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FDM & Brokers News
Saxo Bank outperforms the FX industry
Saxo Bank has won recognition as the fastest growing FX Bank of the year at the annual Euromoney FX awards. The award, for the $100−250 billion a year client segment, was presented last night at finance magazine Euromoney's annual FX market awards dinner in London.
Now Available With FXCM: MetaTrader 4 by MetaQuotes
FXCM (www.fxcm.com) announced that clients can now choose between trading on the FXCM trading platform or on MetaTrader4 platform by MetaQuotes.
GFT, a worldwide leader in online forex trading, has announced that now offers even more highly competitive prices, with spreads as low as one−pip wide.
Deutsche Bank to speak on US Dollar decline at London seminar
dbFX.com, the online retail currency trading platform of Deutsche Bank, is holding a seminar on 15 May 2008 to discuss reasons behind the decline of the US Dollar as well as how investors may benefit from foreign exchange trading in the coming months.
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
Read Brokers criteria section: List of criteria to take into account when choosing a Broker.
Use Brokers comparative table: One page view of principal Brokerage firms' features.
Use “+ info” links: When detailed information of a Broker is required.
Open a Demo Account: Direct link to Brokerage firms’ Demo Account Platform.
Chat with a Broker: Anonymous conversation with a Broker representative.
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. Regulation
2. Market Maker vs. ECN (Electronic Currency Network)
3. How reliable is the trading platform of the broker?
4. Compare the costs of trading.
5. What are the real dealing size boundaries?
6. Is the trading platform really “user-friendly”?
7. Is the broker offering any added value services?
8. Is the customer support really cutting edge?
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.
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.
