Forex Trading as a Business opportunity
The Forex trading business opportunity is a really global one. The Forex market is the largest financial market on Earth. Its average daily trading volume is more than $5 trillion. Compare that with the New York Stock Exchange, which only has an average daily trading volume of $55 billion. In fact, if you were to put ALL of the world's equity and futures markets together, their combined trading volume would only equal a QUARTER of the Forex market. Why is size important? Because there are so many buyers and sellers that transaction prices are kept low. If you're wondering how trading the Forex market is different then trading stocks, here are a few major benefits.
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Many firms don't charge commissions – you pay only the bid/ask spreads.
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There's 24 hour trading – you dictate when to trade and how to trade.
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You can trade on leverage, but this can magnify potential gains and losses.
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You can focus on picking from a few currencies rather than from 5000 stocks.
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Forex is accessible – you don’t need a lot of money to get started.
The Forex market is not limited by local boundaries. That is why it is possible for small forex traders to make millions. Whereas a small local business can never make millions. The local market is saturated, there is no volatility, no big opportunities and so on… If you do get involved in trading, expect to start thinking on a global scale. The times when you were just interested only in the economics of your country will be soon be forgotten. You learn to think globally and you trade globally!
Top Forex Trading Rules
As with all business activities in life, there are some rules that you must follow if you want to have a viable business. Not adhering to these rules will prevent you from achieving the financial freedom you desire or make profit in this industry. Below are the 6 major rules that I follow on a daily basis:
1. Never Let a Winner Turn Into a Loser
Always but always Protect your profits. Protect your profits and once again Protect your profits. There is nothing worse than being in a profitable trade, watching your trade being up 30 points one minute, only to see it completely reverse a short while later and take out your stop 40 points lower. For me this was the case when I started my trading journey which prevented me from making a sustainable income. I gradually learned how to put trailing stops and compound small gains all the time.
2. Logic Wins, Impulse Kills
More money has been lost by trading impulsively than by any other means. If you start trading based on assumptions of how the market will react or behave, then you have already lost your trading capital. The moment you take a position because you believe the price has gone down enough and it's bound to bounce back, is the moment you have placed your money on pure luck! You are not a Gambler to take positions randomly and wait for them to give you money. Logical trading is always more precise than impulsive trading. The reason is that logically focused traders will know how to limit their losses, while impulsive traders are never more than one trade away from total bankruptcy.
3. Never Risk More Than 2% per Trade
Never but never trade more that 1-2 % each time. You can always go against that rule as I have done in the past and which made me lose all the profit I have made in a year in just 1-2 single trades that went terribly wrong. There is no such thing as the "BIG" one trade that will secure your future forever. Instead try to focus on making small amounts each time. The Market never sleeps and can provide you with plenty of opportunities to make money. On the other hand the Market also does not forgive your mistakes...
4.Trigger Fundamentally, Enter and Exit Technically
The question that new traders always make is: "Should I trade based upon fundamentals or technicals?". The Technical Analysts try to forecast the future price based on past price movements. The Fundamentals on the other hand base their predictions on the current economic and political news. My approach is to use both. Both of the analyses help you improve your trading skills and provide you more insight of how the price of a currency pair is moving. It is important to understand though that each discipline provides a different view of the market that affects your trading. Fundamentals are good at dictating the broad themes in the market, while technicals are useful for identifying specific entry and exit levels.
5. Know the Difference Between Scaling In and Adding to a Loser
Another common mistake done by traders is to keep on adding to a losing position with the wishful thinking that the price will reverse. Eventually the losses mount to a point where they are forced to close out their positions at a major loss or wait numbly for the inevitable margin call to automatically do it for them. In such a scenario you have abandoned your logical trading and have become a gambler that hopes to make profit. Always try to have a rational reason for adding more money to your position and never againt the Trend. The concept that "Trend is your Friend" is the only one that has stood the test of time. Also the one that has made me a lot of money up to this very day but did also wipe out my bank account in the early years of my trading career.
6. Plan Your Entry and Exit and Stick To It
Again this rule reinforces the view that a trading plan is always to be followed at all times. The reason you decided to take the trade, at the specific moment and at that price was based on your inititial analysis. Your analysis dictated you that the the chances to make profit are higher at that specific point and it also provided you with the opporutnity to minimize risk while maximizing the potential profit. Entering a trade or exiting your position when the criteria set by your strategy are not fulfilled may lead you to a huge loss or prevent you from taking the maximum profit from a trade.
Your Business Plan
While you think Forex trading is sufficient enough to make you money online, still there are other ways to expand your online business. In my experience I have identified 4 different streams of income in the Forex industry that can provide you with residual income and also help you gain your financial freedom.
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Forex Trading. As explained before your success in the Forex Industry depends on your ability to read the market and on your ability to follow a profitable strategy that makes you money. How much money you make depends on how much you refine your trading skills. Personally when I started my viable trading business many years ago, I was opening positions with 3£/trade. At the end of the first month I had made 30£. One might say that this is not enough to bother BUT you need to consider that my ROI (Return of Investment) eventually was tenfold or 1000%. If I had invested 100£/trade then I would have made 1000£ and so on and so forth. Truth be told is that If I had deposited the same amount in the bank I would have gotten 5% in a year. You just have to think that in the 1st month you invest 3£, the 2nd month you invest 6£, the 3rd month you invest 12£, the 4th month you invest 24£ and so on... until you reach your desired income.
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Affiliate Marketing. Affiliate marketing is an ideal home business because it doesn't require much money to get started, and you don't have to produce, stock or ship product inventory, or deliver a service. You're essentially paid for referring new clients and customers to other businesses. Not any difference here as well. You invite people and you show them how to make a sustainable income by Forex trading. My registered brokers XM, easyMarkets, FXTM, and LMFX (US residents) have lucrative business plans for their partners and each one with their own unique advantages. You can get money per sign up but also a part of the revenue share which is a very profitable way to make money online. The major competitive advantage of the forex Industry is that people always take trades to make money on their own and due to the great number of pairs, the number of trades can be vast and also the amount of money per trade can be huge. Just consider that your broker will share 10% of the revenue for trades worth 1000£, 5000£, 10000£, etc. You can imagine the possibilities when you have multiple traders in your organization, with multiple positions and multiple pairs.
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Copy Trading System. This is an additional stream of income in which you can either choose to copy others' people trades and make money or you can also allow other people to copy your trades. In any case this a paid service that you have to pay a fee to the people who make money for you or other traders can pay you your predetermined fee whilst you make money for yourself and them.
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PAMM (Investment Service). An additional service that allows you to become an investor or a trader that accepts investments. You can then benefit by making money from your investment or also keep part of the profits from the invested capital that you used to make profitable trades.
NOTICE: Learn how to trade, how to master your strategies and techniques and how to avoid the common mistakes before you use all 4 streams of income. You must make money consistenly and over a sustained period of time in order to fully take advantage of the Copy Trading System, PAMM service and also to succeed in Affiliate Marketing.
Your Forex Broker
1. easyMarkets
The competition in the Forex Industry has never been more fierce than in the last 10 years. A broker that managed to lead the way and establish themselves as an innovator is easyMarkets. In 2001 this broker was introduced to the world as easyForex.com, only to re-brand itself in 2015 so as to reflect its full potential in the financial industry. By 2013, it had amassed over 100,000 active traders across the globe and accumulated trading turnover since Day One of over $1.5 trillion plus. Its product offernings include both spot and forward contracts for an expansive list of major, minor and exotic currency pairs while in 2012, Vanilla options and CFDS were also added so as to connote its expansive progression. easyMarkets is licensed and regulated by the Cyprus Securities Exchange Commission (CySEC) under the CIF license #079/07, and in Australia, by the Australian Securities & Investments Commission (ASIC) license No. 246566. Client deposits are held in segregated accounts at Top-Tier banks, and capital adequacy is well above regulatory standards. You can start trading with as little as 20£ and once a standard account is opened, an account reps at that time will explain upgrade options to you for Premium or VIP standing. Higher account status conveys better fixed-pricing spreads on all asset items. A free demo account, as well as an Islamic account, completes the package. Once on board, you may access over 300+ markets via forex pairs, vanilla options, and CFDs in metals, commodities (both hard and soft), and indices with leverage up to 400:1.
The management team supports both the highly popular MetaTrader4 series of platform products, but also its own web-based version, which is a stripped down system where simplicity abounds, as well as numerous unique features such as “Inside Viewer” and “Freeze Quote”. Spreads are fixed and can vary from 3 pips down to 1.8 pips, depending upon account status. Free trading signals and alerts and Negative Balance Protection are but two more benefits with this broker. Promotions and contests also vary from time to time to keep things interesting, and deposits and withdrawals can be handled through a number of well-known payment service providers. Lastly, customer service representatives are available “24X5” to assist you, and the learning and support center is one of the more comprehensive offerings for all level of trader that you can find on the market today. Unfortunately, U.S. clients are not accepted at this time.
Why trade with easyMarkets.com?
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Founded in 2001 by foreign exchange professionals.
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Headquartered in Limassol, Cyprus, with satellite offices in Sydney, Warsaw, and Shanghai, with licenses for both Europe and Australia.
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Regulated by both CySEC and ASIC.
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Numerous industry awards earned, each denoted on its history timeline.
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Client deposits always safely segregated in Top-Tier bank accounts.
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136 major, minor, and exotic forex pairs, including spot, forward, and vanilla options.
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300+ markets can be traded via forex, vanilla options, and CFD offerings.
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One active trading account with potential to upgrade to receive lower fixed spreads (spreads can vary from 1.8 to 3 pips based on account class).
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Free Demo and Islamic accounts.
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Leverage can range by asset class up to as high as 400:1.
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Metatrader4 trading platform or firm’s proprietary web-based platform.
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Mobile applications supported.
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Free Trading Signals and SMS alerts.
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Negative Balance Protection, scalping, hedging, and Expert Advisors (EAs) are supported, as well, with slippage all but nonexistent.
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Comprehensive learning center for every level of trader, supplemented by daily market commentary and advanced charting tools.
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Customer service “24X5” via live chat, email, fax, phone, or direct contact through its global network of offices.
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Risk Free Deals with Deal Cancellation.
2. XM
XM is a registered trademark of Trading Point of Financial Instruments Ltd, a Cyprus-based international forex broker company that expanded its global financial services within just two years after its setup in 2010 in a spectacular way. It was launched in 2011, and as a trade name of Trading Point, it marks a landmark in the history of the company in terms of ranking it among the most popular brokers, with a general rating of 9 out of 10. Registered as a Cypriot Investment Firm, the company operates XM services for trading forex, precious metals, equity indices and energies with the regulatory background of ASIC (Australian Security and Investments Commission AFSL no. 443670). XM is regulated by the CySEC (Cyprus Securities and Exchange Commission), is in full compliance with the MiFID (Markets of Financial Instruments Directive), and with full European Union authorization, including FCA (UK), BaFin (Germany), AFM (Netherlands), CNMV (Spain), FI (Sweden), and FIN (Finland).The popularity of XM is mainly attributed to its strict no re-quotes, no rejection of orders and no hidden fees or commissions policy, along with real-time markets execution, with 99.35 of all orders executed in less than 1 second. Moreover, 24/5 multilingual Personal Account Managers ensure smooth client communications and professional support for both demo and real account holders.
The benefits of trading at XM speak for themselves:
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Trading with a MINIMUM DEPOSIT OF $5.
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MULTIPLE TRADING ACCOUNTS with flexible conditions.
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Unlimited and free DEMO ACCOUNTS.
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Account registration in 16 languages.
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LEVERAGE up to 888:1.
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TIGHT SPREADS as low as 1 PIP on all major currency pairs.
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Fractional pip pricing.
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Access to 8 TRADING PLATFORMS from 1 account.
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ACCOUNT FUNDING 100% automatic and INSTANTLY processed 24/7.
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Fast deposits and SAME DAY WITHDRAWALS by credit card, wire transfer, local bank transfer, Neteller, Moneybookers, Western Union, Webmoney, SOFORT, iDEAL, China UnionPay.
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Tier-1 banking with SEGREGATED BARCLAYS accounts.
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Free UNIQUE MT4 video tutorials.
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Free weekly interactive online webinars.
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Metaquotes XM Mobile Trader platform.
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Multilingual ECONOMIC CALENDAR, forex news, market analysis.
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XM is also widely popular for its Bonus Program and regular promotions. Currently, the main incentive for clients is the 50% Deposit Bonus up to 500 usd and 20% up to 4,500 USD with all bonuses credited to clients’ accounts within 24 hours.
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No deposit welcome bonus gives you £20 for a start. All you need is to be a new customer on the page and to have made your registration.
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XM loyal customer program is made for the regular clients and provide different privileges, as well as seasonal bonuses.
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Free VPS services 24/7.
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Free month Forex contests, where you can win up to $ 20 000.
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Allows one click trades.
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Has trailing stops.
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Allows Hedging.
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Allows Scalping,
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Allows EA integration and automated trading.
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Offer VPS services.
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Over 1,000,000 clients.
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120 cities visited by our Management to meet with clients and partners.
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150,000,000 trades executed with zero requotes or rejections, ever.
3. FXTM
New forex brokers frequently appear on the scene, but occasionally, this newcomer is an innovation from a highly successful entrepreneur, expanding into a new sector of the market with a proven formula for success. Such was the case with FXTM (ForexTime.com), the international broker brand by Andrey Dashin, creator of the well-received Alpari line of forex brokerage companies. In 1998 and in subsequent years, Dashin focused on developing both the European and U.S. retail forex trading markets, but his last venture was designed to capture nearly everything else. Clearly, his formula keeps working, since, in the span of a few short years, FXTM has received a plethora of awards and grown to be an industry leader. FXTM is one of the fastest growing brokers in the industry. In order to support this rapid rise in global clients, the FXTM brand opened a number of rep offices around the globe, with main operations run from a five-story FXTM Tower in Cyprus. Moreover, a new office opened its doors under the FXTM brand in the financial heart of Europe and trading capital of the world – London, UK – which feels like a very natural move for a broker that has been growing so successfully. A cursory review of corporate press releases reveals a story of continual achievements, all based on integrity, innovation, transparency and a drive to provide clients with a superior trading experience. Independent reviewers on the web also give high marks, so the experienced management team must be doing a lot of things right. Safety and security remain a top priority for FXTM.
The broker’s product and service offering is all-encompassing. Whether you’re just starting out or you’re an experienced trader, you will find everything you need on the broker’s comprehensive and easy-to-navigate website, now localized and accessible in 18 languages and counting. Straight-Through Processing (STP) is available, but if you desire the popular ECN set up, they have that covered too.
As a modern approach to investing and Copy-Trading, FXTM Invest is an easy-to-use program that brings traders and investors closer to the markets. In addition, through the PAMM program, FXTM offers investors the ability to maximize the value of their time while optimizing their portfolio. PAMM is perfect for traders who see the potential of investing in forex but lack the time or technical skills to do so. Through the PAMM program, FXTM offers investors the ability to maximize the value of their time while optimizing their portfolio. The investments are managed by the FXTM Portfolio Management Department where experts with the necessary experience and expertise are available to help traders maximize their returns. Portfolios are chosen through a selection of carefully evaluated traders with consistently successful trading strategies. FXTM loves promotions and offers them generously. The FXTM Loyalty Programme is designed to help clients get more value out of their trading! Forget about reward points or virtual credit, FXTM ensures you get more value for your dollar by reducing the costs of each trade. This unique and flexible programme is tailored to your natural trading habits, and designed to help you save whilst you are trading.
Unique Features of Trading with ForexTime
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A management team with a combined 30 years of experience, committed to quality service.
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ForexTime has currently reached over 500,000 clients.
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Brand FXTM is regulated in multiple jurisdictions (ForexTime Ltd by CySEC 185/12, FT Global by IFSC under numbers IFSC/60/345/TS and IFSC/60/345/APM).
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FXTM is now licensed by South Africa's FSB with FSP number 46614.
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Mobile trading applications are supported (including ForexTime App for iOS and Android devices).
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250+ trading instruments including forex currency pairs, CFDs, Futures, ETFs, Precious Metals and Commodities.
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31+ payment options currently available with no deposit fees and minimum deposits as low as $5.
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Deep bank liquidity ensures tight trading spreads and superfast execution.
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Hedging, EAs, and scalping strategies permitted.
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No Dealing Desk standard adopted, with eight classifications built on full ECN/STP trading models for professional accounts. Swap-free option available for all account types.
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A direct connection to the products’ price listing on the NYSE and NASDAQ exchanges for the Shares Account;
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Customer service representatives are multi-lingual and may be accessed “24X7” by email, live chat, or direct telephone line to one of several satellite offices.
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18+ languages are supported, and more are added to the site and MyFXTM, the trader’s gateway.
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Promotions and live and demo contests on a regular basis.
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Learning center support includes streaming news feeds, commentary, webinars, educational videos, free training courses and local seminars.
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Two investment programs offered: the traditional PAMM and the latest Copy-Trading solution, FXTM Invest.
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Social trading features, trading signal subscription option, charting tools, email and mobile alerts, and streaming news feeds are included in the basic package.
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Client funds segregated in Tier-One banks at all times for protection, in strict compliance with regulatory standards.
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Live webinars are presented by industry experts and cover a range of subjects such as Japanese Candlesticks, Trading the Alligator and more.
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FXTM also supports seminars and workshops by third-parties that facilitate easy access to the Forex opportunities in countries across the world. These seminar sessions and events are held throughout the year. Trading bonuses and other gifts are offered and traders have the opportunity to connect with other Forex enthusiasts in the trader’s home country.
4. LMFX (US residents)
LMFX is an innovative online foreign exchange broker that offers advanced institutional and retail trading conditions to a global audience. They believe in the importance of building strong, secure foundations and the cornerstone of their mission is to provide the full spectrum of cutting-edge trading tools and services that clients require to succeed in the world’s most liquid market. LMFX goal is to deliver an unparalleled trading experience that offers the most competitive trading conditions available to each and every client, allowing them to trade Forex and CFDs on Commodities, Indices and Shares. LMFX knows that clients need to stay close to the markets and as such they provide a comprehensive range of mobile and desktop MT4 platforms to ensure that clients never miss a market movement. In addition to an advanced trading environment, clients also have full access to exceptional educational resources via the LMFX Education Centre and advanced trading tools that have been designed to improve trading performance. LMFX delivers what traders in today’s financial markets need the most! From fast execution and deep liquidity to automated withdrawals of trading profits and ensuring funds are deposited securely in segregated accounts, they are on call 24 hours a day, 5 days a week to help their clients with their trading needs. In fact their trading platform is also compatible with mobile devices, and their attention to detail is going to ensure you have one of the very best trading experiences possible anywhere as they have a fantastic support team that is accessible, fast response times on all manner of queries, and are heavily “customer-experience” focused. They also accept US traders which is not at all that common and traders from all regions, including USA, can take advantage of this broker.
There are four types of Real-Money Trading accounts offered at LMFX. These are called the Premium, Zero, Fixed and PAMM accounts.
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Premium: Premium accounts are setup for retail FX traders and provide a lot of flexibility. This account allows you to trade 0.01pip micro-lots, up to 60 lots in a single trade and a leverage of up to 1000:1.
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Zero: This is the low cost LMFX Zero-Spread account, that allows you to trade on Interbank spreads. The account also boasts NO Markups, and Tight Spreads (starting from 0.0 pips). You can trade up to 100 lots in a single trade and it allows a leverage of 1000:1.
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Fixed: This account is perfect for traders that want to trade with fixed spreads. This account provides you with greater control and accuracy for calculating positions. It also allows you to trade up to 75 lots in a single trade and a leverage of 400:1.
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PAMM: also known as, “Percentage Allocation Money Management”. If you don’t have the skill, time or the experience to trade, (or you just prefer to have all the hard work done for you) – a PAMM account allows traders the ability to use professional money managers to help them profit from trading. This requires you to sign over power of attorney to your money manager. Your risk and rewards can be high. NB: Please be aware of the level of risk whenever you sign over power of attorney for management of your funds.
They use traditional and e-banking institutions such as Skrill (formerly MoneyBookers), and Neteller – two of the most reputable eWallets available Two of the largest eWallets in the world. They do not work with any brands that will tarnish their own; another great indicator of LMFX’s reputation. A number of bonuses are also offered, such as the 100% initial deposit match bonus. This is valid on all deposits over $100, and up to a limit of $30,000. Another bonus is the aptly named redeposit offer, the “Phoenix Bonus”, with the catchy tag line “Helping you Rise Again”. This is a 15% “recovery bonus” that is automatically applied to your account on redeposits (however small that redeposit amount may be).
Advantages of LMFX
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Maximum Leverage – Leverage is of course something that every single Forex Trader is going to be looking to achieve and as such you really are going to be impressed with the up to 1:1000 leverage that is available to all Forex Traders over at LMFX.
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New Trader Bonus – All new traders are of course going to be very well looked after, much like all of their existing traders, and as a first time depositing trader you are going to instantly qualify for a 100% Credit Bonus in additional to a unique yet equally generous 15% Recovery Bonus too.
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Live Economic Calendar – Keeping pace with all of the important and most relevant breaking news stories and financial data releases is of course important, and as such you will appreciate the live Economic Calendar that is available to all LMFX Traders.
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Chief Market Analyst’s – As an LMFX Forex Trader you are also going to benefit from the many numbers of years experience their in-house Analyst’s have acquired and as such you will be given access to their Daily Market Analysis which may just point you in the right direction in regards to just which Forex trader you should be making each day of the week.
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Trading Calculators – Being able to afford to place your Forex Trades is as important as it also to know just how much you can make from each trade you make. Another very handy free tool available to all LMFX Traders is their Trading Calculator that will also ensure you know the risk and the potential profit on every single trade you place.
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One Click Traders – LMFX also know and fully understand that a large number of Traders are Scalpers who are looking to speedily be able to place their Trades so as to take advantage of the price flunctuations, and as such you will find you that can perform One Click Trading on their trading platforms.
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Automated Trading – Thanks to the VPS Hosting you are going to be able to put into place your own unique trading systems on their trading platform and as such you will never have to work too hard to place your trades and make profits on those Forex trades either!
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Fast Winning Payouts – Probably the most important aspect of LMFX is their rapid winning payout service that all of their Forex Traders will be benefiting from, and with plenty of both deposit and withdrawal options you really are going to be very hard pressed to find a faster paying US Trader friendly Forex Broker.
