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InstaForex

brokers against youOnce you achieved a certain level of self-esteem with demo trading, it is time to go live and open a real forex account. The next couple of days will probably be filled with the headache of searching for forex brokers reviews and observing the feedback and suggestions from other traders. However, you might notice a peculiar tendency in some of the reviews to claim that forex brokers trade against you and their main agenda is to wipe out your account. For a new little fish in the huge pond this information is very discomforting.  

average depositForex brokers allow every enthusiastic beginner in trading to enter the highly profitable market with a flexible investment options. The starting investing capital varies from just one dollar to thousands to fit every ones capabilities and financial status. The popular question among traders is how much do others deposit? What is the average amount of money you need?

broker doesn't payNot getting paid on time or not getting paid at all are unfortunately things that every forex trader has to experience once in a while. It is a very stressful issue especially if your withdrawal request is for several thousands of dollars. So here is the question - what can you do to protect yourself from withdrawal issues? 

payment optionsThe painful beginning is over and you have finished reading all the basics of forex trading. You are sick and tired of the demo account, the nightmares where you speak only with forex terminology become more frequent and you are ready for the big jump – trading for real money. So how to trade with real money and how to make sure your funding is safe? More importantly, how do you receive the profit money you make?

forex bonusOnline forex trading is blossoming as more people are getting to know the new way of working from home. Forex brokers compete for more forex traders promising amazing offers and rewards, while we, forex traders, try to figure out which broker is worth trying and which bonus sounds the best. 

regulationForex Trading like any other investments is never risk-free. Forex market is volatile and there is always a chance that things will not go as you have predicted. The currency movements are something you have no control over. However there are things that you can control in order to decrease your risk of losing the invested money.

When you trade forex it feels that the whole world is focused on you and maybe a little bit on your forex broker. In reality forex market consists of much larger entities than 1 profit-thirsty trader and spread-seeking forex broker. Today’s topic of discussion is who is involved in forex trading and why should you care?

We are definitely not alone in forex market and it is wise to get up close and personal with the players behind the scene.


1. Federal Governments and Central Banks

Federal governments and central banks play major role in currency exchange. These two are like dancing couple, making extravagant moves along the forex market hand in hand. Government representatives meet up with Central Banks representatives regularly to discuss the money issues.  And even if others may argue, federal governments and central banks always seem to be in agreement with each other. After all, these forex players are able to manipulate forex market in order to meet any kind of economic agenda.

2. Financial Institutions and Other Banks, Besides Central Banks

Central Banks are not the only banks known to man kind. Other financial institutions are also considered big shots in forex market.

Before we go any further with this, let’s understand the concept of interbank market. Interbank market is the market where banks make transactions with one another and fix the currency price that you, forex trader, see on your trading platform. The transactions these large banks engage in are based upon credit relationship. The more credit relationships bank has, the better currency rates it can provide for its forex traders. So, basically, it is safe to say that Banks are like dealers. That is a reason why different banks have different currency rates. Remember those days when forex trading was not yet available online? Currency exchange were done solely in banks or currency exchange points and all of them would have their own “special” currency rates.

3. Moving On - Hedgers

Who are the major clients of large banks? Well, of course well established, successful businesses with international transactions. International businesses need to either buy from or sell their product or services to an international client and that directly brings us to forex market.

The problem every international business faces is the ambiguity in currency rates. Imagine that you are an owner of a very profitable international business in America. Now, you have found out that the equipment you need for your business is much cheaper in Japan. So you order the equipment and you schedule the payment for the equipment half a year from now (it takes that long for the equipment to be installed!). Do you see the problem yet? Let me elaborate. The exchange rate change constantly and there is no way of knowing what will happen over half a year from now. Maybe you will end up overpaying at the time of delivery.

No problem, you might say. International business can simply make immediate transaction for the needed foreign currency via forex market. Yes, that is correct, but what if there is not enough money at the moment?

That’s where hedging comes in handy. Hedging strategies allow you to secure an exchange rate at the time of the business deal. This eliminated the risk of dealing with foreign currency.

4. Currency Speculators

In general, currency speculation is defined as “assumption of the risk of loss, in in return for the uncertain possibility of a reward”. Speculators take advantage of unpredictable exchange rates. The biggest speculators of them all are hedge funds. Hedge funds use all kind of forex strategies to gather large returns. It’s like betting, really. Speaking of which, here is a proof that forex has an element of gambling!

Do you feel like a tiny ant surrounded by prehistoric dinosaurs? Don’t let it scare you. The beauty of forex market is that there is enough in it for every one, even you and your forex broker!

extra feeForex world is full of competition, whether it is between currencies, forex traders or forex brokers. Today there are many brokers available online and most of them scream “No Fees, No Extra Charges” on their websites, banners or reviews. It is an amazing, but rather exotic offer. Trading without any strings attached would have been bliss, however in reality nothing comes for free, especially not in the investing markets. So what is really going on when it comes to forex broker’s charges?

managed accountsForex Trading is a risky business. It demands time, experience, patience and desire for success. Many forex traders find it difficult to follow the market movements and fail to act wisely and quickly when opportunity strikes. That is when managed accounts come in.

account typesIf you haven’t noticed yet let me enlighten you about a variety of choices forex accounts. Some forex brokers only offer two – demo account for practicing your forex skills with virtual money and a real account where you trade with real cash. However, some forex brokers offer more than that. So before you start chocking on the amount of forex account options out there, let’s take a look at some variety of account types.