• Get Started

    • Month: April 2018

    Advantages of Using a Forex Demo Account

    A forex demo account is an option available to traders to test their skills in the forex market before actually putting their money at stake. This is really helpful for beginners and amateur traders as they get to experience live trading without risking a penny. Most forex brokers offer traders the opportunity of using free forex demo trading accounts to try out their hand in the forex market. Here are some great advantages that forex traders can benefit from when using a demo account.

    No Monetary Transactions

    After opening a forex demo account, a trader can experience the live trading market without having to spend a single penny. Opening the account is absolutely free and does not require the trader to pay anything for using it. With no money involved, the trader does not have to fear any losses and can trade using any strategy or trading technique. This allows the trader to freely trade with no stress or worry regarding monetary issues. With no monetary transactions involved, the trader can better experience trading and can trade with ease.

    No Risks Involved

    There are no risks involved when using a forex demo account to trade in the market. Your money is not at stake and you do not have to fear any kinds of losses while trading. This gives you a free hand to try out different trading techniques and observe the results. You can push your limits and opt for the most dangerous trading transaction with no fear of loss.

    Virtual trading will allow you to observe what kinds of techniques will be profitable in the trading market and what may backfire. This way, you will learn much more than someone who directly opens a real trading account and begins trading with money. Their inexperience can get the best of them and they may end up in huge losses as a result.

    Full Functionality

    A demo account will have all the features that a real trading account will have. There is really no difference in trading with a real account and a demo account. With a demo trading account, you will get to experience all the aspects of trading forex that a real trader would get. Because of this, you will be able to experience trading in the live forex market in the true sense. You will learn a great deal and be able to gain more knowledge and experience in the process.

    Great for Beginners

    For inexperienced traders, using a forex demo account is very beneficial. They can trade in the live market and experience all the ups and downs of trading. By practically indulging themselves in the process of trading, beginners can participate in the action and learn how to trade profitably and perform transactions based on the fluctuations and price changes in the currency market. For them, using a demo account will be a rich source of knowledge and experience.

    These are some of the reasons that emphasize the importance of having a demo trading account before trading with a real account in the forex market.

    4 Factors to Consider when Searching for a Best MT4 Forex Broker

    The MetaTrader 4 platform is considered the most popular forex trading platform in the world. It is used by novice and veteran traders alike due to its complete customizability, its flexibility and its full range of trading tools.

    If you are just beginning your career in forex trading and wish to use the MetaTrader 4 platform then you will need to find a leading MT4 broker that can help your trades to be profitable. This forex broker will also guide you on how to use the MT4 forex trading platform to the best of your abilities, providing you with top client support on a 24-hour basis.

     Which Factors Do You Need to Consider?

    When searching for an MT4 forex broker you should consider:

    1. License and Registration

    There is no point in registering with an MT4 forex broker if they are not licensed and registered by a distinguished regulatory body. Forex trading is a risky activity that involves trading real money, so you need to ensure that your money is held in the safest and most secure environment.

    1. Track Record

    How successful is your chosen forex broker? Before registering you should ask your broker for a record of their trades, and they should be willing to show you this information. With a proven track record you can guarantee that your selected broker is well informed about currencies from across the globe and about the underlying factors that influence price fluctuations.

    1. Reputation

    Another area to consider is reputation. What is the feedback from previous clients of this MT4 forex broker? The feedback should be primarily positive and the broker should be renowned for offering superior services to clients. All information provided should be completely up-to-date while the clients’ interest should always be at the forefront of the broker’s mind.

    1. Experience

    The level of experience possessed by the forex broker is another factor to bear in mind. An experienced MT4 forex broker will be informed about the best currency pairs to trade and the best trading strategies to execute. They will also be about to inform you about their forex trading skills and expertise, which will help you during your own forex trading journey.

    Finally, they will be able to guide you when using the MetaTrader 4 to ensure that each of your trades is as strategic and profitable as possible.

    Benefits of IMMFX as a Meta Trader 4 broker

    • IMMFX Ultimate Trading Technology
    • No third party bridges
    • No auto account sync
    • Real-time technical analysis
    • Real time updates
    • EA optimized
    • Competitive pricing

     

    What is Forex? Information for Novices

    Foreign exchange, commonly known as forex, refers to one of the world’s most powerful and unique markets. It concentrates on the major and minor movements in a currency’s value, with traders placing trades on the direction they believe a currency pair is going to go.

    Forex is a term you may be familiar with, but not know a lot about. There is plenty of confusing terminology surrounding this industry, though this should not deter you from getting started in forex. If you play your cards right when trading forex, you could be in a great position to make a sizeable profit.

    Why Forex?

    The eurozone crisis, combined with a turbulent economic climate in many regions across the globe, has resulted in heightened interest in the currency markets as an increasing number of investors seek alternative ways to enhance their income.
    People from across the globe are turning to forex trading as a serious investment technique as it offers the opportunity to increase one’s revenue within a short period of time, regardless of the surrounding economic environment.

    How Does Forex Trading Work?

    Currencies are continuously rising and falling in value as a result of a variety of factors, including trade, surpluses or deficits, interest rates and inflation data. Traders take advantage of these fluctuations by placing trades, betting on whether a currency is going to rise or fall in value at a given moment.
    Currencies are traded around the world and due to the nature of the industry (described as ‘over-the-counter’), forex trading is incredibly fluid. Trading usually takes place through a forex broker – all you have to do is sign up with a reputable online forex broker, download the trading platform and begin your journey to forex trading success.
    A forex trader bets on whether the currency will rise (appreciate) or fall (depreciate) in value. When trading currencies, you must decide whether you want to buy or sell a particular currency, and at which rate.

    What Are the Risks?

    As with any investment strategy, forex trading inevitably carries with it a certain degree of risk. Although there are a number of ways in which you can reduce trading risk, it is your responsibility as a trader to incorporate a number of risk management techniques, whilst always practicing common sense and restraint.

    Interesting Facts about Forex Trading

    Let’s learn some Interesting Facts about Forex Trading.

    The forex market has grown brilliantly in the recent years. Where conventionally, it was transacting around $4.5 trillion per day, at present it is calculated to have a standard daily turnover of $6 trillion, amounting to an estimated growth of 30% since 2011’s daily volumes.

    FX trading is performed by millions of people from across the world daily. This incredibly popular market is operated by a number of trading centers from around the world, based in New York, London, Tokyo, Hong Kong, Singapore, and Sydney.

    Why is Forex Trading so Unique?

    Forex trading is unique because:

    • It has huge trading volumes
    • Its geographically dispersed
    • It operates on a continuous, 24-hour basis

    What are the most Traded Currencies?

    Around 80% of all trading transactions are made on the seven major currencies.

    The most traded currencies market is the U.S. dollar, which is traded by 84.9% of traders. Following the U.S. dollar is the euro, which is traded by 39.1% of online traders. After this comes the Japanese Yen and the British pound which are traded by 19% and 12.9% of traders respectively. Finally, comes the Australian dollar and Swiss Franc, traded by 7.6% and 6.4% of the market.

    Other currencies have entered the trading platform in recent years, including more diverse and exotic currencies such as the Mexican Peso, the Singapore dollar, and the Indian Rupee. They give investors the opportunity to truly diversify their trading portfolios and

    What are the Benefits of the Foreign Exchange Market?

    The foreign exchange market presents endless benefits to investors of all levels, including:

    • Ability to trade at any time and from any place
    • Allows for leverage trading
    • Possesses superior liquidity
    • Low minimum investment
    • Low transaction costs
    • Specialized trading

    Basic Forex Trading Explained on Facts about Forex Trading

    The basic idea behind successful forex trading is to buy cheap and sell high (and vice versa). The first step in successfully achieving this is to analyze the markets using technical analysis. Some investors also perform fundamental analysis, which takes a macro-analytical market approach by following forex news.

    By performing market analysis you can establish which pairs are likely to rise, fall, trade in a range or trade erratically. You can then seek low-risk trading opportunities in the short-term charts, with the intent of making a profit from that trade.

    To become a successful online trader you need to educate yourself about the foreign exchange market. Find a prestigious, regulated forex broker and download the demo trading account to practice, practice, practice.

    Develop an effective trading strategy and stick to it through thick and thin. Together with a trading plan, you will become an established and successful trader with the passing of time.

    Forex Trading with Leverage: Is it Worth the Risk?

    Forex Trading with Leverage is both a positive and negative tool in your forex trading kit. If used wisely, it has the potential to augment the value of your trades considerably. But when used with little control or skill, it can wipe out your entire forex trading account within seconds.

    What is Leverage?

    Leverage is essentially borrowing funds from your forex broker to increase the value of your trades. When applying leverage, if you deposit, for example, $1,000 into your forex trading account and use a leverage ratio of 1:200, you can invest up to $200,000 on your first currency trading position ($1,000 x 200).

    This amount will rise and fall according to how much money is in your trading account at a given moment and most forex brokers automatically adjust the amount of leverage you can apply to a trade based on your current trading account balance. You need a minimum capital (also known as margin) in your account balance in order to apply leverage to a given trade.

    Pros and Cons of Forex Trading with Leverage

    As previously mentioned, leverage is both a positive and negative tool in your trading kit. With the right money management rules, you don’t need to apply too much leverage to a trade, as leverage can be a very risky tool that results in major financial losses with one wrong move.

    For example, if you are using the leverage of 1:100 and have a $1,000 trading account then each pip movement made is worth $10. If your stop loss is ten pips away from an entry and is hit then you have automatically lost $100 – a huge 10% of your entire trading account balance. On the other hand, if a trade travels in your favor then your chances of making major profits on the trading platform are notably increased.

    Despite the advantages, it is advised to tread with complete caution when using leverage. To avoid negatively impacting your trading account it is important to follow a strict money management strategy that applies a maximum risk percentage per trade. If we use the above example if you apply a maximum risk of 2% per trade with a $1,000 account balance and a ten pips stop loss, with a leverage of 10:1 each pip is worth $1, resulting in just a $10 loss instead of $100.

    To Leverage or Not to Leverage?

    Although leverage has the potential to augment your account balance significantly, it can also be very dangerous. As you can see it is important to incorporate a strict money management strategy when trading forex and using leverage. Otherwise, you risk eating away at your forex trading account balance too quickly and destroying your chances of success on the trading platform. Learn more about our Forex Leverage.