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What You Should Know Before You Order Foreign Currency Online

There are some things every consumer should know before they order foreign currency online. It is possible to get a better rate, and even offset market risk.

What You Should Know Before You Order Foreign Currency Online

It is important to know that when you order foreign currency online, through your local bank or currency exchange, you actually are at disadvantage because of the high commission costs involved in the exchange process. These fees are only perhaps marginally better than exchanging the currency at any actual bank. But there’s more to foreign currency than just using it to pay for things and services abroad, or going on holiday. It is possible to use a broker, and actually trade these markets for all kinds of purposes. Typical purposes traders trade the forex market for, are pure speculation for a profit through price fluctuation, protection against risk, and profiting from interest rate differentials. Investing in foreign currency can always be highly beneficial, whether it is for few days or few months, it always pays to do your homework on various currency exchange rates.
Traders are all kinds of people, including merchants, ordinary citizens, speculators and investors. Hey all wanted to learn how to trade forex exactly because they want to capitalize on various opportunities. Even savvy real estate investors trade the forex market, before they actually buy any local currency. They do so to limit the market risk of adverse rate movement. So they have developed forex strategies of their own, but deep down they all rely on the same fundamental concepts.

So, How Does One Order Foreign Currency Online the Smart Way Then?

In order to order foreign currency online and not get a bad rate on the actual transaction day, one has to have studied the markets and rates in advance. A US based real estate investor for example, willing to buy a house in Australia, will check the rates very carefully and try to determine the currency price trends in development. If the Australian dollar is on a major rally, it doesn’t make sense to take out a local mortgage in Australian dollars. Rather, they will choose a falling available currency, perhaps the Euro or the Canadian dollar. For the long term the falling prices means that the repayment period will become shorter, as the US investor, paying with US dollars, will get an overall better deal in repaying his Australian mortgage. The actual value of the house will increase, from a global perspective, as a result of the local currency rising. But the buyer will get it for much cheaper, because they will be repaying a mortgage locked in a falling currency. There is also the factor of interest rates, as Australia has high interest rates, but other countries have much lower. Now as far as the actual day of converting currencies back and forth, especially large amounts through affordable online banks. One only has to do the same homework again. Not so much on interest rates, but on actual exchange rate trends, seasonal trends, and look to avoid buying at a medium term high. Wise forex traders have learned to figure these things out. And they can easily become smart real estate investors or merchants, because they already know how to trade forex. It’s a challenge, but anyone willing to learn, can reach that level of expertise.

What CFD Tutorial to Choose

CFDs are simple to learn, though they can get complicated on tax issues, as these are country specific. Any CFD tutorial focusing on one aspect though, is good.

One CFD Tutorial at a Time

Any CFD tutorial focusing on one aspect at a time, and doing some digging, will be good enough for most readers. Most articles and tutorial which are generic in nature don’t help much, but they are good for introducing the reader to the general concept of trading CFD. But in order to really go deeper on the individual aspects, such as hedging, stock specific hedging and trading, commodity hedging and tax benefits, one has to use specialized tutorials and articles. The tax issue alone is massive one, but as with all money and income related matters, one has to become a specialist in order to reach the real benefits. Tax planning is useful, as it helps minimize your tax liability and capital gains tax. In most countries it is possible to offset investment losses through CFDs and even take things further when one combines CFDs with the spot market. As far as CFD trading platforms go, one does not need to use a tutorial. Platforms can be used and set to custom settings by the trader themselves. One needs to get brainstorming ideas out of specialized tutorials, but once that has been done and the content has sunk in on their mind, it’s time to get creative. CFDs can be used in a million different ways. Such as for the purpose of hedging impossible adverse market conditions, minimizing tax liability and even saving a fortune on capital gains tax. Most traders don’t like paying capital gains tax because they feel the government is profiting out of their hard earned profits, as if taking a good portion of their profits. While the same government was not willing to take a share of their losses when these traders were losing money. Bear in mind, that some of the world’s top traders endured long, painful learning curves where they were losing money for years, before finally making millions. So the idea of capital gains tax does not appeal to these people, because they feel they are robed by their governments. Because they took all the risks on their own, to make those profits. A good tutorial on tax planning is a must in this case.

When a CFD Tutorial is Not Good

A CFD tutorial is about providing specialized guidance and great insights into using CFDs to improve your trading strategy and overall efficiency as an investor or trader. Generic tutorials that simply explain what is CFD trading, in a nutshell, are good for beginners. But they are not good for serious traders willing to pursue the trade above and beyond the minimum. Many poorly put together tutorials focus too much on the benefits of leverage and tax planning. And they mention nothing about the benefits of linear hedging and one way liquidity, which are actually extremely important! Generic tutorials are understood right away, as they are intended for amateur investors who are introduced into derivatives trading for the first time ever. So they are not good for those investors and traders seeking to gain that edge, which is only possible to learn through specialized tutorials and educational materials. Tutorials lasting less than 30 minutes, are unlikely to touch upon these issues.

Control Your Financial Fate With Online Trading In Digital Markets

In the present era of zero interest rates, the search for alternative investment channels is a subject of great popular interest ■ As an example, online trading empowers you to personally manage your investments and presents you with a means for economic independence

In recent years, trading in capital markets has undergone a significant change. Unlike previously, when to invest in the stock market investors had to use intermediaries such as investment advisers at banks, now all you need is an internet connection and an advanced platform for independent online trading. These two components, along with the professional support of a trading company through which you act, give you an opportunity for economic independence, and allow you to avoid the high trading fees charged by banks; Opening a world previously unknown to you.

Controlling Your Financial Fate

In the present era, with households desperately fleeing closed banking deposits, which cause them real losses, or at best give them a ludicrous annual yield of about 0.5%, many seek to invest their money in the capital market. One possibility is to contact the Bank’s investment advisor and ask him to invest a portion of your savings on the stock exchange. If you choose this option, you will find that within a short period the bank charged you various commissions regardless of whether your investments have borne fruit, or lead to losses. The alternative is to abandon the banks when it comes to investments in the capital market, to study the field and control your own financial destiny. “Through independent trading you can effectively manage your risks and decide at anytime of the amount you invest and whether you should get out of a specific transaction,” said Roi Dan, trading supervisor at Prime Broker.

Learn a new field

Capital markets are a world in and of themselves. In recent years, the public has grown increasingly interested in issues such as cost of living, pension, stock market, monetary policy, stocks etc. At the same time, and as previously mentioned, the low interest rates provided by banks almost everywhere, have pushed millions of people to the capital markets. The resulting demand for knowledge in the field is constantly increasing. And while many would prefer to invest their funds in the capital market but, out of fear, turn, as mentioned, to advisors and investment managers. Although the field does requires appropriate knowledge, but it certainly does not require the solving of sophisticated formulae available only to outstanding students of finance. In fact, anyone who has the desire can learn the basics of trading and become an independent trader. How to do it? Over the internet you can find plenty of information related to trading in the capital market: short guides, entire books, methods, and different strategies. In addition, independent trading investment houses, like prime broker, are always ready to assist their customers and provide them with a wide variety of educational materials.

Enough to pay commissions

Anyone who has ever managed an investment portfolio through the banks certainly has (or should be) certainly surprised to find the assorted fees collected each quarter. Banks assess the most exhorbitant commissions on periodic/management fees (on the basis of their “guarding” your securities). These fee range from 0.1% to 0.6% for all banks. In other words, the bank charges you a management fee percentage irrespective of whether you lose or profit. In addition, banks charge a commission for buying, selling, changing or cancelling orders in securities (transaction fees) at an average rate of between 0.3% to 0.5% on each transaction. In comparison, online trading companies, assess transaction fees, in the range from 0.01% to 0.2%. Also, most trading firms do not charge money for the non-execution or cancellation of orders, and trading fees for foreign securities are much lower than those charged by local banks. Domestic banks are estimated to generate commission income of some NIS3 billion annually [1].

“Trading firms’ commissions are almost non-existent in some assets,” says Dan. According to him, in certain instruments, such as forex trading, online trading fees that companies charge are negligible and their revenues are based essentially on the buy/sell trade spread.

Independent Trading – all the tools for succeed

Another advantage to independent traders are the tools and systems placed at your disposal by trading companies. For example, leading trading companies allow customers to use advanced systems which may be used to selectively employ a variety of contemporary market systems and strategies. In addition, trading firms allow their clients to execute “short” trades, which generate profits on price declines. These trading systems are easy to employ and allow for a variety of profit-maiximizing strategies. “Any self-respecting company now offers a seamless interface, regardless of platform: smartphone, tablet or desktop,” says Dan, “one of the world’s leading software is ‘MetaTrader 4’, with which we work at Prime Broker.

Personal professional support

While ostensibly trading alone, professional guidance and assistance is one of the most significant benefits online traders receive, says Dan. “In fact, traders have a whole team behind them which help them to get on track.” He said that established companies provide customers with personal and professional trading available almost anytime and helps the trader in understanding capital markets, trading systems, sites with important data for the various markets and so on. Additionally, a trading room, operating more than 12 hours a day, provides support for all the difficulties and questions of traders. So if you are tired of high bank fees, and are interested in a kind of economic self-sufficiency, consider becoming and independent trader. You do not have to turn online trading into your primary profession, but it certainly can provide you with a way to earn extra money from home or transfer your investment activities of banks.

*** Read the full company risk-disclosure, before contacting it for any service.

Trading Forex for Beginners

Some good trading tips are worth taking into account. Especially in trading forex for beginners, where many false and invalid tips are based on misconceptions.

Successful Forex for Beginners Starts with Good Tips

Most books and manuals on trading forex for beginners focus too much on discipline, risk-reward ratio, and many more tips which only deal with the surface of reality. All forex strategies are good to a certain level, and there is an element of truth to all tips. But most of these tips are wrong in the long run. In reality, it is a good idea to risk more on the average trade, than the total potential reward. And it may or may not be a good idea to add to a losing trade, or even go against the major trend for a little while. All new traders are taught that these things are the actions of losing traders and should be avoided at all costs. But the evidence suggests otherwise. And then there is the issue of trading on the news. Forex news is tough to handle and make sense of, therefore no beginner trader should trade on the news. In fact, when on embarks on a trading mission for the first time, it is best to avoid high frequency trading altogether, and focus on more relaxed trading instead. Many educators press for high frequency trading and discipline, as if trying to produce trading drones rather than self-relying and independently thinking human traders. Even the idea of too much discipline and rigid rules is not compatible with the nature of the markets. And should therefore be, at least in part, reconsidered.

Profitable Forex for Beginners is still Possible

Profitable forex for beginners is always possible, as long as one learns to question things, and deviate away from rigid rules, and extreme discipline. Discipline tends to produce incompetent traders, and even when these traders are successful, their profitability is too poor to justify trading. When one begins to trade the markets, they want to make serious money, justifying the risks taken and time devoted. So in reality one has to be greedy to succeed, but at the same time not have the urgency to trade there and then, just for the sake of calling themselves a full time trader. All seasoned traders may use the same or similar market analysis methods, the same forex calculator and intermarket analysis. And yet each one of them deviates from the other in some other way. And usually those that are really successful do not teach to others, they simply do it for themselves. The ones who never become profitable are traders relying too much on education, mentors and effortless teaching. If that were the way to making millions, they would all be retired millionaires by now, and the market would have become ultra-efficient by traders following these methods. So that there would be no market movement left to trade.

CFD Trading Strategy for Commodities

Commodities are simpler to trade compared to stocks. A simple CFD trading strategy can be developed around the 200 bar moving average and some basic numbers.

A CFD Trading Strategy Does Not Have to Be Too Complicated

A CFD trading strategy can be as simple as commodities can allow. More specifically, commodities are often easier to analyse based on supply and demand information and overall market momentum.
Trading CFD contracts on commodities is just as risky as any other instrument or asset, at least for the most part. It is only when some risks are removed, that things become easier. Stocks remain risky and confusing for the most part of the trading year, because there are too many factors impacting stocks. Currencies are mixed, some are easier to predict than others, and then there are commodities where some insights can be obtained for the coming months, and traders can adjust their strategies accordingly. Online CFD trading becomes less risky and smoother when at least some big risk factors have been taken into account, or are not present at all for some time to come. In commodities one has to take into account the entire commodity index (CRB), and various factors impacting the single commodity in question. Commodities tend to trade out of phase for a while, so that the CRB index may rally for example, and some commodities get left behind for months. Eventually however every lagging commodity will end up rallying so as to catch up with the CRB index. So during that phase the downside risk in that lagging commodity will be significantly reduced.

CFD Trading Strategy Based on the 200 Bar Moving Average

A simple CFD trading strategy for commodities is the 200 bar moving average, or at least a good part of such a strategy. The idea is that if the market gets close to, or within proximity of this moving average on the daily or weekly chart, then it will likely test it. The idea can be tested through a strategy implemented on reliable CFD trading platforms, so that leverage is used, and convenient contingent orders are set in place. So when a test of the 200 bar moving average is suspected to occur, this doesn’t necessarily imply a change of the major trend, but maybe possibly a series of false buy and sell signals as price will approach and test that level. The test itself may result in a reversal at the moving average or a breach. Sometimes there are no fundamental factors involved, and such test moves are driven by speculators alone, who trade on a short to medium term basis. There is no magic, generic formula for commodities, as each commodity has its own unique factors. So that agricultural commodities for example are impacted by weather conditions for example, whereas precious metals by other, totally different conditions and factors. So it is possible to have all commodities rallying in general, and yet one may test the 200 bar moving average to the downside, while another commodity may test it to the upside, in all kinds of confusing ways.

Making Use of Forex Trading Tips

Following forex trading tips seems like an easy way to make money. But one has to expect and embrace uncertainty and confusion even in this kind of trading.

Profiting from Forex Trading Tips

Forex trading tips are great, but one has to be careful even with the most reliable sources of such tips. Because volatility and unforeseen factors can ruin the timing of the expected market moves, and create all kinds of issues. The most common issue is misjudging the market, whereby a tip suggests that this or that currency pair will make a move in a specific direction, but there might be significant counter moves before that happens. This kind of unforeseen volatility can trigger stops very easily and result in big losses. So stop placement is important. The stops have to be large enough, most of the time, so as to tolerate such volatility. And in times of fragile markets, where the major trend could change, one has to use multiple trades and of different size, in the same direction. Those trades will vary in terms of risk tolerance, so that the large size trade will have a much tighter stop. Following the tips and treating them as solid forex signals is actually a bad idea, rather one has to keep an eye on their forex charts and question that tip, in terms of reliability and timing.

Which Forex Trading Tips Work Best

Forex trading tips which are loose in nature, and allow for some personal judgement and flexibility seem to work much better. Especially better than those tips which define small and fast price movements, and where the entry and exit price levels are strictly defined. As with all things in real life, the tighter your plan, the more likely you are to face something unpredictable and difficult to deal with. Trading is one of those things where ultra tight planning does not work! All you want to know from your trading tip is underlying market direction over some reasonable length of time. So that you have time to deal with open losing trades, and know which ones to close and which ones to keep or even add to. The global forex converter mechanism is peculiar and volatile, and it does strongly favour tips which focus over few days rather than few minutes or hours. It also favours the loose, flexible approach rather than exact entry and exit price levels. So trading tips which offer exact information, and attempt to capture 20 or 30 pips on a given trading day are usually tips based on momentum. Momentum is good, but all its indicators are lagging in nature and can be highly misleading. The reason why these tips are so tightly planned is because that’s what their audience demands! And even when these tips are right, the trader following them stands to make only 20 or 30 pips, which is not the best way to make serious money in the markets.