Tag Archives: forex

Social trading is here to stay for long – why?

Social media has altered the ways we used to share with each other at a globe level. Interconnectivity of the world has grown more powerful now that a major share of the global population is interacting via some form of social media on a regular basis.

Social trading changes the old trading ways

Social media has been an online revolution that has grown into a huge industry all over the globe. It has even made its way through the world of forex trading. A major segment of the global population can now explore immense possibilities across the online trading platform.
Trading has gone a step further towards democratization with the help of Social Trading.

Social Trading is a good option that allows traders to connect with others directly so that they are able to imitate real trades, consider market analysis and updates and communicate ideas.

Traders are said to benefit much out of social trading once they consider it within their current trading strategies. It has become important for all traders to understand what social trading is and how they could utilize it for their benefit. They must discuss a few of the risks associated with social trading and how these risks could be avoided. Prior to using a social network for trading, relying on other traders and considering their skills and experiences, it is truly important for a trader to do a thorough research just in the way they will do for other forex strategies.

Social Trading isn’t going to leave the market so soon. The financial world has rarely seen a more disruptive technology than this one. On the contrary, much of the unresolved issues that the financial world has seen till date have been addressed by it quite comfortably. Without Social Trading, it wouldn’t have been possible for us to address a few trading needs so effectively.

A few of the needs that have been addressed by social trading are as follows:

1) Transparency – There has always been a need to make financial services more transparent till the time the new regulations showed an option to address this need for transparency. These days, social trading enables us to be more transparent by imposing certain regulation on trading means.

2) Risk Mitigation – The risk that traders are willing to take can be controlled by them once they take part in Social Trading. For those individuals that wish to take part in the market trades without posing as traders will also find this a safer option.

3) Market Access – Participants of institutional or retail trades aren’t able to access all financial markets. Forex is one such market that seems tough for them to trade in; they can only participate in it as a trader. Social Trading is one good option for them to gain access to the trading market before they actually become traders.

There are a number of things that need to be taken care of before Social Trading becomes an important segment of future trading ways. All the key regulatory bodies must accept social trading as a proper form of trading. All agencies that follow social trading find it to be a long educational process. A majority of traders have turned optimistic about it. The participation cost and extra transparency are two key factors that address various social trading issues, but that can be discussed in a separate article.

Understanding Forex Commission Structures

Unlike most other exchange-driven markets, forex has an enticing feature that brokers take full advantage of in their continual bid to lure in investors: no exchange fees, regulatory fees, data fees, or commissions. To many first-time traders, this gives it a major advantage over other markets, but accepting such a bargain doesn’t always mean that you get the best deal available.

Read on to discover how to choose the commission structure that will work best for you…

Three Forms of Commission

Forex brokers offer three different forms of commission to their traders: fixed spread, variable spread, and commission based on a percentage of the spread. These options each have their advantages and disadvantages, which means that there’s no simple answer when it comes to choosing which of them will work best for you.

However, before you can make an informed decision, you need to understand what spread is. Spread is the difference between the price the market maker will pay you for buying the currency (the bid price) and the price at which they’re prepared to sell it to you (the ask price). It is calculated in pips. If your broker quotes you EURUSD – 1.5550 – 1.5552, the spread would be two pips, for example.

To work out how this translates into real money, it can be useful to use the trading calculators that some brokers provide.

Fixed Spreads

If you choose a broker offering a fixed spread, then the difference between the bid and ask price, and thus the spread, in the above example would always be two pips. This would not be affected by market movement, either positively or negatively. At first glance, this can seem like the best choice, as it provides you with certainty. For some people, it will be, but for others, it is worth considering the other options available to you.

Variable Spreads

For those who are not averse to risk, variable spreads can prove a wiser choice. These spreads will change in accordance with market movements. On the one hand, this could mean that they rise to as much as five pips; on the other, it can see spreads drop to as little as 1.5 pips.

Commission

There are also brokers who will earn money through charging a small amount of commission. The benefit of this type of broker is that they often have a good relationship with a large market maker who can pass tight spreads onto you.
Each type of commission will have a different effect on your trading. Of course, part of this will be influenced by your individual broker, but that doesn’t mean that it isn’t worth considering their individual merits and pitfalls. Which one do you think would work best for you?

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.

Forex VPS Nirvana FREE 2 Day Trial Offer

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We just wanted to send out a quick e-mail to let you know that
we (Forex VPS Nirvana) are offering (and have since the beginning)
a 2 day FREE trial.

That’s right. You can try out our forex VPS platform for 2 days
without any obligations or monetary commitments.

To get your 2 day trial VPS just go to our pricing page here:

http://www.forexvpsnirvana.com/pricing/

Follow the directions given there. Simple and easy.

Happy trading!

Sincerely,
Forex VPS Nirvana Staff

Earn profit and do away with debt – Solid reasons to invest in the forex market

With the increasing debt burden of the Americans, an increasingly large number of them are trying to expand their horizons and branch outside to boost the level of income that they make in a month. As the unemployment level is not showing any positive move, the Americans are suffering from lack of income but spiraling debt obligations that they have to pay in a single month. In case you’re suffering from various debt problems and you’re tired of making the credit card payments, you can switch your role as a forex market investor. Investing in the forex market can assure you maximum returns and you need not take help of the professional debt help companies that may charge you fees for providing you with their services.

What happens when you opt for professional debt relief?

When your high interest credit card debts are rising beyond your control, you should get help from a professional debt relief agency but are you aware of the way in which such companies work and how they help you eliminate your debt burden? If you choose a debt consolidation company, the interest rates on your credit cards will be reduced and you can make a single monthly payment towards the program. However, if you want to make the payments on time, you have to make sure that you keep on making the monthly payments on time. When you’re already in debt, how are you supposed to gather the payments? Here comes the option of starting off with passive income that can be achieved through the forex market. Read on to know the reasons to invest in the forex market.

The solid reasons to invest your dollars in the currency market

Forex offers some advantages that you may not get with the other financial assets. If you’re wondering why you should leverage the forex market when there is the stock market, the bonds and the mutual funds? Here are some reasons.

  • Fewer investment choices: If you’re an investor who is investing money to earn returns with which he can pay back high interest debt, your responsibility is more than a normal investor. When you consult a forex broker, he will give you a choice of 20 currency pairs but when you enter the stock market, you may come across thousands of choices. You may suffer from information overload when you enter any other market and this may make you take wrong decision.
  • Trade with leverage: Trading with leverage is another benefit of the forex market and this type of leverage is much greater than what you get in the other financial assets. While you may get 2:1 leverage in the stock market, you can get 500:1 leverage in the forex market. This means that you’ll be able to control a larger amount with a smaller amount of capital.
  • Trade at any time of the day: Another unique feature of the forex market is that the market is open 24 * 7 and you can trade the market at any point of the day. Even if you go abroad for a vacation, you can trade online at any point of the day and this raises your options of making returns.
  • Size and liquidity: The size of the forex market is a big advantage and this is the largest financial market in the world that trades almost $4 trillion in a day. As a large number of players are involved, the places of the trade gets filled up instantaneously.

Therefore, when you’re worried about your rising debts and you have no option to repay them on time, you may become a forex investor. Earn huge returns and use them for credit card debt repayment so that you don’t have to waste your dollars behind the professional companies.

Forex VPS Nirvana Server Latency Test

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Hi everyone. Alan here with a post related to the Forex VPS Nirvana platform.

As you may already know latency plays a big role for most traders. In the high speed world of financial trading milliseconds can make the difference between profit or loss, so when it comes to forex trading you ideally want to have the lowest latency connection to your chosen forex broker.

An interested trader asked me to conduct a ping test to his chosen brokers, and I thought that it might be useful for everyone else as well so I’m going to share the ping test results here.  Without further ado, here are some sample ping test results:

for pepperstone from US DC:

ping us-live01b.mt4tradeserver.com
PING us-live01b.mt4tradeserver.com (209.81.91.19) 56(84) bytes of data.
64 bytes from us-live01.mt4tradeserver.com (209.81.91.19): icmp_seq=1 ttl=116 time=7.77 ms
64 bytes from us-live01.mt4tradeserver.com (209.81.91.19): icmp_seq=2 ttl=116 time=7.00 ms
64 bytes from us-live01.mt4tradeserver.com (209.81.91.19): icmp_seq=3 ttl=116 time=7.44 ms
64 bytes from us-live01.mt4tradeserver.com (209.81.91.19): icmp_seq=4 ttl=116 time=7.19 ms
^C
— us-live01b.mt4tradeserver.com ping statistics —
4 packets transmitted, 4 received, 0% packet loss, time 3025ms
rtt min/avg/max/mdev = 7.000/7.354/7.775/0.296 ms

for finfx from UK DC:
ping 77.240.23.10
PING 77.240.23.10 (77.240.23.10) 56(84) bytes of data.
64 bytes from 77.240.23.10: icmp_seq=1 ttl=119 time=38.1 ms
64 bytes from 77.240.23.10: icmp_seq=2 ttl=119 time=36.7 ms
64 bytes from 77.240.23.10: icmp_seq=3 ttl=119 time=38.2 ms
64 bytes from 77.240.23.10: icmp_seq=4 ttl=119 time=37.1 ms
^C
— 77.240.23.10 ping statistics —
4 packets transmitted, 4 received, 0% packet loss, time 3032ms
rtt min/avg/max/mdev = 36.771/37.576/38.248/0.693 ms

for finfx from US DC:

ping 74.217.54.130
PING 74.217.54.130 (74.217.54.130) 56(84) bytes of data.
64 bytes from 74.217.54.130: icmp_seq=1 ttl=119 time=7.69 ms
64 bytes from 74.217.54.130: icmp_seq=2 ttl=119 time=7.55 ms
64 bytes from 74.217.54.130: icmp_seq=3 ttl=119 time=7.39 ms
^C
— 74.217.54.130 ping statistics —
3 packets transmitted, 3 received, 0% packet loss, time 2018ms
rtt min/avg/max/mdev = 7.393/7.549/7.697/0.143 ms

for HotForex (netherlands) from UK DC:
ping 78.140.160.37
PING 78.140.160.37 (78.140.160.37) 56(84) bytes of data.
64 bytes from 78.140.160.37: icmp_seq=1 ttl=122 time=1.46 ms
64 bytes from 78.140.160.37: icmp_seq=2 ttl=122 time=1.43 ms
64 bytes from 78.140.160.37: icmp_seq=3 ttl=122 time=1.45 ms
^C
— 78.140.160.37 ping statistics —
3 packets transmitted, 3 received, 0% packet loss, time 2018ms
rtt min/avg/max/mdev = 1.434/1.451/1.464/0.033 ms

Oddly enough it seems FinFX’s server(s) in Finland are a bit less responsive than I expected even though our UK datacenter is geographically speaking very close by. I suspect either a bad route or firewalls getting in the way, but what surprised me is the other super low latency results. Hotforex’s server produced super low latency results, and so did pepperstone and finfx’s US server.

So, my suggestion is that you should plan ahead and decide upon which broker you are going to use and then find out where they host their MT4 servers. By default when you sign-up for a Forex VPS Nirvana account you’re assigned to the US datacenter, but you can request to be moved to the UK datacenter if you broker is geographically closer to the UK than the US.  All you have to do is open up a support ticket with your request and we’ll move you over to the other datacenter. Later on in the next version of the VPS platform you’ll be able to chose which datacenter you want your account to be hosted with during the account creation process.

If you have a broker you wish me to ping to test for latency let me know. All I need from you is your broker’s MT4 server IP address.

Come to think of it some of you may not know how to find that out , so I am going to put together a quick how-to guide tomorrow.

Stay tuned for that.

Until then, feel free to browse the Forex VPS Nirvana homepage @ http://www.forexvpsnirvana.com to find out more about the vps platform and/or to request a free 2 day trial account.

Thank you kindly for your support.

Cheers,

Alan

Forex VPS Nirvana – Free VPS for 2 days

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Hi everyone. I forgot to mention this in my previous post announcing the launch of the VPS platform, but I am giving away 2 day trials to anyone who is interested in trying out the forex vps platform. All you have to do is go to the Forex VPS Nirvana homepage, click on Contact, and use the contact form.

I’ve also been very generous in extending the 2 day trial period as well, so if you need a bit more than 2 days I can accommodate you.

Thank you kindly for your support,

Cheers,

Alan

My Forex VPS platform is officially open for business

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Hi everyone. I am very excited to announce that the proposed forex VPS platform I discussed a while back (here, here and here) is finally ready and open for business!!

I would like to apologize to all of you who expressed interest for making you wait so long. I learned a valuable lesson about overestimating development time.

The name I chose for the site/business is Forex VPS Nirvana in honor of the forum where I first announced the idea.

The price for an account is still the same $45/month that I promised everyone at the very beginning.

For more info or to sign-up please visit the Forex VPS Nirvana homepage at:

http://www.forexvpsnirvana.com

Cheers,

Alan