A number of fx traders dislike having to pay a fee to trade fx for a few years I was also one of these forex traders, however over the past 3 years I’ve developed a far better understanding of how the fx market really works and I’d never trade with a fx broker that does not charge a fee but instead hides their fees inside the spreads they display.

It’s disappointing to see that many fx brokers still promote themselves as being commission free, however it’s crucial to note that nothing is free and that all fx brokers must earn cash one way or another. Sadly brokers who do not charge any fee are often market makers and widen their prices in order to limit your money making opportunities and profit from your losses. On the other hand providers that charge a commission rate frequently do so as they hedge all of their deals or give you an ECN trading facility where you can trade on zero or even negative spreads.

Traders that appreciate the forex market and have had an experience dealing with a market maker forex broker will at all times chose an ECN fx broker that charges a fee over a forex broker that hides their fee within the spread. Forex trading with an ECN forex provider ensures total trading transparency as well as making sure that you’re always trading on the best spreads available in the market.

Regrettably there are very few ECN forex brokers around, some also put up big obstacles to entry for example placing minimums on the amount which you can open a trading account with. I’ve done lots of research into ECN forex brokers during the last one and a half years and have found that there are only a handful of ECN forex brokers that make it easy for retail customers to trade with.

Some ECN forex brokers however are not actual ECN fx brokers as they only use ECN prices to make a market behind the scenes, this means that the broker does not hedge your deals inside the ECN market place. Fortunately, there are a few genuine ECN brokers, it’s very easy to tell whether a fx broker is genuine or not you can do so by checking their deal execution times in addition to checking whether they pass on slippage to your account that works in your favor.

One other essential feature that you ought to be aware of is that several so called ECN brokers will have limits on the distance you’ll be able to put your stop loss and take profit orders away from the current market price. Any forex provider that does this is a market maker, this is done to prevent scalpers taking pips from the forex provider.

In my experience I’ve only ever dealt with regulated True ECN brokers throughout the US and Australia. There are several great brokers in both countries. The ECN broker that I have been dealing with for the past 18 months is IC Markets. IC Markets prices are some of the tightest around and their commission rate is $3.50 per lot, which is pretty cheap compared to most brokers. I’m not here push any one fx broker so you should always trial a few broker platforms ahead of making your final selection, however I am able to vouch for IC Markets.

I have become very suspect about a a number of forex brokers that I’ve dealt with over the past few months who claim to have an ECN forex offering. Obviously trading with an ECN broker is the ultimate as you are certain to receive the absolute best spreads in the market and you may place big trades. It seems to me that there are allot of small forex brokers round the place that have jumped on the ECN bandwagon and are calling themselves an ECN broker when all that they are doing is takinganother brokers ECN price feed and making a market on this price themselves in order to benefit from your losses.

It is often hard for brand new fx traders to have the ability to choose the real ECN fx brokers from the bunch when these days there are so many fake ECN fx brokers out there. To assist brand new fx traders in determining whether or not a broker is actually an ECN forex broker or simply a forex broker taking a price feed from another broker. Below I’ve outlined just a few uncomplicated checks that you can conduct.

Checks

1. Is there a minimum distance that you can place your take profit and stop-loss orders from the current market price?

2. Does your forex broker slow or freeze price updates?

3. Do your fx brokers charts differ from the price shown on your order ticket?

4. Will your forex provider only pass on negative slippage?

5. Does your broker accept orders bigger than 5 standard lots?

Is there a minimum distance which you can place your take profit and stop-loss orders away from the current market price?

A True ECN forex broker will have no limits on the distance which you can put your stop-loss and take-profit orders away from the current market price. Market maker forex brokers apply this minimum distance rule to prevent scalpers and day traders from taking money from the forex broker when trading intraday. True ECN fx brokers do NOT aim to benefit from client losses they are motivated by flow only, meaning the more frequently you deal the more money you make, this is primarily why they charge a commission and will NOT have any limits on your deal placement.

Does your fx broker slow or freeze price updates? In a genuine ECN environment there are tens of thousands of pricing updates each minute this means that the prices a True ECN broker will show should fluctuate quite allot as spreads are set inside the ECN market place. Brokers that are NOT true ECN brokers are unlikely to show all the ECN price updates since it reduces load on their servers, after all they do not need to show all price updates as they are NOT passing on the trades to the ECN environment anyhow but instead warehousing them internally.

Do your brokers charts differ the bid price shown on your deal ticket?

A number of brokers that are NOT True ECN forex brokers adopt a piece meal approach to their Metatrader 4 setup and simply plug in an ECN price feed to their existing NON-ECN Metarader 4 offering. When fx brokers do this it means that the graphs won’t replicate the prices which the ECN price feed shows. This is what one would call a “Sticky Tape Offering” as there has been little attempt shown by the broker to setup their Metatrader 4 environment correctly. Brokers who’s setup exhibits this characteristic are NOT likely to be have a True ECN offering.

Will your forex broker only pass on negative slippage? Various traders think that slippage is negative feature of forex trading, however this is in-fact NOT true. Slippage is quite normal even inside a True ECN environment however the slippage that occurs will work for you in addition to against you. Slippage that works in your favour is often called positive slippage and slippage that works against you is generally known as negative slippage. Unfortunately some brokers take advantage of this and add a couple of pips to the negative slippage and simply don’t pass on any positive slippage at all. A tell tale sign of a fake ECN forex broker is one that does NOT pass on any positive slippage.

Does your provider agree to orders larger than five standard lots?

A True ECN environment is designed to provide traders with deep liquidity from the many contributors. Obviously if a broker is showing ECN prices but is in reality a market maker broker then they will simply not be able to pass on all the benefits that a True ECN has to offer. A fantastic test is to simply place a big trade on to see whether it gets accepted or rejected, a True ECN forex broker will have no problems taking on a trade that is 5 standard lots in size.

I have carried out these five easy checks on over fifty different fx brokers around the globe and my findings were really quite shocking. Out of in more than 50 different forex brokers who claim to be ECN brokers. I have found that there are just eight brokers that pass all five tests and could be considered a True ECN broker. Of these five forex brokers only 3 offer the Metatrader 4 trading platform to their customers.

I’m not in a position to tell you which fx broker fits you best as each forex trader has different necessities, however out of these 3 brokers I have personally chosen to deal with IC Markets simply due to their pricing and very fast order execution speeds.

It seems that the forex trading world may have been flooded with brokers claiming that they are ECN brokers but are they in actual fact ECN forex brokers or just market makers in disguise?. In this short article I’ll try to provide information as to what the difference between a True ECN and a market maker ECN really is. People will think that I am crazy by writing this critique but the fact of the matter is I’m here to help my fellow forex traders by sharing the truth about a few brokers who claim to be ECN forex brokers but are in truth market makers taking on risk against their customers by running what is called a B Book.

So let’s commence by explaining the distinction between a B Book and what’s known throughout the forex world as an A Book. Well to keep the meaning simple, brokers that run a B Book are those that wish to profit from their clients trading losses, in essence they selectively categorise their clients in order to capture the losses incurred by those customers that lose money. A Book clients on the other hand are those that earn money, so in an effort to avoid the forex provider form losing money when the investor wins the fx broker will hedge all A Book client orders.

So how does this all connect to ECN fx brokers? Well a quantity of ECN brokers are not really ECN fx brokers but are instead market makers utilising an ECN broker price feed by running a B Book behind the scenes. This has evidently led to heaps of of controversy and made people ask whether there actually are any true ECN fx brokers out there.

So you don’t get fooled by lavish internet sites and marketing material I there are a few checks which you can carry out yourself which will help you determine whether your forex provider is in actual fact a true ECN. Here are the checks that it is advisable to conduct.

1. Stop order distance from the current market price - True ECN fx brokers will NOT impose a distance stop orders can be located from the present market price. As all fx trades occur within the True ECN environment the forex broker does not care if you scalp for a few pips here or there. Only fake ECN brokers will enforce a minimum stop distance.

2. Trade size limits - A True ECN broker will not put any limit on your deal sizes as inside a True ECN environment there is always a buyer and a seller. A Fake ECN broker will likely restrict your order sizes as they’re taking the other side of your trade, if your order is just too large they might not have the capacity to manage their position exposure to you if you make money.

3. Slippage - Slippage can happen inside a True ECN environment and it can work for fx traders and against them, meaning that forex traders can get better or inferior fills. A Fake ECN broker will just pass on negative slippage NOT positive slippage, they’ll always keep the positive slippage for themselves rather than passing it on to their fx traders.

You should perform these 3 simple checks before trading with an ECN fx broker to make sure they are actually a True ECN broker not a market maker in disguise. I have done allot of testing myself and discovered there are a lot of Fake ECN fx brokers throughout the market place, a good number of them operate in unregulated jurisdictions.

There is one forex provider that I have found to have the best True ECN foreign exchange offering around with extremely tight spreads, that forex broker is Australian regulated company IC Markets.

I have been searching around for a reliable fx trading broker for the past three years. A number of weeks back I came across a few Australian forex brokers that were offering very low spreads. The forex broker that stood out one of the most was a company named IC Markets.

Because I had not heard about IC Markets I made a decision to explore what the company was all about. I was happy to discover that they’re a True ECN broker which obviously is a significant benefit for frequent fx traders and people using automatic robot strategies. They’ve also been around since 2007 making IC markets among the oldest providers in Australia. for me this is a really good sign as it demonstrates that they’ve been able to stand the test of time.

I conducted a few speed tests on their trading platform and found that their execution speeds were less than 100 milliseconds. This is extremely fast in anyone’s words though you ought to be aware that this will also depend on where in the world you are situated.

IC Markets bank with Westpac Banking Corporation and ANZ Bank, both are AA rated financial institutions in Australia and are at the forefront when it comes to compliance with risk management protocols making them two of the most secure banks in the world.

I funded my live trading account with $200 which is unheard of for a true ECN trading account. Most True ECN fx brokers necessitate a minimum starting amount of not less than $1,000. Their prices are spectacular they get down to zero pips although the EUR/USD often has a spread of 0.1 pips. They set my account up on 400:1 leverage and even let me trade micro lots that are equal to 0.1 lots or 1,000 units. This really suits me as I’m fairly new to forex trading and want to trade with smaller lot sizes. I forgot to say that IC markets commission rates are only $3.5 per lot which is the cheapest that I’ve ever witnessed for a Metatrader 4 True ECN.

I am very convinced that I’ve found the right ECN fx broker for my forex trading expert advisor and my discretionary trading. The razor sharp prices combined with extremely low latency deal execution speeds make IC Markets my primary choice for Metatrader 4 fx trading.

Their one-click dealing module is also the coolest Metatrader 4 add-on that I’ve ever seen, the one-clicker lets me to scalp the market much more efficiently and I can see the spread on the foreign exchange pair pair right in front of me on the screen. The also have several really good newsfeeds on the trading platform which helps me when I trade the news, although this isn’t something that I have perfected yet. There are far more order types on IC Markets Metatrader 4 trading platform than on every other brokers platform in the world, this makes a huge difference to me as I love to use OCO orders which Metatrader doesn’t offer in its normal form.

Since writing this assessment I’ve actually found that IC Markets is in fact also the biggest broker in Australia and is the only fx broker in Australia to have a True ECN offering, sadly most of the other so called ECN forex brokers are actually just market makers. As always I never endorse any single fx broker that is why I urge you to try one or two different forex brokers to see which one suits you best. Just be aware when in search of an ECN provider as most will not be True ECN brokers merely market makers in disguise.

Behind its popularity, there are a lot of issues surrounding the forex market. Many think of it as a mere scam and do not believe in the potential of currency trade investments. It is partly true because not all who enter the trade become successful. As much as there are those who made it big there are also those who lost a lot because of it.

Like any other venture there are always those who succeed and those who don’t. Those who don’t succeed are usually the ones who are not really adept with what they have gotten into. there are a lot of things that you have to consider when you get into the foreign exchange trade. Here are some tips that will help you succeed in the market:

1. Study-try to learn more about forex trading before you even get into it. Most traders fail because they lack the knack for the trade. It is important to look before you leap. Try to familiarize yourself with the whole trading mechanism, trading tools and the different strategies being used.

2. Choose a good broker-brokers are the bridges between the traders and the market. Brokers will help you in all your trading decisions and strategies. Getting a good broker is one of the key factors behind every trader’s success.

3. Have a good strategy-you don’t just get into the game without having a game plan. It is important to keep a strategy that will guide you in every trading decision that you will make.

4. Use tools-maximize the use of the foreign exchange trade tools that are available to you. Familiarize yourself with each of them and find out which ones you can use. You should use all the tools that will suit your strategies well.

5. Manage risks-you need to be proactive when you want to be successful in forex trading . You need to be able to foresee the risks that you need to take in the trade and the more important part is that you need to have a good strategy and tool to be able to manage these risks.

Everybody wants to experience earning a large amount of cash. Because of this many tryout forex trading. But what many are unaware is that the world of forex isn’t as easy as they think. To make it in this field one needs a set of certain skills and at the same time the intelligence of a seasoned gambler who knows when to risk it and when to fold their cards as well.

When it comes to this trade one doesn’t just jump in unthinkingly. Instead, they slowly ease themselves into it. The primary thing to accomplish is to acquire a knowledge on how this world operates and to locate a broker as well whom they can trust without hesitation. They should as well start off with a not too large investment for the reason that should they fail at the first try the losses will not be heavy.

Truly, forex trading is not for those without the drive to learn. Also, one should not go into the world of forex if they are the type who quit whenever they don’t stand to make a gain because in this realm there will be times when it seems that the loses outweighs the gains.

But what those who go into this trade find attractive is that the concept of the slow day does not exist. This kind of trading does not have holidays nor does it believe in weekends or an 8 hour work schedule. It’s active at all hours of the days all the days of the week which implies that there is no limit as to when one can earn in this field.

The other thing which those who are into forex trading find appealing about this is that this isn’t exclusively for the big players. The small shots can also succeed in the realm of forex for the reason that everyone is on fair footing when they start. So there’s really nothing to stop one from giving this kind of trade a try. What they must keep in mind at all times is to think things over before they make a decision.

The way you start up in forex trading is a very important and crucial aspect. This is the part that could make or break your investment returns. A lot of people fail because they start out the wrong way. That’s why it’s really important to plan your debut in the market.

Note that this is no ordinary venture, this is a financial venture. Here are some tips on making a better start in the trade:

1. Study the trade- try to learn more about the trade before actually joining it. You need not have a degree in business or in other finance courses. All you have to do is learn about forex itself. Familiarize yourself with the entire trading mechanism and the various terms used in the trade.

2. Look at the tools- find out all the trading tools that you can use. You should also learn what it is for and how to use it so that you will know which ones you will need.

3. Ask for feedback-try to ask around from your friends who have already experienced the foreign exchange trade. You are able to leanr from the experiences of others so you don’t need to repeat their mistakes. You can also check out the comments of other traders in forums.

4. Practice- aside from reading on feedbacks, comments and other information about the trade it is best that you will be able to practice. As they say experience is the best teacher. It’s a good thing that now you can practice without risking your money. All you have to do is try a simulator that will help you get a feel of what the trade is actually about.

These are only four start-up tips for forex trading. Aside from those stated above there are surely a lot more things that you would have to be mindful about yet these things would come along the way so the most important thing that you need to do is to prepare yourself for whatever you will have to face.

It’s a very profitable venture and with the dawn of the internet, the Foreign Exchange market has opened its doors to a new generation of traders. Foreign Exchange or simply Forex is the market of trading currencies against each other. Forex trading means conducting trade transactions with currency pairs of currencies of two different countries.

One currency is traded as the commodity, while the other is treated as money. Retail Forex trading is done online via a trading platform provided by most brokers. Brokers are the middlemen of the market helping retail traders out in making profitable transactions. For every trade, the trader pays a certain amount of commission to the broker.

Brokers allow traders to use platforms such as Metatrader 4. It is one of the most popular trading platforms used by online traders. This platform enables the execution of trade transactions with the help of Forex tools like technical analysis. It also has graphic tools like charts for easier analysis.

The lowest trading unit in the Forex market is called pip. It usually is at $100,000. But with such a trading unit, the regular trader cannot afford such a price. This is why brokers offer another type of service which is leverage marketing. With leverage marketing, a trader can pay a bond of as low as $1000 to a broker. The broker then allows the trader to transact in the Forex market with its own money. Any profit then is split by the trader and broker aside from the broker’s fee.

Forex trading is really easy to understand and follows a basic trading concept. Let’s say you are trading in the Euro/USD currency pair. Buying 1000 Euros will cost us around 1300USD because 1 Euro is equal to 1.3 USD. Patiently waiting for market changes, the trader keeps a watchful eye. Once the value of the USD drops, a trader needs to make a move with the new exchange rate of 1Euro to 1.5 USD. Selling your Euros at this point will give you 1500 USD. This means at this point, you have then gained 200 USD. There are a lot of opportunities to make money online. You can do trading right at the comfort of your own home.

Trading online is a very profitable venture. The current condition of the national economy topped with the difficulty to find jobs, online business ventures are what a lot of people rely on. One such online venture that turns out to be profitable is by being retail Forex trader.

The currency market or Forex market conducts business everyday and billions of dollars are traded off at the end of each day. The business of trading money with currency pairs, buying low and selling high - these are my concepts for forex trading.

One currency is treated as the merchandise while the other is treated as the money for trading. In order to start your forex trading career, you need to sign up with an online broker. Most professional brokers allow their new members to try the site out first for 30 days to get a feel of the whole site and the trading process. Most sites offer Metatrader 4 as the trading platform. The meta trader 4 package is complete with technical analysis in order to allow the trader understand market movement and how to go about in the trade.

Metatrader 4 also gives you visual aids and access to charting software that can be a real big help to graphically visualize market trends. Other forex tools that a trader can use are the PIP value calculator and currency converter. PIP value calculator enables the user to get the value of a single PIP for major parts. Currency converter on the other hand is important since values of money are always changing and it is in these changes that the market depends on. Economic calendars is another tool and it is a list of all possible socio economic developments.

Whatever affects the local political scene most usually affects the value of that country’s currency or money. Another important tool is the world clock because it gives the trader an idea what time it is on various places of the globe. Also another useful tool is the fundamental analysis. Its computing for market movement based on real current events. These are what most people call as market speculation.

There are some people who enter the world of forex with just a basic knowledge of how things operate. The thing is that forex trading is not a simple matter of currencies changing hands. For one, there are just even basic kinds of currencies exchanged here. Also, one should make use of a broker to make thing move around more easily. And then, one must know how trends move in this world for them to succeed. And most importantly, they should be quick on their feet when it comes to making decisions because a lot of things can happen in this world in a span of seconds.

But once people have come to realize and begun to practice of their knowledge of these principles, they are sure then to be able to make something of themselves in this world.

This is for the reason that forex trading doesn’t just cater to large corporations. The private small timer may as well make it big here. They should just possess a willingness to learn and not be of the mould who lose heart with a couple of loses. It must be considered though, that those who have been into forex for a bit have already in their minds the idea that it never does good to put out a large amount of cash for one venture for the reason that they could also lose a lot should things not go well.

And although they might be successful in their try at this game they should never stop aiming to be better. This is for the reason that as mentioned earlier, a fast paced world. And for this reason what might have been thought of as a smart move a few hours ago wouldn’t not been as such after a certain time has elapsed.

Forex trading might not be meant for everybody but surely, those who find out that this is for them will without a doubt be successful. So when one is conducting business in the realm of forex one should know when to go for it and when not to. If they follow this then success is guaranteed.