USDJPY below 102.23 to set cross on leg lower path

Background
USDJPY is showing a similar short-term pattern as in last week's trading, where it is being sold off fairly sharply in the Asian trading session, only to be picked up again in Europe and eventually to go back into an offered mode again in the US trading session. We look for a similar pattern to emerge in today's trading and in particular, look for the spot breaking the 102.23 level in the afternoon trading to enable a move below the overnight lows. We will only establish this short positioning in USDJPY at the break of that level, however.
Management and risk description
To keep the overall risk exposure in check, we limit the size of the entry order to a half nominal trade order. The trade will also be protected with a tight stop-loss order that will be adjusted to entry level once the first profit target has been reached.
Parameters
Entry: sell a half-size order USDJPY at 102.23 stop if offered.
Stop: buy USDJPY stop bid at 102.40.
Target: first target is at 102.08, where we will lock in half gains and move the stop to entry. The second target is at 101.85.
Time horizon: intraday.
Short-term USDJPY chart


5-year USDJPY chart

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USDCHF below 0.8855 to see the trading ranges extended

Background
Ahead of Monday's US opening, USDCHF has been trading with plenty of two-way interests, with the upside in the cross so far capped by the first wave resistance level in the 0.9037 - 0.8856 0.9037 - 0.8856 wave. With the overall technical trend still trading with a clear negative bias, however, we are now looking for a pro-trend move on the downside. In particular, we are looking for a potential break through the 0.8855 level to re-accelarate the selling momentum in the cross. We shall only establish, however, a short-positioning in USDCHF at the aforementioned break level.
Management and risk description
We are maintaining reduced overall risk exposure and are sizing this trade as a half nominal size order. We shall also protect the trade with a tight stop-loss order, which we shall adjust to entry level upon hitting the first profit target.
Parameters
Entry: sell half-size order USDCHF top offer at 0.8855.
Stop: buy USDCHF stop bid at 0.8870.
Target: first target is at 0.8840, where we shall lock in half-gains and move the stop to entry. Second target is at 0.8815.
Time horizon: intraday.
Short-term USDCHF chart


5-year USDCHF chart

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EURUSD below 1.3702 to clear short-term stops

Background
EURUSD has continued to find offers after an earlier break through the Friday highs, which saw no sustained follow-through buying action. We are now expecting that potentially weak short-term stops could be sitting below the figure; a clearing of which would further fuel a downside acceleration and enable a test of Thursday's lows and potentially further below. However, we shall only establish this short positioning in EURUSD at the aforementioned break level.
Management and risk description
We are maintaining a reduced overall risk exposure and are keeping the size of the entry order to a half nominal size order. The trade will also be accompanied with a tight stop-loss order that will be adjusted to entry once the first target has been reached.
Parameters
Entry: Sell half-size order EURUSD on offer at 1.3702.
Stop: Buy EURUSD stop bid at 1.3717.
Target: Target one is at 1.3687, where we shall adjust the stop to entry. Second target for the remainder is at 1.3655.
Time horizon: intraday.
Short-term EURUSD chart


5-year EURUSD chart

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Best MT4 Free Indicator

Hi everyone ,

I thought it will be good idea to drop by here today and give you a free , supper and most accurate indicator I ever used .

just a word of advise when you use ,,, manage your money correctly , stick with the indicator alerts , do not panic if the price move against the direction you want .

I have been using it for six months now ,, I wait for the alert and put my trade and turn off my computer and sleep . next day I take a look and not less than 100 PIPs in My account

it works great with all major pairs on H4 time frame . the download link for this indicator is below and if you do not have a forex account start with opening one through cashbackforex.com to get some rebates.

here is the indicator

http://www.4shared.com/rar/mu4dD1Nuba/zigzag_pointer_alert-1.html


Also this is a snapshot of my real live account where I am using this indicator

 

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Price Action in Forex Trading

Introduction To Price Action Forex Trading

Welcome to this introductory lesson on Price Action Forex Trading. If you’re new to price action trading you are going to benefit a lot from today’s article, if you are already familiar with price action trading then you can use today’s lesson as a reinforcement and reference tool.
Today’s Lesson Covers …

• What Is Forex ‘Price Action’ Trading? (The Definition Of Price Acton)

• Trading with “Messy” Vs “Clean” Forex Charts

• How to identify trending and consolidating markets

• How to trade Forex with price action strategies

• How to use confluence and price action to trade Forex

What is Price Action Forex Trading?

Basic Definition: Price Action Trading is the discipline of making all of your trading decisions from a stripped down or “naked” price chart. This means no lagging indicators outside of maybe a couple moving averages to help identify dynamic support and resistance areas and trend. All financial markets generate data about the movement of the price of a market over varying periods of time; this data is displayed on price charts. Price charts reflect the beliefs and actions of all participants (human or computer) trading a market during a specified period of time and these beliefs are portrayed on a market’s price chart in the form of “price action”.
Whilst economic data and other global news events are the catalysts for price movement in a market, we don’t need to analyze them to trade the market successfully. The reason is pretty simple; all economic data and world news that causes price movement within a market is ultimately reflected via price action on a market’s price chart.
Since a market’s price action reflects all variables affecting that market for any given period of time, using lagging price indictors like stochastics, MACD, RSI, and others is just a flat waste of time. Price movement provides all the signals you will ever need to develop a profitable and high-probability trading system. These signals collectively are called price action trading strategies and they provide a way to make sense of a market’s price movement and help predict its future movement with a high enough degree of accuracy to give you a high-probability trading strategy.

“Clean” Price Action Charts vs. “Messy” Indicator-laden Charts

Next, to demonstrate the stark contrast between a pure price action chart and one with some of the most popular forex indicators on it, I have shown two charts in the examples below. The chart on the top has no indicators on it, there’s nothing but the raw price action of the market on that chart. The bottom chart has MACD, Stochastics, ADX and Bollinger Bands on it; four of the most widely used indicators AKA “secondary” analysis tools as they are sometimes called:
The image example below shows a clean price action chart, with no mess, and no indicators, just pure price action bars:

The image example below shows a messy price action chart, with lots of clutter, indicators and mess:

It’s worth pointing out how in the indicator-laden chart you actually have to give up some room on the chart to have the indicators at the bottom, this forces you to make the price action part of the chart smaller, and it also draws your attention away from the natural price action and onto the indicators. So, not only do you have less screen area to view the price action, but your focus is not totally on the price action of the market like it should be.
If you really look at both of those charts and think about which one is easier to analyze and trade from, the answer should be pretty clear. All of the indicators on the chart below, and indeed almost all indicators, are derived from the underlying price action. In other words, all traders do when they add indicators to their charts is produce more variables for themselves; they aren’t gaining any insight or predictive clues that aren’t already provided by the market’s raw price action.

Examples of some of my favorite price action trading strategies:

Next, let’s take a look at some of the price action trading strategies that I teach. Note that I’ve included a “failed” trade setup because not every trade will be a winner; we aren’t here to show you “perfect” past trading results…we are here to teach you in an honest and realistic manner.
In the image example below, we are looking some of my favorite price action trading strategies:

How to determine a market’s trend

One of the most important aspects of learning to trade with price action is to first learn how to identify a trending market versus a consolidating market. Trading with the trend is highest-probability way to trade and it’s something you HAVE TO learn how to do if you want to stand a chance at making serious money as a trader.
The charts below shows how to use price dynamics to determine a markets trend. We consider a market to be in an uptrend if it is making Higher Highs and Higher Lows (HH, HL) and a downtrend is Lower Highs and Lower Lows (LH, LL).
In the image example below, we can see how higher highs and higher lows signal an up-trend in a market:

In the image example below, we can see how lower highs and lower lows signal a down-trend in a market:

Trending VS. Consolidating markets

As we discussed earlier, price action or “price action analysis” is the analysis of the price movement of a market over time. From our analysis of price movement we can determine a market’s underlying directional bias or “trend”, or if the market has no trend it is said to be “consolidating”…we can easily determine whether a market is trending or consolidating from simply analyzing its price action. We saw how to determine a market’s trend above, to determine if a market is consolidating we just look for an absence of the HH, HL or LH, LL patterns. In the chart below note how the “consolidating price action” is bouncing between a horizontal support and resistance level and is not making HH, HL or LH, LL but is instead going sideways…
The image example below shows a market moving from a consolidation phase to a trending phase:

How to Trade Forex with Price Action Strategies

So how exactly do we trade Forex with price action? It really boils down to learning to trade price action setups or patterns from confluent levels in the market. Now, if that sounds new or confusing to you right now, sit tight and I will clarify it soon. First we need to cover a couple more things:
Due to the repetitive nature of market participants and the way they react to global economic variables, the price action of a market tends to repeat itself in various patterns. These patterns are also called price action trading strategies, and there are many different price action strategies traded many different ways. These reoccurring price patterns or price action setups reflect changes or continuation in market sentiment. In layman’s terms, that just means by learning to spot price action patterns you can get “clues” as to where the price of a market will go next.
The first thing you should to begin price action trading is to take off all the “crap” on your charts. Get rid of the indicators, expert advisors; take off EVERYTHING but the raw price bars of the chart. I prefer to use candlestick charts because I feel they convey the price data of the market more dynamically and “forcefully”, if you are still using classic bar charts and want more info on candlesticks then checkout this candlestick trading tutorial.
I like simple black and white charts the best, as you can see below. In metatrader4 you simply right click on the chart and adjust the “properties” of the chart to get it looking like mine below. If you want more info on how to setup your MT4 trading platform checkout this metatrader 4 tutorial.
After you’ve removed all the indicators and other unnecessary variables from your charts, you can begin drawing in the key chart levels and looking for price action setups to trade from.
The image example below shows examples of some of the price action trading strategies I teach in my trading course. Note the key support / resistance levels have been drawn in:

How to trade price action from confluent points in the market:

The next major step in trading Forex price action is to draw in the key chart levels and look for confluent levels to trade from. In the chart below we can see that a very obvious and confluent pin bar setup formed in the USDJPY that kicked off a huge uptrend higher. Note that the pin bar setup showed rejection of a key horizontal support level as well as the 50% retrace of the last major move, thus the pin bar had “confluence” with the surrounding market structure…
In the image example below, we can see a pin bar setup that formed at a confluent point in the market:

All economic variables create price movement which can be easily seen on a market’s price chart. Whether an economic variable is filtered down through a human trader or a computer trader, the movement that it creates in the market will be easily visible on a price chart. Therefore, instead of trying to analyze a million economic variables each day (this is impossible obviously, although many traders try), you can simply learn to trade price action, because this style of trading allows you to easily analyze and make use of all market variables by simply reading and trading from the price action trail they leave behind in a market.

In closing…

I hope today’s introduction to price action Forex trading has been a helpful and enlightening lesson for you. The great thing about price action trading is that even if you don’t want to be a 100% “pure” price action trader, you will still benefit significantly from learning about it. No matter what strategy or system you end up trading with, having a solid price action foundation under you will only make you a better trader. If you’re like me, and you love simplicity and minimalism, you’ll want to become a “pure” price action trader and remove all unnecessary variables from your charts. If you want more price action trading training and you’re interested in learning all my price action strategies, checkout my Forex price action trading course for more info.

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The secret in successfully trading Forex  

The following trade secrets will hopefully make your journey into currency trading a bit easier. Some may sound like common sense and others are just pointers to give you the best possible chance of making some money.

The 10am rule

Although the markets are open for twenty four hours a day, this doesn’t mean that there isn’t a good time for trading. You can only make a profit if the market is going up or down, and at some times of the day the market just doesn’t move. Therefore learning about the times when the Forex market is most active will be to your advantage. There are three main trading sessions – Tokyo, London and US. The first is the London session. This has the greatest movement as it isn’t just the UK that is trading but also other countries in Europe. The next session is when the US market starts trading. There is an overlap between these two times, and this can be the time of the day when there is the greatest movement in the market and therefore the most likely time for making a big profit. The Crossover between Tokyo and London is also a busy time. Therefore the best times are when these crossover points occur.
It is considered that 10am is the best trading time as the London markets are just closing so more buyers are moving onto the US markets. At this time of day buyers and sellers will make last minute bids before the market closes and this movement will result in big profits if you invest wisely.

Trading on the right day of the week

Research has shown that the most movement in the market happens midweek on Tuesday and Wednesday. Friday can be busy as well but only until around noon as after that there can be chaotic movements due to it being the week’s end.

Don’t take too many risks

It is recommended that you limit your risk by only trading 1% of your total account on each trade. This way you won’t lose as much money if you aren’t successful. Also, only trade if you have a good percentage reward. This is called the reward/risk ratio. The way it works is if you could potentially get a 3% reward from a trade you will risk 1% but if it doesn’t then don’t take the risk.

You can purchase Forex software to help you

There is some very good software on the market which will help you trade and make the best possible decisions in order to make more money. Some trading software will be able to help you predict the market trends, however, don’t believe all the claims that the Forex software producers say. Try to choose something that has good reviews and has been proven to work.

Beware of the scams

There are lots of forex books or schemes out there which claim to give you all the secrets of Forex trading and give you foolproof ways to make money. No one can make money all the time, and so you need to steer clear of these scams. Read a few books and come up with your own methods of trading and you are far more likely to make a success of it.

Keep your eye on national events

Changes in things like interest rates, price indexes and reports on unemployment can have a big effect on the trading prices. After watching the markets for a while and looking at the trends you will be able to work out which events make particular changes which will help you trade sensibly and make more money.

Always bet on an up trend

Keep an eye on currency trends. If it has been going down for a long time and suddenly starts to go up this is a good time to take a bet on it. This is particularly true if the country has suddenly changed to having a much more positive economic outlook. Currency pairs follow each other, so you can also look for other currencies that may move up as well.

Put you excess funds into a stable currency

This might seem like common sense, but some Forex day traders will want to take a risk to try to make more money. However, the bigger the risk the more money you could potentially lose as well as gain. Putting your money into a stable market means buy currency from a country that is politically and economically level.

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Secrets from Professional Forex Traders

Everybody loves secrets. I mean, absolutely everybody. Secrets are always so magnetic to people, who are curious to know more than others. Love for secrets can turn badly for you… But not this time! This time secrets are coming to you legally. Just for your ears. Are you interested? Now you’re gonna be interested twice, because it’s Forex secrets, to be exact – Forex trading secrets! The big Forex secret from professional Forex traders who earn a ton of money every year with currency trading now can be your official knowledge. Just read this… But – get ready to feel a little disappointed.

No Magic at All

There are no magic sticks and no wizards in this story. Sadly, or not, but Forex secrets are very prosaic!
People who trade currencies for years have been through different times, sometimes very profitable, sometimes harsh. Well, experience is experience and it allows them sharing their own philosophy with beginners now. Main Forex secrets are in their minds.

Solid Money Management

First one of the Forex trading secrets is in money management. You can read the additional article, fully dedicated to this topic here. Money management is one of the most useful Forex secrets that controls your losses and helps saving your money, even if all turns in the worst way. To say clearly, this part of Forex secrets is more than important for a successful trader. Managing your money with clear mind, you can turn your losses to a minimum and, eventually, turn your win rate into a maximum. The rules of money management (like calculating the ratio of win/lose and so on) are simple. They can be learned in the additional article about money management, as I told earlier. Ok, clear with this one of Forex Trading Secrets! Yes?

Trading Plan

Next one of the Forex trading secrets is trading plan. Trading plan is a typical Forex secret of every successful trader. It’s about formulating what you aim for, what are your purposes, determining your risks and screening your trades. Systematic plan for your trade operations is a “must” and can really help and show you the picture of your win rates, losses, operations and so on. If you follow this one of the Forex trading secrets and make your own trading plan, you will definitely gain more, because you will know where to move, how much can you lose and what operations are good for you.

A Winning Strategy

Forex trading secrets are going on! Are you curious about which one of the Forex secrets will come next? Ok, next one of the Forex secrets is trading strategy. Trading strategy is one of the Forex secrets that is absolutely driven to win. Without a winning strategy, you cannot make profits. Ok, where to get a winning strategy you might ask yourself?
Take a look to ProFx. I developed the strategy myself more than 10 years ago, improved it with my Team continuously and use it on my own and some client trading accounts. The strategy works during the American and European sessions and can be used on all the major currency pairs. This one is very easy, like, install, setup, and then – no special skills required.

Analytic Tool to Keep You Up to Data What is Going On

Knowing at any time the level of free margin of your account, upcoming news, detailed results about the news and trend direction from all important timeframes from the currency pair you trade on is essential and very important.
Not knowing these details can result in a wrong trading decision. And that means it can cost you a lot of money. How to know? Take a look to FX Pulse. It is a powerful analytic tool for the Metatrader platform.

Automated Forex Systems

So, you know which of Forex trading secrets will be the last one? Yes, the one that is really reminding of a wizard – just a little. This one’s about automated Forex trading systems. As you might know, all big market participants like fund manager, money manager, investment banks and professional currency trader uses automated currency trading systems. Reason is that such systems can analyze a very large number of data which a human cannot. Another one is that a human trader cannot follow the market 24 hours which mean good trading opportunities will be missed.
However, when you are interested to trade with automated Forex trading systems you need to choose wisely. Here a comprehensive checklist:

• System needs to be tested with historical tick data from at least seven years. Modeling quality from the test needs to be 90%. Mismatched chart errors should be 0.
• System needs to be forward tested. Minimum period is three months but a longer period is of course better.
• System needs use fixed stop loss levels, otherwise you can face serous losses.

Want to know more about automated trading systems and what they can do for you? Take a look here: Automated Forex Trading Systems
As you can see, the so called Forex secrets are not so secret at all and there is no magic included. So, why it is so that so many Forex traders fail? Because trading success consist from the combination from different techniques. When one part is missing, you fail.
Exactly, for this reason we offer all on one solution for manual and automated trading to make sure you will be one from us who make constant profit trading currencies.
Let me assure you it is exiting to be a successful Forex trader who trades for a living. Become one of us, today!

How to Get Started

• Choose a trading system what fit your needs here
• Download and install it
• Follow the setup instructions
• Trade and make money

Don’t believe it can be that easy? It is, and just for the case that you have doubts let me remind you that you purchase absolutely risk free with 100% satisfaction guarantee.

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What is Your Forex Trading Style?

Scalping, Day, Swing, Position or Long Term Trading. What is Your Forex Trading Style?

Style is important. We hear it every day, every moment, from magazines, from TV, radio… Style is the integral part of personality, and we all want to be personalities. Well, business is where we really stand tall, where we show our personality in full-size and style is important in business. However, style cannot be expressed in clothes only. What is your Forex trading style?
Styles of trading can tell much about you like a person. Do you know what scalping, swing, position, day or long term Fx trading styles are? Well, if you do and one of them is your style, you can skip this article. But if not – well, you are on YOUR track to be a stylish person in all the ways with your own Forex trading style!

Scalping

If you want to make profits fast and like action, scalping is for you. Scalping is about getting a little profit on little trades. Many small trades a day gets a big profit at the end of the day. Be a careful pro. Scalping is the FX trading style for currency traders who want to make profits on a daily base. 1-2% profit every day, sounds good? That’s what professional scalper makes.
Advantages from scalping:

• High win rate
• You can make high profits faster than with any other trading styles

Disadvantages:

• Only for experienced trader with deep knowledge about currency trading
• Time intensive when done manual

Day Trading

Well, and what do you have to do if you are afraid of losses and not risky by yourself? Then you should definitely try Day Trading FX trading style. Day Trading means buying and selling the currencies in the one day. If this tactic fits you – you have already found your Forex trading style and it is Day Trading.
Advantages from day trading, also known as intraday trading:

• Low number of trades lowers execution costs
• No overnight trades

Disadvantages:

• Trader needs to have deep knowledge about technical analysis, access to real time news service and level 2 data

Swing Trading

Swing trading is for those who are mainly trading from home and day-traders. It’s based on short-time movements of currencies. If you’re a day trader, you can surely choose Swing Forex trading style. Swing trading is for those who don’t want to spend the whole day with trading and are not ready to take to large risks.
Advantages from swing trading:

• Good trading style for traders who are new to currency trading
• Not very time intensive

Disadvantages:

• Some trades need to be hold overnight
• Returns lower profit then scalping and intraday trading

Long Term Trading

Long term trading’s name talks for itself. Long term is Forex trading style that is based on operations that are not fitting to one or two days. Long term trading is calmer than speedy Scalping, Swing or Day trading style, and surely will fit you if you’re not from those who want to “get rich in a day”. Position trading is fx trading style that is very popular. It is based on long-termed trading, long timeframe charts (like monthly, weekly and daily ones).
Advantages from long term trading:

• Very low transaction costs
• Not very time consuming. It is enough when you check your position once a day.

Well, whatever Forex trading style you are going into – it should be based on the strategy that is highly recommended to use. A solid strategy will guide you through the trading process, and I am sure you will be happier if your strategy will be based on simple rules that are easy to follow. ProFx strategy will work ok for you. I know for sure! It returns a constant profit and guarantees low drawdowns. Isn’t it great? You’re Scalping? Or using Intraday Forex trading style? Alternatively, maybe long term Forex trading style is good for you? No matter what, ProFx will make it easy for you to archive constant and stable profits.

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Forex Money Management

We have something really serious to talk about today. Of course about money again, but… This time not about spending and so on, but about saving. Have you ever heard about Forex money management or money management at all? Forex money management rules? If no, then sit down and read this. Carefully. Think on this topic, never stop thinking till you understand every word. This is important.

Trading Without Money Management is Nothing Else the Gambling

Without Forex money management, Forex traders are just ordinary gamblers, who are lucky from time to time. This has nothing in common with real trading. So, if you want to get money, not to give them away without a thought – Forex money management is for you. Really… This thing works, thanks God, because without these rules we would be in deep trouble.
I think everyone of us has ever thought and dreamt about going to casino and getting the greater jackpot ever. And all the attributes – champagne, glitter, flashing lights… But I do not think everyone accepts that the main thing that is ruling us in this desire is passion. Passion for the game, for the gamble. Well, Forex is not like playing roulette. For those who want to live and to get money from their business, not to play, there’s a thing called Forex money management. I strongly recommend you to get your brain working now and think about casino. No, stop thinking about champagne! Under those decorations we often do not see the faces of those who are in fact investing their money to this beautiful picture we see. Those, who lose. Those, who give their money to winners, casino and so on… Gamblers. The ones who have naked passion and nothing else. Well, is it quite scary for you huh? If yes – you’re on the right way to learn Forex money management rules to never become one of those unlucky persons.

 

 

Basic Rules

What you need to know first of Forex money management is that no matter how lucky you are, someday you will lose. And it’s only you who decides HOW MUCH will you lose and will you be able to start over again or not. The main of Forex money management rules is to always count and manage possible risks and to keep them in mind. Well, it’s quite clear – you risk a little, you lose a little. Don’t let this fact scare you, like, who doesn’t risk – doesn’t get. I will tell you that this is the truth, yes. You should risk and the percent of gambling should always exist, but let’s just decrease it to… Let me say… 2%? Decreasing your risk to 2% according to Forex money management, you can really decrease your losses even, in the worst case. I think it’s more than clear – when you risk a little, you can’t lose a lot, because losses can’t come from nothing.
Well, let’s go on with Forex money management! Second of Forex money management rules is obvious too (you can see, my lesson today is easy). Your capital is your fortress. When you lose the part of the fortress, it’s much harder to rebuild this. You lose money to rebuild your capital, and you lose time that could be spent on gaining new profit. So, your losses not only counting in money – but in time too, and time is very precious. You can get back your money (not gaining when doing this) but NEVER your time. Keep this in mind – it’s very important for Forex money management.
Third of Forex money management rules is on the way to come to you! Are you ready? Well, this one of Forex money management rules is for you: calculate. I know you are friendly with economics, so this is the main thing you are doing all the time, but never stop calculating your risk ratio! You don’t wanna lose, yes? So be sure that the chances to win are two or more times bigger than chances to lose. In Forex money management it’s very important to keep your money safe before you are sure that you CAN win and that you WILL win. No gambling please! Cold mind is needful.
Well, if you’re going to follow all the Forex money management rules that were written above, I’m sure you will success. If I could put them together into one sentence, it would be “Think before you do”. It works not for Forex money management only by the way… But that’s the other story already. Don’t be the one who pays for someone’s champagne in casino. Let it be you who is bathed in champagne all the time. Be clever. Trade smart. Use Forex money management rules and… Good luck!

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Forex Rebates

Forex rebate sites have been popping up on the World Wide Web like mushrooms over the past few years as retail forex trading has gained popularity. Want to learn more about them? You'll find the answers to the most frequently asked questions about forex rebate sites below!

1. What is a rebate?

A rebate is a small deduction from an amount to be paid OR a return of a part of an amount given in a payment. It's kinda like the cashback reward programs that credit card companies offer to their customers who pay diligently.

2. What do forex rebate sites do?

Forex rebate sites essentially work as middlemen for brokers. By offering rebates and other marketing efforts, they draw in potential traders to get them to open live accounts with forex brokers. In return, the brokers give these companies a share of the spread of every trade taken by the trader, a small portion of which is given back to the trader.

3. What don't forex rebate sites do?

Forex rebate sites are marketing machines - they don't actually provide clients with currency quotes, so you cannot hold them responsible for trade execution. All trade transaction issues rest solely with the broker.

4. Why do traders sign up with rebate sites?

Because rebate sites give a certain portion of every trade back (either in cash or in their trading accounts) at the end of the month, traders in effect end up paying less on their spreads. This can be a small boost to a trader's profits (or reduce their losses) by decreasing their transaction costs.

Another reason why some choose to go through these forex rebate companies is because they don't have enough capital to get the best spreads directly from brokers. Most brokers only offer their best (thinnest) spreads to their clients who trade in very large volumes.

5. Who is it best suited for?

Since the money you get in return depends on the number and size of the trades you take (regardless of whether these were winning trades or not), those who are most active and trade the biggest positions stand to benefit the most.

6. What are the dangers of forex rebates?

The danger lies in getting blinded by these rebates. Some may open a live account based on the attractiveness of the rebates alone, not considering the size of the broker's spread. If you're not paying attention, even with the rebate, you may still end up paying higher total transaction costs than other non-rebate options out there.
Also, it's always best to do a background check to make sure you're not getting scammed. Before you sign up with a forex rebate site, do your research on the company and find user feedback, just to confirm you're not walking into a scammer's trap!
Now, if you'd like to discuss and learn more about forex rebate sites,



 

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