Australian Forex Brokers – an Overview

Forex trading is proving to be popular in Australia and the Australian Securities and Investment Commission (ASIC) are the regulatory body tasked with overseeing all currency trading activities. Recently, Peta Stead, Senior Lawyer of the Investment Banks division of the ASIC confirmed that any entity offering financial services to Australia must be licensed. This is despite your transactions taking place online. There are no exceptions to the rule, and all brokers, even those located overseas, are required to have a license to provide services to Australians. If you require more information, the Corporations Act of 2001 sets out the terms of that regulation.

We do not provide financial services of any sort to Australia. All entities providing financial services to Australia are required to have an Australian Financial Services License and there are licensed forex brokers offering services to Australians. Please check ASIC’s registry for all licensed brokers. Due to the high financial risks of trading, all traders are encouraged to research and form your opinions before trading anywhere, regardless of your location. See below for a list of Forex brokers we trust for traders outside of Australia.

Top 10 Trusted Forex Brokers

No.	Broker		Deposit	Bonus	Leverage	Review
1.			$100	$10,000	400:1	Review
3.			$50	100%	1000:1	Review
5.			$50	Various	400:1	Review
2.			$100	Various	1000:1	Review
4.			$250	50%	400:1	Review
6.			$100	20%	200:1	Review

Recommended Forex Brokers for all Traders

We recommend that you choose wisely. Select the right partner by doing the right research. We believe in giving our traders as much choice as possible when it comes to selecting a Forex Broker to trade with. Any broker listed here must meet our unique criteria and standards including customer support, banking and cost effective withdrawals for traders.

See below for brief overviews of each broker that has made the grade. As well as the overview, you will find our full and informative reviews for each broker by clicking on their respective company names.

• Avatrade – Avatrade is incorporated and regulated by the Central Bank of Ireland, the Markets in Financial Instruments Directive of the EU (MiFID), the Australian Securities and Investments Commission (ASIC), is registered as a financial services company in the BVI and regulated by the Financial Futures Association of Japan. One of the unique features of Avatrade is that they offer leverage of 400:1, one of the highest in the industry.
• LMFX – This broker offers a number of trading platforms, from their Webtrader platform to the industry standard MT4 terminal. Traders on the go aren’t left wanting either, as you will be able to use the proved MT4 mobile trading platform. LMFX offers tight spreads, and fast executions. They also offer an attractive 100% first deposit bonus and excellent support. They are highly recommended for traders of all levels of experience.
• eToro – eToro is a very interesting as they offer “Social Trading”. Essentially, traders get to see & copy the strategies used by other more successful traders. They are fully regulated in several different jurisdictions and their licensing authorities include the NFA (US), CySEC (Cyprus), CFTC (US), MiFID (Europe) and the FCA (UK). A leverage of 400:1 is offered.
• Alpari – caters for high volume traders to execute their Forex related trades, but also encourages lower volume traders with their low deposit amount of $100, attractive leverage of 1000:1, bonuses and a great variety of platforms. Their online operations are regulated by multiple territories, which makes Alpari ideal for all traders.
• NetoTrade – offer attractive bonuses, tight Forex spreads, flexible leverages, low rates, an established platform and the offer of straight through processing (STP). They also offer a low deposit amount of just $250, and a personal account manager capable of either guiding new traders, or helping more experienced traders to optimise their trading strategies. If you’re still unsure, why not open a FREE demo account and check out their platform?
• Markets.com – Markets.com is incorporated in Cyprus by the Cyprus Securities and Exchange Commission (CySEC). It is also licenced and regulated by the Markets in Financial Instruments Directive of the EU (MiFID), and has the required license in numerous other territories. These include the FCA for the UK, the BdF in France, CONSOB in Italy, CNMV in Spain, AFM in the Netherlands, BaFin in Germany, FI in Sweden, The Danish FSA, PSZÁF in Hungary, NBS in Slovakia, CNB in the Czech Republic and the FSB in South Africa. These assure you that Markets.com is a very safe and secure trading environment. It’s also worth noting that they offer an attractive leverage of 200:1.

Top 10 Canadian Forex Brokers by TradersAsset

The “bricks and mortar” Canadian finance sector is very well regulated. In fact, there are three Regulatory Commissions and Trade Association that many financial companies must belong to. These are, the British Columbia Securities Commission (BCSC), the Ontario Securities Commission (OSC) and the Investment Industry Regulatory Organization of Canada (IIROC).
When it comes to Forex Brokers and Forex trading sites online however, Canadian citizens are welcome to sign up and trade at any of the online brokers, without restrictions.
We would strongly recommend that you do your research and select a broker that meets your requirements and can be trusted. If this sounds like a lot of work, you’re in luck as we’ve done the hard work for you.  We’ve researched and reviewed some of the best brokers available today. These recommendations to our Canadian Traders are presented below.

Top 10 Canadian Forex Brokers

No.	Broker		Deposit	Bonus	Leverage	Review
1.			$100	$10,000	400:1	Review
2.			$50	100%	1000:1	Review
3.			$5	50%	888:1	Review
4.			$100	Various	1000:1	Review
5.			$50	Various	400:1	Review
6.			$250	50%	400:1	Review

Recommended Canadian Forex Brokers for Canadian Traders

This guarantees that we can promote and showcase the best Forex brokers, safe in the knowledge that you, as a Canadian citizen, are going to get a completely hassle free and first class trading experience.

• Avatrade – Avatrade is incorporated and regulated by the Central Bank of Ireland, the Markets in Financial Instruments Directive of the EU (MiFID), the Australian Securities and Investments Commission (ASIC), is registered as a financial services company in the BVI and regulated by the Financial Futures Association of Japan. One of the unique features of Avatrade is that they offer leverage of 400:1, one of the highest in the industry.
• LMFX – This broker offers an extensive set of trading tools and calculators. Perfect for the more experienced trader that wants to asses his levels of risk/reward or conduct more extensive technical analysis. Junior traders are also well catered for at LMFX, with the offering of great market analysis articles, extensive educational materials and one of the best demo account offers we’ve ever seen.
• XM – are a fantastic broker making some great moves in the world of Forex trading. They are fully regulated in a number of jurisdictions. They are probably better suited to novice traders due to their extensive training options and low deposit amount of just $5, but they welcome Canadian traders of all levels. XM offers a number of trading platforms ranging from the ever popular currency trading staple, MT4, to iPhone and Android.
• Alpari – is highly recommended for Canadian traders. They have a very good platform that executes orders instantly. The broker is also backed by a reliable support team and offer a number of deposit options (bank wire, credit cards, e-wallets), account types, and offers a number of other perks for Canadian traders.
• eToro – eToro is a unique broker as they bring traditional trading up-to-date by offering a “Social Trading” experience. Essentially, traders get to see & copy the strategies used by other more successful traders. eToro are fully regulated in several different jurisdictions and their licensing authorities include the NFA (US), CySEC (Cyprus), ASIC (Australia), CFTC (US), MiFID (Europe) and the FCA (UK). A leverage of 400:1 is offered along with fantastic account management.
• NetoTrade – offer attractive bonuses, tight Forex spreads, flexible leverages, low rates, an established platform and the offer of straight through processing (STP). They also offer a low deposit amount of just $250, and a personal account manager capable of either guiding new traders, or helping more experienced traders to optimise their trading strategies. If you’re still unsure about using them, we suggest that you open a FREE demo account and check out the platform fro yourself.
• OandA – OandA is in fact licensed in Canada by the IIROC. They have also been granted licenses to operate by the CFTC (US), NFA (US), the FCA (UK), the Monetary Authority of Singapore and also the Dubai Financial Services Authority. They offer a low minimum deposit amount and a leverage of 50:1.

Top 10 US Forex Brokers by TradersAsset

The USA has a highly regulated financial services industry. Due to the diverse range of financial product available, there are many different regulatory authorities and licensing commissions tasked with overseeing the financial services industry in America.

The ones most relevant to online Forex trading include the Commodity Futures Trading Commission (CTFC) and the National Futures Association (NFA). These two regulatory bodies oversee the general running of many US-facing Forex brokers.

The important thing to understand here is that, although the US online Forex market appears heavily regulated, this particular regulatory system is more of a system of ethics than a direct legal guideline when it comes to the world of online trading. Online Forex trading is essentially a decentralised industry that operates with no central governing body at this time. Therefore, similarly to many other global territories, it isn’t illegal to trade online if you live in the US. If a broker has the means to accept traders from the US, you may trade with them. It’s that simple. Traders will never be penalised for this action as it’s seen as the broker’s responsibility to ensure that they operate within the legal boundaries of their customers’ residing jurisdictions.

With the above said, brokers that have been approved by the CTFC (US) and the NFA (US) are however seen as “legitimate” and “regulated” brokers that can accept US traders.

We have reviewed and listed a collection of our highest recommended Forex Brokers that accept US customers. Each meets our strict criteria such as having a wide range of banking options, a reliable trading platform and fantastic customer service. Should you require any additional information on any of these brokers, please read our detailed reviews for each one. US traders can be safe in the knowledge that any of the brokers listed below will provide a secure and reliable trading experience that you will want to return to time and time again.

Recommended US Forex Brokers for US Traders

• LMFX – Global Trade Partners Ltd, the parent company of LMFX, is incorporated and regulated by the laws of the Republic of Macedonia. This means they are US friendly, and offer US citizens a wide range of banking options. Their minimum deposit amount is a low $50, and their max leverage amount is 1000:1 is available. One of the key strengths of LMFX is their attentive account management, who are highly capable and make even the most complex issue a hassle free experience. They are highly recommended.
• OandA – OandA is in fact licensed in Canada by the IIROC. They have also been granted licenses to operate by the CFTC (US), NFA (US), the FCA (UK), the Monetary Authority of Singapore and also the Dubai Financial Services Authority. They offer a low minimum deposit amount and a leverage of 50:1.

The USA has a highly regulated financial services industry. Due to the diverse range of financial product available, there are many different regulatory authorities and licensing commissions tasked with overseeing the financial services industry in America.
The ones most relevant to online Forex trading include the Commodity Futures Trading Commission (CTFC) and the National Futures Association (NFA). These two regulatory bodies oversee the general running of many US-facing Forex brokers.
The important thing to understand here is that, although the US online Forex market appears heavily regulated, this particular regulatory system is more of a system of ethics than a direct legal guideline when it comes to the world of online trading. Online Forex trading is essentially a decentralised industry that operates with no central governing body at this time. Therefore, similarly to many other global territories, it isn’t illegal to trade online if you live in the US. If a broker has the means to accept traders from the US, you may trade with them. It’s that simple. Traders will never be penalised for this action as it’s seen as the broker’s responsibility to ensure that they operate within the legal boundaries of their customers’ residing jurisdictions.
With the above said, brokers that have been approved by the CTFC (US) and the NFA (US) are however seen as “legitimate” and “regulated” brokers that can accept US traders.

Knowing More About Today's Trade and Export Finance

When it comes to business success, one of the main contributors is international trace. Through the help of trade experts, you can make right decisions to help your business gain from extending your operations to other parts of the globe. You can ensure a steady growth of your enterprise by taking advantage of emerging markets and developing nations.

However, when going internationally or globally, you need to follow strict protocols and be meticulously observant of international situations and other variables that directly impact world economy because bigger scale operations always present bigger risks. This is mainly due to fact that a lot of money is usually involved in international transactions and conditions are volatile in different parts of the world.

So, if you're positioning your business for global operations, it's important that you know more about today's trade and export finance. Since the trends are always unpredictable, you should be aware of the basics to know how these trends can affect your business globally.

Additionally, it's imperative to identify the driving factors behind the lacklustre performance and determine how these can impact success with exporting. In cases when there is a slowdown in the world market, you should be aware of what factors that causes the slowdown. Huge difference between the performance of emerging markets and developed economies are also a very important thing to check regularly. As emerging markets are enjoying twice the volume of exports of developed countries this year, some may also be struggling. This is definitely something to take into great consideration if your business is looking to increase both opportunities and profits. Determine where to direct your efforts as there are areas that need more attention and there are certain areas that require only minimal efforts.

If your operations fall under this category, you certainly will need to find a less discriminating agency for trade and export finance. There are several different kinds of agencies and institutions that you can seek help from. They have certain services that are fit you're your business needs.

Knowing some stringent bank rules and regulations is also a huge help. SMEs have been complaining that most banks have such strict regulations that are just a complete hassle and very discouraging. It's a challenge to find banks that are flexible enough to finance their projects.

It is also worthy to note the area that are proving to be key markets. Each and every business has its own way of finding out the good places to invest in. Check out these places and learn more

 

What Makes A Good Forex Broker?

The Forex market is a huge financial network and brokers make very important parts of the process. You will usually need a broker to penetrate the markets and track your trading. Your broker will also help you in important decision as far as the trading goes and can help you invest appropriately to get high returns. The good thing about this trading is that it is global and you therefore have the freedom of choosing a broker from any part of the world as long as you feel safe and comfortable letting them handle your investment.
As important as brokers are, not all of them have what it takes to bring you profits with every currency trade you do. It takes several good qualities and characteristics to make a reliable, knowledgeable Forex broker that will help you rise every way possible. Below are some of the most important things you should look for when selecting a Forex trader.
1. Excellent financial background
It is very important that you take the time to check the asset base of the brokerage firm you choose to work with if at all your money is to be secure and safe. A reliable Forex broker should have an impressive asset base so they are able to last for the long haul and serve all your needs justly. Be very careful with whom you trust with your funds; a broker can make or break your investment, so go for one who has a financial background you can trust in.
2. Reliable trading platform
Forex trading will only be maximized when there is a Forex trading platform that is efficient enough and this is something that your Forex broker should be able to offer you. This is the platform that they will use to receive Forex news, trade, manage accounts and carry out any technical analysis. Considering how dynamic and volatile Forex markets are, the platform should in the least be responsive and quick. You should also get a demo account from your broker from where you can practice Forex trading to sharpen you and make you a little independent handling your investment.
3. Trading account that is user friendly
Trading accounts can come with features such as available leverage, spreads offered, minimum deposits needed for account opening, minimum lot sizes you can trade and funds withdrawal. When thinking of a Forex broker, think along the lines of how accessible your account will be to you. In essence, you should be able to access it and even retrieve your money when you want. Do not let your Forex broker be in full control of your account.
4. Reliable customer service
One other important quality of a Forex broker is customer service that you can fully rely on. Considering that the Forex markets never sleep and runs round the clock 5 days a week, your broker should offer you round the clock customer support. You should be able to reach them for any help or query as long as the markets are running.

Forex brokers are very important elements in Forex trading. To have a smooth experience with your trading, ensure that you start off with a broker you can fully trust to deliver beyond your expectations.

 

Important Questions You Should Ask Your Forex Broker

The foreign exchange market is highly competitive and brokers offer you the means to trade the financial instruments. The Forex brokers offer lots of services and benefits and you may want to consider them, especially if you are just starting with the trading. But even before you think about investing in a potential broker, you want to be sure that they can deliver even beyond your expectations. This you can do by asking several very important questions and evaluating the answers that you get from the Forex professional.
1. How is your company stability? Stability will usually rely on three important elements, client base, financial strength and the company background. The company should have been in business for a reasonable period of time, have enough capital and cash that is well audited and have a reliable client base to keep it solvent. A broker who answers this question along these lines for sure knows what he is doing.
2. Is the company regulated? A good and reliable Forex broker should be registered with the right bodies and should not have any problems, providing you with any details regarding the same. If they extend services internationally, then the company ought to also be registered with the relevant regulators in the given jurisdictions. Remember your risks are more effectively managed when working with a broker that is regulated.
3. How do you obtain pricing? Forex brokers will usually obtain pricing through dealing desk execution or no dealing desk execution. Under dealing desk execution, they are responsible for creating pricing and also executing the orders. In this method, the spreads are fixed and can be higher than variable spreads. This method has restrictions and you should know about any limitations. Under the no dealing desk execution method of pricing, market makers stream the bids and ask prices to the traders via the broker platform. The same market makers also execute investor orders. It is a method that has no restrictions to the traders. Decide which method works best for you so you are able to choose a broker appropriately.
4. Do you have any trading restrictions? Trading restrictions you might face as an investor can be from regulatory agencies Find out as much as you can about anti-hedging restrictions, leverage restrictions and any other additional restrictions your broker may have. After knowing about any present restrictions, then think about how they affect your trading and how comfortable you are with them.
5. What about trading costs? Before you ask, this question, at least have a model on expected transaction frequency and principal you wish to place in your account. Costs will cover spreads, markups, commissions and any other additional fees like margin costs, monthly minimums and inactivity fees. Do your math and decide how affordable and reasonable the Forex broker is according to your expectations and possible results and then make a decision on whom is best placed to help you meet your foreign exchange goals.

When looking for the best forex brokers ask as many questions as possible and compare a few so you are able to make a decision that you will not regret.

 

Knowing More About Today's Trade and Export Finance

When it comes to business success, one of the main contributors is international trace. Through the help of trade experts, you can make right decisions to help your business gain from extending your operations to other parts of the globe. You can ensure a steady growth of your enterprise by taking advantage of emerging markets and developing nations.
However, when going internationally or globally, you need to follow strict protocols and be meticulously observant of international situations and other variables that directly impact world economy because bigger scale operations always present bigger risks. This is mainly due to fact that a lot of money is usually involved in international transactions and conditions are volatile in different parts of the world.
So, if you're positioning your business for global operations, it's important that you know more about today's trade and export finance. Since the trends are always unpredictable, you should be aware of the basics to know how these trends can affect your business globally.
Additionally, it's imperative to identify the driving factors behind the lacklustre performance and determine how these can impact success with exporting. In cases when there is a slowdown in the world market, you should be aware of what factors that causes the slowdown. Huge difference between the performance of emerging markets and developed economies are also a very important thing to check regularly. As emerging markets are enjoying twice the volume of exports of developed countries this year, some may also be struggling. This is definitely something to take into great consideration if your business is looking to increase both opportunities and profits. Determine where to direct your efforts as there are areas that need more attention and there are certain areas that require only minimal efforts.
If your operations fall under this category, you certainly will need to find a less discriminating agency for trade and export finance. There are several different kinds of agencies and institutions that you can seek help from. They have certain services that are fit you're your business needs.
Knowing some stringent bank rules and regulations is also a huge help. SMEs have been complaining that most banks have such strict regulations that are just a complete hassle and very discouraging. It's a challenge to find banks that are flexible enough to finance their projects.
It is also worthy to note the area that are proving to be key markets. Each and every business has its own way of finding out the good places to invest in. Check out these places and learn more about trade and export finance.

 

Smart Ideas Shared By The Experts For Business Growth And Expansion

For most business owners, aiming for their business to last for years and even grow and expand is the main goal. However, it can actually be a huge challenge. If you want to ensure business growth and expansion, it is not enough to simply have a long-term vision but you should have a tangible plan.
You need to determine what sets your business apart. Know your value proposition and what sets your business apart from other industry players. Know why customers should choose you over other companies offering essentially the same products or services that you offer. Companies compete differently. Some outpace the competition by offering lower prices while others have anchored their success upon authority. Either way, your value proposition should be something that only your business can offer customers.
If you let go of that value proposition, there is considerable risk that your company's competitiveness will be undermined. It is also bets to know your ideal customers. Companies that thrive over the long term do so by offering a solution to a specific problem. While it is enticing to pursue almost every potential customer you might come across, that will only spread your resources thin, leaving little value for actual customers who can benefit from your products or services.
Growth entails making decisive changes. And so, know the key indicators for this growth. Since not all changes are worth pursuing, know what those changes are that can bring about true growth.
In order to determine the right answer to that, you have to identify key indicators which influence growth. After determining those, you will need to funnel your resources toward those. Additional revenue streams can make a business profitable. However, there are some revenue streams that are not sustainable over the long term. There are also products or services which may seem great at the onset but do not bring significant revenues.
Additionally, take cues from the competition. Even if you are routinely beating the competition, there are some areas where your competitors are doing things right. Look at what other players in your industry are doing, evaluate their decisions, and take cues from their success. This is very important in business growth and expansion.
Lastly, learn to hire the right people. Your employees are your greatest assets as they often are in contact with your customers and are attuned to their needs. If you do not have sufficient funds, you can cut back on some expenses and luxuries and funnel those funds toward the compensation and development of your employees. This is one of the secrets for ensuring business growth and expansion.

 

Twitter And Video Marketing Techniques

Twitter has become one of the most popular social media platforms out there. Businesses can benefit heavily from Twitter if they know how to utilize it. Video marketing is an excellent tool to use for a business Twitter account as it could help the business gain followers over time. Instead of being an article which discusses how to use video marketing to help bolster one's Twitter account, this article will serve as an inspirational tool to help Twitter users discover some ways they can put video marketing to good use.
#1: Do A Video Series
If you watch television and follow certain shows, you might know that the episodes tend to get more interesting as the series goes on and that more people are tuning in each week to follow that series. It is kind of the same concept with video marketing. Your videos may not be compelling at first and you may not be able to get a lot of followers in the early going. However, as you continue to record and get better with your marketing, you might be able to get more followers for your Twitter account.
You could choose to do a video series on just about any topic. The best recommendation is to select topics that you are really passionate about and that touch upon your business.
#2: If You Are Really Daring, Use Twitter To Build Your Own Personal Character
This is a topic that will be discussed fully in another article. The idea behind this point is you, the owner, are the lifeblood and driving force behind your small business running. Hence, it is important that people be able to see you as someone other than a person who simply tweets messages. You might decide to portray yourself in your videos as someone who loves to dress up in different styles of clothing or someone who can be humorous.
As stated before, this is a daring move just because people may see you in a positive or negative light and your business could fail if you portray yourself in the wrong manner. The rationale behind this decision is to portray yourself as someone who is human and not just a business owner. That way, the potential customers can see your true character.

 

4 Useful Things to Know to Start Forex Trading

Without the right experience and discipline, there is the potential to suffer large losses when trading the Forex market. But, with more thought and a proper plan of action, there is a greater chance of avoiding such disasters. Here are four things to know to become successful in the Forex market:
Define your risk tolerance
To be successful in the Forex market, it is essential to fully recognize the markets and yourself. One of the first steps is to gain self-awareness and clearly define your risk tolerance. This relates to amount you are willing to invest, which should be a figure that isn't too high and won't cause financial problems in the event of a loss. But, still at a sensible amount that makes it possible to complete regular trades in the market. It helps to analyze your financial goals in the process of determining the amount to trade.
Carefully choose your broker
One of the most essential steps for the beginner to get involved in Forex trading is to put in the time and effort to find a reputable broker. A poorly chosen service can lead to any gains being invalidated. Some of the issues to consider include the quality of the customer services, the ability to use the latest trading software and the type of traders the broker is aiming to attract. By carefully scrutinizing reviews on the different traders, it is possible to sign up to a specific type of service that matches the needs.
Begin with small sums
A trader account should start with small sums, and low leverage, while letting it naturally increase with organic gains and experience, not simply to make the higher deposit. There is no guarantee of making greater a profit even with the large account balance. It helps to learn the different trading techniques and only increase the account balance after you have built up a past history of generating profits. There really isn't much point in investing a lot of money if it is almost instantly wasted.
Focus on a single currency
Forex trading can be complex due to the erratic nature of the markets, so it can benefit the beginner to focus on a single currency pair when starting out. By restricting the trading options it is easier to learn and expand the skills before entering the more diverse market practices. One option is to restrict the trading activity to your own nation's currency, or you can go with the most widely traded or liquid pairs, which is a popular option and followed by both the advanced and beginner trader.

If you do not enough time to analyze every aspect of the financial market you can search any reliable Forex signals service provider. For example, by making use of the Preferforex Forex trading signals service you get access to a trusted brand among the Forex trader community. You can compare with other sites on the basis of profit consistency, regular performance update, SMS facilities and other aspects

 

Knowing More About Today's Trade and Export Finance

 
When it comes to business success, one of the main contributors is international trace. Through the help of trade experts, you can make right decisions to help your business gain from extending your operations to other parts of the globe. You can ensure a steady growth of your enterprise by taking advantage of emerging markets and developing nations.
However, when going internationally or globally, you need to follow strict protocols and be meticulously observant of international situations and other variables that directly impact world economy because bigger scale operations always present bigger risks. This is mainly due to fact that a lot of money is usually involved in international transactions and conditions are volatile in different parts of the world.
So, if you're positioning your business for global operations, it's important that you know more about today's trade and export finance. Since the trends are always unpredictable, you should be aware of the basics to know how these trends can affect your business globally.
Additionally, it's imperative to identify the driving factors behind the lacklustre performance and determine how these can impact success with exporting. In cases when there is a slowdown in the world market, you should be aware of what factors that causes the slowdown. Huge difference between the performance of emerging markets and developed economies are also a very important thing to check regularly. As emerging markets are enjoying twice the volume of exports of developed countries this year, some may also be struggling. This is definitely something to take into great consideration if your business is looking to increase both opportunities and profits. Determine where to direct your efforts as there are areas that need more attention and there are certain areas that require only minimal efforts.
If your operations fall under this category, you certainly will need to find a less discriminating agency for trade and export finance. There are several different kinds of agencies and institutions that you can seek help from. They have certain services that are fit you're your business needs.
Knowing some stringent bank rules and regulations is also a huge help. SMEs have been complaining that most banks have such strict regulations that are just a complete hassle and very discouraging. It's a challenge to find banks that are flexible enough to finance their projects.
It is also worthy to note the area that are proving to be key markets. Each and every business has its own way of finding out the good places to invest in. Check out these places and learn more about trade and export finance.

Top 10 Myths About Forex

Forex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another.
Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there also many myths surrounding the foreign exchange market:

1. Forex trading is easy. Many people that want to dive into the world of the foreign exchange market believe that the Forex trading is easy — you just read a book or two and then you will be able to earn daily profits with just 2-3 hours trading daily. Others think that they can buy a profitable strategy and it will make them rich in Forex. In reality that’s just a myth. Succeeding in Forex isn’t easier than mastering any other profession — it takes time, money and a lot of practice.
2. "I will make money in Forex, if I can trade stocks successfully." Success in stock market doesn’t imply that you will get success in Forex market — there are many differences between trading stocks and the spot currencies. First of all, Forex market requires a lot of hard work and dedication as this market is open for 24 hours a day. You cannot just sit in front of your computer for the whole day and night, so the best way is that you should find the most suitable time periods for trading. Second, “buy&hold„ strategy simply won’t work in Forex market. Third, you don’t have that much information about currencies as you can get from the companies’ reports and statistics.
3. "I can make profit whenever I want if Forex market is open 24 hours a day." Once again, you won’t be sitting in front of your PC for the whole day to be able to trade 24 hours. You’ll have to develop automated trading software to get the advantage of 24 hours a day working schedule.
4. "I can be a successful Forex trader just following someone else’s signals." Many beginning traders get burned by the blind signal-following. That’s like putting away the whole responsibility for your actions to someone else. That may sound cool, but in reality you end up with the huge losses. Learn to rely on your own knowledge and skills. Remember that there were no great signal-followers in any financial market.
5. No commission is to be paid in Forex market. You only have to pay the spread, but you don’t have to pay the commission. And what’s spread? It is the difference between the buy and sell price of the currency pair at the same moment. You may end up with the major part of your profits in the broker’s hands if you plan to rely on the short-term trading.
6. Forex is a scam. Some skeptics and disappointed traders think that Forex is just some new fad to scam people for their hard earned money. Although there are many scams that are hiding behind the "brand" of Forex, that doesn’t mean that the Forex itself is a scam. There are many institutional Forex brokers, regulated Forex account managers and other solid companies in the market to whom you can trust.
7. "I need to exactly predict the market outcome to be profitable in Forex." There is no scientific method to know something in advance in the market with a 100% certainty. There would be no Forex market if you could know the exact currency rates beforehand. Trading is not the game of certainties; it’s a game of odds. One of the first things that new traders learn is to think in the terms of probabilities and risk-to-reward ratios.
8. "I need to use a very complex strategy to be successful in Forex." It’s a popular myth, in which many on-line sellers would want you to believe. The main requirement to be successful in Forex is a self-discipline and money management. There are many traders that make consistent profits with rather simple and old strategies.
9. "I need to have a lot of starting capital to get profit in Forex." Big capital investment won’t help you in Forex. You don’t need a lot of money to diversify in currencies and you can’t move the currency rates with your trading orders (you’d need billions of dollars to do that). Actually you can trade with a very a little capital, because Forex trading is almost always leveraged with the broker’s money.
10. Forex is gambling because it’s completely random. Although there is no certainty in Forex (as in any financial market) it doesn’t mean that it’s completely random. And it’s certainly not a gambling, since your success in this market depends mostly on your skills and experience, not on your luck.

Knowledge is power — so it’s better for you to learn distinguishing some stereotypical myths from the real thing. Don’t fall for the promises of getting some easy profits in Forex, but don’t be afraid of the market just because some people think it’s not possible to earn there. Be rational — this quality will help you either if you are going to trade in Forex or not.

Forex: What Should You Remember as a Beginner?

It has been quite a while since I have been researching on forex before I finally start practicing it. During the course of the research I came across a number of articles focused on the tips of forex trading and here I am sharing the some of them. It is important to go through these tips as forex has been a cause of huge losses for lesser disciplined and inexperienced traders and its only advisable that you do your own homework before joining the bandwagon. Listed below are a few ways in which you can avoid trading hassles:

Know yourself as a trader

Know yourself properly in order to anticipate your tendencies as a trader. Experts are often of the opinion that in order to know the market, you need to know yourself first. One of your crucial responsibilities in this regard would be to ensure that your capital allocation and risk toleration are not either lacking or excessive. Have a thorough awareness of your financial goals in a bid to analyze the level in which you can tolerate risks.

Have well-defined goals

Make sure that you are defining your financial goals properly. Once you are completely aware of what exactly you want to achieve from trading, you will be better able to chalk out your plans. What exactly are you trying to do with forex? Are you heavily dependent on trading? Or is it just a way to generate extra earning? Once you are completely aware of your trading goals you will have to determine the timeframe within which you are trying to achieve these goals. Would you be able to complete your entire learning, which also entail elaborate trial and error methods - within the stipulated time frame?

Start with small amount of money

It is important to ensure that you are starting off with smaller sums. Make sure that the account size is increased by organic gains and not by greater deposits. There are several traders who are led to believe that larger accounts entail chances of making greater profits. However, you should also remember that risks of losses are equally greater as well. I believe that if you are able to keep your account size big by means of your profits made in the trade, its fine. However, there's hardly any point in pumping in money in to an account which is not really yielding any cash.

Choose your broker wisely

Be careful enough to choose your broker wisely. No matter, how frequently traders commit mistakes while choosing a broker, it is very important to remember that a bad broker can nullify all your hard work involved in trading. Make sure that the broker's software suits your requirements perfectly. The broker should allow its traders considerable time to practice with a demo account. Efficient and readily available customer services are also a key feature of an ideal broker.

Have emotional control

Have control over your emotions. This is perhaps one of the few major battles which traders have to win. Emotions like euphoria, greed, excitement nervousness are quite commonplace in the world of trading. Traders, at the end of the day, are human beings and as such are quite vulnerable to these emotions. However, you need to realize that you simply cannot let any of these emotional excesses overwhelm you. So it is always advised that investors start with small amounts in order to minimize chances of risks so as to fulfill their long term goals. Initially we should be able to get a hang of how we might end up feeling if we suffer losses. Needless to mention, its definitely easier to deal with smaller losses. The more we are ready to give ourselves time, the better are we able to minimize the emotional impact of heavy profits and losses. Excess of any of these emotions might end up clouding our trading choices in a major way.

 , a well-known industry blogger, is enthusiastic about sharing valuable tips on Forex - his newfound love. Most of blogs act as a kind of 'forex tutorial' for readers.

Does High Frequency Trading Affect Forex Traders?

The short answer to the title of this article is: yes. However, it’s not a show-stopper if you understand the rules of the game.
Everyone has seen it on TV documentaries. The large grouper or shark swimming lazily as a host of smaller fish hover nearby waiting to scavenge some crumbs when the big fish feeds. However, if those small pilot fish, they can become part of the meal. When it comes to Forex high frequency trading, retail traders become the meal. Indeed, if they choose to participate in high frequency trading, they swim in dangerous waters.
Trading is all about processing information, both in and out. In the 19th century, the famous banker-investor, Barron Rothschild, was asked how he managed to always be invested in the right companies at the right time. His response was: “carrier pigeons.” Indeed, he was able to obtain information quicker and more broadly based than others. Well, that was using 19th century technology. Move ahead to the 20th century. When I was a Physical Commodity trader, I remember having to place long distance phone calls or even telegrams and having to wait hours for some important trading information. Today’s carrier pigeons are digital and fly near the speed of light.
High frequency trading strategies are usually extremely short holding periods - sometimes for just seconds. These HFT computers are hooked up directly with the market for receiving instantaneous data streaming, order executions and linked with large bank lines of credit. Transaction fees are negotiated to bare bones and the bid-ask price spread is much tighter than retail traders could ever find. It’s seamless, super-fast and only for the big money players such as institutional and fund traders.
Incoming data is processed, analyzed and trades executed by super-fast computers. Believe it or not, these algorithms gather news from thousands of sources, identify keywords and figure probabilities in microseconds. Even if a retail trader receives the same information at the same time, the HFT computers have already digested the news, chosen a position, executed the trade and closed out with the mini profits before the retail investor finishes reading that very same information. Behind those algorithms, are some of the top minds in the world - mainly physicists - who specialize in sophisticated new probability models. Indeed, its space age trading with a space age price tag.
Needless to say, it takes a large investment in infrastructure to develop proprietary trading algorithms, super computers and gaining the access to have them placed close to the action (shortens transaction time). But it’s not as sinister as it may sound. We can even go so far as to say that these high frequency traders are very similar to the market makers and specialists in other exchanges. They provide liquidity and volatility - both good things for all traders, large or small. However, playing with the big fish is not a good idea for the small fry.
So, the best strategy for the retail forex trader is to stay clear and use a different strategy. To compete where they have an edge or an advantage, retail traders shouldn’t try to compete with HFT at their game. Rather, they should play their own game where they have an edge. There are many other strategies the retail investor can use successfully. And don’t worry about so called market manipulation as the Forex market is so huge that there are plenty of crumbs for all. No need to take on the super scalpers unless you can afford the infrastructure and bank lines of credit to play their game.
  
With thirty five years of professional trading experience-and still trading   is a trader, trainer for major institutional Investment companies and the recipient of many awards. He is known as the foremost expert in price Behavior He is now the principal of TrainingTraders.com and developer of the only Price Behavior proprietary trading software used by many major Investment institutions. For more information, www.trainingtraders.com

Time to Trade Gold?

Here is a fun fact: spot Gold has made a larger range in February 2016 than it did during any other month since August 2013, which is two and a half years ago. It seems as if volatility has returned to this market, and volatility means traders have a good chance to make some money!

Most Forex brokers offer trading in spot Gold, or even monthly Gold futures contracts, which are both essentially just as good as each other as a means to speculate on Gold. That means that whatever broker you use, the option to trade Gold is probably there for you if you want.

As life seems to be returning to the Gold market, let’s see if it is really time to trade Gold.

Gold’s Recent Record

Gold gives a special excitement to a lot of people when they buy it. If that describes you, then you should try to think about Gold less passionately. Think only about the price fluctuations, not the metal itself, try to imagine you are buying or selling something dull like aluminum! Unfortunately a lot of traders lose their heads over Gold and begin to trade emotionally rather than rationally

Since the U.S. Dollar was completely taken off the gold standard in 1976, the precious metal has floated freely against the dollar. Gold has made two astonishing bullish trends against the U.S. dollar since then: firstly in the late 1970s, and then again from 2002 to 2011 when it rose from $275 per ounce to more than $1,900! Many economists believe that Gold functions as an alternative “store of value” to fiat currencies such as the U.S. dollar which are entirely debt-based, and is bound to rise in relative value during periods of currency debasement, such as is arguably occurring right now. If so, it might be time to trade Gold.

I have always believed that traders can make money from the markets most easily by following trends and using fairly tight stop losses. In Forex, a method that has worked well over the years when trading USD currency pairs is to trade in the direction of the price over both the previous 3 and 6 months when it is not conflicted. Although Gold against USD is often considered just another currency pair, it tends to move more quickly and more strongly than Forex currency pairs. We can see this by looking at the results of a back test conducted using historical data from 1998 to 2014. In the test, Gold is bought or sold on a weekly basis and held for one week, depending upon whether the price at the weekly open was higher or lower than it was 6, 3 and 1 month previously.

The results are shown in the table below:

Back Test Analysis

There are two key points that are revealed by this back test of historical data:

1. Short Gold is a problematic trade, statistically, and was not profitable on this momentum basis, regardless of the look back period used.

2. Long Gold was profitable on any look back period, but the best results per trade were achieved when the price was higher than it was 1 month, 3 months and 6 months previously, i.e. when momentum was extremely strong. This is unlike Forex currency pairs, which tend to get overbought when momentum is very strong.

If we apply this analysis to the current market situation regarding Gold, it can be seen that now is definitely a good time to trade Gold, as its price is above where it was 1 month, 3 months, and 6 months ago. This is the kind of market situation that produced the best results when applied to historical data.

Day Trading Gold

Day trading Gold can be very difficult on short time frames, and feels quite different to Forex although there are some similarities. The process of price discovery can be very difficult with Gold, as nobody really knows how much Gold banks are holding as bullion. Additionally, the spread in trading Gold is relatively higher than the major Forex pairs, so it costs you proportionately more to trade it. For these reasons, it is usually going to be much easier trading Gold on the H1 or H4 time frames.

An interesting thing about Gold that has been noted is that there is a pronounced statistical tendency for the price of Gold to fall at around the time London opens for business, and to rise at around the time New York opens for business. Therefore the New York open could be the best time to trade Gold right now.

Conclusion

The technical evidence suggests that Gold is in a strongly bullish upwards trend that is more likely than not to persist, especially while the price is above where it was 1, 3 and 6 months ago. This means that it is probably a good time to trade Gold right now. Entering long Gold trades when fairly tight stops are available and aiming to take most profit at reward to risk ratios of perhaps 2 or 3 to 1 whilst leaving some of the trade to run, is likely to be a successful trading strategy.

The Seven Deadly Sins of Trading

Trading is a wonderful business. No inventories to worry about, no employees, nobody to answer to, you can set your own hours; the list of benefits goes on and on.

However, as in any other business venture, you must know what you are doing if you are to have any chance of success. Trading, as in any business venture, is fraught with danger. Bad trading habits can wipe out those that do not take the proper precautions very quickly. Success comes from hard work, dedication, and long hours of practice and study.

As traders, for us to have a shot at consistent profitability, we must be disciplined and adhere to a strict course of action, remain focused, and avoid the...

7 Deadly Sins of Trading

Sin #1) Trading without a plan.

Most traders attempt to trade without a plan. They hear something, a rumor perhaps, or they think some big market moving event is about to happen and they ‘just know’ which way it will move. Well, I suppose that is fine if you have a plan, a reasonable course of action. But alas, most traders seldom do.

Most commonly, traders find themselves with fabulous paper profits but then watch it all evaporate and turn into a nasty loss! That would never have happened if they had a plan.

If you want to be a trader, you need to create a trade plan for yourself. Your plan should cover:

a) A method of how and where you are going to enter the market.

b) How much risk to take on each trade?

c) What percentage of account equity to risk per trade?

d) What to do when a trades goes wrong. Where do you exit?

e) What to do when a trade goes right. Where do you exit?

f) How long to give a trade to start working before pulling the plug on it.

g) What are my odds/probabilities of a successful trade? A losing trade?

Sin #2) Averaging Down a Loss

If laddering into a multi-contract position is not in your trade plan, then don’t even think adding to a losing position! When you are dealing with the type of leverage available in Forex and futures trading, this ‘sin’ could be, and has been the financial ruin of many traders! Take the loss and move on.

Sin #3) Over Exposure

The third sin of trading is tied directly to our personalities as traders. We traders tend to be ‘A’ type personalities. We have a tendency to get a little cocky as our wins pile up, and to think we're immune to the sins of trading. We get a little too over confident for our own good and this can adversely affect the risk parameters of our trade plans. Never increase your trade size as a percentage of account size. Once you increase your percentages, your profits will increase exponentially, but so too do the losses. Just don’t do it! I’ll save the ‘Math of Trading’ for another article.

Sin #4) Over Playing Your Hand

I’ve been found guilty of this trading sin many times as I’m sure most other traders have also.

You are in a nice winning position and price reaches your target and you wait to see if it will keep moving in your favor - Greed has kicked in!.

It keeps going through your target, you’re feeling warm, fuzzy and smart and then, without warning, it’s moving hard against you. What a shame! Your target was reached, you had nice profits, but failed to honor it and take the money. Now you have nothing (or worse). You turned a winner into a loser – don't let greed take the wheel.

Sin #5) Leaving The Money

There is nothing wrong with allowing your account to grow. But you also need to remove a percentage of your profits on a regular basis as compensation for your hard work. You also want to be at the point where you are playing with ‘the house's money’ as soon as you can. Think of your original stake as a loan. You want to get that loan paid off just as quickly as possible so that all further withdrawals are all yours! Let’s not even mention that from that point on, your original risk capital is now safe and sound, you are now financially ahead, trading with winnings. Ah, what a feeling!

Sin #6) Lack of Patience

A tough principle for most people, let alone traders. Lack of patience. The patience to be able to sit, wait, and watch for your signal or set up before initiating a trade is an absolute prerequisite! If you just start ‘punching in’ anywhere because you think the market is going to go up, or you think it’s going to tank, you have just crossed that dangerously thin line between a disciplined trader and a self-destructive gambler. We all know how that scenario will play out over time.

Sin #7) Switching Your Strategy During Game Time

This I think is the worst possible ‘sin’ a trader can commit. When the market is open and you are watching every tick, the combination of adrenaline and emotion can really impair and affect your judgement. Apart from having a trade plan and following it, plan your trades and strategy while the market is closed. That is the time when you can plan rationally and apply sound judgement to your analysis. During the trading session, unless there is a very obvious change in the marketplace, don’t alter your game plan. Doing so is usually the result of an emotional, impulsive reaction to some minor event and you’ll end up undoing all your rational planning. Make your plan and stick with it!

May the ‘Gods of Odds’ shine favorably upon you – and may the sins of trading be permanently banished from your life!

The Gold Fix

During 2011, when Gold was right at the peak of its amazing multi-year bullish trend that saw it rise in value from $300 to almost $2000 per ounce, I was having a drink with a couple of fund managers. One of them raised the subject of Gold and said what a shame it was that so many of the people you talked to with a keen interest in and knowledge of Gold were so irrational in their opinions. He gave as an example a Gold specialist he had been speaking with only that morning, who had been trying to persuade him that Gold was on its way to $5,000 per ounce. I pointed out that Gold had already risen by much more, but he just smiled at me, and as it turned out he was right. Then he went on to say something that did stick in my mind: “If you had simply bought Gold every evening, and sold it the next morning, you’d have made a ton of money. This guy proved it to me.”

Was he right?

Gold & Time of Day

We can test out this theory by performing a little experiment. Let’s calculate the average price gains or losses we would have enjoyed if we had bought Gold at different times of the day from 2001 until the end of 2016. The fund manager was using London time in his example, and we will use Universal Time (Greenwich Mean Time) which is basically the same thing.

The first test is holding Gold for a period of 4 hours. On average, Gold fell by 0.01% from Midnight to 4am. Buying at 4am, 8am, and Noon would all have produced an average price rise of 0.01%. Buying at 4pm would have produced an average price rise double that, at 0.02%. Buying at 8pm would have produced an average of no change.

So far, it would seem as if the fund manager’s statement was right at least in the sense that Gold has tended to rise towards the end of the day. Let’s take it a stage further and calculate the average of a 16 hour holding period. This would allow for Gold to be purchased at 4pm and sold at 8am, so we can really test our hypothesis with some averaged results.

Buying at Midnight and selling at 4pm produced a gain of 0.02%. Buying at 4am and selling at 8pm produced a gain of 0.05%. Buying at 8am and selling at Midnight produced a gain of 0.04%. Buying at Noon and selling at 4am produced a gain of 0.03%. Buying at 4pm and selling at 8am produced a gain of 0.2%. Finally, buying at 8pm and selling at Noon produced a gain of 0.01%.

So in this analysis, the fund manager’s belief is wrong. It might have been right for the period represented by the few years leading up to 2011, but we can actually see that buying at 4am and selling at 8pm would have produced the best results, at least on average. However, he was right in that buying towards the end of the day would seem to produce the best short-term results.

As it happens, you would not be able to make any money with this strategy of buying and selling every day, because the retail spread in Gold is equal on average to about 0.05%, which was the maximum profit obtained.

Does this investigation teach us anything about how time of day can be used as a factor in trading Gold?

The Gold Fix

The spot Gold market is quite unusual as there is a process called the Gold Fix that happens twice each weekday, at 10:30am and 3:30pm London time. The 11 major banks dealing on Gold bullion are joined by conference call, and they undergo a process which ends with their agreement of a representative rate for the price of spot Gold. Essentially, what happens with the Gold Fix is that each bank matches all their buy and sell orders and derives a price from that, and then the process is repeated between the banks, giving an overall representative price which reflects an equilibrium of all trading orders.

Conclusion

The first turn of an hour after the final Gold Fix is at 4pm London time. You cannot get further away from a Gold Fix than 4pm. Could it be that the market, knowing the fix is cleared and the price is out of danger of any possible manipulation, rushes to buy at 4pm, accounting for our finding that the largest short-term move begins at 4pm?

The truth cannot be settled easily, but it may be far more prosaic. 4pm London time is usually 9am New York time, when the world’s great financial center opens for business. This time window, when both New York and London are open, sees the greatest volumes statistically in almost all global assets. Therefore the 4pm rush might just be a case of having the most crowded room which would turn to produce the strongest price moves. Since 2001 the general direction of the price of Gold has been upwards, so it may be a tendency of directionality in general tending to begin at about 4pm.

Trading Currency Through Online Forex Brokers

Access to foreign exchange (forex), the most extensive market on the planet, is generally through an intermediary known as a forex broker. Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance.

Financial institutions are generally the most influential in the forex market through high-volume, large-value forex currency transactions. Historically, banks enjoyed monopolistic access to the forex markets, but through the Internet, any forex speculator can also enjoy 24 hour access to the market via a forex broker.

Secure web connections today allow many forex traders to work from home, where ready access to news and other technical advice informs decisions on what forex positions to take. Similar moves are being made by stock brokers, who are also moving out of banks and other traditional institutions.

Your needs in the market will influence your choice of forex broker. Online forex brokerage firms, known as houses, provide those new to the forex market with detailed research, advice and simulators to learn how to use their forex trading tools. The experienced online forex trader is catered to by other broking houses, with in-depth advice, but less focus on forex trading instruction based on the assumption that you are familiar with the forex market. To make an informed choice, it is advisable to trial several differing online forex broking houses and their trading tools to find the best fit for your needs.

Avoiding Forex-Related Frauds and Scams

A lot of people have been 'burnt' from scam operations on the Internet. Their sites may look so perfectly legitimate that you doubt whether they would have gone through all that trouble building a trading platform just to steal your money. Beware.
The first thing I look for is the geographical location of the broker. If I find that they are based in a country where the financial industry is, in my opinion, relatively unregulated and under-developed, I quickly forgo signing up. This is terrible news for honest brokers in those countries, but your job as a trader is to protect your capital. If you lose that, then you cannot trade. The onus is on them to convince you that they will do the right thing by you as an investor.
I started out with an Australian broker. Currently I am using an American one. I have not tried UK-based brokers but the British financial industry is one of the best. Companies that are based in countries such as Japan , Germany and France are probably just as good too, if their website speaks your language.
Notice any license numbers that they may have registered with regulatory bodies that act like government watchdogs who oversee the finance and investments industries. These are organisations that impose strict rules to safeguard your investment. Some of these rules may include the requirement that brokers segregate all customer funds from the operational funds of the business. Your money is required to be put in highly-reputable banks and the funds are only withdrawn from these accounts upon specific withdrawal requests.
Take note that there are some fake regulatory bodies being thrown around in cyber-space as well. Take a look at how long they have been operating for. Try and search out any reviews or comments made about them. See if you can find forums where traders have discussions about their brokers.
Below is a list of things to keep in mind to help you avoid being a victim of a scam:
Stay Away From Opportunities That Sound Too Good To Be True
There are people who may have just acquired a large amount of money just and recently are the same and are shopping around for safe investment vehicles. These may include retirees who have access to their retirement funds. It is understandable why retirees would be drawn to 'high-return, low-risk investments'. This is also what makes them very vulnerable. If you identify yourself to be one of these people, be careful. A lot of deceitful characters are after your money. Furthermore, only allocate a tiny amount of your money to trading until you can start growing it. Not all people can trade successfully, so it is a venture you should take on haphazardly. It is your life savings at risk.
Avoid Individuals Or Organizations Who Claim To Predict Or Guarantee Large Profits
Any form of trading is hard. Trading currencies is no different. Be wary of statements that make it sound easy. Statements like:
"Whether the market moves up or down, in the currency market you will make a profit";
"Make $1000 per week, every week";
"We are out-performing 90% of domestic investments";
"You'll make returns of 70% a year";
"Here is a no-risk strategy".
If they could make such returns, why would they even bother letting you know about it.
Be Wary Of Companies Who Downplay Investment Risks
Hold your wallet tight and zip up your purse when companies say that written risk disclosure agreements are routine formalities imposed by the government. Watch out for statements like:
"With a $10,000 deposit, the maximum you can lose is $200 to $250 per day";
" We promise to recover any losses you have ".
Be Wary Of Companies That Claim To Trade In The 'Interbank Market'
Do not believe it when some people say that they have access to the 'Interbank market' or that they can give you access to trade in that market because that's where bargain prices can be obtained. This is not true. The 'interbank market' is not a place, it is not a physical building. It is simply a loose network of currency transactions that are negotiated between big financial institutions and other large companies.
Ethnic Minorities Are Often Targeted
Ethnic newspapers and television 'infomercials' are sometimes used to attract Russian, Chinese and Indian minorities. Sometimes these ads offer so-called 'job opportunities for account executives to trade foreign currencies', whereby the recruited 'account executive' is expected to use his own money to trade currencies and would often times be encouraged to recruit members like their friends and family to do the same.
Seek Out The Company's Background
Check any information you receive to be sure that the company is who they claim to be. If at all possible, try and get the background of the people operating the company. Do not rely solely on oral statements and promises made by the company's employees.
If You Are In Doubt, It Is Not Worth Risking Your Money
If after trying to solicit information and at the end of it all, you are still in doubt about the credentials of a particular company, my suggestion is to start looking elsewhere.
You may find further information by contacting government 'watchdogs' because they keep up to date with trends and reports regarding scams and other fraudulent activities. Please check the resource section of this site for the information of organizations that regulate the securities industry, sorted by country. There is also a list of brokers that you may want to look at.
This is an excerpt, modified from the book: The Part-Time Currency Trader.