forex ecn reviews
Sunday, July 25th, 2010
132. Why Choosing a Forex Broker is so Confusing
Posts Tagged ‘banking’
forex ecn reviews
Wednesday, April 14th, 2010
What is a good forex broker!?
There are hundreds of reviews online for hundreds of brokers. Some say the broker is a scam, while others say it isn’t. Some say to go with an ECN, while others say that an ECN has much higher spreads.
Who do you listen to? I’m not about to drop $10,000 into an account where there is a possibility of being scammed. But then again I’m trying to make money to support my family and searching for a “decent” broker is taking me weeks.
Too bad forex isn’t like the stock market, where there are actual REGULATIONS!
Any help would be appreciated. Thank you.
With Online brokers its hard to find out about their validity/registration.That said, where does it leave shareholders of the AIG, Walmart and presently GM? The risk is everywhere.
The solution is that while we do trade through a broker, we are constantly and actively aware and “manage our accounts” and finance on our own.
I have been trading forex and stock for close to four years now.
Re: fapturbo Forex Robot … Did It Lose My Money?!
broker forex hedging
Sunday, April 4th, 2010
Can someone explain Carry Trading to me?
What is the approximate interest rate for a long-term hedge (in Forex) using EUR/USD and USD/CHF. Of course this is dependent on your broker, but could someone explain how to calculate it please? Thanks.
Let me give you an example of a hedged carry trade.
Let’s say that I opened an account on Friday with $10,000. I buy some lots of the EUR/USD and I buy some lots of the USD/CHF.
Each day I will pay an interest of -$15.25 on my EUR/USD and each day I will earn an interest of +$23.08 on my USD/CHF. So I receive a net interest payment of +$7.83 every day, seven days a week (I actually will receive triple interest on Wednesday to cover the weekend). This works out to $2860.77 per year or 28.61% annual interest. This is certainly better than a CD or money market account.
The crazy part is that I will receive this interest every day regardless of the price of the currency pairs. The interest is based on the number of lots not the underlying price.
Now although I opened the account with $10,000 I only have $1350 invested into this trade. Since my leverage is 400-1 I am actually getting paid interest on $540,000.
Since I am hedged as the price of the EUR/USD goes up the USD/CHF tends to go down. This reduces my risk and greatly reduces the impact of any wild swings.
I have an analysis of how this type of hedged carry trade would have performed over the past 500 days with various combinations of EUR/USD, GBP/USD, USD/CHF and USD/JPY. (Personally I only trade the EUR/USD and USD/CHF) I would be happy to send you the analysis if you are interested.
You can find the daily interest rates on dailyfx.com You are correct though that different brokers charge different rates. Most of my clients get institutional rates from InterbankFX.
Paul
pupp52@yahoo.com
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