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Featured
FXstreet.com − On July 31st, 2009 new NFA rules come into effect involving some important changes in the Forex industry.
Brokers information
Francesc’s Weblog » Facing the New NFA Regulation - Laying the Pave for a New Forex Industry in the U.S.
Wed, Jul 1 2009, 14:38 GMT
Francesc’s Weblog » CFTC Sanctions Foreign Currency Broker, Interbank FX, LLC
Tue, Jun 30 2009, 10:42 GMT
FDM & Brokers News
Notice to FXCM LLC (FXCM U.S.) Traders with MT4 Accounts
FXCM LLC would like to notify all FXCM clients holding MetaTrader 4 (MT4) accounts with FXCM U.S. of the changes that will occur after July 31, 2009.
GFT Strengthens Asia−Pacific Institutional Sales Team with Addition of Klaus Buhl
Klaus Buhl has joined GFT as Director of Institutional Sales, Asia−Pacific where he will be responsible for Institutional Sales and Business Development in Asia.
FX Solutions, a leading online foreign exchange brokerage, today announced that Co−Founders Robert Cortright & Thomas Plaut received the Ernst & Young Entrepreneur Of The Year® 2009 Award in the Financial Services category in New Jersey.
Choose a firm
In December 2007, the NFA moved a step further in the aim to regulate and control the practices by Forex firms in the USA increasing their required minimum capital to establish a Forex business along with some changes in accounting practices. For such step to have a real meaning, the SRO decided that any firm willing to operate in the Forex Market would have to change its name to Forex Dealer Member (short name FDM).
6 steps to choose a Firm
1.
Read Brokers criteria section: List of criteria to take into account when choosing a Broker.2.
Use Brokers comparative table: One page view of principal Brokerage firms' features.3.
Use “+ info” links: When detailed information of a Broker is required.4.
Open a Demo Account: Direct link to Brokerage firms’ Demo Account Platform.5.
Chat with a Broker: Anonymous conversation with a Broker representative.6.
Be contacted by the Brokers of your choice: Completing this form will ensure you are contacted by the selected Brokers.
General criteria to choose a Firm
1.
Is The Broker Or Dealer Regulated?2.
How Reliable Is The Broker's Trading Platform?3.
Capitalization4.
Is The Company A Broker Or A Dealer?5.
Customer Support6.
Costs: Fee And Commission Structures7.
Account Types8.
Is The Broker Offering Any Added-Value Services?9.
Leverage And Margin Call Policies
Glossary of common trading terms
(from Investopedia)
Pip: The smallest price change that a given exchange rate can make.
Leverage: The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
Spread: The difference between the bid and the ask price of a security or asset.
Margin: The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.
Ask: The price at which a market maker is willing to sell (you buy) a security. The market maker will also display a bid price, or the amount and price at which it is willing to buy (you sell)..
The Know yourself Trader's Table
Find yourself to define what kind of Trader you are to choose the appropriate broker to trade
| Aggressive | Moderate | Conservative | |
| Broker/FDM regulation | Very important | Very important | Very important |
| Trading Platform | Robustness, efficiency, reliability & speed of execution | Efficiency & reliability | Efficiency |
| Costs of Trading | Critical: Low spread & no commission | Important: Low spread | Important: Low spread |
| Dealing Size Boundaries | An important issue for volume used per trade at once | An important issue for volume used per trade at once | An important issue for volume used per trade at once |
| User-Friendly Software | Critical: Speed of execution | Required | Required |
| Added Value Services | To be checked-out | An important issue | An important issue |
| Customer Service | Very important | Very important | Very important |
| Leverage and margin call policy | Critical: Highest possible 200/400:1 | Important: 100:1 | Keeping trading low 50/25:1 |
Risk Disclosure
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
