The Day Trade Forex System: How to Choose An Online Forex Brokerage Firm
Cynthia Macy
1. Low Spreads In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.
2. Low minimum account openings For those that are new to trading, and for those that don't have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.
3. Instant automatic execution of your orders This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and 'click' is the price that you should get. Don't settle with a firm that re-quotes you when you click on a price or a firm that allows for price 'slippage'. This is very important when trading for small profits.
4. Free charting and technical analysis You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders totrade directly on the charts!
5. High Leverage You want high leverage--the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.
6. Hedging Capability You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!
7. A realistic demo account trading capital balance that reflects the actual dollar amount that the trader will start live trading with. It does the demo trader no good to start out demo trading with a $50,000 account, when in real life he will only start out with $1,000. A forex brokerage needs to offer the trader a demo account starting balance other than the standard $50,000.
After alot of research and personal experience, the firm that I recommend with the above-mentioned benefits is Capital Markets Services LLC (CMS Forex LLC).
Open a free unlimited demo account and start practicing!
The goal of the Day Trade Forex System is to instruct and teach potential traders how to day trade the currency markets and what to look for in an online forex brokerage.
The objective of day trading is to trade the intra day market moves to try to gain small to medium sized profits in any given trading day. This is how this guide will help. Most readers will not have the time or resources to 'position trade' like the major institutions and banks do. They tend to look at the big picture holding onto trades for weeks or months.
The Day Trade Forex System is specifically designed for use with the 1, 5 or 10-15 minute charts, with the goal of taking 5-30 pip profits per trade -- closing bad trades out using tight stops, or hedging any losing trades. The ability to trade right off the charts makes the CMS trading platform our favorite.
We feel that the CMS trading platform offers traders the most features that fit the criteria listed above.
About the author:
Cynthia Macy is the co-author of 3 forex training ebooks.
For more comprehensive trading information, visit her other websites at:
http://www.professionalforextradingonline.info http://www.successtrading2000.com/forex http://www.shortterminvestingsite.com http://www.daytrade-forex.com
The latest information and news on Forex Trading:
[CaRP] Can't open cache file.
[CaRP] Unable to create/open RSS cache file.
Yahoo! News Search Results for forex
Forex Strategy Outlook: US Dollar Rallies Look Promising (Daily FX via Yahoo!...
A strong US Dollar reversal has led our forex trading strategies to go heavily long the resurgent currency, and our bullish dollar bias calls for further gains in said trend-following systems.
Forex Trade Desk Thoughts (TheStreet.com)
Forex values seem less likely to be set on forward growth and interest rate numbers, and far more likely to feed off the risk tolerance/aversion shown each day in equity markets.
Short-Term Forex Technical Outlook: EUR/GBP (Daily FX via Yahoo! Finance)
The British pound continued to weaken against the euro as investors scaled backed expectations for a rate hike by the Bank of England, and the decline in the interest rate outlook may keep the EUR/GBP range-bound over the near-term as market participants weigh the outlook for future policy.
FOREX-Yen retreats as stocks offer risk trades respite (Reuters via Yahoo! Ph...
* Cross/yen rises led by investor short-covering
Short-Term Forex Technical Outlook: GBP/JPY (Daily FX via Yahoo! Finance)
The British pound weaken against the Japanese yen to retrace the advance from the end of July, and the GBP/JPY may continue to hold a broad range throughout the month as investors weigh the outlook for a global recovery.
[CaRP] Can't open cache file.
[CaRP] Unable to create/open RSS cache file.
Yahoo! News Search Results for currencies
CURRENCIES: Dollar, Yen Rise As Stocks, Commodities Tumble (Nasdaq)
Both the U.S. dollar and the Japanese yen rose on Monday, as currency traders sought the safe-haven of low-yielding currencies after a slide in Chinese shares and a weaker-than-expected rebound in Japan's economy.
Currencies: Dollar, yen rise as stocks, commodities tumble (Market Watch)
Both the U.S. dollar and the Japanese yen rise as currency traders seek the safe-haven of low-yielding currencies after a slide in Chinese shares and a weaker-than-expected rebound in Japan's economy.
CURRENCIES: Dollar And Yen Rise As Equities, Commodities Drop (Nasdaq)
A weaker-than-expected rebound by the Japanese economy and a steep fall by Chinese shares translated into gains for the yen and the U.S. dollar, with both currencies enjoying safe-haven appeal as equity markets added to recent losses, strategists said.
CURRENCIES: Dollar And Yen Rise As Asian Stocks Plunge (Nasdaq)
The dollar and yen got a lift against major rivals in Asian trading Monday, as a regional sell-off led by Chinese shares sent investors into the perceived safety of lower-yielding currencies.
Asian Currencies: Ringgit Climbs on GDP Outlook, Peso Advances (Bloomberg)
Aug. 18 (Bloomberg) -- Malaysia?s ringgit led gains in Asia on speculation exporters sold the greenback after the local currency?s biggest slide in four months.