Forex Trading: Direct Dealing versus Brokers

Guest Posting by Bobby Quill

 When it comes to trading in the foreign exchange market, there are two main ways  in which dealer institutions can trade with each other: direct dealing and through forex brokers. These two methods are very different from one another.

The main market makers publish a running list of the prices at which they will buy and sell the major currencies. These rates are featured to all market dealers on their computer screens. In addition, the dealer reveals his prices and both dollar rates and cross-rates are shown. While the computers are updated regularly throughout daily FX transactions, the prices are only indicative. Direct dealing is when a trader or customer contacts the bank directly to get a firm price for the currency they wish to buy or sell. Major market makers reveal an updated list of main bids and offer rates which are displayed on computer screen.

On the other hand, dealer institutions can also go through brokers. Brokers provide the best price available among the quotes. Through a broker, a market maker or dealer can make a quote for only one side of the market instead of both sides. Brokers or dealers may also use electronic brokerage systems, such as Finexo forex.

Individual Investing or Forex Robots?

If you’re involved in forex trading, you will have to decide whether you want to rely on automated systems, such as forex robots, or the traditional method -- by reading forex indicators and making decisions based on your knowledge and instincts.

There are pros and cons to both methods. Forex trading software and robots automate the process and make trades based on set parameters. This is a good option for many new forex traders who want to get involved in the trading world but lack the knowledge to make trades on their own. There are also cons to relying on a robot or automated system. For one, you can lose control of your investment by putting faith into an automated system.

However, the traditional method is for experienced traders. Going the traditional route for 4x trade transactions increases the potential risks but also the possible rewards. While it is not for everyone, it is a strategy that offers the biggest potential gains.

Trading Software for Expert, Active Traders

Guest Posting by Bobby Quill

Designed to facilitate day trading of stocks and financial instruments, forex trading software is available for both novice and professional traders. The market is flooded with various types of day trading software, including data, charting and trade execution software. If you’re a novice trader without a clue about forex signals and exchange rates, consider signing up for practice software or software designed for beginners. However, if you’re an experienced trader, check out ForexTrader PRO.

Expert traders are not afraid to take risks -- after all, when it comes to forex trading, risk is considered a major part of the equation. The good news is that ForexTrader PRO is engineered for professional traders who understand and practice this aspect of the art.

According to several review sites including Finexo Forex, ForexTrader PRO is a versatile trading platform that allows traders to program settings and controls to accommodate their specific trading needs. It offers professional level charting, helpful trading tools and detailed forex research.  When it comes to charting features, this advance software offers multiple chart types and more than 70 technical indicators. With the ForexTrader PRO, experienced traders can easily analyze forex exchange rates and create personalized charts. Other important features of this software include flexible settings, layout creation tools and pre-set layouts. What’s more, analysis and up-to-date information within the software is provided by traders and Dow Jones. This means that the trader is always up to date on important market developments.

Keep Your Economic Indicator Calendar Close By

Guest Posting by Bobby Quill 

The forex, online is where it all takes place because it’s an electronic market. Moreover, knowing the release dates for economic indicators is very important. A desk calendar, as simple as it sounds, can perform wonders. Just make sure to write in the release time too. Everyone invested in the market with self-awareness pays attention to these dates and the financial data they bring.

Such collective and attentive anticipation to forex news means that everyone watching and waiting is also prepared to react at more-or-less the same time. These circumstances also mean that economic indicators have stored within them the potential to create great price movements and volumes.

Economic indicators have both direct and indirect effects on the markets. When it comes to forex trade, remember that not all countries release economic indicators in an equally steady manner. But that doesn’t change the fact that every trade made on the forex is two-sided.

The Breaking Forex Trading News

Investors have debates of over the reliability of forex news, signals, and trading tips and tricks.  There is a lot of information floating around out there on the web, and where the best place is for one to invest their money when it comes to foreign currency trading is anyone’s guess.  Trying to follow all of this information is also complicated and time consuming task that could really drive a person insane.

Thankfully, there are companies out that help do the research for you, like forex trading etoro, and can provide you with a news letter that has the most relevant information.  If one wishes to do the research on their own then there are also many other websites out there, like Bloomberg.com and MarketWatch.com, that provide forex calendars.  These calendars contain a schedule of upcoming news and events that could affect currencies rates in various parts of the country.  With this information investors have a better chance of making strong investment predictions as to where to invest their money, and which markets will be the most lucrative at the time.  Investors can also keep the follow of information focused on markets they wish to appraise rather than being flooded with information.

Other trading experts make easy forex investment predictions by watching the news on a few key economic reports.  For example, if they traded major pairs, which all involve the U.S. dollar, they may also want to keep a sharp eye out for:

• Federal Reserve Meetings
• The Non-Farm Payrolls Report
• G-7 Meetings

Keeping a close eye on these few reports, rather than trying to research all the forex information out there, can have huge pay offs, for all this studying can come in handy if one spots a currency that is headed for long-term appreciation or depreciation. Then, due to the leveraged nature of forex trading, the investor borrowing money from the broker can purchase a larger position, and thus hitch a ride on a currency that is headed one way or another.  In this case, unlike in school, doing your homework can earn you more than a good grade; it can earn you cold hard cash.

How to Find a Currency Trading Broker that Won't Break the Bank

Some forex brokers are all about the big clients.  To them, the “little guy” isn’t worth their time and effort – even though most of the people who invest are “little guys”!

But you don’t have to let snooty brokers get you down.  In fact, with a little research, you can find a currency trading broker that won’t expect you to invest thousands of dollars every month. If that’s the kind of broker set-up that you have been looking for, look no further than Finexo.  For just $25, you can open up an account – and start trading in a few short minutes!

So, what do you get with your account?

You get many of the same bells and whistles that big-time brokers provide.  Finexo comes with the convenience of one-click trades in real time, a slew of statistics that can help you make educated decisions, professional analyses, and even a glossary of forex terms.

If you’re brand new to the forex world, you can even set up a practice account – that doesn’t use real money.  That way, you can get your feet wet without losing your shirt!
See?  You really don’t have to be one of the “big guys” to get special treatment!

Digital Savings

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Whether you are looking to invest in an upcoming business opportunity or take advantage of the savings offered at YuDeal, this is a company worth watching.