Very often I get the question which brokers are actually good and reliable.
Or the question with which broker I trade myself.
When you enter the world of trading, there are many brokers to choose from.
And that often makes it so difficult to find the right broker for yourself.
Of course I can’t talk about all brokers in this blog or about which of the many brokers can be trusted.
But in this blog I will give you a good insight into what you should pay attention to with a broker before you put your capital in the broker.
In this blog I will also tell you exactly which brokers I use and why.
What should you pay attention to?
Maybe you are currently looking for a good broker or do you want to switch to another broker?
I will tell you what you should definitely pay attention to when looking for a good broker.
-ECN Broker.
I advise you to pay close attention to whether the broker is an ECN Broker.
The abbreviation ECN in ECN broker stands for Electronic Communication Network.
ECN brokers enable parties to trade directly with each other.
Because the trader and liquidity provider are in direct contact with each other, orders can be executed very quickly, regardless of the geographical location of the parties.
It also means that trading through an ECN broker enjoys a certain degree of anonymity and protection.
ECN Brokers make their money by charging fees on every transaction performed.
There are ECN brokers that focus specifically on the retail market, while other ECN brokers only serve institutional investors.
Many traders choose ECN brokers because they usually have lower spreads and overall transaction costs and commissions are generally lower.
What is the best forex broker?
-Regulated broker.
Find out if the broker is a regulated broker.
I’ll tell you why this is very important.
Why is it very important for a broker to be regulated?
Because we are talking about the safety of your money here.
The money you invest and the broker’s promise to only use that money for the right purpose.
In short, if a broker is not regulated, this means that there is no supervision over it.
So there is no regulated organization or group that monitors whether the broker adheres to the rules.
In the worst case, this can mean that the unregulated broker can just run away with your capital.
So the first thing you should do is check if it is a regulated broker before putting your capital into it.
-A Book / B Book Brokers.
What exactly is the difference between A booked brokers and B booked brokers and which one is the best?
I will first give you an explanation of what an A Book broker is and entails.
A Book
ECN/STP brokers all use an A Book, they are intermediaries that send their clients’ trading orders directly to liquidity providers or multilateral trading facilities (MTFs).
These forex brokers make money by increasing the spread or by charging commissions on the volume of orders.
Therefore, there are no conflicts of interest, these brokers earn the same amount of money with both winning and losing traders.
B Book
Forex brokers that use a B Book keep their clients’ orders internally.
They take the other side of their clients’ trades, which means that the brokers’ profits are often equal to their clients’ losses.
Brokerage firms are able to manage the risks associated with the holding of a B Book by using certain risk management strategies: internal hedging through the matching of opposite orders submitted by other clients, spread variations, etc.
As the majority of retail traders lose money, the use of a B Book is very profitable for brokers.
I would therefore also recommend that you always go for an A Booked ECN Broker.
What is the best forex broker?
-And finally.
Although everything I have described above is crucial to choose the right broker, there is still one point that is very important.
Because the environment of the broker is of course also an important aspect.
Therefore, also check whether the broker has a good environment, instruments and help.
Look if they have a trading platform which is easy to navigate and has all the required tools, advanced charts and optimal speed.
Also look at the different account types and of course the minimum deposit, spread and leverage.
Which broker do I use myself?
Well with all the tips above I am sure that you can make a good choice for the right broker.
And what you should especially pay attention to when choosing the right broker.
Because I often get the question which broker I use, I’ll tell you now.
I have actually been using IC Markets for a number of years now.
IC Markets is an ECN Broker which I really like.
They pay your winnings quickly and they have friendly and good customer service.
Which I personally find very important.
IC Markets also has a relatively low spread, which is of course very attractive for us as traders!
Would you like to know more about IC Markets or perhaps create a (demo) account so you can experience it for yourself? Then click on this link!
If you are a beginner trader and to become a good professional forex trader. Want to know more about What is the best forex broker? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
Join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
This blog is about forex trading vs real estate.
However, these two investments can actually be combined very well.
This way you could very well invest the money you earn by trading forex in real estate.
This way you ensure a passive income which is returned to your bank account every month.
I also invest a lot of my forex profits in real estate this gives me some form of security.
So that I earn a fixed amount every month by renting out houses and apartments.
In this way you build up good security for your future.
Most people who want to establish a financially secure future choose to invest or trade in real estate.
And if we take a look at the list of the richest people in the world in any category they all have large investments in real estate.
Let’s look at Donald Trump, for example. Who made a fortune in real estate.
And Books like Rich Dad, Poor Dad , by Robert Kiyosaki and other property investing books written in the last fifteen years, introduced the average person to real estate investing.
Thanks to these books, many people have opened their minds to new possibilities which they can now envision for themselves.
Capital Gains Versus Cashflow / Forex vs real estate
When talking about capital gains, most people refer to the value you gained after a winning position.
On the other hand, cashflow generally means an investment vehicle that will produce money for you on a periodic basis.
That’s why I also think this is an ideal combination.
Personally, I find the best way to buy a property and rent it out for a monthly rent.
You could of course also buy a property and sell it later for a higher amount, but renting out a property naturally gives you a monthly cash flow.
The profit you eventually earn from renting out a property is of course much slower than making a big move on the forex market where you can ultimately earn a lot in 1 trade.
But it’s safer because of the low volatility.
With Forex trading, it’s faster to gain value, but you can also blow your bankroll faster.
That means to me that I have security with my real estate and a stable income every month.
And with trading I can earn a lot of money but in a lesser week or month I still have my certainty in the monthly cash flow from the real estate.
Do you understand what I mean?
Forex vs real estate
But how do you actually start buying your first property?
Well, for example, you can already buy a house in the Netherlands with 20% to 30% equity and you can get an investment mortgage for the remaining amount.
This will of course be different in every country, but you can easily find out for yourself how it is for your situation.
But actually it comes down to the fact that it is possible for anyone with a little savings to buy a property for rent.
For this, of course, you have to look for a property in a good place in the right location.
If you don’t have enough savings, don’t be disappointed, there are still options for you.
There are also funds in which you can invest. In this case, you bet a certain amount with several people to buy an object together.
Sometimes this is possible from as little as 200 euros.
You can also get a monthly cash flow here. This will of course not be a lot in the beginning, but you can always expand this.
Always do good research into these funds so that you are sure that you are investing with the right fund.
Forex vs real estate
Oh and a small addition, you can of course invest in many objects.
For example, you can also buy a garage and rent it out.
Or a retail building, an office building or even a holiday home.
Let’s just say plenty of choice.
Are you interested?
If yes, you can start by checking investing books in the market, such as The Essays of Warren Buffet or Robert Kiyosaki’s Rich Dad, Poor Dad.
You can learn the basics, plus some tips and tricks to help you get started with investing.
These books helped many average individuals to professionals open their minds to new ideas with a brighter future.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How to trade GBPUSD? ? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
Join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
In this blog I will tell you more about market structure in Forex.
Because what exactly is Market structure forex?
Market structure by definition is the simplest form of price movement in the market and it is important to be able to read it
They are the Swing Highs and the Swing Lows, the Supply and Demand zones and Support and Resistance Areas.
These are levels, which are easily identified and hold until they don’t.
Market structure is a trend following tool that traders read and follow based on how the price moves.
From bullish moves, to bearish and in between with ranges.
Market structure is also sometimes referred to as Price Action.
So we call it market structure because that’s how the whole market moves.
Understanding the trend and the expected movements that result from it and you will be a lot further along in your trading career.
It is therefore also very important to follow the market structure when you trade.
You have to know which way the market is going to be able to make a nice winning trade.
Market structure forex
Market structure forex
What types of market structure are there?
To understand the market structure you really only need to know 3 things.
Namely the 3 sides that the market can go.
It is also crucial to be able to recognize these trends and also how to know that there will be a possible change in the trend.
The market moves in 3 structures: uptrend, downtrend and sideways.
The whole market revolves around these three concepts – this is how the market can move.
Using the Euro as an example:
-Up Trend: If the trend goes up the Euro is worth more. -Down Trend: If the trend goes down the Euro will lose in value. -Sideways Trend: Prices move in a narrow range.
If you can read market structure you will be able to understand and read the three terms above from the charts.
And you understand how to read a continuing trend.
But you will also learn to recognize a changing trend.
I also learn all this much more deeply in my course.
What is also very important to know and remember is that the trend can look different on each time frame.
For example, if you look at the Daily time frame, the trend can be mainly up.
But if we then look at the H1 time frame, we may see mainly a Downtrend at the moment.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
A word often heard in the world of trading is perhaps the PIP.
And once you have entered the world of forex trading you will hear this word several times a day.
But what exactly is a PIP in Forex? I will explain all this to you in this blog.
How to count pips?
You need to completely understand how to calculate your wins and losses through the PIP.
Otherwise don’t even bother start trading.
The unit of measurement that indicates the change in value between two currencies is what you call a ‘pip’.
If the EUR / USD pair rises from 1.2250 to 1.2251, then the .0001 USD increases in value 1 PIP.
Simply, a pip is the last decimal figure of a quote.
Most pairs are shown to four decimal places, but there are exceptions such as the Japanese yen (to two decimal places).
Brokers. / How to count PIPS?
But watch out! There are brokers that show currency pairs different from the standard “4 and 2” decimal, but instead using’5 and 3′ number decimals.
What they actually do is showing fractional pips, “which are also called ‘pipettes.
For example, GBP / USD 1.51542 1.51543 moves, then it rises .00001 1 PIPETTE.
As each currency has its own relative value the value of the pip must be calculated for a specific currency pair.
We give an example in which we use a ratio of 4 decimal places.
In order to explain the calculations easier we exchange ratio set down like – so: EUR / USD at 1.2500 is “1 EUR / USD 1.2500.
Example exchange rate:
USD/CAD = 1.0200; or 1 USD to 1.0200 CAD; or 1 USD/1.0200 CAD.
(The value change in the “counter currency”) X (the exchange ratio) = pip value (in terms of the base currency)
Continuing this example, if we sell 10,000 units USD / CAD, then one pip change of exchange rate changes of approximately 0.98 in the position value (10,000 units x 0.00009804 USD / unit).
We say “approximately” because when the exchange rate changes, the value of each pip move is also changing.
Last important question that needs to be answered if you calculate the pip value of your position is:
‘What is the value of your pip in terms of your account currency?’
You’re trading at an international market you remember?
So not everyone on the whole world has chosen the same currency for their account.
Shortly, the value of the pip needs to be converted to the currency used at your account.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
If you have been trading forex for a while, you will probably have heard about a possible Stop Hunt.
But what exactly does it mean and what is a Stop Hunt?
I will tell you more about it in this blog.
Many novice forex traders will sometimes lose their entire account because they simply do not know where to place their Stoploss.
Institutional traders are the ones who profit from individual trader losses as there is a predictability in the behaviour of retail traders, and how they trade the Forex market.
Institutional traders like banks, hedge funds, investment firms often abuse the predictability and behavior of the retail traders and push the
price levels through these barriers in an effort to hit the stops and close the trades of retail traders.
Stop hunting sounds very negative to many retail traders because they think their individual stop losses are targeted on purpose.
But in reality Institutional traders are only looking for clear areas of stop-loss orders that are gathered at visible technical levels.
In short. / What is a stop hunt in forex?
Institutional traders will buy at levels where most retail traders have their stop loss.
For an institutional investor who trades much larger volumes, it is more difficult to execute an order with 1 trade.
So occasionally in order to fill a large order, the institutional trader will have to make the liquidity himself.
And how do they do that, you may now ask yourself?
Well since retail traders often hide their stop-losses at predictable technical levels this becomes a super good source of liquidity for the big players to target.
Most common technical levels that retail traders use to hide their protective stop losses are:
Support and resistance
Previous swing high or swing low
Big round numbers
Above/below technical indicators
Above/below chart patterns
What is a stop hunt in forex?
There will be a lot of Stoplosses collected at these obvious levels, and institutional traders will bid the market at those particular technical levels, so they can get the needed liquidity to fill their big orders at the expense of the retail traders.
How do you find the stop loss orders with stop hunting?
We now know that with a stop hunt they prefer to catch as many fish as possible, so these are the people with a sell / buy order above or below the zone.
And the stop losses of the people already in a trade. But how do you recognize this? And how can you benefit from this? Well the most important thing is actually wait until this move has happened. There are a few signals that can show you that this is a possible stop hunt. It is very important here to keep your volume indicator with your trades. In the masterclass course, I will explain how to recognize the stop hunt exactly.
That is why it is very important to know where these levels are, even if you trade primarily with Supply and Demand. It is also important that you never place your stop loss with the rest of the “fish” so that you do not get caught in the “fish pool”. If you mainly trade Supply and Demand, these stop-hunt levels are especially interesting for finding good trades.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
Before we talk about how you can trade Forex, I will first tell you a bit more about what the Forex market is exactly.
What is Forex? / How to trade forex.
Forex is short for Foreign Exchange.
Think of that moment at the airport when you make an international trip to one of your favorite holiday spots.
You can’t pay with your American Dollars (USD) in Paris (France).
So what do you need to do? Exactly, change your American Dollars (USD) for the local currency the Euro € (EUR).
Right in that moment you are a part of the biggest trading market in the world; the Foreign Exchange.
Of course, you are just a tiny part of it, as the Forex market has a trading volume of 5.3 trillion a day.
And no, there is nothing wrong with your eyes! 5.3 trillion a day!
Just to give an example of the opportunities laying ahead of you, note that the Forex market is active 24 hours a day and five days a week.
Since at some point of the day in some part of the world the stock market will be open for trading.
It starts at Sunday night at 11pm and goes until Friday night 11 pm.
All traders: companies, investors, banks and the small trader like you and I will be trading during this time.
I can hear you thinking: Do I have to go outside of my house to a local exchange market or a bank?
No, not at all. And that is the beauty of this game.
The only thing you will need to make a trade is a working laptop, with a good Wi-Fi connection and an online platform where you can make your trades.
That online platform is called a “broker”.
The mostly traded currencies are the U.$. Dollar, The euro and the Japanese Yen.
A few other popular trading currencies are the British Pound, the Australian Dollar, the Swiss Franc, Canadian Dollar and the Swedish Krona.
You can trade them in every pair that you can think of.
The whole basis of the market is to buy and sell a certain pair, which means you are predicting the strength of one currency against another.
For example, the EUR/USD is the most popular pair. But you can also trade the GBP/SEK.
This is the British Pound dancing with the Swedish Krona, and the GBP/SEK price represents how many
Swedish Krona you can get in exchange for one British Pound.
Now that we understand this a little better I will now tell you how to start trading Forex yourself.
-First we choose a Forex pair. / How to trade forex.
When trading forex you are exchanging the value of one currency for another. In other words, you will always buy one currency while selling another at the same time.
That’s why we always trade currencies in a pair.
You can trade any pair you want. But if you are just starting to trade, many novice traders choose to trade with some more famous pairs such as EUR / USD.
-Make an analysis. Of course you also need an analysis to be able to make a trade.
If you do not make a correct analysis then you just gamble and the chance that you will lose a trade is many times greater.
Unless of course you are always lucky!
I always make an analysis based on the Supply and Demand strategy.
You can find this in several blogs on my site.
You can also learn everything about Supply and Demand extensively in my course.
-Choose your position. / How to trade forex for beginners. If you’ve traded stocks or other financial products, you know that you can usually only speculate on the one direction of the market and that is up.
With Forex this works slightly differently and we can go up but also down.
In other words you can buy and sell.
With a buy position you believe that the value of the base currency will rise compared to the quote currency.
If you’re buying USD/JPY, you believe the price of the DOLLAR will strengthen against the YEN.
With a sell position you believe that the value of the base currency will fall compared to the quote currency.
If you’re selling USD/JPY, you believe the price of the DOLLAR will weaken against the YEN.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
