TradeProfits

CFTC Regulation in Full Effect

Posted on 18. Oct, 2010 by Jakob.

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October 18th is the day where the US brokers have to apply the new CFTC regulations on the retail forex exchange market where lower leverage is the main issue. Judging from the market movement we have seen today, it has not really been that much of a difference to notice from any other day, which somehow seems obvious in that the market mainly is moved by larger institutions and not the retails trader. Although we might not see a lot of change in the market in general, the individual trader is affected by lower leverage. A lot of traders consider this a bad thing, but in the end I think it will be beneficial for most traders out there. If I had been forced to use less leverage back when I got started in this game, I could have saved an account or two. However, I have now been trading with Oanda for some years so I am used to the, now, standard leverage. Obviously you still have the option to go with a broker outside US and get more leverage. What are your thoughts on the new CFTC rules?

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CFTC Rules – Broker Q&A for Traders

Posted on 08. Oct, 2010 by Jakob.

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With the new CFTC regulations going into effect here on October 18th a lot of questions concerning brokers seem to be one of the major issues in the currency trading industry during these days. The guys over at ForexPeaceArmy have started a thread in their forum, solely for this purpose. Ask all the questions you might have in relation to the new regulations and hopefully get some qualified and informative answers. Go over and check it out.

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Two Contest Opportunities with FXCM

Posted on 21. Sep, 2010 by Jakob.

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As most of you probably know, FXCM is hosting a monthly contest for all their micro account members, and the upcoming month is no exception. You simply need to have an account balance of $500 (as a minimum) at October 1st and you will automatically be part of this contest. The winner is based on the largest percentage return. So if you have some super scalping skills or a killer EA, you might want to join in. I prefer to skip the entire thing as the winners tend to have some 1000% return and this will most likely affect you in a psychological way and make this a playground for fear and greed where all rational aspect are put aside. I have been there and I have no intentions of going back. However, if you go into this, knowing it will be an absolute gamble, due to overleverage and overtrading, then I still think it could be a fun ride. The other contest from FXCM might a better option as this is risk-free (at least in terms of capital). This contest is obviously a marketing stunt used in order to promote their new Strategy Trader platform. Read more... (394 words, estimated 1:35 mins reading time)

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CFTC on Leverage Regulation

Posted on 06. Sep, 2010 by Jakob.

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I am sure most of you guys know this already but just in case you missed it, the hot topic about CFTC´s regulation on leverage in the forex market is now back on track and a decision is in place. To keep it short and to the point, here are the new requirements; 50:1 on majors and 20:1 on minors. This drop in leverage is requirement for all brokers in the US to register. This will obviously upset a lot of retail traders, as the ability to lose all trading capital with the speed of light has been decreased. Not too long ago we saw a similar rule in Japan, and now US has decided to take the step as well. However, it is still possible for US citizens to open an account with a broker from another country and in this manner avoid the new regulation. I guess we will see a lot of US retails traders flee from American brokers due to the new rules while it might be fair to argue that they would be better off trading at a max of 50:1 leverage. There is a great thread over at ForexPeaceArmy with some interesting thoughts about this. Check it out here.

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MT4 Spreads – Compare Broker Spreads

Posted on 03. Sep, 2010 by Jakob.

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MT4 Spreads is a new site somewhat similar to FXIntel which I have written about before. MT4 Spreads enables you to compare spreads from several different brokers in real time. The site is made in a cool web 2.0 style and the entire layout of the site gives you a very good overview. For those of you who are looking for a new possible broker, this is definitely a great place to find the ones with the lowest spreads. Obviously you still need some due diligence before you decide on a specific broker, but this is definitely a good place to start. Another was this can be utilized, is for those of you looking for a broker with good spread around news events, as you can keep track of many brokers at the same time. All in all I think this is a great place if you are looking for spread information. Check it out right here.

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Tell ForexPeaceArmy about Your Broker

Posted on 19. Aug, 2010 by Jakob.

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We all know that finding the right broker can be a tough challenge. With so many brokers it can really be a difficult task to find the right one, and there are a lot of questions which should be taken into consideration before you make your final decision. One example is spike trading, which can be a really rewarding trading strategy but everything basically comes down to the right broker choice. Other aspects such as leverage, reputation, years in business, location, slippage, order execution, ECN or none ECN, should also be considered before you make your final choice. Now the guys over at ForexPeaceArmy have made a forum thread solely for the purpose of helping you in finding the right broker. Check it out here and share your thoughts on the brokers you have any experience with.

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FXCM Labs

Posted on 05. Aug, 2010 by Jakob.

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Just like Oanda has a lab site, FXCM has now started their own Lab site which you can check out right here. This is basically a site where you can follow the progress of new releases from FXCM (which currently entails FXCM Mobile, Trading Station Gateway and their new Strategy Trader). This is a great place for people who would like to be beta tester of new forex related products before they actually hit the market. They also have a suggestion box where you can share ideas with the people from FXCM. I love Oanda´s lab site but it hasn’t been updated for a long time, so I was hoping that FXCM can keep this thing going with lots of great new stuff for all their members. Check out FXCM Labs here, become a beta tester and give them some feedback.

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King of Micro Trading Contest – FXCM

Posted on 27. Jul, 2010 by Jakob.

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Every single month FXCM Micro is hosting a contest named King of Micro Trading where you will be able to show your skills as a true forex trader. At least that is probably what they want it to look like, but when we take a closer look on the returns made in recent months from the winners, it is obviously more of a contest in gambling than actual trading, or to put it in more diplomatic terms, a strong motivator for extreme use of leverage and over trading. The winner of the King of Micro Trading contest in last month (June) had a return of 833% , and back in May the winner returned 3100%! Needless to say that this is a holy grail for FXCM. However if you are looking to win the contest you should probably forget everything you ever learned about money management and simply go crazy. When that is said, you now have the possibility to join the King of Micro Trading contest for August. The rules are rather simple; you need to have a real micro account with a minimum balance of $500 at the beginning of the month and then trade the best you know for the entire month. Read more about the rules here. Obviously you will be paid a fair return for your effort if you join the top three traders: 1st place: $25,000, 2st place: $10,000 and 3st place: $5,000. Good luck!

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Easy Forex faces Lawsuit from Employee

Posted on 24. Jun, 2010 by Jakob.

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Any other day, this would be a typical story from the world of currency trading. Brokers are being accused with fraud in several different ways, all the time. Easy Forex is a Middle Eastern broker and they have been around for a long time. I signed up with them as one of my very first choices, when I started my journey in the world of forex trading. However, it only took me about 3 days before I closed my account and started a new account with another broker. I found their trading platform to be annoying in all possible ways. Since then I have never really thought about them. Then yesterday I read this blog post from Michael Greenberg over at Forex Magnets. This one guy called “D” claims to have lost somewhere around $125.000 trading through Easy Forex. Now instead of simply filling a lawsuit he decided to approach this in his own unique way; namely by applying for a job at Easy Forex. He got hired and became aware of the way in which Easy Forex operates their business. With this knowledge and multiple voice recordings “D” now filled a lawsuit and obviously this isn’t pretty. You can read the entire story here. If you thought about signing up with Easy Forex, you probably want to read this first.

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Forex Scam of the Year Award

Posted on 22. Apr, 2010 by Jakob.

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The guys over at Forex Peace Army have started a new section – Forex Scam Award. Since it is a little too early to vote for the scam of 2010, they have decided to start with 2008 and 2009, as there are a lot of confirmed scams to choose from. Currently the scam award section is split into two parts, namely a broker scam and a non-broker scam. Go over and throw your vote and read the thread.

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