the variations that happen in the Foreign Exchange Market for a reason and are precise. The fundamental analysis takes account of all aspects of the nation in which the currency is traded, such as the economy, the country’s principal interest rates, war, and poverty level etc