Category Archives: Forex News

forex news

ZuluTrade introduces Binary Options

ZuluTrade

Greetings everyone! I just got some news from my (current) favorite trading signals marketplace – Zulutrade – that they now support binary options. I am surprised it took them this long to get this up and running but I always knew it was bound to happen. A ton of forex brokers hopped on the binary options bandwagon and since there is now a growing market for this style of trading it seems like a wise decision for zulutrade to allow their users to dabble with these “exotic” binary options.

For those of you who are not aware what binary options are, please allow me to clue you in. Essentially binary options are a form of bets. A binary option is a type of option in which the payoff can take only one of two forms (hence binary – ie two) , either some fixed monetary amount or nothing at all. So it’s an “all or nothing” type of deal.

Why Binary Options?

Fast and Simple No Commision Hot Assets
FAST & SIMPLE Clear payouts, no commissions Trade hot assets such as Google, Apple, S&P500 etc

So from the above table you can see that binary options do have some neat benefits. You can trade a wide variety of assets like popular stocks, precious metals, or anything that can be considered a financial asset or commodity.

Why ZuluTrade?

Largest Network User Friendly Zero Fees
The largest network of talented Binary Options Traders for you to follow User-friendly
platform
It’s free! Zero fees, zero commissions and no hidden costs

Zero fees is a huge deal. Personally I haven’t played around with binary options yet but I may be tempted to. Currently my zulutrade adventures have been limited to (by my own choice) JPY cross pairs trading. So far so good that’s worked out great for me.

Until next, time I wish you all happy and profitable trading. Sorry for not posting frequently anymore. I’ve been busy with a lot of other things lately.

Cheers,
Alan

US Department of Justice Expands Probe Into Forex Deals – Major Banks Involved

We’ve seen numerous inquiries over the last couple of years by government departments looking into the world of forex trading, and this past weekend saw the United States Department of Justice open up its own probe to include two additional banks, and those are Barclays and UBS.

Forex is an increasingly popular investment option for investors of all levels these days, and some may argue that current rules and regulations are struggling to keep up, which is one of the reasons we so often see these investigations. It’s not that the investors or smaller brokers that deal with investors, such as ThinkForex, that are doing anything wrong; it’s almost always been major banks either misleading or miss-selling products.

That is exactly the same case this time round, as the Department of Justice has reason to believe that both Barclays and UBS have been selling a variety of structured products without making it clear how much they were making on each of the forex trades. In this case, these products were not small-market; there’s reason to believe some major Swiss hedge funds bought into the products, and they may well have been the ones to alert the authorities that something was amiss.

Knock-On Effects

To the day trader, these kinds of investigations probably don’t appear all that important, but there is of course an interesting question to be raised – who is your broker’s broker? Many of these major banks are enabling the smaller brokers that you might be used to dealing with day-to-day, and they’re not invulnerable to knock-on effects. At the beginning of the year, we say major brokers including Alpari UK and LQD Markets go bust because they lost their liquidity. The situation isn’t exactly the same, but it certainly is worth bearing in mind.

As already mentioned, this isn’t exactly a new investigation. Several other banks are already under scrutiny by the Department, all with the same charge of simply not disclosing the relevant information properly to their clients involved in the forex markets.
In the coming days, we’re likely to see more information coming out, but at this stage we’re mostly in the dark in regard to specifics. The Financial Times first broke the news story on Sunday, but since then there has been no comment made by the Department of Justice, or indeed Barclays or UBS.

The October 2013 issue of Currency Trader magazine is ready to download

Hey fellow traders. If you’re into the Currency Trader magazine you may want to know that the Oct issue is out. For those of you who have never heard of this magazine, it is as far as I’m aware the only magazine dedicated to currency trading.

1. Click here to download the current issue.

2. Click here to download last month’s issue.

Anyways, hope you enjoy it!

Happy trading!

Alan

Dukascopy Smiles to Programmers, Launches Visual JForex

Dukascopy Bank SA

Swiss forex broker Dukascopy Bank SA has released a unique tool for fans of automated trading – the Visual JForex, which, as its name suggests, allows programming in a more friendly, graphical way. Thanks to Visual JForex, you can now program your own automated trading strategy and use it on one of the most popular retail trading platforms out there – Dukascopy’s JForex.

If you’d like to use this tool, you may want to have look at some of the video tutorials on Dukascopy’s website first – they are pretty informative and you’ll get an idea on what to do in about 20 minutes. Of course, some programming expertise is desirable. The next step is to simply click the “Launch Visual JForex” button and then the working environment opens.

This is indeed excellent news. I have used JForex in the past but never attempted to code EAs for it as I’m not really a programmer, but now given this new visual coding capability I will definitely play around with it and see if I can build me some automated trading strategies.

Let me know what you guys think of this, or join me in a discussion at the Forex Nirvana forum.

About Dukascopy Bank SA

Dukascopy Bank is a Swiss Forex broker operating out of Geneva. It is secure and well-regulated, and offers excellent trading conditions: very tight spreads and fast ECN execution through the SWFX Swiss FX Marketplace technology.

Dukascopy Spreads Reduction

Dukascopy Bank SA

Greetings everyone. I’ve received a news update from one of my recommended brokers and I wanted to share that with you all. The broker I’m referring to is Dukascopy and no doubt some – if not most – of  you have heard about them. The news – and it’s good news – is that they’ve recently reduced their spreads.

Checkout what they say In their newsletter/news update:

Please see the recent evolution of our average EUR/USD spreads during the European trading session:

  • October 2012 – 0.57 pips
  • January 2013 – 0.51 pips
  • February 21st, 2013 – 0.46 pips

A simple calculation suggests that we have achieved a 20% decrease of the EUR/USD spread over the last four months. Our next target is to reach an average level of 0.4 pips for the EUR/USD spread.

–end quote —

Whether or not you decide to trade on their platform is up to you, but it’s good to hear that if you do you’ll get really competitive spreads.

That’s it for now folks.

Happy trading.

Alan out.

The November 2012 issue of Currency Trader magazine is ready to download

Ahoy fellow pip sailors! Just a quick post to let you all know who are interested that the latest edition of the Currency Trader Magazine is out. As far as I know this is the only publication dedicated to forex trading. Anyways..here are the links to download – it’s free:

1. Click here to download the current issue.

2. Click here to download last month’s issue.

Happy reading.

Alan out.

NFA Accuses FXDD of Differential Slippage and More

The NFA has filed complaints against FxDirectDealer LLC and James Emerson Green, who was FXDD’s Chief Compliance Officer at the time.

The case summary is…
On June 29, 2012, NFA issued a Complaint charging FXDD with using asymmetrical price  slippage settings that favored FXDD over customers; failing to supervise the trade integrity of the firm’s electronic trading systems; failing to maintain complete and accurate records; failing to review the use of promotional material; making improper price adjustments in customers’ accounts; knowingly converting customer funds; failing to implement an adequate AML program; and failing to develop and implement adequate procedures to ensure that all entities and persons that the firm does business with are registered with the CFTC and NFA Members. The Complaint also charged FXDD and Green with willfully submitting misleading information to NFA and others; failing to treat all customers equally when giving price adjustments; and failing to supervise.

The case details file shows that the NFA accuses FXDD of gaining more than 3 million dollars from this differential  slippage scheme.

What is more interesting is that FXDD is accused of unilaterally removing profits from client accounts because the customers had “manipulated” FXDD’s trading system by executing trades at “off-market” prices.

FXDD did not contact the NFA about this. When the NFA became aware, they asked FXDD for evidence. Here are some selected quotes…

Over the course of several weeks, from December 2011 to early February 2012, FXDD failed to produce any credible  support to substantiate its claim that these customers had manipulated the firm’s  trading platform or executed orders at “off-market” prices.

NFA repeatedly advised Green that these actions on the part of FXDD constituted violations of Compliance Rule 2-43…

However, NFA later learned that FXDD’s supposed return of profits it had removed from the nine customer accounts was illusory and was apparently merely a ploy to mislead the NFA and buy time for FXDD to file suit seeking a temporary restraining order and preliminary injunction against the nine customers.”

FPA member Raimundas is one of those dealing with FXDD’s refusual to comply with the NFA.

There are other issues in the complaint. You can read them by following these links…

Click here to see the NFA Case Summary

Click here to read the NFA’s complaint against FXDD. Please check paragraphs 33-50 to see more about the situation Raimundas is dealing with.

News source: Forex Peace Army

Dollar Demise Continues – China, Japan to Use Yen, Yuan and Not the USD

It looks like the US Dollar is about to be dealt another blow. Although it won’t be a deadly blow it definitely is not good for the long term success of what is now still the world’s major reserve currency.  I came across an article on the GoldSeek website that talks about how Japan and China will stop using the US Dollar to conduct trade with each other.  Time to short the US Dollar? Perhaps so!

Details can be read in the republished article.

Article follows below. Enjoy.

In the next month China and Japan (China’s main trading partner) will no longer use the U.S. dollar as the only currency in trade with each other. They will use the Yuan and the Yen directly with each other. This will see the dollar removed from a large chunk of the world’s trade –in itself, not a very large percentage, but a significant one. It’s the start of a trend that is set to grow. We’ve no doubt that China is tailoring its trade with all its trading partners to use the dollar only so far as it is required to deal with the U.S. and other dollar-dependent nations. Oil from Russia utilizes the Yuan and Rouble, and Australia has arranged a similar deal.

The purpose of foreign exchange and gold reserves is to provide ‘global money’ (which includes gold) for potential rainy days. China will therefore build up reserves in all the currencies that it will trade in. All this will take place at the expense of the dollar. Currently the U.S. dollar is used in around 76% of the world’s trade. More importantly for the dollar, its use as a reserve currency (it currently comprises 63% of global reserves) will diminish in line with the growth of Yuan/ other currencies.

Currencies in Japanese/Chinese Trade

To explain the process more clearly, when a Chinese company buys goods from Japan, it sells Yuan and buys dollars in its place, for delivery to the Japanese supplier. The Japanese supplier then sells the dollars for Yen. This brings many risks to the transaction because both the Yen and the Yuan are constantly moving against the dollar and the dollar is driven by its own economy and pressures. By going direct, these risks and extra costs are eliminated. Likewise the influence of the U.S. over global trade is diminished, for this trade will no longer require the vast amount of trade to go ‘via New York’.

U.S. Power and Influence Changing

Earlier this month, we produced an article that discussed the purchase of Iranian oil in the Yuan and Indian Rupee. U.S. influence and power over world oil supplies has been complete because of the sole use of the U.S. dollar in the oil price. But when Iran dropped the dollar from its oil sales, this power was undermined. The U.S. tried to bring India and China on board in punishing Iran –over its nuclear developments— but had extremely limited success. The U.S. then used the SWIFT system of banking alongside its own banking system to block Iranian oil sales and their payments. China and India used their own currencies and clearing systems to bypass these blockades. As we pointed out in the earlier article, this was not simply a financial development but a shift in power to the East. The Iran story highlights the importance of the development of the Yuan’s growing use.

China’s viewpoint is not to challenge or attack the U.S. but to develop systems that will be in its own interests and independent of outside political or financial influences. Unhappily for the U.S. this is leading to the decline in U.S. power, both politically and financially. With China and the emerging world accounting for over half of the world’s population, the potential growth here will mean an eventual huge curtailment in U.S. power and influence. The agreement with Japan marks a major step forward in this process.

Fragmentation of the Present Monetary System

Since the Second World War and through the Bretton Woods system to today’s monetary system, the dollar and the U.S., with its power and wealth, has ensured its continued success, sometimes against basic fundamental reasoning –such as the ability of the U.S. to just print dollar to cover its Trade Deficits on an ongoing basis, a sort of Tax on the rest of the world. Indeed, the dollar, with its link to oil, is the tree-trunk of world money with all other currencies acting almost as branches growing out of that tree. The steps being taken by China now is another tree (currently a sapling) growing alongside it and eventually no longer dependent on it. The worry is that this new tree is sapping the old tree of its strength. We are certain that China will do all in its power to ensure it minimizes the influence the U.S. has over its financial system.

The dangerous period for the two trees is when the new sapling is not strong enough to stand alone and the old tree is ailing. This is the time when support is needed for both. That support has to be independent of both for it to give effective support. That support must convince all in the monetary world that it will give enough inherent strength to shore up the weaknesses of both. But at the same time this support must be a common denominator throughout the financial world.

If the transition of power and through changes is smooth, then a new shape to the world’s money will be easily accepted. But in all of man’s history, such transitions have been far from smooth or peaceful; they’ve been marred by confrontation and breakdown and usually both. We see this future for the monetary world in the face of these developments.

With the debt debacles on both sides of the Atlantic, the developed world’s monetary system is vulnerable to such pressures as never before. The monetary system now faces structural pressures that are bound to lead to turmoil and deeper crises, not simply inside nations, but ones that will shake up global foreign exchanges and breed more and more uncertainty. The last few years of financial crises in the developed world will seem tame by comparison. The separate interests of the developed world and the emerging world will emphasize the uncertainty and lack of confidence that will hang like a cloud over the world’s changing money systems.

Source: Goldseek.com