About Forex brokers
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In this issue I would like to move away from the work-life advice on how to become richer, more efficient and more fortunate to turn again to the issue of trading. Today I want to share with you my thoughts on the subject of opening accounts by brokers for beginners at . The idea for this article comes from talking about the fact that the Russian regulator considers introducing to the market only professional traders, i.e. those speculators, who have already confirmed their qualification by passing professional exams. Let's think about whether or not a beginner trader really needs such a strong "care". To begin with I suggest thinking about two fundamental questions: "Who is a beginner at?" and "Why does one lose...
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Trust management of funds and assets seems to be one of the most attractive ways for private traders to earn money in financial markets. First, it does not require self-trading skills, which means that it is suitable even for beginners or people who have nothing to do with trading at all. Secondly, in this way investor can earn using experience and abilities of more professional participant of the market. And thirdly, transferring money into trust management it is possible to receive profit without giving a single minute of your time to the process of trading. However at the same time asset management is almost the most risky service on the financial markets, and brokerage companies are often wary of it. Is it possible to enjoy all the benefits...
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More and more often brokers talk about the technical component of their order execution, in which liquidity aggregators play an important role. What are they, what are their differences, and is it possible to set them up for slippage in favor of the broker, tells ForTrader.org magazine Quotix CEO Evgeny Sorokin. - What is a liquidity aggregator and what are its main functions? - Liquidity aggregators are the systems that integrate quotes from different sources into a single torrent and route the orders to liquidity providers. Brokers use aggregators to narrow the spread, get the best possible order execution and diversify risks associated with liquidity providers. Aggregators have many nuances of implementation, such as: Availability and...
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Due to the specifics of my work, I often communicate with the managers of various brokerage companies. There is probably no broker in Russia that is so popular that I do not have an opportunity to discuss the events in the industry with one way or another. So, lately the main issue worrying the companies became active and very frequent bankruptcies of the brokers, which were quite strong and did not cause distrust. Of course, this problem worries traders even more, who pay for it out of their own pockets several times a year. Our staff magazine traders have also left about 2500$ in companies that have already disappeared (acquaintances didn't help at all :)), so in my today's article I...
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Maximum reduction of trading costs is a natural desire of any participant of financial markets, and no wonder that for traders the size of spread is one of the most important factors when choosing a brokerage company, and for brokers it is a powerful competitive advantage and a lever of attracting clients. Following such logic one can suppose that the lower the level at which the broker will fix the spread for one or another financial instrument, the more profitable the trade of its clients will be. But in practice it is not always true. Moreover, most big brokerage companies offer along with low fixed spreads floating spreads, the size of which is not limited and not regulated anywhere. И...
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Beginning of the article Let's look at the EUR/USD tick chart of the largest liquidity provider, Swiss bank Ducascopy. BID and ASK charts are presented. Current time: 15:00 (MSK), 14.02.2015. The market is relatively calm: no news and no macroeconomic indicators are published during the hour. A 1000 ms wide window has been arbitrarily selected. There are 44 different values inside this window. If you move the window one step forward, the number of ticks will increase to 50. Let's assume that the trade server allows you to conduct operations with a delay of 500 ms (which is an excellent result). Attempting to sell at the initially stated price of 1.12770 could result in more than 35 retracements by the bank, before...
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In this article we will try to eliminate the uncertainty, which, in our opinion, can be purposefully maintained by some brokers to attract additional audience. The author expresses his personal vision, formed while working in a brokerage company, which adheres to different business principles. We will describe several practical methods you can use to critically analyze your broker's performance. In this article, we are intentionally not looking at introducing brokers (IBs) that operate under an open agency contract model. We are talking about companies that position themselves as clearing agents, conducting transactions on behalf of the company. Broker agent clearing model: transactions are broadcast to the interbank market This unconfirmed model is based on...
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Leverage is precisely the tool which transforms foreign exchange trading from an internal game of commercial and central banks into an activity available to the widest range of individuals. Thanks to an interest-free loan provided by a broker, traders' positions are brought to the necessary minimum and brought to the market, while the broker himself receives the right to charge spread and SWAP as payment for his services. Therefore, reasoning about the usefulness of leverage seems to be superfluous. It is known that margin trading has not only advantages, but also risks, and traders often lose deposits because they use too much leverage. In this case the credit provided, regardless of...
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January 2015 will be remembered by traders for a long time. It was a month that would absolutely turn the currency market industry upside down. One hour and one unexpected decision of a major financial and political player made speculators and brokers alike nervous; some traders were instantly made the king of the world and rich, while others were made losers and bankrupt. Both of them were enough for even the largest and most eminent brokers to declare the most serious losses multiple of 6-8 zeros in dollar equivalent. "Black Thursday" for brokers If you have been reading the text all this time surprised and missed the trading day of January 15, I remind you that in connection with the decision of the National...
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The beginning of a new year is a good time to take stock and make plans for the future. You are probably expecting something like this from me, reading the New Year's Eve blog. But this time I would like to surprise you and talk about... trade practices. And I got such thoughts from ongoing disputable situations in the branches with brokers' comments, where on one side are traders who try to earn on arbitrage, and on the other side brokers, who do not allow reaping huge dishonest profits by any means. Other articles on the topic Arbitrage systems - big and illegal profits on Arbitrage and fair Detail of arbitrage strategies...
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The vast majority of modern brokerage companies develop two lines of business simultaneously: the provision of intermediary services when bringing client transactions to the market and building an affiliate network. And the second does not take away the attention and strength from the main activity of the company, but on the contrary, allows to get even more prepared and interested clients without serious expenses on marketing, active sales or training. The articles of the master-class "The downside of trading" Locking: a hedging method, trick or just an annoying factor for the broker? Verification at the broker: the way to postpone the payment of profit or the protection of clients' investments? Bonuses from brokers: a real benefit or a trap? Company partners do all the work of attracting and motivating clients to deposit...
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In Russia, a stratum of active young people has formed who are focused on creating their own business. They are very familiar with the opportunities offered by the Internet and the Forex market in particular. In this article, we will look at different ways to start their own business on . Starting your own company On many forums you can come across messages from newcomers asking how they can start their own company. Looking ahead, we can say that the order of numbers will be very high, and without a major business investor to embark on this path is almost impossible. And, as practice shows, in the highly competitive brokerage market it is difficult for a newcomer to survive even with a large investment and competent management. To open a company...
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Bonus promotions from brokers and dealing centers have long been a common attribute of working on the market and are often decisive factors when choosing a company or determining the amount to be credited to a trading account. But very often received bonuses turn against the client and instead of increasing his profit only speed up the process of deposit's nullification. How to understand when bonus from broker is just a marketing tool and really can increase your trading efficiency, and when on the contrary - is the signal of the company's unfairness? Take a look at these articles! Locking: a hedging method, a trick or just an annoying factor for the broker? Verification at the broker: a way to postpone the payment of profits...
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Any person, who has taken a great interest in trading on Forex currency market, realizes that this activity is not very simple and it is necessary to receive theoretical knowledge to master it. The Internet is full of advertisements, where experienced traders offer everyone who wishes to learn the basics of currency trading for a certain fee. Brokers companies, on the contrary, offer free education for their clients, as they are interested in the growth of their client base and increase of commission income. How effective is paid Forex education? Let's weigh the pros and cons. training: where to find an experienced teacher? The main postulate, which puts forward the supporters of fee-based training - "good education is expensive. And it's hard to argue with this - a qualified specialist will not conduct training for a "thank you" ....
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