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04/04/16 General #

Finding the Right Forex Broker

Finding the Right Forex Broker

The Foreign Exchange market is the arena where two different nations can exchange their currencies for a rate that they mutually agreed upon.

The forex market may be the same as the stock market with major difference that with a forex market, traders try to earn money through the increase in the currency rates. In forex trading, the currencies are normally traded in pairs.

The most important currencies used in forex trading are Dollars, Yen and Pounds. A forex broker may be an individual who acts as an intermediary between the buyer and the seller. They work for them for a small commission. A good forex broker is necessary to achieve success with the invested money.

One of the unique feature of the forex trading market is the many tactics that brokers are using to entice the traders to trade more. Some brokers may promise no exchange or no regulatory fees, no commissions or no data fees. To an individual who is new to forex trading, this may sound too good to pass up. Make no mistake. They’re here to make money and brokering is their business.

Of course, trading without transaction costs is a great advantage. However, sometimes, it is not the bargain that it seems. Sometimes it even sucks.

Fees vs commissions

I will now show you how forex broker fees are evaluated as well as the commission structures. This shall help you find one that will work best for you.

Forex brokers use three forms of commission and they are fixed spread, variable spread and commission based on the percentage of the spread.

The spread refers to the difference between the bid price and the ask price. The bid price is the price that the market maker prepared for you for buying the currency. The ask price is the price at which he is prepared to sell you the currency.

The forex broker may also act as a dealer giving online trading services to individuals or firms to help them speculate the changing foreign exchange rates. It is best to get help from professional forex brokers as with any other forms of trading. They understand the market better and can help you with all the questions you have in mind pertaining to the trade. They will guide you so you can start trading on your own. Many US and international companies recently starts providing software and other materials that traders can use to speculate the changes in the forex rates. There are normally trading rules which were put up by the forex brokers.

What makes a good broker?

A good broker should have the right software that will calculate the amount of profit made while trading currencies. They also provide excellent customer service. This shall help the client have an overall good experience with the trade. A good forex broker helps a beginner trader in the market even with a minimal amount and commission. They guide the client to have good leverage. They also utilize proper spread sheet analysis to show statistics and graphs of the current market.

For more information about forex broker rates, you may check this link CMC Markets brokerage rates.

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06/02/15 Personal Finance , Saving # ,

6 Financial Lessons Worth Learning in Your 30s

6 Financial Lessons Worth Learning in Your 30s

Another personal finance blogger recently asked me to contribute to a post he was writing about money mistakes people in their 30s make and how to avoid them. I was happy to help with my best financial lesson.

As with most finance questions I come across, this one got me thinking about my own money mistakes and the financial lessons I wish I had taken full advantage of in my 30s. Here are six financial lessons, most of which I followed:

Buy real estate ASAP

Owning a home isn’t for everyone. Renting makes more sense if your job is mobile and you’re not sure where you’ll be living in a few years. Renting also makes sense if it’s a lot cheaper than owning a home.

My answer to the curious blogger about financial lessons was to buy real estate when you get the chance to. I don’t mean just when it fits into your finances and lifestyle — such as having a steady job and being married. My point, which I didn’t elaborate on in my quick response to him, was that buying real estate as an investment when you’re young can be a smart move many years later if you bought at a time when the real estate market was down.

You don’t necessarily have to live in the house you’re buying, though that does have good tax benefits.

For example: About 15 years ago a relative bought a townhouse in a nearby city. The townhouse was next to a major shopping center that would only get bigger in the coming years as more people moved to the area. Even back then, it was obvious to me that it was a growing area and that home prices would only go up. They did, and are now worth 10 times what they were 15 years ago. Continue reading

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Hi, I'm Aaron Crowe. Welcome to CashSmarter. I'm a personal finance freelance writer who enjoys spending my money wisely and using minimalism to make my money last longer while increasing income.