Forex Trading Secrets

Overall Rating:

Open Account: Click Here

Min Deposit: $50

Tools: Free Software, Webtrader

Special Promotions: Yes, bonus of up to $1000 for first deposition.

Leverage: 1:5 to 1:400

Deposit Options: Many, All major including paypal, moneybooker, neteller, credit cards and bank transfer

Free Practice Account: Yes

Support: Excellent (Chat, phone, email)

Company Reputation: Very good.

etoro is a Limassol (Cyprus) based forex trading company. It became very popular soon after it’s launch because of many features it offers. This is only platform available for any kind of forex trader, be it newbie or experienced forex trader. They provide quick and excellent support. I personally use eToro and recommend it to fellow forex traders because of quality of service they offer.

Both eToro software and web trading platform are userfriendly and easy to use compared to many other available in market. You can try a free practice account before you start trading. Unlike many other companies, you don’t even need to install software. You can also try web based trading platform. Downloading software is completely optional.

What i liked most in eToro is, you can start trading within couple of minutes and just depositing $50 only. That’s great idea to learn forex trading. Registration was very simple and i got my bonus within couple of mines. Some companies minimum deposit of $2500 to open and maintain account.

Personal Tip: If you’re planning to trade forex for long time, i’d advice to make first deposit bigger as eToro provides great bonuses on first deposits.

Click here to Open eToro Forex Account Now

Recent upheavals in the markets has meant that investors are more cautious about investments they make, particularly online. The proliferation of technology and the web has resulted in very well informed investors across the globe. Investors are becoming more and more demanding of their tools and their brokerage firms as they attempt to exact greater returns on their capital.

From the power of these tools though, comes complexity. This is true for both the types of investments made, as well as in the tools used. The forex trading market has been particularly hard hit, with a fall out rate of more than 80% of investors. This means that 80% of investors who try forex trading as an investment strategy give it up.

The international forex market is still growing, and daily turnover is more than $3 trillion globally. The problem is that brokerage firms earn money on trades by these individual investors, and so a low retention rate hurts their bottom line. A key contributor to these low retention rates seems to be the complexity of the tools.

The forex market is sometimes not an easy one for individual investors to understand. It takes practices and some effort to learn the workings of the markets, as well as the tools used for trading. Those investors that make the effort though, do see significant rewards in great returns on their capital outlays. One system being used by brokerage firms to encourage investors to consider forex trading is the use of demo accounts.

Demo accounts are no different from real trading. Customers use the same tools in the demo accounts that they would use in real trading. A customer opens a demo account with a brokerage firm, which has imaginary money deposited in it. Trades are executed using real software, and based on real market data, giving an investor first hand experience of forex trading with no risk. The profits and losses shown in these demo accounts reflect what would have happened had the trades taken place in the live market with real money.

Different firms offer varying demo accounts to customers and investors. The levels of complexity and amount of hand holding available differ from one offering to the next. Investors new to forex trading are better suited to the basic plans that also give access to real brokers as a way to learn the ropes. More experience investors can try out the more sophisticated offerings from the various brokerage firms.

The chief advantage of these demo accounts is self-evident. Because they use real software, and real market data, they really do give investors first hand experience of real life forex trading. The potential investor is exposed to the same tools and platforms that real traders are using on a daily basis. There really is no better way than experiencing this before deciding whether the forex trading markets are suitable for a individual investor. As no real money is at risk, some firms offer demo accounts allowing investors to compete against each other. This is all to add an element of competition making the experience even more similar to real trading.

Clearly, using demo accounts accomplishes the double task of attracting potential investors, as well as familiarising them with real trading environments. Offering these, is therefore an additional tool brokerage firms should be using to improve their customer retention rates.

A lot of investors have considered trading on the forex markets, in an attempt to get better returns than those offered on other financial and commodity markets. Even investors experienced in these other markets sometimes find the forex world totally alien. There is a lot of material available on the internet, and in books for investors to learn from. Nothing however beats actual trading experience.

The best way of getting this experience, is trading forex via demo accounts offered by most brokerage firms. These accounts allow forex investors to place trades with real data, and in real markets, without risking any money. Forex brokerage firms will usually offer these accounts free of charge to prospective customers.

They typical way of opening a demo account is via the brokerage firm’s website. Having funded the account with virtual money, the investor can begin trading. Learning the way the markets and the software works are a plus. Investors can also experiment with various trading strategies, and place a lot of trades to gain more experience.

There are two main ways of trading using a demo account. The first is the dealing at the current live prices as shown by the account interfaces. The second is via the use of orders, such as limit orders

Trading at the current price involves watching the prices fluctuating in real time, and then executing a trade at any point on the market. The advantage to this is that the trade is filled immediately. This immediate gratification is what draws a lot of forex investors to currency trading.

The best demo accounts provide live prices that can be dealt on at the push of a button or a click of a mouse. It really is as simple as picking the trade, specifying the amount or quantity, and clicking on a Buy or or a Sell button to complete the purchase or sale.

The platforms should respond back immediately, confirming that the forex trade has taken place. At the same time, the window showing the investors’ holdings should update to reflect the new position. Even where a trade is not executed, the platform gives indications to this effect. Most will give a reason for the failure, such as prices moving before the trade could be executed, or the quantities desired not being available.

It is important to stress that not all trades will be successful. In fast moving forex markets or in currency pairs with little liquidity, trades will fail. It is up to the investor to try again, either at a different price, or with different quantities.

Forex trading, even with these live prices is binding. It is not uncommon for novice forex investors to click on Buy, when they intended to Sell. This could be a misunderstanding of the currency pairs, or just a lack of familiarity with the interfaces. Demo accounts are therefore a good way of gaining this knowledge, and experience with the particular brokerage house’s platform. Experienced traders will know these systems intimately.

Another advantage of using live price trading, is that it highlights the speed of the brokerage firm’s platform. For many reasons (beyond the scope of this article) some brokerage firms have systems that are slower than the rest of the market. Evidence of this will be numerous failures to execute trades because the market prices have moved. Seconds do count in forex markets with high volatility.

So, sign up for a demo account, and get your feet wet in the forex markets without risking any real money.