ABOUT FOREX TRADING

TECHNICAL LOOK ON THE GROWTH OF METALS: FOREIGN EXCHANGE IN INDIA

TECHNICAL LOOK ON THE GROWTH OF METALS: FOREIGN EXCHANGE IN INDIA

Hello, India. Today I am going to familiarize you with one of the unique phenomena, occurring in Forex. It is Diamond pattern.

The Diamond figure is a rare graphical model in technical analysis and especially in Forex market. Sometimes it is called Diamond Pattern. The structure of the Diamond shaped pattern has the exact form of the precious stone, from here comes its name – Diamond. In case of its right identification Forex trader can make quite huge profits.
As a classic graphical figure the shape of Diamond is formed from divergent and convergent trend lines, which are parallel to each other.
Recently the current figure could be noted on 4-hour graphic of new instrument XAUXAG, which is gradually becoming more and more popular among Forex traders.
At the end of 2012 the prices of Gold and Silver remarkably fell. The descent of metals have started since the beginning of October: Gold fell from 1795.78USD to 1625.80USD per ounce, and Silver fell from 35.36USD to 29.21USD. You can find the detailed information about the results of the investigation on IFC Markets website, which offers a unique trading instrument, XAUXAG. Traders do not need to make transactions on pairs XAUUSD or XAGUSD, they can trade with XAUXAG (Gold versus Silver).

Example:

Forex India Brokers Ratings

Forex  Brokers  Ratings in India

The other day while navigating in Internet, going through various Forex India brokers ratings, I encountered with website www.forex-ratings-india.com The rating of brokers have been formed from votes of all sorts of traders, both beginners and experienced. According to those votes, the brokers have been ranged in the following sequence, forming Top 5 Forex brokers in India:

1. IFC Markets
2. NordFX
3. Swissquote
4. EXNESS
5. Admiral Markets

Naturally I don’t have experience with all these brokerages. I have heard of NordFx. They say it is one of the best brokers in India: fast execution, low spreads, kind attitude towards clients.
With IFC Markets I have an experience of almost one year. Overall I am satisfied with this company. Actually I had some technical problems with its NetTradeX trading platform at the initial period of trading. I got annoyed and changed the platform, starting to use the other one Metatrader 4. However after some time I came back again to NetTradeX. It is gradually being improved, suggesting more and more innovational tools. What I mostly like about this platform is that it contains a set of all sorts of orders or their combination: Market, Limit, Stop, Pending, Linked, Activated, Trailing Stop mode, etc. One more thing: it allows to make a withdrawal request directly from the platform. In general I think that this broker has a perspective to become one of the best and unique brokers in India in the future.
With Admiral Markets my experience is limited with just a couple of trading transactions. Then I changed it. No, no disappointment. The reason is that one of my friends recommended me another one, so I continued my Forex trading with it. With the other two companies I am coming across for the first time.
Let me see what kind of brokers they are.
Exness: I see that you can start trading having 100USD. Not bad. Oh, what a high leverage. You see, the maximum leverage ratio the Exness provides is 1:2000. Yes, really unique offer. Three account types: Mini, Classic, ECN. Almost the same we see with IFC Markets. Two account types for NetTradeX: Beginner and Standard, and two types for Metatrader 4: Micro and Standard. I personally think that it should be a must for these two companies to add some new account types. Let’s see what the other three suggest. Now I’ll check NordFx website: Integral, Micro, Standard, Premium, Standard-MT5, MT-ECN, CQG, Welcome account, Zulu trade. Yes, quite many account types. I remember Admiral Markets account types, see, let’s count: Admiral Standard, Admiral Pro., Admiral.CFD, Admiral Gold, Admiral Currensee, Admiral. ZuluTrade. Six account types.  As for Swissquote, I couldn’t find the Account types section, the same with Live Chat so as to get the necessary answers to my questions. Let’s pass this one. Nothing serious I can see here.

My financial means being limited, I chose IFC Markets. One of the main reasons for my choice. Through this company I am able to make a deposit with possessing only 1USD. However funny it may sound, I should confess, people. When I first started to trade in this company, my initial deposit was 1USD. No significant profit with this amount, it goes without saying, however you may try just for practice. The leverage ratio is also quite high: 1:400. NordFX: start trading with $5. Oh, what I see. Welcome account with $0 deposit. Something like demo account, only here you can make a profit. Maximum leverage here is up to 1:500. With Admiral Markets you should have larger financial means: initial deposit is $1000, maximum leverage ratio 1:500.

One more very significant thing. Let’s check spreads, fixed or floating they are. It is very significant for Forex in India. Admiral Markets – floating, Exness – again floating, NordFx – can be both fixed and floating depending on the account type, IFC Markets – fixed. Actually fixed spreads provide more transparent Forex trading.

I also made a little investigation concerning the trading instruments that each brokerage provides. Normally all of them have currency pairs in their list, some more, others less. Among common metals are gold and silver, IFC Markets provides palladium and platinum as well. The metals are as usual quoted against USD or EUR. Recently IFC Markets has deviated from that rule, forming a new group, called “Golden Instruments”. This new group includes unique products, with gold as the base asset, quoted against silver, contracts for oil and contracts for S&P 500 stock index (XAUXAG, XAUOIL, XAUSnP). Other trading instruments include CFDs on Commodities, on Indices, on Stocks, on Futures, on Equities and so on.
Forex in India is really becoming more and more popular in spite of so many setbacks established by Reserve Banks. However these restrictions do not serve as an obstacle for those who thrive to trade in Forex market. Electronic payment methods make your trading safer and more secure. Almost all companies provide electronic payment methods. For example NordFx suggests the following 4 electronic payment systems: Skrill, Alertpay, Liberty Reserve and Webmoney. IFC Markets has only two e-payment systems: Liberty Reserve and Webmoney. Electronic payment systems of Admiral Markets are Skrill, Envoy and WireCard. As for Exness it has a wide range of e-payment systems.

See:

• Liberty Reserve

• Webmoney

• Skrill (Moneybookers)

• Ukash

• Payweb

• Neteller

• Filspay etc.

By the way, the design of Exness captured my attention. Very nice combination of black and yellow, besides here I feel a pleasant atmosphere of New Year. I don’t like neither the menu nor the colours of NordFx. The menu of Admiral Markets is quite well-organised, in my opinion. In spite of prevailing white colour, the design is done with taste. The combination of orange and green is not so interesting in IFC Markets, though the menu is quite understandable.

This was one of numerous Forex India brokers ratings. I think that in Top 5 list some brokers might have been substituted with other more worthy ones. However, this is what has been formed by traders’ votes.

TOP 5 MYTHS ABOUT FOREIGN EXCHANGE IN INDIA

TOP 5 MYTHS ABOUT FOREIGN EXCHANGE IN INDIA

Foreign Exchange in India is becoming more and more popular recently causing more and more debates about it. I would like to present some very expanded misconceptions about Fx market, which may be beneficial for those Indians who do their first steps in this market.

1. Forex trading is quite easy

Many Forex India traders think that earning money through Fx market does not require any special education or any skills. Reading a couple of books is just enough to become a trader. This is what most people think. But anyone should know that studying Forex is equal to acquiring any profession and that is why it costs time, money and a lot of practice.

2. There is a Forex company

This is one of the most widely spread misconceptions about Forex. Remember that Forex is something abstract; there is no concrete place where it has been founded, so it cannot have any office. The Foreign Exchange transactions can be realized by brokerage companies. These serve as intermediary for those who want to dive into the world of Forex. So, any Forex India trader should realize that he is able to cooperate with any brokerage company no matter where it is based.

3. Commission is to be paid to brokerage companies.

The profit of any brokerage company is formed out of spreads, the difference between sell and buy prices. A brokerage company does not charge any fees.

4. “I need to have a great amount of money in order to start trading in Fx market”

Most people think so, since they do not have any notion about being able to trade with even 1USD. So, as you see, Foreign Exchange market is formed in a way that any person gets an opportunity to become the participant of Fx market.

5. “I want to exactly predict in what direction the market will move”

Keep in mind that a market which trades with floating rates of exchange cannot be predicted with 100% certainty. Fundamental and technical analyses have arisen for forecasting the market direction. However, these methods only function for approximate predictions.
As a smart Forex India trader you need to stay away from these stereotypical myths and always remember that the key to success is to closely study this field and what is more important to construct you trading psychology.

Hello India! I congratulate you on New Year and send the warmest wishes to you and your families. There is no better time than the holidays to say thank you for being with my blog all the year round. Wish you a productive and fruitful trading in the year ahead.