Recommended Forex Brokers ( Show all )
Min Deposit: 1 USD
Min Lot Size: 0.01 Lot
Max Leverage: 1:500
Payment Options:
, Bank Wire Transfer, WebMoney, PerfectMoney, BitCoin,
Regulators:
SVGFSA Saint Vincent and Grenadines,
Platforms:
MetaTrader 4, MetaTrader 5, MobileTrader, Web Trader,
Other Info:
PAMM Account
Rebate (Cashback):
Min Deposit: 1 USD
Min Lot Size: 0.01 Lot
Max Leverage: 1:500
Payment Options:
, Bank Wire Transfer, Visa, Mastercard, WebMoney, PerfectMoney, BitCoin, Ethereum, Skrill,
Regulators:
CySEC Cyprus,
Platforms:
MetaTrader 4, MetaTrader 5, MobileTrader, Web Trader,
Other Info:
Copy Trade
Rebate (Cashback):
Active, paid daily
Min Deposit: 10 USD
Min Lot Size: 0.01 Lot
Max Leverage: 1:2000
Payment Options:
, Bank Wire Transfer, Visa, Mastercard, WebMoney, PerfectMoney, BitCoin, Ethereum,
Regulators:
CySEC Cyprus, IFSC Belize,
Platforms:
MetaTrader 4, MetaTrader 5, MobileTrader, cTrader, Web Trader,
Other Info:
Copy Trade
Rebate (Cashback):
Active, paid daily
Min Deposit: 1 USD
Min Lot Size: 0.01 Lot
Max Leverage: 1:1000
Payment Options:
, Bank Wire Transfer, Visa, Mastercard, WebMoney, PerfectMoney, BitCoin, Ethereum, Skrill,
Regulators:
CySEC Cyprus, BVI FSC British Virgin Islans,
Platforms:
MetaTrader 4, MetaTrader 5, MobileTrader, cTrader, Web Trader,
Other Info:
PAMM Account
Rebate (Cashback):
Active, paid monthly

Education ( Show all )
How Is Money Made in Forex?

Money is made in Forex trading by either the currency bought going up in price or the currency sold going down in price. In practice, it does not matter whether you are buying EUR/USD because you think upcoming data will favor the EUR, or selling the USD and using the EUR as the vehicle because you think developments will reduce support for the dollar. You may choose the EUR as the vehicle because it has high liquidity, but you could equally well express your negative view on the USD by buying (say) NZD/USD, which means by definition you are selling the USD.Forex trading is a zero-sum game in which one party wins and the other party loses. If you buy the AUD/USD at 0.8500 and sell it at 0.8700, you have made 200 pips. The person who sold to you at 0.8500 has an opportunity loss equaling those 200 pips. It is conceivable that the seller is not unhappy, because perhaps he bought when the AUD was at 0.8300, and so he made a cash profit of 200 pips himself, but the fact remains that if he had held the position, he would be 200 points richer, and not you.We can also note that the seller may have been closing a hedging position. Let’s say the hedger had a debt or was short an asset denominated in euros and had bought the euros as a hedge of the currency part of the asset position. If the asset rose (giving him a loss on the asset) but the euro fell, the hedger would get some gain to offset the loss on the underlying asset. Once he has closed out the asset position, he had no more need for the currency position. In practice, hedging positions are held for far longer (and in far greater amounts) than the usual retail Forex trade, although the underlying asset in the hedging case may have been another short-term currency position, including an option.Similarly, if the AUD keeps rising after you sell it at 0.8700, to (say) 0.8900, you are the one with the opportunity loss. It is not a true cash loss, but can cause distress all the same. Trading coaches warn against crying over spilt milk — opportunity losses. They advise never to dwell on what you “could have” done. This is named in the vernacular “woulda, coulda, shoulda.”If you sell first and buy back later, you are technically shorting the first-named currency in any pair — but you are buying the second-named in the pair. Say you sell the USD/CAD at 1.0950 and buy it back later at 1.0900. You have a gain of 50 pips from selling US dollars and buying Canadian dollars. But nobody will vilify you for shorting the US dollar because for all they know, you were simply buying Canadian dollars because you like Canada, and paying for the CAD using US dollars.You can make as much money with a shorting strategy as by going long, although many people find it easier on the eye to project a price trend upward than downward. The stigma attached to short selling in general is not present in trading Forex. This is one of great virtues of Forex trading over other asset classes. It is still “going short” some currency but also at the same time going long some other currency, and does not carry the same negative connotations as shorting equities or commodities. When you short a stock, it’s because you think there is something wrong with the company or at the least that the market has overpriced it. Short-sellers are reviled as “destructive” forces in the equity market and short selling is banned from time to time during crisis situations, as during the banking crisis starting in 2008. Just about every major country instituted bank short-selling bans, including the US, UK, Australia and most European countries. Equity short-sellers get blamed for everything from the Crash of 1929 to the Crash of 1987, even when it is clear that plenty of other factors contributed.In equities, to go long is to be hopeful and optimistic that that economic and financial conditions will favor growth generally and corporate profits specifically. Companies will be well-managed, profits will rise and price-equity ratios will rise, too. There is a distinct long-side bias in equity trading. Not so in Forex, although we do have an anti-USD bias that has persisted for many decades for structural reasons. And yet it is not safe to always choose to buy currencies while selling USD. We see plenty of occasions when the USD rallies across the board. As a general rule, the best way to gauge overall USD sentiment is to look at the dollar index (USDX). During the late winter through early summer of 2016, for example, the dollar index was in a falling trend with a peak in early June:We see many occasions when a currency goes into an easily identifiable trend, and we can also identify the reasons why traders are favoring (or trashing) the currency. The AUD, for example, has had a lasting 10-year yield advantage over other developed country 10-year notes. As a consequence, we see an upward bias in the AUD against lower-yielding currencies, especially the Japanese yen but also the USD. However, this does not mean that bad data about the Australian economy, or jawboning the AUD down by the central bank or treasury, will not trigger a sudden drop in the AUD.Sterling has a distinct personality, too, especially against the USD. When the prospects for the UK are brighter than elsewhere, the pound rises. But the London traders who specialize in the pound are also famous for “gunning for sterling” when the outlooks dims. This makes upmoves a struggle and corrections and downmoves particularly vicious.These examples point out that it is the suddenness of changes in the Forex market that makes trading so difficult, and leads traders to trade on a short-term basis of a few hours when overall Forex trendedness would call for a longer-term holding period.

How Is Money Made in Forex?
Trading Sessions

The Forex market is open for business somewhere in the world 24 hours a day except for the period from the New York close at 18:00 EST/23:00 GMT on Friday evening to the Sydney/Wellington open late Sunday afternoon at 21:00 GMT/16:00 EST.GMT stands for Greenwich Mean Time and EST stands for Eastern Standard Time. We sometimes used ET for Eastern Time, meaning the New York benchmark, whatever the time of year. Sometimes it’s EST for Eastern Standard Time and from spring to fall, it’s Eastern Daylight Savings Time, so the easy way to denote New York time is the short-form ET. In practice, New York closes at 17:00 ET, but many data vendors, including eSignal, use 17:59 ET (22:59 GMT) as the “close” and 18:00 ET (23:00 GMT) as the Sydney “open.”London conducts more Forex trading than any other financial center, according to the Bank for International Settlements survey, and you will also see some data vendors and brokers using London time, either GMT or BST, the notation for daylight savings time, named British Summer Time. You may think that if you are in New York, you can just add 5 hours to get London time, but not so—the British and Americans do not coordinate the date of switching to and from daylight savings time so sometimes it is 6 hours for a few days. Chances are if you are not in the New York or London time zones, your broker adjusts the time on your screen clock to local time.It is easy to get confused, especially when a news source writes that the ECB policy decision will be delivered at 12:45 GMT and the governor’s press conference will begin at 14:30 CET, or Central European time. Even after many years, translating those times into local time can be a chore. A good way to figure out what those times are in local time is to Google “What time is it in London and Frankfurt?” You can also keep a set of clocks set to different time zones, as most professional trading rooms do.You care about what time it is in London or New York because those are the most active markets where you will find the best liquidity, and because those are the two biggest overlapping time zones. We also have overlap from Asia to the Middle East and from Switzerland/Frankfurt to London, but one of the very best times to trade is when London and New York are both open.Main Trading SessionsOne of the best time zone sites is www.timeanddate.com where you can find the UTC/GMT equivalent of every time zone.London: Greenwich Mean Time (GMT): No UTC/GMT offset.Daylight saving time: +1 hour (notation becomes BST for British Summer Time).Frankfurt/Zurich: Central European Time (CET): UTC/GMT plus 1 hour.Daylight saving time: +1 hour (notation becomes CEST for Central European Summer Time).New York: Eastern Standard Time: UTC/GMT minus 5 hours.Daylight saving time: +1 hour (notation becomes EDT for Eastern Daylight Time.Sydney/Wellington: Australian Eastern Time (AET): UTC/GMT plus 10 hours.Daylight saving time: +1 hour (notation becomes AEDT for Australian Eastern Daylight Time).Tokyo: Japan Standard Time (JST): UTC/GMT plus 9 hours (no daylight savings time).Overlapping SessionsNew York and London: 13:00 to 18:00 GMT, 8:00 to 12:00 ET.What Currencies to Trade and When?Technically you can trade any currency pair at any time, but it goes without saying that the best time to trade a currency is when its home market is open. That means you can trade the AUD/USD at noon in New York but you will find far more price action when Australia is open for trading. News releases are obviously made on local time. The best time to trade the yen (USD/JPY or EUR/JPY) is when Tokyo is open, and the very best time to trade the EUR/USD is before New York opens and then again after New York has opened. The EUR/USD does trade during the Asian session, but European news releases come out around an hour to two before the London open, meaning London traders tend to get to work early to catch them. Then the UK news releases start coming out and traders have two sets of factors to trade on, plus whatever may be still simmering from the Asian session, like a big move in equity prices, intervention, or some other major event.By the time New York opens around 8:00 ET (13:00 GMT), the European traders have gone home but London traders still have a few hours to go. The London traders may have closed most positions ahead of the US open but when they see whether the New York traders are continuing a trend started by the London traders, they may jump back in for a few hours. You will not see much action in the USD/CAD during the first part of the London session, so if you want to trade the CAD, wait for New York (and Toronto) to open.The two best times to trade major currencies in Forex are 3:00-5:00 ET (8:00 to 10:00 GMT) and again at 8:00-10:00 ET (13:00 to 17:00 GMT). The first gets you the big market — London — with both European and UK data releases. The second one is the overlap of London and New York. There is one conclusion to be drawn from this — that London traders work the longest hours of anyone in the industry.By noon New York time, trading has faded away to low volumes — unless it is a day, on which the Fed announcement is due. This is always at 14:00 ET on the Fed meeting date and you should not need a calendar to tell you when it is, because market chatter will be especially voluminous ahead of time. Some calendar events will become engraved on your memory, like 7:45 ET for ECB policy announcements (12:45 GMT) and 8:30 (14:30 CET) for the governor’s press conference, and 14:00 ET on Fed day.Depending on what currencies you are trading, it will pay you to know the exact release time and date of important data and central banks news. In some years, if you trade the yen, you will want to keep track of the news stories published by the local press near lunchtime and the end of the Tokyo day. The journalists crowd the hallways of the Ministry of Finance and the Bank of Japan to catch officials on their way in and out, hoping for a tidbit to write about. When big events are brewing, including intervention and jawboning, this is when we read about them. Tokyo is 13 hours ahead of the New York time zone, so that means an odd schedule.

Trading Sessions
Forex Market Structure

The BIS, in its latest Triennial Central Bank survey, says that an average of $5.1 trillion traded hands in currency markets in April 2016, down from $5.4 trillion in 2013. Almost two trillion dollars was in spot foreign exchange (where the bulk of retail trading action is seen) and $2.4 trillion was executed in FX swaps and $700 billion in outright FX forwards.In order to have a better understanding of the foreign exchange market’s structure and size, it is helpful to look the breakdown of turnover by counterparty in the BIS survey.There are three main categories:Other financial institutions created 51% of all trades' volumes.Reporting dealers - 42%.Non-financial customers - 7%.The BIS considers a reporting dealer as:...all other financial institutions such as smaller commercial banks, investment banks and securities houses, and mutual funds, pension funds, hedge funds, currency funds, money market funds, building societies, leasing companies, insurance companies, other financial subsidiaries of corporate firms and central banks.In the past 10 years, the line between investment bank and commercial bank has been blurred. Citibank and JP Morgan Chase are considered investment banks, despite the fact that they also have commercial bank enterprises (they take deposits and make loans). Goldman Sachs and Morgan Stanley are investment banks also, even though during the US financial crisis they received Troubled Asset Relief Program (TARP) funds.The BIS considers other financial institutions as:The other financial institutions umbrella is quite large, with various sub-buckets. The category includes “proprietary trading firms that invest, hedge, or speculate for the own accounts,” with high-frequency trading (HFT) firms and other algorithmic trading firms in this sub-bucket. Big speculators such as Soros or Bridgewater are in this camp also.The other financial institutions category also includes “Official Sector Financial Institutions,” such as global central banks (The Federal Reserve, European Central Bank, Bank of England, etc.), sovereign wealth funds (Abu Dhabi Investment Authority, China Investment Corporation, SAMA foreign holdings etc.) , international financial institutions of the public sectors (such as the BIS, International Monetary Fund), development banks (World Bank, Asian Development Bank, European Bank for Reconstruction and Development, etc.), and agencies.  Last but not least, there is also a sub-bucket “Other” for all other remaining financial institutions (such as the retail aggregators).One of the big surprises in the 2013 BIS survey was another big jump in the “other financial institutions” category in terms of trading activity:In the 2010 survey, other financial institutions had for the first time surpassed other reporting dealers (i.e., trading in the inter-dealer market) as the main counterparty category in the Triennial Survey. Transactions of FX dealers with this group of customers grew by 48% to $2.8 trillion in 2013, up from $1.9 trillion in 2010.The BIS sees a non-financial customer as:...any counterparty other than those described above, i.e. mainly non-financial end users, such as corporations and non-financial government entities. May also include private individuals who directly transact with reporting dealers for investment purposes, either on the online retail trading platforms operated by the reporting dealers or by other means (e.g. giving trading instructions by phone.)Currency trading continues to be concentrated in a handful of global financial centers, the BIS reported:In April 2016, sales desks in five countries – the United Kingdom, the United States, Singapore, Hong Kong SAR and Japan – intermediated 77% of foreign exchange trading, up from 75% in April 2013 and 71% in April 2010.If all this seems confusing, remember that the bulk of the business done in the currency market is done by the large banks. The other two important players are the various global central banks and the sovereign wealth funds (state owned investment fund typically seeded with either revenues from commodity exports or central bank FX reserves). These big players tend to be the market makers. Major banks put two-way (bid/offer) FX prices into EBS and Reuters and their own in-house platforms. Central banks and sovereign wealth funds typically step in for specific reasons. A central bank might become involved in the currency market if a larger order needs to be filled that might disrupt the market or if their domestic currency has become too weak or too strong. A sovereign wealth fund trades currencies either for speculation or as a vehicle to enter into and or exit investment strategies in other countries.

Forex Market Structure
Detailed View on Currency Pairs

What Is a Currency Pair?All Forex entails exchanging one currency for another and therefore each Forex quote involves a pair of currencies. When you buy a bag of apples, you pay a specific sum of money for the bag, but when you buy a “bag” of a foreign currency, you are still paying a specific sum of money but the thing you are buying is also money. The price of the bag of foreign money is quoted as a ratio of the money you are paying, or an exchange rate.The euro exchange rate versus the US dollar might be say, $1.3500. This means for 1 euro you receive 1.35 US dollars. The yen exchange rate versus the dollar might be ¥105.00. This means for 1 US dollar you receive 105 yen.The euro versus the dollar is a pair and the dollar versus the Japanese yen is another pair.A pair does not need to be dollar based. The euro versus yen is also a pair, as would be UK pound sterling versus yen.  Every single currency quote you see should name the two currencies in the pair. It you see just “euro,” you can assume the other half of the pair is the US dollar, although sometimes it pays to make sure that you are talking about the same pair as your counterparty.Memorize the Three-Letter AbbreviationsYou need to memorize the three-letter abbreviation for each currency that populates your workspace when you trade Forex.They are relatively easy to memorize since they usually refer directly to the first letter of the name in English, like United States dollar (USD). As a general rule, the first two letters name the country and the last letter names the currency.Having memorized them will be useful if you ever start to trade cross-rates. Exceptions include the South African Rand, which starts with a Z instead of an S (from Dutch Zuid-Afrikaanse Rand). Sometimes you can deduce logically what an exchange rate abbreviation should be (like NZD for New Zealand dollar), but other times you just have to look up the symbol (TRY for Turkish lira and KRW for South Korean won). You might think the Swiss franc would be SWF, but it is not — it is CHF, the CH standing for the name of Switzerland in Latin, Confoederatio Helvetica.USD = US dollarGBP = Great Britain poundEUR = EuroCHF = Swiss francJPY = Japanese yenCAD = Canadian dollarAUD = Australian dollarNZD = New Zealand dollarZAR = South African randWhat Are the Most Commonly Traded Currency Pairs?According to the Bank for International Settlement’s latest Triennial Central Bank Survey conducted in April 2016, the dollar, the euro and the yen constituted the lion’s share of all spot transactions.We will discuss spot versus forward and futures trading in Trading Forex via Futures.Of the $5.34 trillion traded in the currency market each day, $2 trillion was done in spot. Of that $2 trillion, $1.69 trillion was in dollars, $754 billion was in euros and $612 billion was in yen.This makes euro-US dollar (EUR/USD) and US dollar-yen (USD/JPY) the most commonly traded currency pairs.The next two currencies, in terms of size traded in the spot market, are sterling at $227 billion daily and the Australian dollar at $196 billion. Sterling versus US dollar (GBP/USD) and Aussie versus US dollar (AUD/USD) are the next most commonly traded currency pairs.Cross Rate PairsAs mentioned in the first lesson, cross rates have evolved to indicate a currency pair that has no US dollar component.Euro-yen (EUR/JPY), sterling-yen (GBP/JPY), euro-Aussie (EUR/AUD), Aussie-Canada (AUD/CAD), Korean won-yen (KRW/JPY), etc. are all examples of cross rate pairs.Because cross rates are less frequently traded, prices are often more volatile and have wider bid-ask spreads. Euro-yen is an exception to this rule, with a deep and liquid market.Trading LingoIt is important to know some lingo, or the special vocabulary used in the forex market. The most prominent nickname is cable, meaning the UK pound. The word cable refers to the transatlantic telegraph cable laid in 1858. At that time, the UK pound was the top currency for US traders and so to ask for a price in UK pounds, they would ask for the price of cable. At the time, traders who made the prices were called cable dealers and even today, the person trading sterling at a bank is called the cable dealer.The New Zealand dollar is called kiwi, for the kiwi bird that New Zealand is famous for and the Canadian dollar is called the loonie, because there is a picture of a loon (Canada’s national bird) on the back of the Canadian one-dollar coin.Traders ask for a price in cable and know that this means a price for UK pound sterling versus the US dollar. Similarly, a price in kiwi or the loonie would mean the price at which someone would buy or sell the New Zealand or Canadian dollars versus the US dollar.The Norwegian krone is called the Nocky and the Swedish krone Stocky. Asking for a price in Nocky or Stocky would get you the price where someone would buy/sell US dollars versus the Norwegian krone or Swedish Krone. If you wanted a price in euro versus the Norwegian krone, you would ask for euro-Nocky. The Mexican peso would be Mex and the Hungarian forint Huf.The language of foreign exchange is no different from other languages; there are rules and then exceptions to the rules.  Rather than ask for a price for the euro versus the US dollar, a trader will simply ask for a “euro” price. Similarly, an Aussie price would be a price of the Australian dollar versus the US dollar.To complicate matters further, FX convention quotes most currency pairs in dollar terms. A trader will ask for dollar-yen when wanting the price of the US dollar versus the Japanese yen, or dollar-rand, when asking for the price of a US dollar versus the South African rand.

Detailed View on Currency Pairs


Forex Book ( Show all )
The Truth About Fibonacci Trading

Download The Truth About Fibonacci Trading

The Truth About Fibonacci Trading
Peaks and Troughs

The oldest ways of chart analysis had to work in the days before computers (B.C.). There’s no reason they shouldn’t work now. Here’s a look at peaks and troughs, a classic form of chart analysis that worked B.C. and work now.

Peaks and Troughs
Hidden Divergence

Divergence, which is a term that technicians use when two or more averages or indices fail to show confirming trends, is one of the mainstays of technical analysis. Here’s a new way to use oscillators and divergence as well as methods to locate entry levels during a trend.

Hidden Divergence
Commodity Futures Trading for Beginners

by Bruce Babcock

Commodity Futures Trading for Beginners


MetaTrader 4 Indicators ( Show all )
Traders Dynamic Index MetaTrader4 indicator

indicates trend direction, market volatility and trend strength in a separate window of the MetaTrader terminal. It is handy in many trading styles, long-term and scalping

Traders Dynamic Index MetaTrader4 indicator
Spread MetaTrader4 indicator

Spread MetaTrader indicator — displays current spread in the main window of the chart. You can modify the font parameters, indicator's position and the normalization of the spread value. The spread is redrawn after each tick, ensuring the most current and active spread value. This can be useful for brokers with variable spreads or with spreads that are widened often. You can also enable a spread label to be shown near the current Bid line.

Spread MetaTrader4 indicator
MA Candlesticks MetaTrader4 indicator

Moving Average Candlesticks MetaTrader indicator, is a chart visualization of the standard moving averages using the candlestick bars. It draws the candlesticks based on the moving average values calculated for Close, Open, Low and High. It allows seeing a compact snapshot of the more detailed market information compared with the classic MA indicator. Works with any currency pairs, timeframes and MA modes.

MA Candlesticks MetaTrader4 indicator
BB MACD MetaTrader4 indicator

BB MACD , is a basic MACD (Moving Average Convergence Divergence) indicator variation, which helps in detecting the trend change points and measuring the current trend's strength. The indicator is drawn in the separate window on the chart and consists of two lines (blue and red) and the dots, which can be either green or magenta. The change of the dots' color is a good signal provider, while the width of gap between the two lines indicates the strength of the current trend.

BB MACD MetaTrader4 indicator


MetaTrader 4 EA ( Show all )


MetaTrader 5 Indicators ( Show all )
Traders Dynamic Index MetaTrader5 indicator

indicates trend direction, market volatility and trend strength in a separate window of the MetaTrader terminal. It is handy in many trading styles, long-term and scalping

Traders Dynamic Index MetaTrader5 indicator
Spread MetaTrader5 indicator

Spread MetaTrader indicator — displays current spread in the main window of the chart. You can modify the font parameters, indicator's position and the normalization of the spread value. The spread is redrawn after each tick, ensuring the most current and active spread value. This can be useful for brokers with variable spreads or with spreads that are widened often. You can also enable a spread label to be shown near the current Bid line.

Spread MetaTrader5 indicator
MA Candlesticks MetaTrader5 indicator

Moving Average Candlesticks MetaTrader indicator, is a chart visualization of the standard moving averages using the candlestick bars. It draws the candlesticks based on the moving average values calculated for Close, Open, Low and High. It allows seeing a compact snapshot of the more detailed market information compared with the classic MA indicator. Works with any currency pairs, timeframes and MA modes.

MA Candlesticks MetaTrader5 indicator
BB MACD MetaTrader5 indicator

BB MACD , is a basic MACD (Moving Average Convergence Divergence) indicator variation, which helps in detecting the trend change points and measuring the current trend's strength. The indicator is drawn in the separate window on the chart and consists of two lines (blue and red) and the dots, which can be either green or magenta. The change of the dots' color is a good signal provider, while the width of gap between the two lines indicates the strength of the current trend.

BB MACD MetaTrader5 indicator


MetaTrader 5 EA ( Show all )

Gallery ( Show all )