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FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 3

1. What is Forex All About?

Forex means FOReign EXchange and it is a global market where the world’scurrencies are traded, one currency against another. Central Banks, CommercialBanks, Large and Small Corporations, Institutional Investors, Individual Traders andCommon Tourists occasionally need to exchange one currency for another.

Examples:

Take for example an importer who is based in the US and wants to import 5Mercedes Trucks from Germany. He must exchange US Dollars for the EuropeanCurrency (EUR) in order to pay for his import, so he must make a transaction in theForex Market.

■ Importer Buys EUR and sells USD

In the opposite example, a tourist from Germany wants to visit New York so in orderto pay for his hotel he must exchange Euros for US Dollars. This transaction will alsobe made in the Forex market.

■ Tourist Buys USD and sells EUR

Forex Currency Pairs & Main Categories

Currencies are traded in pairs, you buy one and at the same time you sell anothercurrency. In any currency pair (in the above example EURUSD) the purchasedcurrency is called the Base Currency (EUR) and the sold currency is called the QuoteCurrency (USD).

There are three Main Categories of Forex Currencies:

i) Forex Majors (the most popular and traded pairs: EURUSD, GBPUSD,USDJPY, USDCHF, USDCAD, AUDUSD and NZDUSD)

ii) Forex Minors (less popular pairs and thus more expensive to trade)iii) Forex Exotics (no-popularity and thus very expensive to trade)

What is a Forex Lot?

A Forex Lot is the standard unit size of a Forex transaction. There are 3 different lotsizes:

■ Micro Lot Size (equals $1,000) → Suitable for Forex Beginners

■ Mini Lot Size (equals $10,000) → Suitable for Semi-Advanced Forex Traders

■ Standard Lot Size (equals $100,000) → Suitable for Advanced and Pro Traders

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But where is the opportunity to make money after all?

Currencies are not traded in fixed prices -instead they are part of a free floatingtrading system. Every order for buying / selling a Forex currency is a factor creatingeither demand or supply in the market. Even tiny fluctuations in this free-floatingsystem can be transformed into huge profits using the ability of trading leverage (asit will be described afterwards in Chapter-3).

Where is the Forex Market Situated?

All currency transactions take place within the Forex Market. Where is Forexsituated? Actually nowhere specifically, Forex operates as a non-centralized networksuch is the World Wide Web. All transactions are executed within the ElectronicNetwork of Banks (called the ECN network). There are of course several physicalFinancial Centers around the world. These financial centers are found in majorcapital cities such is New York, London, Tokyo, Sydney etc.

Today Foreign Exchange is by far the largest market in the world. Forex has becomeso huge that volumes exceed today 5 trillion USD only in a single day.

Forex Market Trading Hours

The Foreign Exchange market is open 24/5 between Mondays to Fridays. The Forexdaily activity is divided into 4 separate sessions:

(1) New York Session, 8:00 am to 5:00 pm EST(2) Tokyo Session, 7:00 pm to 4:00 am EST(3) Sydney Session, 5:00 pm to 2:00 am EST(4) London Session, 3:00 am to 12:00 noon EST

Forex Market Overlaps

Forex overlaps occur when two of the above sessions are opened simultaneously.Here are the three Forex Session Overlaps:

(i) New York and London Session Overlap: 8:00 am to 12:00 noon EST(ii) Sydney and Tokyo Session Overlap: 7:00 pm to 2:00 am EST(iii) London and Tokyo Session Overlap: 3:00 am to 4:00am EST

During these overlaps, both trading activity and market liquidity are maximized.Many traders select to execute orders only during these overlaps.To highlight the importance of time when trading Forex, just think that there areautomated systems trading exclusively the London and Tokyo Overlap. That meansthat during the other sessions remain inactive.

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Moreover, there are automated systems trading only as the Asian Session begins.These short-trading systems are commonly scalping the market. Many of theseScalping Systems are presented in Chapter-7.

So What is Forex Scalping Then?

Scalping is a promising way of trading Forex based on the assumption that you holdstate-of-the-art trading technology and the right system to do the job. ScalpingForex means opening and closing trading positions lasting less than one minute andtargeting returns as low as 0.001%. Those traders who scalp the market are calledscalpers. This is a common trading style and you may find more trading styles atChapter-6.

Why should anyone targeting tiny returns of 0.01%?

Wait until the next chapter, the chapter about trading leverage, and you willunderstand the reason why.

Online Forex Platforms

What is a Forex Trading Platform?

A Forex Trading platform is simply your ticket to Online Forex Trading. A TradingPlatform is working like a bridge between you and your Forex Broker. When youexecute a trading order (for example selling British Sterling against the US Dollar)this order is passing instantly from your platform to your broker. Then again almostinstantly it is passing to the Forex Market.

The fantastic thing is that almost all Forex Trading Platforms (Desktop and Mobile)are offered for free to download and to use. Freeware and open source softwarematters when you trade Forex. The industry’s standard platform is the MetaTrader4platform from Metaquotes. This platform is called also MT4 and allows manual andautomated trading in both desktop and mobile devices.

Almost all Trading Platforms today offer features such is the use of indicators,technical analysis tools, trading on charts, 1-click-trading, news alerts etc.

■ Learn the basics about Forex Trading at the web-site What-is-Forex.com» What-is-Forex.com Learning

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Delays on Execution -The Slippage Factor

The delay between the time you press the button on your PC and the time yourorder is actually executed in the Forex Market is called the slippage. If we measurethis delay in real time we might say that this delay is between 0.1 seconds to 1.5seconds. Slippage is generating price manipulation and that is why it is measured inpips. One pip equals commonly 0.0001 of the value of a currency pair. The averageslippage in the market today is between 1-2 pips.

The Importance of Tiny Segments of Time

But why should a trader even care about such a tiny delay of less than 2 seconds?

Think about that. There are numerous arbitrage systems today that are tradingForex in timeframes measured in million-seconds. These systems constitute the socalled ‘Million-Second Forex Market’.

One (1) second for a scalping system equals 1 month for a regular trader.Furthermore if you trade the news (News-Trader) 1 second is the difference betweenmaking a huge profit and suffering a huge loss. News-Trading is one of the sixtrading styles presented in Chapter-6.

“Time is the most disputed issue in the men’s history”

■ Find full reviews and multiple comparisons regarding Scalping Forex TradingSystems at ForexAutomatic.com: » Forex Robots and other Automated Systems

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2. Two Categories of Forex Brokers -TheNeed for Reliable and Regulated Partners

In order to trade Forex you need also a broker. Forex Brokers operate asintermediaries between a trader and the aggregate Forex Market (The ECN networkmentioned before). Basically there are two main categories of Brokers based on theirexecution model, the Dealing Desk and the No-Dealing Desk Brokers.

Two (2) General Categories of Forex Brokers

(a) Dealing Desk Brokers (DD) or Agents or Market Makers

These brokers operate as a Dealing-Desk, meaning that they are making their ownmarket within the Forex market. In simple words, Market Makers sum all the buyingand selling orders of their clients and execute trades instantly on both sides. Actuallythey accept all orders from opposite sides and earn money by staying in the middle,without risk. Sometimes Market Makers are trading against their clients just to fill alltheir orders.

Professional traders don’t like the fact of trading against their brokers and that iswhy they are constantly avoiding Dealing Desk Brokers. Dealing Desk Brokers orMarket Makers are not considered as pure Forex Brokers

Dealing Desk Brokers offer usually a wide asset index including Forex, Stocks,Indices, Commodities and Energy trading. In general, Dealing-Desk Brokers areconsidered a good choice only for beginners and semi-advanced traders. Thisperception exists as Dealing-Desk Brokers offer currency pairs in wide spreads.EURUSD for example can be found usually at 2 pips minimum. Moreover Dealing-Desk Brokers provide trading with slippage and re-quotes. The only importantadvantage of trading with a Dealing Desk Broker is the Forex Bonus offered. Dealing-Desk Brokers offer very high welcome bonuses up to 100% (find Forex BonusPromotions later in this eBook).

■ Tip: If you want to trade with a Market Maker, choose a broker offeringwithdrawable bonus. Trade your bonus as many times required and then withdrawyour funds and your bonus. It is the best chance you have to win.

(b) No-Dealing Desk Brokers (NDD) -ECN or STP Forex Brokers

In this category we find brokers that are transferring their client orders directly tothe Forex Market, meaning transferring orders directly to the Electronic Network ofBanks (ECN). The great advantage of trading with an ECN/STP broker is the lowtransactional cost and the very fast order execution. Transaction cost in ForexTrading is deriving mainly from spreads And from trading commissions charged on

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volume. Cost may be also the outcome of slippage. ECN/STP brokers offer by rulethe lowest slippage in the market.

The ECN/STP Forex brokers are the only choice of professional and advanced Forextraders and the only choice for all those wishing to trade Forex via automated-trading systems (explained in Chapter-7).

Note: Not all ECN/STP brokers offer good trading terms to their clients. There aregood, medium and bad performers as in every other industry.

Here are two examples of an ECN/STP Broker offering EURUSD:

i) EURUSD spread at 1.4 pips without any trading commissionsii) EURUSD spread at 0.4 pips plus $3.5 commission per $100,000 volume

The Essence of Trading with Regulated Forex Companies

Reliability is priority number one when your industry is the Online Financials.Everyone who wants to trade the world’s currencies needs a reliable Forex Broker.There are hundreds of Forex Brokers available in the market, but it is extremelyimportant to trade only with those that are high regulated and reliable. Regulationmeans that a company is supervised and controlled by external independent bodies.Regulation works as a great incentive for any broker to behave ethically and respecthis client’s interests. Another factor that adds reliability to a Forex Company is theexistence of Segregated Client Bank Accounts. That means that when you make adeposit your funds are safely deposited in an external bank. The country where aForex Broker is situated also matters, avoid companies situated in offshore countries.Offshore countries are providing weak legislative frameworks regarding corporations,and that is not good for any online trader.

Here is a list with some High-Regulated Forex Brokers offering also segregated BankAccounts to their Clients:

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REGULATED FOREX BROKERS LIST (NO-US CLIENTS LIST)

Here is a list of regulated Forex Brokers offering funds safety via segregated clientbank accounts.

FOREXBROKER

REGULATEDSEGREGATED

BANKACCOUNTS

EXECUTIONMODEL

MINIMUMDEPOSIT

WELCOMEBONUS

INFO

XeMarkets

FSA UK,CySECCyprus, ASICAustralia

Yes STP MODEL $530% up to10,000USD

► Review

Broker

»XeMarketsWeb

IronFx

ASICAustralia,FCA UK,CySECCyprus

Yes ECN / STP $500 50%

► Review

Broker

»Ironfx Web

AvaTradeASICAustralia andCBI Ireland

YesDEALING

DESK$100

50% up to10,000USD

► Review

Broker

»AvatradeWeb

HotForexMiFIDEurope andCySEC

Yes ECN / STP $5 30-100%

► Review

Broker

»HotForexWeb

FOREX BROKERS FOR US TRADERSHere are Forex brokers for US Traders offering segregated bank accounts to theirclients.

1) ForexBrokerInc. (ECN Broker)100% Welcome Bonus | Minimum Deposit $5► Learn more about the Forexbroker.inc |» Visit Web-SIte

2) FinFx (ECN Broker)No Bonus | Minimum Deposit $100► Learn more about FinFx | » Visit Web-Site

■ Find Forex Brokers Ratings at FxPros.net

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Forming the Profile of the Perfect Forex Broker -For theAverage Trader

Here are some characteristics of the Ideal Forex Broker:

(i) Offering maximum safety of trading funds (high regulation and segregated clientbank accounts)

(ii) Offering minimal transaction cost (low spread, low commissions, no re-quotes)

(iii) Offering a wide asset index containing more than 60 currency pairs (majors,minors and exotic pairs as mentioned before)

(iv) Offering fast order execution with minimal delays and no price manipulation

(v) Offering a good variety of trading platforms allowing mobile trading, automatedtrading and scalping

(vi) Providing a variety of different deposit / withdrawal methods by not chargingcommission on withdrawals or on inactive accounts

(vii) Providing fast and reliable customer service (emai, live chat and phone support)

Rating Brokers Formula by TradingCenter.org -The New andRevolutionary Way of Rating Financial Services

Based on recent research, most of the user ratings found in the Internet today arefake. This is happening as Online Companies pay outsiders to rate them favorably inuser-rating sites. In this uncomfortable environment the Rating Formula Series wasdesigned to provide a completely objective framework of rating financial services.

The Rating Formula Series includes all the major factors forming the ideal Broker.This innovative rating formula is designed by TradingCenter.org. Here are the four(4) generic rating categories forming the maximum rating value of 100%.

FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 11

FORMULA v.4.0 TOTAL RATING(The structure of Rating Formula v4.0)

WEIGHT (%)

Factor-1: Safety of Funds 26.0% Rating +

Factor-2: Trading Cost 28.0% Rating +

Factor-3: Available Trading Options 26.0% Rating +

Factor-4: Technology 20.0% Rating =

100% max

Learn more about the Rating Formulas:

These are the latest versions of the Rating Formula series.

► Rating Formula v5.0 –Forex Brokers, at TradingCenter

► Rating Formula v4.0 –Forex Brokers, at TradingCenter

► Rating Formula v3.5 –Binary Options Brokers, at BinaryValue

FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 12

3. Why so many People Trade in theForex Market? –The Profit Potential

Two factors are forming the great Profit Potential of Forex Trading, liquidity andtrading leverage. Here is a short analysis of these two trading factors.

2.1 Forex Market Huge Liquidity and Low Cost of Transactions

As it was mentioned before the Foreign Exchange Market is really huge with dailyturnovers of more than 5 trillion US dollars. That means that there are tens ofthousands of currency buyers and currency sellers at any given second. Thatenormous volume activity pushes the distance between buyers and sellers (called thespread) in minimal ranges. The average spread on EURUSD for example is less than2 pips. That means that if the first buyer is at 1.3800 then the first seller is at1.3802. This distance in the example given is just 0.002, or else 2 pips spread.

Why is this fact so important? This is important because you can open and close atrading position with an extremely low transaction cost. (i)

2.2 Multiplying Funds via the Use of Leverage

Forex trading provides the unique advantage of huge trading leverage. What doestrading leverage means? Trading leverage means that you can trade more funds thatyou really hold. But what makes that advantage astonishing is the number of timesyou may leverage your funds.

Most Forex Brokers today offer leverage up to 500:1. Therefore, if you open anaccount with $1,000 you may trade theoretically $500,000. (ii)

By combining minimal transaction cost and high trading leverage {(i) and (ii)} it isobvious what makes Forex Trading so lucrative and popular in a global scale.

Example:

If you open a position worth $500,000 and you gain 1.0% then your earnings arecalculated as:■ Earnings Computation = $500,000 X 1.0% - Hypothetical Cost of Transaction =$5,000 - $300 = $4.700■ Your Initial investment was $1,000, so you gained 370% on your investment withjust 1.0% currency movement

Be aware that this procedure incurs high risks too, as you may win or lose money,especially if you are not familiar with this process. This example is given to highlightthe profit potential and why Forex Trading attracts so many people worldwide.

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4. Forex Welcome Bonus -Another GreatAdvantage of Forex Trading

High Deposit Bonus and No-Deposit Bonus

Forex Welcome Bonus –The Difference between a Credit Bonus and aWithdrawable Bonus

Forex Brokers in order to attract new clients offer promotions that are called ForexBonuses. A common welcome bonus is 30% but it can be up to 100%.

What means 100% welcome bonus on deposit?

It means that if you are a new client and you deposit 1,000USD then the broker willadd you another 1,000USD in your account as an extra trading capital.

There are two types of Forex welcome bonus:

i) Withdrawable Bonus (usually 30% on new deposit)ii) Credit Bonus (usually 50-100% on new deposit)

You may withdraw a Withdrawable Bonus by trading it several times according to theTerms & Conditions of any promotion.

From the other hand, you can not withdraw a credit bonus but you may stillwithdraw the gaining generated by a credit bonus.

Risk-Free Trading via a No-Deposit Bonus Account

Additionally, Forex Brokers in order to make traders more familiar with theirplatforms offer also the so called No-Deposit Forex Bonuses. That means that youget a bonus amount between 20-100USD just by confirming your email or phone andwithout depositing any funds at all. That is an excellent risk-free way to get in touchwith Forex Trading for the first time.

Where is the Catch?

Be aware that you may withdraw a No-Deposit Forex Bonus but you must first tradeit at least 20-25 times. Anyway that is a great way to start trading without any risk.

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NO-DEPOSIT BONUS & BROKER

1) AvaTrade offers $50 No-Deposit Bonus► Review Broker and Information | » Claim $50 Free Bonus

2) InstaForex No Deposit Bonus► Review Broker and Information | » InstaForex Free Bonus

3) XeMarkets offers $20 for joining the innovative Trading Contest Arena► Review Broker and Information | » XeMarkets Free Bonus

4) Markets.com $25 No-Deposit Forex Bonus► Review Broker and Information | » Markets.com $25 Free Bonus

NO-DEPOSIT BONUS FOR US TRADERS

5) ForexBroker Inc. offers $100 No-Deposit Bonus Only for US Traders► Review Broker and Information | » ForexBrokerInc $100 Free Bonus

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Binary Options Trading Bonus

Binary Options constitute a relative new instrument to Trade Forex and otherFinancial Markets. These are some Binary Option Brokers and their bonus offerings.Be aware that trading binary options is considerably risky.

BINARY OPTIONS

BROKERUS TRADERS TRADING

MINIMUM

DEPOSIT & BONUSINFORMATION

■ GOptions Yes

Max Payout:90%70+ Assets

$20025-100% Bonus

► ReviewBroker

» Web-Site

■ CapitalOption NoMax Payout:85%90+ Assets

$100100% Bonus

► ReviewBroker

» Web-Site

■ Banc DeBinary

NoMax Payout:75%90+ Assets

$25050% Bonus

► ReviewBroker

» Web-Site

■ OptionRally NoMax Payout:78%70+ Assets

$20030% Bonus

► ReviewBroker

» Web-Site

■ StockPair Yes

Max Payout:82%120+Assets

$20040% Bonus

► ReviewBroker

» Web-Site

■ OptionsXo NoMax Payout:89%40+ Assets

$100Up to 100%

Bonus

► ReviewBroker

» Web-Site

Note: Brokers Features & Promotions presented in this eBook may change any time.

■ Information, Reviews and Comparisons about Binary Options at Binaryvalue.com

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5. Forex Trading Rebates –Promotionsdesigned for Advanced Traders

What is a Forex Trading Rebate?

A Forex trading rebate means making money from your trading volumes. Forexample if you have joined a rebate plan offering $5 per lot (lot = $100,000), andduring a certain month you have traded 20 lots, you earned $100. A trading rebatehas nothing to do with your overall trading performance, only volumes matter.

Where is the Catch?

There is no catch here. Simply Forex Brokers provide rebates to ProfessionalInvestment Consultants as an incentive to introduce them new clients. A part of thisrebate is given back from those professionals to real traders. This circle of money iscalled a Forex Trading Rebate.

Automatic Forex Rebates –The best way to Trade Forex

An automatic Forex Rebate means a rebate that is earned directly to your tradingaccount without any interventions. You need again a Professional InvestmentConsultant as the intermediary.

Here are three Trading Rebate Plans from advanced ECN Brokers and informationhow you can join them. All three rebates are fully automated and 100% free of anycharge (sign or other fee). Furthermore all your other trading terms on these brokerswill remain exactly the same.

ECN BROKER REBATE PLANUS

CLIENTSMINIMUMDEPOSIT

FUNDMETHODS

INFO

FinFx

FinnishBroker

■ FinFx $0.6 /lot discount onECN Accounts

■ The same$0.6 / lot forECN ProAccounts

Or■ 0.25 pipsmanual rebatefor MicroAccounts

Yes $150

Bank Wire,CreditCards,MoneyBookers

» Learn morehereFind moreInformation

► AutomaticECN Rebate LinkMinimum deposit$1,000

► AutomaticECN Pro RebateLink -Minimumdeposit $10,000

FFoorreexx GGuuiiddee vv11..00 –– QQeexxppeerrtt..ccoomm 17

ECN BROKER REBATE PLANUS

CLIENTSMINIMUMDEPOSIT

FUNDMETHODS

INFO

FINFX MINIACCOUNT► ManualRebate Link -Minimum deposit$150

DukascopyBank

Swiss Broker

■ Dukascopy40% Rebateon allcommissionscharged

No $5,000Bank Wire,Credit Cards

DUKASCOPYBANK» Learn morehere

During theregistrationprocess at thestep KNOW USFROM indicate8410 as yourIntroducing Agent► Register atDukascopy Bank-Indicating‘Known us fromIB’ 8410

DukascopyEurope

Branch ofDukascopyBank

■ Dukascopy10% Rebateon allcommissionscharged

No $100Bank Wire,Credit Cards

DUKASCOPYEUROPE» Learn morehereDuring theregistrationprocess at thestep KNOW USFROM indicate IB-8411 as yourIntroducing Agent

► AutomaticRebate link

Other Web-Sites with Forex Promotions1) ForexBonus.info (Forex Bonus)2) Binaryvalue.com (Binary Options Bonus)3) You may also find promotions in the Facebook page Facebook/OnlineFx» Visit Facebook Forex Trading

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6. Six Different Forex Trading Styles –Select your Own Style

These are the six main categories of Forex Traders (Trading Styles):

1. Curry Traders (Long Traders)

WHAT THEY DO?

They open positions lasting from 1 month to 9 months and aim to exploitinefficiencies’ in the level of interest rates between two economies. They usually liketo buy currencies offering huge interest rates (10-15%) and at the same time sellcurrencies offering lower interest rates. This difference can be transformed into hugeprofits for those who know how and when to trade it.

REQUIREMENTS:

When you open a position in the Forex Market that remains open more than 1 dayyou pay or get paid what is called as the Swap value. Swap charges are calculatedbased on the level of interest rates between two currencies. These interest ratedifferences can sometimes work for you and some other times against you.Therefore if you trade long you need a Forex Broker offering the best terms asconcerns the swap charges. Additionally you need a broker offering a wide assetindex. An asset index is the portfolio of currency choices that you will be able totrade. This asset index varies depending on your broker. The more currency choicesyou have the easier it will be for you to exploit interest rate inefficiencies. When youtrade long, you don’t care about the spreads, the technology, delays etc.

It is essential that a long-trader must be able to understand fundamental analysisand the correlation between inflation, interest rates and the current Forex currencyrates. I would need another eBook just to explain this correlation furthermore.

2. Swing Traders

WHAT THEY DO?

They open and close positions lasting from 1 day to 15 days. They aim to exploitmid-term trends because 1 week is considered mid-term in Forex Trading. Swingtraders are some of the most successful Forex Traders there is. They avoid tradingintraday as they don’t like the so called ‘market noise’ of intraday trading.

REQUIREMENTS:

Swing trading is one of the best ways to trade Forex. In order to evolve as a SwingTrader you need a little bit about everything. You need narrow spreads, reasonable

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swap charges, relative good technology and also a broker offering a wide assetindex. Swing traders are using both technical and fundamental analysis.

3. Intraday / Short Traders

WHAT THEY DO?

They open and close positions in the same day. This type of Forex traders is focusingsolely on technical analysis. Short-traders use either their own system to trade orthey pay a monthly subscription to an external signaling service. The alerts ofsignaling services are delivered via SMS, email, Facebook, Member’s Area etc.Information about Live Forex Signaling Systems is found in Chapter-7.

REQUIREMENTS:

Basically two things really matter. First of all you need the perfect technology withminimal delays. Secondly you need a Forex Broker offering very tight spreads andsmall trading commissions. Short-Trading is all about paying minimal cost. If youwant to evolve as an Intraday Trader, think about joining a trading rebate plan too.A trading rebate can minimize your trading cost. You may find three ECN rebateplans at the Chapter-5 of this eBook.

4. News Traders

WHAT THEY DO?

They are trading important news and events, perfect information and top technologyare considered absolutely a ‘must’ for News-Traders.

REQUIREMENTS:

The same requirements needed as the Intraday Traders (News-Traders are IntradayTraders too).

5. Forex Scalpers

WHAT THEY DO?

As it was mentioned in Chapter-1, scalpers open and close positions in tinytimeframes lasting less than one minute. They aim to ‘scalp’ the market and earn 2-10 pips.

REQUIREMENTS:

Scalpers need perfect technology and minimal transaction cost -But all that is neededin a much higher extend than the case of the usual intraday trader. Usually scalpers

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are not trading Forex manually but instead they trade via the use of an automatedsystem (copier or Robot). You can learn about automated scalping systems in theChapter-7 of this eBook.

Keep in mind that usually scalpers trade exclusively three currency pairs. The reasonis that these 3 pairs enjoy high liquidity and therefore minimal transaction cost:i) Euro against the US Dollar (EUR/USD)ii) British Pound against the US Dollar (GBPUSD)iii) US Dollar against the Japanese Yen (USD/JPY)

6. Copy Traders / Social Traders

WHAT THEY DO?

Following (copying) the trading activity of other traders. This procedure is also calledas Social Trading (nothing to do with common Social Media).

REQUIREMENTS:

Social trading is booming nowadays. In order to make money from this type oftrading you need a social trading platform, for example ZuluTrade and MirrorTrader.Social trading platforms are again free to download and to use.

► The ZuluTrade Platform

Furthermore you need good technology too, but most importantly you need anexcellent instinct to select the perfect signal provider. All social trading platformsoffer the chance of monitoring the past performance of any signal provider. You canalso compare providers based on your criteria.

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7. Live Forex Trading Signals & ForexRobots

(i) Live Forex Trading Signals

What is a Live Forex Trading Signal?

A Live Forex trading signal is an alert for buying or selling a Forex Currency Pair. Thisalert can be delivered either manually or automatically. Manual alerts are deliveredvia classic methods as email, Facebook, SMS, twitter, member’s area etc. Automaticalerts are delivered via a signal copier. Usually automated trading signals are basedon MetaTrader4.

Which are the Criteria When Choosing a Forex Signaling Service?

A Forex signaling service is provided usually for a monthly subscription between 50-150 USD. First of all you must focus on a service that is able to cover all your needs(manual or automated trading, delivery method, frequency of signals etc).Furthermore, it is important to focus also on the past performance of each service.Sometimes, these services offer also a trial period of a few days.

Here is a list with popular Forex Signal Providers:SIGNAL

PROVIDERSTYLE TRADING COST INFORMATION

SIGNALS &MENTORINGCLUB

■ AutomatedTrading■ ManualTrading■ NewsTrading■ SocialTrading■ Forumswith Signalsand Reports■ Learning

■ ForexCurrencies■ GoldTrading■ Stocks &IndicesTrading

■ 77 USDper month

► Review System

» Visit Web

TRADE MINER

■ DesktopTradingSoftware■ ManualTrading

■ ForexCurrencies■ FuturesTrading■ StocksTrading

■ 97 USDfor one-time

► Review System

» Visit Web

MBFX TRADING ■ Manual ■ Forex ■ 97 USD ► Review System

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SIGNALPROVIDER

STYLE TRADING COST INFORMATION

Trading■ SMS Alerts

Currencies■ GoldTrading■ StocksTrading

for one-time» Visit Web

AUTO BINARYOPTIONSSIGNALS

■ ManualTrading■ SMS Alerts■ eMail Alerts

BINARYOPTIONSTRADING

■ ForexCurrencies■ Stocks &IndicesTrading

■ 120 USDfor one-time

► Review System

» Visit Web

ELITE SIGNALS

■ AutomatedTrading■ ManualTrading

■ ForexCurrencies■ GoldTrading

■ 49 USDper month

» Visit Web

FX TRENDYSYSTEM

■ ManualTrading■ eMail Alerts

■ ForexCurrencies

■ 37 USDevery 3-months

► Review System

» Visit Web

► Review System

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(ii) Forex Robots (Expert Advisors)

What is a Forex Robot?

A Forex Robot (or else an Expert Advisor) is a piece of software that plugs in aTrading Platform in order to trade Forex automatically. These systems are usuallyrunning on Metatrader4. If you want to trade using a Forex Robot you need toptechnology and probably a VPS hosting service (explained later).

The Criteria When Choosing a Forex Robot

A Forex Robot is designed to perform a very difficult task so there are manyparameters defining your best choice. Here are some important factors that must betaken into consideration:

(1) Past Performance of the Robot(2) Who is the Developer?(3) What is the average frequency of trading?(4) Is there any Money Management Mechanism (spread and slippage control etc.)(5) What is the Price of this system? Can I use it in more than one Live Account?(6) Does my broker allow the use of a Forex Robot? (usually ECN /STP brokers allowtrading via the use of Forex robots)(7) Is my broker suitable for automated trading? (spreads, execution speed etc)(8) Will I need a VPS hosting service? (probably the answer is yes)Furthermore:(9) Test always any system in a demo account before using it in a real tradingaccount.(10) Never mix the use of a Forex robot with other trading activity, it may confusethe robot’s Money-Management System

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Here is a list with popular Forex Robots (Expert Advisors):

FOREX ROBOT STYLE PLATFORMONE-TIME

COSTINFO

FAP TURBOFOREX ROBOT

■ Scalpingmany ForexCurrenciesin the M15Chart

■ MetaTrader4

■ 149 USDfor one-time■ FreeLifetimeUpdates■ 1 ForexLicense

► Review System

» Visit Web

WALLSTREETROBOT

■ Scalping:EUR/USD,GBP/USD,USD/JPY,USD/CHF,AUD/USD,NZD/USD

■ MetaTrader4

■ MetaTrader5

■ 299 USDfor one tine■ 3 ForexLicenses■ Free theOmegaIndicator

► Review System

» Visit Web

GPS FOREX

■ Scalpingmanycurrenciesduring theAsianSession

■ MetaTrader4

■ MetaTrader5

■ 149 USDfor one time■ 1 ForexAccountLicense

► Review System

» Visit Web

VOLATILITYROBOT

■ ScalpingonlyEUR/USD,GBP/USD

■ MetaTrader4

■ 190 USDfor one time■ 1 ForexAccountLicense

► Review System

» Visit Web

FX MEGADROID■ ScalpingonlyEURUSD

■ MetaTrader4

■ ZuluTrade

■ 67 USDfor one time

► Review System

» Visit Web■ Find Expert Advisors and Trading Systems Reviews at ForexAutomatic.com

What is a VPS Hosting Service?

In order a Forex Robot to trade effectively it requires to remain active 24 hours perday. This problem can be solved via the use of a VPS. A VPS is an external hostingservice that allows the Robot to trade 24 hours per day without having your PC,Laptop or Tablet turned on.A VPS usually costs about $40 per month but certain brokers offer that service forfree.

POPULAR FOREX ROBOTS (EXPERT ADVISORS)

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8. Forex Trading Resources

(i) Major Currency Symbols

CURRENCY CODE SYMBOL FOREX SLANGUS DOLLAR USD $ Dollar Buck

EUROPEAN EURO EUR € Fiber

SWISS FRANC CHF CHF Swissy

BRITISH STERLING GBP £ Cable

JAPANESE YEN JPY ¥ Yen

CANADIAN DOLLAR $ Loonie

AUSTRALIAN DOLLAR AUD $ Aussie

NEW ZEELAND DOLLAR NZD $ Kiwi

(ii) Six (6) Main Types of Trading Orders

These are the six (6) important order types when trading Forex:

(1) Market Order

Buying or selling a currency pair at the current market price.

(2) Limit Order

Buying or selling a currency pair at a pre-determined (limited) price.

(3) Stop-Loss Order

A stop-loss is the most important order type. A stop-loss sets a limit to the maximumamount you are willing to risk in any trade.

(4) Target Profit Order

This common order sets your targeted price level. It pre-determines your profitpotential.

(5) Limit Entry & Stop-Entry

Buy or sell a currency pair below or above the market at a pre-specified level.

(6) OCO Order & GTC Order

OCO means One-Cancels-Other. Based on this order if a trade is executed then

another trade is automatically cancelled. GTC means Good-Till-Cancelled. A GTC

order remains in the market active until it is either filled or cancelled.

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(iii) Currency Pairs and Changes in Historic Volumes

Source: Aite Group ‘Global FX Market Update 2013: Increased Market Transparency, More Competition’

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(iv) Forex Calendar / Heat Map

This Forex Heat Map Table is based on statistics between the years (2000-2013).The full research was published on www.TradingCenter.org.

Source: ForexAutomatic.com / TradingCenter.org

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