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5 Reasons to Use VPS Hosting for Forex Trading

Forex trading has always been a time sensitive business. Even a few seconds of delay may cost you hundreds of dollars. Whether you trade from home with a personal computer or work with a Forex broker, you must be prepared to address the challenges like latency, slippage, and security. Trades made from home or office computers are more likely to face the challenges like Internet connectivity, power outage, etc. To book the maximum profits from Forex, traders must consider using Forex VPS Hosting for the execution of fast Forex trades. But why VPS hosting for Forex trading is a relevant solution to tackle these problems? This blog post will give you 5 reasons. But first…

What is VPS Forex Hosting?

“VPS hosting, what is this?” is a question that has come to your mind at least once! Unfortunately, there are not many sources explaining in details the Forex VPS term. Thus, we will now discuss what is VPS Forex hosting and how it supports the opening of fast Forex trades and how it helps your trading connectivity.

The VPS Forex hosting is a server solution for expert advisors. The term FX VPS stays for Forex Virtual Private Server. In other words, VPS for Forex guarantees rapid implementation of trades through an ultra high-speed hosting server – a way to minimize trading slippage. Now let’s discuss the top 5 reasons to use VPS server for Forex trading.

1.     Flexibility to Trade from Anywhere

With VPS, you can enjoy the flexibility of trading from anywhere. Let’s take a real-life example to demonstrate it.

Imagine you run Metatrader Expert Advisors on your home computer. You’ve set up trades to happen automatically when certain market conditions and pricing levels happen.

What if you are not on your computer desk? Well, an answer is simple, you cannot trade. Yeah, it’s possible to some extent either with the notebooks or laptops, but with a desktop PC there’s no chance.

With VPS, the situation is quite relieving. You can trade from almost anywhere because all you need to trade is PC/laptop and an Internet connection. Just log in to your Forex VPS for MT4, connect to the best Forex software for you and start buying and selling currency!

Forex VPS Hosting

Forex VPS runs round the clock, enabling you to run trades automatically day and night without exhausting your personal computer. As soon as the correct market condition occurs, automated trading bots trigger the trade.

Unlike desktop PCs, VPS for Forex trading are built on powerful hardware, robust operating system and high-speed internet connection that can work non-stop for a long period of time.

In a nutshell, to host your Forex trading platform, robust solutions like Forex VPS hosting is recommended. After all, your money is at stake, and you don’t want to take a risk.

2.     Enjoy Ultra Lowest Latency

Latency is the most crucial factor affecting profit while trading. Well, it may sound bit technical term, but it’s just the speed measurement on which orders are transmitted to trader’s server.

The lowest latency ensures the faster execution of your order to broker’s trading system. Whereas higher latency causes the slippage, as prices are updated very rapidly, and filled order price may get changed at the time it reaches to your broker’s system resulting in the loss.

At this point, you may have a question like, “What’s the role of VPS here?”

Apparently, VPS is the only answer here, because your local computer runs with a latency of around 800 milliseconds whereas the recommended latency is around 200 to 250 milliseconds to make the most orders transmitted smoothly.

VPS hosting for Forex trading transmits your orders faster by using its enhanced processing power, swift Internet speed, and lower latency. The only thing you need to ensure is the geographical distance between your VPS and trading server.

To achieve the maximum performance, you should host your VPS nearest to your involving trading servers. Closer the VPS is to trading server, the lowest the latency will be and there will be less chances of slippages.

Let’s consider an example to have better understanding of this:

VPS Hosting for Forex Trading

You can see that home computer has a high latency of 800 milliseconds to reach the server of a good Forex Broker whereas if you buy the FX VPS nearest to your Broker’s server, the latency is 100 milliseconds.

3.     Guaranteed Connectivity

As we know that, an uninterrupted and fastest Internet connectivity has a major role to play in successful trading. Running trading from desktop/laptop with local internet provider may not fulfill this essential requirement.

With VPS hosting for Forex trading, you will have reliable and constant Internet connectivity with 24/7 availability. Forex VPS are equipped with the high-speed port connectivity ranging from 100 Mbps to 10 Gbps, which is way faster than your local Internet connection.

Furthermore, your trades will remain unaffected, no matter whether you have a poor connectivity or it’s completely down. So, instead of running Forex trading locally, VPS is the best suitable option to run your trades uninterrupted, faster and reliable.

4.     Reduce Forex Slippage

“What is Forex slippage” is the other question that has come to you at least once. The Forex slippage definition states: Slippage is the difference between the trade order price and the price of the executed order which occurs due to latency. I’ve probably seen that it takes around a second after the click to implement a trade from a standard PC. The price changes during this second and you are taking the risk.

There are many reasons of latency like Internet connection speed, distance from your location to trader server location, etc. SSD VPS hosting for Forex is recommended in trading as it can handle rapid order executions, due to its high internet speed connection and optimize server hardware which leads less slippage. Forex traders just need to look for a VPS configuration with the optimal amount of RAM and SSD disk space to make sure blazing fast execution of orders.

How Does the Forex Slippage Control Affect Trading?

To earn maximum profits, it is necessary to trade the exact order price that you want to trade. But the executed order may be different to that of your desired order due to latency caused by different causes. So you see your price and click to trade, while the click is on process the price changes and your click executes another price. This is slippage, and it has a great impact of your Forex trading capital.

How Can VPS Hosting for Forex Trading Help in Reducing Slippage?

SSD VPS hosting is recommended for Forex trading as it can handle rapid order executions, due to its high internet speed connection and optimize server hardware leading to less slippage. Forex traders just need to look for a VPS configuration with the optimal amount of RAM and SSD disk space to extract the fastest possible order execution in Forex.

5.     Easy Resource Upgrade

While running VPS Forex trading, you can assign guaranteed resources like disk space, RAM, CPU to your favorite Forex software and Expert Advisors.

With a single virtual CPU and 1 GB of RAM, you can easily run 2 to 3 Forex instances. To run more instances, you can simply upgrade your Forex VPS resources as per your requirement, without affecting the existing settings and data. Thus, you can enhance the performance of your existing profitable EA, by upgrading your VPS with just a single reboot.

Many VPS providers offer Fully Managed VPS, where they continuously monitor your VPS resource usage. If any of the VPS resource usages goes high, the VPS provider will notify you, and you can upgrade resources.

Conclusion

While you are running a Forex business, you cannot afford downtime, error, or any security threats. VPS helps you run your Forex business securely, continuously, efficiently, and automatically.

By investing in a Forex VPS, there is a little-to-no delay in the transaction, so traders are more likely of placing the bid they want at the exact moment they want. To achieve the financial success in Forex trading, you should always count on VPS Forex hosting.

If you want to share your experience with Forex VPS, or you know any other benefit of running Forex trading on VPS, please share with us in the comment section.


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Reasons Why Most Forex Day Traders Fail and Lose Money

Here’s the truth – most forex day traders lose money trading forex. And, if you have tried it on your own you have probably lost money too. But why do forex traders lose money in most of the cases? I don’t know what happened in your situation that caused you to lose money. But I do know, in general, why day traders fail and what causes most people to lose money with forex.

3 Reasons Why Forex Traders Fail

There are three factors that I find for reasons why most traders fail, and I want you to do a “self-analysis” to see if this is happening to you too:

1) Greed

This is a tough one because none of us want to admit to being greedy. However, MOST of us are to some degree! If you find yourself making money with forex but always wanting to “make more” only to find yourself eventually losing money, then you are struggling with greed! Remember, greed is one of the most common reasons why newbie traders in Forex lose money.

2) Unrealistic Expectations

Most people like forex because of the volatility and quick movements throughout the day. For some, this is no different than the thrill of gambling in a casino. If you are expecting to turn $1,000 into $10,000 in 30 days or less, then you have VERY unrealistic expectations.

Your goal should be to steadily make positive gains day after day and let your account grow through compound interest. Give yourself a LONGER timeline to become successful. This will reduce the pressure at you, boosting your Forex success rate.

3) Poor Money Management

Put simply, this means trading too large of a position for your account size. If you are risking more than 1% of your account on any one trade, you are trading too large. I personally trade MUCH less than 1% per trade because it helps to lessen my risk even further. I recommend you do the same!

And while we are on the subject …

Is Forex Trading Gambling?

Many people who don’t understand what is Forex immediately label it as “gambling” and guess what, most of them are right! And the reason they are correct is that traders violate the rules that professional gamblers follow EVERY DAY without fail.

Is Forex Gambling

What are those rules? Here are just some of the pro tips I’ve learned over the years.

1) Never trade based on emotion

If you “feel” like a trade is going to go in a certain direction based on feelings alone then WALK AWAY. Leave emotion at the door! Pro traders place a trade for one reason only – they see an event unfold and they know with a high level of certainty that an outcome will repeat after that event (most of the time). They are playing an edge based on TESTING.

2) Never trade outside of your plan

This means you should trade the HOURS, the FOREX PAIRS and the TIME FRAMES you have decided that are best for your trading style. When you trade outside of that bad things happen. Don’t do it!

3) Walk away from your computer

Forex is not a “game” that rewards you for long hours. In fact, it usually works just the opposite. I guarantee that the more time you spend on your computer, the more trade setups, you will magically “see” and take. Taking MORE trades in forex will not reward you. Take just enough to make your profits and then WALK AWAY!

Now it’s your turn. Look in the mirror and decide if you want to trade forex for a living or let fear hold you back! Then, make a decision to take the first step to a life of freedom!

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Top Forex Trends in 2017 that Investors Should Approach

The world of Forex trade is always in the throes of change, and 2017 promises to be more exciting and fast-paced than ever. Even as the financial marketers are recovering from the impact of Brexit and the meltdown of the Oil prices, the world is waiting with bated breath on how President Trump’s policies, China’s strategic moves, and other macro-level factors will affect the Forex markets in 2017. This has caused questions around the top Forex trends in 2017 and where to find them. Therefore, we will now approach the strong Dollar, the Euro trend, the Yuan, the emerging markets currencies, as well as the Pound as alternatives to invest in Forex trends.

Strong Dollar Remains among the Top Forex Trends in 2017

Of late, the US Dollar has been seen strengthening against most currencies of the world, most notably Yen, Euro, and Pound.

Strong Dollar Trends in 2017

The bullish trendline Forex indicator  of the strong Dollar is likely to continue for the rest of the year, and buying the US dollar is top of the recommendations made by most analysts and experts. Experts predicted President Trump to smash the global economy, and this prediction still holds in the absence of any visible trends signifying otherwise. The elephant in the room, however, is what the Fed proposes to do with interest rates, with interest rates being linked to inflation in a big way. For this reason, we believe that the strong Dollar is among the top Forex trends in 2017.

The Euro Trend Faces a Strenuous Test

At the other side of the pond, even as the impact of Brexit plays out, the portents of “Frexit” and other challengers raise their head. 2017 is likely to be a watershed year, which will make or break the Euro trend.

The Euro trend has withstood several grave challenges in the immediate past, including the sovereign debt crisis of many Eurozone countries, and the substantial bailout programme for countries such as Greece, Spain, Ireland, Cyprus, and Portugal.

Euro Trend in 2017

The countries benefiting from such bailouts are still in the midst of deep structural reforms, and unprecedented fiscal consolidation. While such moves would stabilize the Euro trend, the currency is still fragile, as some of the underlying challenges remain unresolved. For instance, non-performing loans are a big worry for many European banks, with speculation rife many top banks could still go down. Such an economic catastrophe, combined with possible political turmoil in election-bound states such as France, Netherlands, Germany, and Italy could pose a big challenge for the currency, pushing the Euro trend to a downward spiral. The rise of populist forces and cries for nationalism could prompt new governments to follow trends that force national retrenchment, pulling Euro into a crisis. In short, the Euro remains exposed to big time financial speculation, putting it among the top Forex trends in 2017.

Emerging Market Currencies Likely to Weaken

Emerging market currencies are likely to weaken in 2017, as external liabilities of such countries piles up, and yields on investment remain low.

Currencies such as Malaysian Ringgit (MYR), the South African Rand (ZAR), and also the Australian and New Zealand dollars are likely to remain bearish for the best part of 2017.

The Yuan Remains Unpredictable

China devalued the Yuan in a big way, in 2016, plunging the world financial markets into a deflationary shock. Whether it would follow it up with similar devaluation in 2017 is unknown, but the fact remains that nation-states such as China have the capacity to stir up Forex today and financial markets in general. After all and such states are more willing than ever to exercise these options.

The Pound May Recover

The British pound was hammered in 2016, with thanks to Brexit. However, with no fresh negative news on the horizon, the Pound is likely to recover and reclaim some of its lost currency value.

Pound may Recover

Considering the above top Forex trends, 2017 looks to be an uncertain year for the Forex market and because of this it could be risky for newbie traders. However, it will hopefully prove lucrative for investors with more experience and who approach it systematically, making educated moves rather than hasty bets.

With macro-level trends notwithstanding, the Forex market can lean toward being fickle, dispelling old Forex trends at short notice when new emerge. Several financial institutions, such as CMC Markets and others, track the shifting trends on a regular basis and offer ready to consume products for investors. Taking this into account investors seeking to profit from the Forex market would do well to keep themselves abreast of the general macro-level trends, remaining flexible to invest according to one’s own personal appetite for risk and investment, as we navigate through what lies ahead for the top Forex trends in 2017.


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Factors Affecting Foreign Exchange Rate & Currency Value

A country’s economic health can be determined by assessing its domestic currency exchange rates. This because foreign exchange rate of world currency is a crucial component in international trade of free market economy. However, exchange rates play a role on a smaller scale as well. In fact, it can even impact the returns on an investment portfolio. This article points out the factors affecting the exchange rate of Forex pairs.

What is Exchange Rate & Currency Value

The currency exchange rate is the value of one Forex currency expressed in other Forex currency. The international currency market is based on Forex pairs traded on different Forex rate of exchange. Every Forex currency value is quoted in other currency.

currency value foreign exchange rate

For example let’s take the Euro foreign exchange rate expressed in US Dollars. This is called the EUR/USD Forex pair. Let’s say the foreign exchange rate today of the EUR/USD is $1.0600. This means that one Euro costs 1.0600 in the Dollar exchange currency.

But the Euro could be quoted in other Forex currency as well, like the Great Britain Pound for example. This creates the EUR/GBP Forex pair. This currency couple quotes the EUR currency value in GBP, which is £0.8513 at Nov 29, 2016.

6 Factors Affecting the Forex Currency Foreign Exchange Rate

Global exchange rates of currency pairs are determined by the supply and demand factor concerning every single currency. Buyers represent demand and sellers represent supply. When Forex market players are investing in currency they create supply and demand pressure, by buying and selling different Forex pairs. This causes the world currency exchange rates to fluctuate.

euro exchange rate

Yes, but investors are not randomly buying and selling different currency pairs. Their decisions are based on domestic factors, concerning the economy (country) represented by every single currency. If you possess US Dollars, then the US economic performance should be in your focus. If you have Dollars and something bad happens to the US economy, then investors is likely to withdraw their trust from the USD creating a selling pressure. This is likely to depreciate the USD since a lot of USD supply will be created on the international currency market. As a result of this, your US Dollars will worth less in other currency.

If you own Euro, then you should follow the economic results of the European Union. And if you own Japanese Yens, then Japan should be the primary economy of your interest, and so on.

Today we will discuss the top 6 economic factors affecting the foreign exchange rate of world currency pairs.

Factor 1: Inflation

forex inflation

In general, a country that is able to maintain a low inflation rate will boast a healthy currency value, because it means national purchasing power increases relative to other currencies. The higher the rate of inflation, the more a country’s currency will depreciate in comparison to the value of other currencies.

Factor 2: Interest Rates

forex interest rates

Central banks control the rate of inflation and the cost of exchanging currency through the authority to adjust the interest rate. A high interest rate offers to lenders significant returns in relation to other countries. Therefore, it’s possible to mitigate the effects of a high interest rate. This is only if inflation is higher than it is for other trading partners, or if outside factors devalue the rate exchange of the currency. The opposite is true for decreasing interest rates.

Factor 3: Account Deficits

account deficit

The balance of trade lies in the relationship between a nation and its partners, which encompasses all trade between countries in terms of the goods and services. If there is a deficit in the account, it indicates that the country is importing more goods and services than it exports. To bring the account up to par, the country would usually have to borrow capital from foreign entities. Inflation ensures as their currency would depreciate in relation to its trading partner.

Factor 4: Public Debt

forex public debt

Typically, countries utilize large-scale deficit financing in order to complete ambitious projects with the use government funds. Although these projects are a major boon to the country’s economy, a nation that runs a deficit will draw less attention from overseas investors. This is because when investors see debt, they think inflation, which translates into a lower currency value.

Factor 5: Terms of Trade

terms of trade

The terms of trade is a ratio used to compare the price difference between exports and imports. If the price to export rises at a higher rate than imports, then the country’s terms of trade have significantly improved. This is likely to result in currency rate exchange appreciation. However, if the price of a country’s imports rises more than the rate of exports, their currency value will decrease in relation to trading partners.

Factor 6: Political Stability and Economic Performance

political stability and economic performance

Overseas investors prefer countries that are and have a high economic output. For example, instability in a country’s government can lead to a loss of confidence in their currency. Investors will then shift to countries that has stability and a strong economy.

The Bottom Line

The foreign exchange rate of currency influences the return on a portfolio that includes the quoted currency. A foreign exchange rate is intertwined with factors, such as the rate of inflation and interest rates.

A Forex trader who deals with international currency exchange should always monitor the economic factors concerning currency value. These are essential for realizing profit on the foreign currency exchange market. Not knowing the performance of leading economies usually leads to Forex loss and failure in currency investing.


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Forex Broker with Lucrative Trading Conditions

Author: John Gilmore
Email: John.Gilmore865@gmx.co.uk

Financika is a not the most well-known broker on the internet. All of the available information about the services they offer, however, will tremendously improve your trading abilities. Since collecting information about the broker can be a time-consuming nuisance, we have decided to publish all of the information in one place.

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Account Types and Available Trading Platforms

To start with the broker offers only one regular account type. The account features a minimum deposit of $250, while the vital leverage factor is set at 1: 200. Although there is currently a lack of demo accounts, Financika does provide various learning tools for its beginner traders. One of the clear advantages of Financika is the variety of trading platforms it provides to its clients. When working with the broker, traders can opt to use the platform WebProfit, PROfit or the ever-popular and credible MetaTrader4.

Learning to Trade

Financika is a true leader in the Forex education department. The broker has created a sort of Forex Academy that very few competitors currently offer. The learning material includes video and text material aimed at improving the traders’ skills. The material however is not only useful for beginners. Traders with years’ worth of experience can also gain knowledge from the academy.

The Academy is divided into several sections. These include several charts, such as the line and bar chart, and the candlestick chart. Basic terminology and fundamental and technical analysis are also included within the academy.

The remaining sections of the learning program are equally informative and offer traders various ways of interpreting different trading trends, price fluctuations and moving averages. They also provides a detailed explanation on how to understand and benefit from the use of fundamental and technical analysis when trading.

To further enhance the traders’ abilities, Financika has included several trading tools. The daily market review, currency chart, economic calendar, and extensive glossary are all complimentary for the registered trader. The weekly video analyses are also not to be overlooked.

Additional Help

One of the biggest advantages of Financika is their variety of risk management tools. These include the Stop Loss order and the Take Profit. The former order limits the investor’s loss during a certain position, while the Take Profit position allows future sell orders to earn a set of security when a price is met.

Depositing and Withdrawing

Depositing with Financika is as easy as “ABC.” A trader can make a deposit via credit card check and bank transfers. Withdraws meanwhile are completed through a secure procedure involving the customer service department.

Human Interaction

Customer support is just an email, phone call or chat away. Traders working with Financika have the freedom to call and obtain vital information at any time they please. While the head offices are located in Port Villa, Vanuatu, Limassol and Cyprus, the telephone number provided is a London one. The customer support is available in a variety of languages including English, Arabic and Russian.

Resolution

Financika may not yet be the Internet sensation that everyone is talking about, but it’s quickly gaining credibility as a solid Forex broker. Their FAQ section is well informed and their overall services are well above average. The lack of a demo-account is a slight setback, but the educational material provided by the broker certainly compensates this absence. Overall, the services they offer are perfect for anyone looking to earn a profit in the Forex world.


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What is Iron Condor: Option Iron Condor Trading Strategy

What is an Iron Condor Option?

Iron Condor is a market neutral strategy that allows you to profit when the underlying price moves sideways. Iron Condor options usually have a limited risk and a high probability of success.

The option Iron Condor is a combination of a bull put spread and a bear call spread. The basic construction is:

  • Sell 1 OTM Put
  • Buy 1 OTM Put (Lower Strike)
  • Sell 1 OTM Call
  • Buy 1 OTM Call (Higher Strike)

All options expire at the same month. The distance is usually the same between the short and the long legs of the calls and the puts.

A typical P/L Iron Condor chart looks like this:

iron condor options

Where to Trade Iron Condor Options?

It’s generally safer to trade Iron Condor options on indexes because you never have to be concerned with a single stock issuing unexpected news that results in a gap of 20% or more. True that can happen with an index if there is world-shattering news – but it’s a much less likely event.

Most indexes in the U.S. are European style vs. American style. That means they cannot be exercised before expiration – and that’s to your advantage.

How Far in Time Do Iron Condors Go?

The time can vary between one week and three months. Those are the extremes, most people go for 3-10 weeks. Going with close expiration will give you larger theta per day. So you might earn 5% in one week or 10% in month or 15% in two months. Obviously 5% every week is better than 10% every month. But there is a catch. Less time to expiration equals larger negative gamma. That means that a sharp move of the underlying will cause much larger loss. Also, with less time remaining, iron condor positions are worth less than if there were more time remaining. Thus, you collect less cash when you open the position.

When you short Iron Condor options that expire in the 2nd or 3rd month, you collect higher cash premiums (good), have positions that lose less when something bad happens (good), but there is more time for something bad to happen (bad). When you have iron condor positions, you don’t want to see something bad (and that’s a big market move). The more time remaining before the options expire, the greater the chance that something bad happens. That’s why traders who sell* iron condors are willing to pay you a higher price for them.

To Leg or Not to Leg?

The process of “Legging In” offers the promise of higher yields and enhanced the options Iron Condor success rate, but the question is whether it is worth the risk. An example of legging into an Iron Condor is selling an OTM put spread and then selling an OTM call spread after the underlying has increased in price.

There are different opinions about the issue.

My recommendation is that if you want to trade Iron Condors, then you should focus upon your Iron Condor risk management. Another important thing to focus on is the Iron Condor managing requirements. That is where the money is won and loss. If you legging into the trade still appeals to you then it is probably better to re-tool your trading approach to that of a directional trader.

Which are the Better Strikes?

Most investors believe that the further out of the money the options they sell, the ‘safer’ their position and the less risk they have. That’s one way to look at ‘safety.’

The delta of the options gives you an approximate estimate of the probability to expire ITM. If you open IC with short calls and puts having delta of 15, that means that the trade has probability of ~70% to end between the strikes. There is always a trade-off between risk/reward and probability of Iron Condor success rate. The better the risk/reward, the lower probability of success.

Profiting with Iron Condor Options

One of the more difficult aspects of options trading is knowing when to take a profit. The Iron Condor profit is calculated as return on margin. The Iron Condor margin is the difference between the strikes. For example, if you trade 2100/2110 call Iron Condor spread, the margin will be $1,000. The capital requirement is the margin less the credit. In case you got $200 credit, the capital requirement is $800. So if selling Iron Condor for 2.00 credit and closed it for 1.00 debit, the gain is 100/800=12.5%

When managing Iron Condors I usually have the put and the call credit spreads separately. I will place a GTC order to close the spreads at 0.25 debit each, which is around 20-25% of the credit received. The last 25 cents are not worth the risk.

As a rule of thumb, you should aim to limit the losses to 1.5 times the average monthly earnings. For example, if your average monthly return is 10%, you should aim to lose no more than 15% in losing months. There is no point to make 8-10% for few months and lose 50% in one month.

Typical Iron Condor Option Issues

“I would have had a great year if it wasn’t for one or two months”. If you trade Iron Condors without a detailed risk management plan you will eventually experience large losses.

There are few serious issues with “traditional” Iron Condors:

  • If the market makes a move up after trade launch you will start to lose money immediately even with declining implied volatility typically helping your short Vega position.
  • Markets tend to rise over time, so most of the cycles you are fighting the Iron Condor on up moves.
  • Rolling adjustments isn’t really an immediate risk reducing technique if the market continues to fall and implied volatility continues to rise.
  • As you move from the center of an Iron Condor, gamma kicks in and makes the T+0 curve “bend” and change relatively quickly so you tend to adjust fairly soon.

Summary

Like with any options trading strategy, there is no ‘right’ choice. As an investor, you want to hold positions that are comfortable for you. The best way to discover your comfort zone is to trade. But, please use a practice account and do not use real money until you truly understand how Iron Condor strategies (or any other strategy) work. Some traders always trade the near-term (front-month) options, while others (myself included) prefer options that expire in two, three, or even four months.

Kim Klaiman is a full time Options Trader and founder of SteadyOptions – options education and trade ideas, earnings trades and non-directional options strategies.

Read more from Kim on his Options Trading Blog.

Twitter: @SteadyOptions_


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Forex vs Binary Options Trading

Forex or binary options? – that is the question. Every trader or investor has come across this question at least one in a life time. If you are a newcomer in trading, you can always ask somebody, who have already been there. However, if you have already tried trading either Forex or binary options and you failed, you are probably now wondering if the other alternative is the better one for you. The important thing is that we are here to help by comparing Forex vs binary options trading.

What is Better – Forex or Binary Options?

Yes, we are here to help you decide which type of trading would be helpful and suitable for you.  Both Forex and binary options have their pros and cons. But the first thing that comes to mind when we collate Forex versus binary options trading is the time of origin. While Forex trading has a very deep and sustainable history, binary options came into existence in 2008. Binary options now have a relatively small background and hence a great chance for growth.

Here we will discuss the reasons to choose Forex trading or binary options, according to their pros and cons.

Why Choose Forex instead of Binary Options

Forex Trading vs Binary Options

  1. The Forex trading offers a huge rate of liquidity. It helps investors to get rid of any swift fluctuations in the exchange rates.
  2. Traders have an opportunity to make a great profit by determining currency values.
  3. The Forex trading market is open throughout the day, so time period is not an issue.
  4. Investors get equal access to trade in a rising or falling market, according to their preference.
  5. Its best part of Forex trading vs binary options is that traders have full control over their investment.
  6. Forex trading fits better for experienced investors who know the market value and want to invest in larger sums. If you consider investing in currency, then here are the main Forex pros you need to know about.

Why Choose Binary Options instead of Forex

Call and Put Binary Options versus Forex Trading

  1. Binary options allow you to choose a wide range of assets like currencies, stocks, commodities and indices.
  2. Binary options are a new trading Thus, chances of winning remain higher.
  3. Another great advantage of Binary options versus Forex trading is that new service providers evolve daily, giving their services at lower price to attract customers.
  4. Trading binary options is relatively easy to understand and execute as you just have to predict whether the price of an asset will go up or down.
  5. The payout is fixed, so you always know what reward you are going to get if your prediction is correct.
  6. Binary options give you the authority to decide when you want to close your position. The trade expiration time is also decided by the trader.
  7. Some free trading software is available to assist binary options traders in their trading journey. You should select your binary options software based on reputation, customer reviews, shown at websites like Judge Binary Optionsand many others.

Conclusion

You must have got a pretty clear view which is the better trading technique for you to choose. Both binary options and Forex trading have their pros and cons, so it completely depends on you to determine which one suit you best. Like any other investment, education is the key to success, thus making a right plan, knowing your strengths and weaknesses and putting 100% effort is important to be in the best position to succeed.


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Fundamental Analysis of Binary Options Trading

Given the short-term nature of most binary option trades, there seems to be an emphasis on technical analysis over the fundamental analysis of binary options. This sometimes neglects the importance of the intrinsic value embedded in the asset. For this reason, today we will put emphasize on trading Binary Options with fundamental analysis.

Factors Affecting the Fundamental Analysis of Binary Options

Fundamental analysis in binary options is usually neglected because fundamental factors take a longer time to materialize. Examples of fundamental factors include the PE ratio, the price/book, enterprise ratios, etc. The binary options fundamental analysis also takes into account external factors that could have an effect on the price of the security in the future, such as macroeconomic factors. These factors range from the current interest rate to political impacts, from GDP growth to consumer confidence.

Use of Fundamental Analysis in Binary Options

The most important question that needs to be addressed, however, is how a trader makes use of fundamental analysis in binary options when making decisions related to binary options trading.

Use of Fundamental Analysis in Binary Options

This is made even harder by the fact that some platforms only offer technical tools and indicators for the trader and the fundamentals are left behind. This is why many traders choose to use third-party platforms such as the Meta Trader 4 which pulls in more fundamental factors.

The Meta4 platform has extensive information on global macroeconomic variables when it comes to Forex. This could impact the currency pair being considered. For example, I always look at the consensus estimates for inflation variables in the UK and compare that to my own estimates. I am then able to position my GBP/USD trade to most appropriately make a profit depending on where the actual inflation number prints. I also look at factors such as China’s growth in determining the demand and price of iron ore and hence also the Australian dollar. When completing these fundamental trades with binary options, the shortest expiry time I take is a 24-hour option. Choosing a shorter expiry time tends to create too much noise around the fundamental analysis binary option.

Where to Get Binary Options Fundamental Analysis

Fundamental analysis of binary options is restricted to macro-economic when investing in currency. In comparison, when looking at stocks the underlying company can also be analyzed. Unfortunately, Meta Trader 4 does not offer much of the companies’ fundamentals. This is where other news services such as Yahoo finance are quite helpful.

Stock Binary Options with Fundamental Analysis

From learning stock trading you probably know that companies with a lower PE ratio are cheaper relative to earnings power. Assuming that the growth opportunities look promising for the company, it may be advantageous to enter a fundamental binary option trade over a longer time period such as six months or even one year. This will allow the efficient market to eventually price in the discrepancy that you observe. For example, before I placed a 6-month binary call option on the Barclays stock, I noticed that the PE ratio was quite low compared to it’s peers. Barclays is also going through substantial restructuring which could unlock further synergies in the bank going forward.

Another important indicator of binary options fundamental values is the type of investors who are purchasing the stock. Unlike many assets, if an investor takes a large stake in a particular company then they have to disclose it. Hence, if you were considering placing a binary option trade on a company and an investor such as Warren Buffet was also increasing his stake in the company at the same time, then you would have more conviction in your fundamental viewpoint (Mr. Buffet’s bread and butter).

Technical Analysis VS. Fundamental Analysis Binary Options

Technical VS Fundamental Analysis Binary Options

Of course, what most good traders do is to use not only one form of analysis. Although I tend to use fundamental analysis to inform a lot of my binary trading, I am always observing the technical indicators over a range of time scales. Despite less useful over a longer time period, technical indicators could give an indication of the short-term direction of the currency value or the stock price. This will allow you to better time the entry of your long term fundamental binary option trade.

If you would prefer to confer with a professional before trading binary options with fundamental analysis, there are some managed account and signal services available.

Written by Alex Wissler – Trader, and author at Binary Trading Club, a large membership based community of like-minded traders.


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7 Essential Ways How to Learn to Trade the Stock Market

Whether you are a beginner or already experienced stock trader, you always need to stay well informed about the stock market. When you are already “in the game” it is usually easy to find sources to keep up with the stock trends, developing your skills. But what about newbie traders? How to start? Fortunately, today you have the chance to learn how to trade stocks. You wanna learn to trade the stock market? This material will show you 7 essential ways how to learn stocks investing.

Here are 7 essential ways to help you learn to trade stocks, including trading market facts, strategies and examples and in the end – how to be a good stock trader:

Register on an Online Stock Trading Platform

Learn How to Trade Stocks on a Platform

Find a good online stock trading platform and apply for an account. Since most of them have a free demo trial at the beginning, this is really a good way to become familiarized with the niche and ‘’feel the trading’’.  Best platform will provide you immediately with basic educational videos, tutorials and other manuals to learn to trade the stock market.

One tip: In order to hedge Forex risk from currency exchange, always go for a local online trading platform that will allow you to trade in your local currency.

Learn Stock Trading from the Books

Learn Stock Trading from the Books

Even though nowadays everything is available online, books still provide valuable information to learn stock trading that cannot be compared to blogs, forums or DVDs sold on the web. Learn stocks investing from the most famous authors and most popular books, especially for beginners.

One tip: Use the above mentioned blogs and forums to find the best books to learn how to trade stocks and places to purchase them.

Learn to Trade Stocks from the Best

Learn to Trade Stocks from the Best

Get informed who are the most successful stock investors and try to figure out their way of thinking, their strategies and tips. How? Well, like mentioned above – read, read, read…

One tip: Check out Benjamin GrahamJesse LivermorePeter LynchWarren Buffett and examine their stock market approach in order to learn to trade stocks.

Learn Stocks Investing from Classes and Seminars

Learn Stocks Investing from Classes and Seminars

Even when everything to learn stocks investing is available online, attending real seminars and courses is a great way to meet people that have similar doubts like you, to exchange advice and tips etc. Since most of the seminars focus on a specific aspect, choose one suitable for beginners.

One tip: If you can’t attend a “real’’ seminar, online classes to learn stock trading and webinars can also be a useful replacement.

Learn to Trade the Stock Market by Buying Your First Stock

You don’t need to make huge investments, but a couple of shares will certainly help you to ‘’get the feeling’’….and who knows you might earn money from your first stock investment!

One tip: Check out virtual stock trading simulators if you can’t invest genuine money at the moment.

Learn How to Trade Stocks from Paid Subscriptions

You might think that investing in pre-education is a waste of money, but you should think twice when it is about to learn how to trade stocks! Paying for stock analysis and deep research is more than useful. Free shares reports and articles are good but paid ones will provide you with even better information.

One tip: Before paying, make sure the website or blog you are subscribing to is relevant!

Read, Read, Read…

Back to the beginning: Learn stocks investing by reading. Follow the most popular blogs in the niche, read daily websites like Investopedia and try to find as many articles as possible about the issue that interests you.

One tip: Don’t underestimate guest blogs, less popular websites and new bloggers. The information might be priceless even though they are not written by ‘’famous’’ authors. If you really want to learn to trade the stock market you should know that the more information you acquire the better your stock trading preparation will be!


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Forex Arbitration: Traders Rights in Forex Legal Dispute

As you may know, Forex opens not only alluring prospects of financial gain but also involves substantial risks. Conflicts over order execution occur between the parties involved in a transaction (the broker and the trader) all too often. Therefore, traders often get involved with Forex arbitration claims and Forex legal disputes. One should always know the traders rights during a Forex dispute resolution. Therefore, we have created this article explaining the trade laws and how to apply them.

Trade Laws and Forex Arbitration Claim

In most jurisdictions, local trade law regulatory authorities oblige Forex brokers to take part in independent Forex dispute resolution systems. The reason for this is to protect the traders rights in situations when a Forex arbitration conflict cannot be resolved through negotiations between the FX broker and the client. The best-known Forex dispute resolution systems are represented by trade laws enforcing bodies like the Financial Ombudsman Service of the United Kingdom of Great Britain and Northern Ireland, the Financial Dispute Resolution Scheme of New Zealand, the Financial Ombudsman Service Limited or the Credit and Investments Ombudsman in Australia, and so on.

Forex Trade Law Forex Dispute Resolution

Independent Forex dispute resolution systems are organizations that act as intermediaries between brokers and their clients. Forex legal dispute systems can be organized by the state or by traders themselves for the benefit of other traders. An example of the latter is the Financial Commission.

Conflict resolution through independent Forex arbitration has a few differences as compared to Forex legal proceedings in the country of the broker’s incorporation.

Firstly, it is free. When filing a lawsuit in court, a trader will have to pay an official fee, but lodging a complaint with an independent Forex dispute resolution system does not cost anything to the trader. In fact, financial costs of a Forex dispute processing are carried by the broker. Being part of an independent dispute resolution system is mandatory for maintaining a brokerage license, and brokers pay annual membership fees for it.

Secondly, according to the trade laws the Forex arbitration decision is binding for the broker, but not for the trader. Therefore, if the trader is not satisfied with the decision taken by the dispute resolution system, he can utilize other ways of finding a solution to the problem, including taking Forex legal action.

Traders Rights during Forex Arbitration and Forex Legal Disputes

Filing a Forex arbitration claim is an independent and objective process to pursue Forex traders rights. The broker and the trader are equal in presenting their cases to an independent Forex dispute resolution system. It means that the broker cannot influence the outcome of the Forex arbitration. The appointed mediators, who are neither employed by nor affiliated with the broker, will make a decision on a case.

Forex Legal Traders Rights

While investigating a Forex dispute case, the mediators will take into consideration all the evidence provided by the parties, including account opening agreements and other regulatory documents. That is why we recommend making a careful study of these documents before filing your complaint to Forex arbitration.

The trade laws state that arbitration accepts your complaint only if the means of Forex dispute resolution through the broker’s internal policies have been exhausted. The mediators will check which steps have already been taken by the parties to settle the conflict.

You should also keep in mind that the financial compensation, which can be offered by arbitration is limited. Some independent Forex dispute resolution schemes set a maximum amount to be awarded to the trader if a claim is settled. Also, other independent dispute resolution schemes have the minimum compensation limit. It means that they will not investigate Forex disputes of less than the minimum limit amount.

Most Forex dispute resolution systems publish case reports and decisions on their websites. Each case report includes a brief overview of the trader’s complaint, the broker’s viewpoint and the Forex legal decision taken by arbitration. As most Forex disputes appear to be quite similar, we assume that anyone who takes an interest in Forex trading will find this article useful.


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Forex Pros: Forex Advantages and Benefits of Forex Trading

The simple accessibility, the 24/5 schedule and the high liquidity, are some of the Forex pros that made trading on the Forex marketa full-time job and even a career for some people. These Forex advantages continue to attract people from all over the world since being your own boss and making your own schedule is appealing for anyone wanting to achieve financial freedom. So if you’re thinking about trading Forex, here are some benefits of Forex trading that you would need to know before diving in the Forex market.

Benefits of Forex Tools

One of the Forex pros is the accessibility on different levels. No matter if you’re a new or an experienced trader, you’ll love the fact that your trading platform provides a lot of tools to up your Forex success rate. In fact, there are many fundamental analysis tools and theories available for long term traders. At the same time, technical indicators draw on for short term trades. Combined, these can help create huge opportunities for any trader, regardless of his Forex background or how long he’s been trading for. Therefore, the diversity is one of the many benefits of Forex trading platforms.

Lack of Central Exchange as One of the Main Forex Pros

Forex operates all over the world, and there is also no central regulator or exchange for this market. While it’s true that there are certain markets where the banks may interfere, these are usually isolated incidents. One of the main Forex pros is that the Foreign Exchange market is hot centralized.

Forex Pros - No Central Bank

If you compare that to the equity market where companies can report losses or declare dividends which immediately cause massive price changes, Forex is by far a lot more stable and safe to trade on. Another of the Forex advantages is that the chances of insider trading are also zero.

Benefits of Forex Trading Flexibility

The Forex market is open 24/5 and what this means is that you can trade at your own leisure. One of the biggest Forex pros is that even if you work a 9:00 AM to 5:00 PM job, you can still do trading on the side. And still, you can do a great job honing your trading skills and building your account at the same time. Forex trading is so developed nowadays that investing in currency could happen from any mobile device.

Benefits of Forex Trading on the Side

Even more, you can also choose the style of trading you’d like to pursue. Whether it’s high volume for small profits, trading long term or short term, nothing forces you to use a trading style you don’t like or think it’s unprofitable. Therefore, when we talk benefits of Forex trading we should not forget that this is the most flexible financial market nowadays.

Also, in the past years we saw the appearance of cryptocurrencies. The biggest among the crypto Forex benefits is that cryptocurrency market works 24/7 – e.g. it never sleeps and you can trade crypto Forex even in weekends.

High Liquidity is among the Big Forex Advantages

The Forex market engages the highest number of users and this creates an extremely high level of volatility. As a result, regardless of how large your currency trade may be, it’s certainly going to be filled right away without any significant price variations. This eliminates problems such as price anomalies and price manipulation and enables spreads that result in more efficient pricing.

Other of the benefits of Forex is the wide range of pairs you can trade. In total, there are eight major currencies which means that you can trade up to twenty eight currency pairs that have relatively tight spread.

Forex Advantages - Many Forex Pairs

These are some of the most popular Forex pairs that drive most trading volume. As for the criteria you can use to choose a pair, it can be anything from economic developments, volatility patterns or convenient timing.

Trading on the Forex market is a great way to make a living and achieve financial freedom. One of the greatest Forex advantages is that you don’t need to be an expert to do this. There are many types of Forex strategies you can use to make profits, so just make sure to come up with one and then start trading.

Conclusion

  1. Currency trading is one of the most popular ways to approach the financial markets and there are many Forex pros for this.
  2. Some of the biggest Forex advantages are:
  3. Benefits of Forex Tools:
    • Fundamental Analysis Tools
    • Technical Analysis Tools
    • Short Term Forex Trading Strategies
    • Long Term Forex Trading Strategies
  4. Lack of Central Exchange – One of the Main Forex Pros:
    • Forex market is not centralized.
    • Lack of centralization makes the Forex market safe and stable.
    • Another of the Forex advantages is that there is no chance for inside trading.
  5. Benefits of Forex trading flexibility:
    • Forex market is the most flexible financial market nowadays.
    • Forex market is open 24/5.
    • Another of the big Forex pros is that currency trading could be your side job.
    • Cryptocurrency market is available 24/7 letting enthusiasts to trade currency even during weekends.
  6. Forex Liquidity – One of the Biggest Forex Advantages:
    • Forex market involves many participants.
    • The currency market is the most liquid market today.
    • Trades are instantly filled without big price variation.
    • Another of the big Forex benefits is the wide range of Forex pairs available for trading.

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Forex Today and Where is Forex in Your Trading Portfolio

Where is Forex Today in Your Currency Portfolio

The key to success in Forex trading all starts with understanding where is Forex in your trading portfolio. In today’s guide, we’re going to talk you through everything you need to know about getting started, in a safe and secure investment environment. Diving in with Forex without knowledge will only end in tears. So, let’s clear up a few things for anyone out there who is new to the foreign exchange trading game and needs to learn where is Forex today in his trading portfolio. Ready to get started?

Understanding Forex Portfolio

Before we get started, can you explain what is Forex trading in layman’s terms? If not, then the chances are that you have difficulties understanding Forex.

Forex Trading Portfolio

It is vital that you learn about Forex before getting involved. It’s a high-risk game to play, and stakes can be enormous. Without a little education, you can damage your trading portfolio irreparably with successive Forex loss. If this sounds like we are trying to scare you away from Forex trading, we’re not. It can bring you incredible rewards – but you are unlikely to see them if you go in half baked with your portfolio Forex management.

Therefore, we will now go further in the Forex portfolio as a potential to profit from the Foreign Exchange market.

Forex Trading Principle

The principle of Forex trading is easy enough to grasp. At the top of the pile, governments swap currencies and make trade deals. Because of the market changes of currencies, there is always one side that ends up better off, while the other is worse off. These changes trickle down into a trading environment that individual investors can access. So, where is Forex today in your trading portfolio? In essence, currency trading is a game that goes into your foreign exchange portfolio. People invest a certain amount of money on currency, asset, or financial product, and hope for a particular result. You can bet that the currency value will rise in a particular time frame, for example, or, perhaps, you can gamble on it going down.

Forex Exchange Portfolio Platforms

There are a variety of innovative Forex trading platforms that you can use for your currency portfolio – each of which has its own set of rules. And, because you are dealing in global currencies, there are also legal regulations you need to consider, too if you deal with portfolio Forex management. It is vital to research these rules – and the Forex brokers you plan to use. Make sure you understand thoroughly Forex broker Terms & Conditions in order avoid unpleasant consequences for your Forex portfolio.

Is Forex Today a Good Addition to Your Trading Portfolio

Because of the risks involved, a robust trading portfolio should not include Forex trading. That’s not to say you should avoid it – but you need your house in good order first. As any investment guide will tell you, sound investing means only using the money you can afford to lose. It’s, even more in the case with a Forex portfolio. Stakes are incredibly high, and it takes a long time to learn the intricacies of the Forex trading environment. Experienced Forex traders learn to ‘feel’ the market, and understand how tiny fluctuations can have a big impact. And, of course, they know that a failure rate of over 50% is not an issue, as long as they still leverage big wins. It’s this that is the major risk factor in Forex – you are more likely to lose. Unless you can handle those losses, it can cause you major issues.

Forex trading is not for everyone. But if you have spare money that you can afford to lose, it can bring high returns. If you invest in other assets as well, make sure that Forex sits slightly outside your main trading portfolio, rather than being the centerpiece.


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Forex Secrets: 10 Trader Secrets to Up Forex Success Rate

Sometimes, perhaps inadvertently, a routine is set for everything we do. Same can be said about forex trading. With time, Forex traders find their rhythm on their way to success in currency trading. But as it is with human nature, every trader has Forex secrets for increasing his Forex success rate. Therefore, this article will reveal the top 10 trader secrets to boost success rate in Forex.

10 Forex Secrets to Raise Forex Success Rate

Trader Secrets for Forex Success Rate

The followed material is developed into 10 subheadings containing 10 trader secrets to raise Forex profitability. Each of these Forex secrets is crucial for applying an adequate Forex trading routine. Therefore, it is important that you approach cautiously each of these

Good Sleep before Forex Trading

This is probably the most important among the trader secrets. Get yourself a good rest before starting your Forex trading day. Adults need a good 7 to 8 hours of sleep to function properly during the day. Compensating with an extra cup of coffee will only lead to sleep deficit and impaired cognitive abilities.

Prepare a Forex Trading Strategy

Forex trading needs a strategic approach. Leave emotions out of it, because it is serious business. Prepare a Forex trading strategy that fits into your goals and objectives, test it to affirm profitability and then stick to it strictly. It will be your North Star when investing in currency.

Forex Trading is Not a Hobby or a Casino

Forex trading is serious business. Treat your currency trading business with the respect it deserves. Forex trading is not about hedging your bets for the big win that often comes with bigger risks than your trading strategy may allow. It is the sum total of your actions in the currency trading markets. Learn the use of position sizing effectively to manage your risks and rewards, and make it an integral part of your trading strategy. Sticking strictly to your trading strategy will increase your Forex success rate.

Avoid Forex Overtrading at All Costs

Although statistically speaking, a higher number of trades are supposed to reduce your risk, they actually rarely manage to do so. Forex overtrading invariably reduces the efficiency of your judgment about currency value. Forex trading should always be about the profit of smart trades versus the loss from bad trades each month.

Master Forex Price Action

Spend some time with demo trading accounts for a few months before trading with real money. Learn few price action tricks or strategies and absolutely master them. It will equip you with the necessary skills of Forex trading and keep you away from overtrading in Forex. It will also help you improve your accuracy over time when you start trading with real money – your money.

Adopt a Healthy Lifestyle

This may seem out of place, but it is as necessary to have a healthy lifestyle as it is to have a trading strategy for Forex trading. Having an exercise routine will keep you in a physical and mental feel-good state and help you sleep better. Start your day with a good breakfast. Indulge in hobbies and time-off with friends and family. It will help you stay focused and keep your cognitive abilities sharp.

Think Long-Term and Stick to Logical Reasoning

Don’t get overzealous after a win or discouraged after a Forex loss. It is a sure-fire way to lose focus and deviate from your trading strategy. Logical reasoning after each win or loss will keep you away from Forex overtrading. Always keep a long-term outlook of your Forex trading objectives. Your trading success or failure is not dependent on one win or loss.

Stick to the Basics

Other one among the Forex secrets of successful Forex traders is to try stay basic. Forex trading is often easily over-complicated by some people. Learn the basics, and stick to them. Simplify everything, and avoid overanalysis. Of course, a thorough analysis is required for executing successful Forex trades, but not at the cost of losing logical reasoning and emotional overtrading.

Learn Trader Secrets from Successful Traders

You should always learn from every successful trader by examining good and bad moves in the market. Many people have tried their hand at Forex trading before you. A trading mentor may help you to unravel the mysteries of Forex trading much quicker than you would be able to achieve on your own as a beginner. Both their successes and failures can reveal many trader secrets that will help you boost your Forex success rate.

Follow the Discipline of Routine

Patience is derived from discipline and routine, and it is essential among the Forex secrets of successful traders. Don’t see them as a task, but as an ingredient for profits and rewards. Let yourself to step out of the information stream of currency markets and take a break. Incorporate patience, discipline in your trading strategy, and you will stabilize your Forex success rate.

Implement these trader secrets at each point of interaction with the currency markets as a part of your trading strategy. Keep your approach to Forex trading simple and based on logical reasoning. There will be winning trades and losing trades throughout your career. All you have to do is keep a clear mindset and you will see the results in your trading accuracy over time.


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Forex Advertising: 4 Terms for Forex Ads and Forex Banners

Most of the business in trading is accumulated by great dose of marketing – basically FX advertising and affiliate Forex accounts. This is why in the today’s material we will discuss the importance of Forex advertising for generating leads in this industry. We will go through 4 terms that will help you understand Forex ads and Forex banners.

Importance of Forex Advertising

Forex ads are all over the internet. Furthermore, if you open one of them, they start appearing more and more in your sight. Every successful and good Forex broker invests significant amount of its revenue into Forex advertising. Forex dealing is the industry that invests most of its revenue for marketing and FX advertising. Also the biggest departments of a Forex brokerage firms are the sales department.

Forex Advertising and Forex Banners

It is no wonder that understanding Forex advertising is from great importance for every individual or a company that operates in this area. You do not want to fall behind right? Therefore, we will now discuss some important Forex advertising terms, that will help you position Forex ads in a better way.

4 Terms for Forex Banners and Forex Ads

Forex Ads and FX advertising

A lot of the methods for advertising on Forex websites are used in other sectors and not only in Forex. I will pay special attention to the prices and characteristics which I have experienced while I was working for different Forex broker companies:

CPM in Forex

CPM in Forex means “Cost Per Mil.” This is a well-known method where the advertiser and the publisher discuss the number of impressions and negotiate on a fixed price which is based on the cost of 1,000 impressions. This method usually applies only for Forex banners.

CPC in Forex

CPC in Forex means “Cost Per Click.” This method is mostly used by Google. Like the CPM models, both sides can usually measure the exact number of clicks on Forex banners and pay according to a fixed cost per click. CPC in Forex advertising is not too popular when positioning Forex ads.

CPA in Forex

CPA in Forex means “Cost Per Action”: This is the most popular method where a Forex banner is placed for free, and if a user clicks on Forex ads and eventually opens an account and deposits money, this stands for an action. CPA in FX advertising gives the broker full control. But have in mind: not all the brokers are honest, and some may not report all the conversions. While this option sounds lucrative in the first instant – the brokers pay $100 to $400 per customer – it can be tricky. A publisher may place a Forex banner for a long time and might not see a single cent even if the broker is honest.

CPL in Forex

CPL in Forex means “Cost Per Lead.” CPL in Forex advertising is the same method like CPA, but the publisher will be paid for leads and not for clients. There are more leads than clients that deposit, but the payout is smaller: usually $8 to $25 per lead.

Recommendation for FX Advertising

My personal opinion: Some companies only want to earn and spend a little money in the Forex advertising field. That is why I do not like and I do not recommend the CPA models. These companies are making the whole time publicity for free until a user opens a real account. But the profit for a website owner is very low compared to the mass of time where a banner is reserved. My actual company runs a Forex website, and we only sell FX advertising space for a fixed price, and this should be normal. You should have in mind how much you have to pay for a newspaper ad in a small town for only one day, and that is generally much more expensive. And principally you can reach more people over the period of e.g. a month than only one day. In my opinion, companies should pay a reasonable price for Forex advertising like it is standard in other fields.

Author:
Diego Ruiz – Forex Trading, and Marketing Expert since 1992


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