All information about forex system, forex strategy, forex demo and others

Lowest Forex Spreads

When you begin your Forex trading you will find that the Forex brokers – online or conventional, do not ask for a commission for their service. But of course, they do not perform their operations for free. They make money by charging a “spread” from the investor. It is therefore very important to find out a low spread Forex trading platform.

The spread is the difference between the bid price and the ask price for the currency being traded. The broker adds this spread onto the price of the trade and keeps it as their fee for trading. So you can think about this as a hidden commission.

One good thing about the spread is you pay it when you purchase and not when you sell. A trading of 4 pips vs. 5 pips makes a difference of 25% on your trading costs! This makes the point clear why you would need a low spread Forex trading platform.

The favourite currency pairs like the EUR/USD or GBP/USD typically have the lowest spreads. Some brokers offer different spreads for different types of accounts. A low spread Forex trading platform might not offer good mini trading and might have higher spreads than a full contract account. Obviously the smaller the spread on currency pairs the superior the conditions for you as investor and trader. Lowest Forex Spreads

You will find many online sites offering different platforms for Forex trading. Through these platforms you can actually purchase or sell the Forex. You will have to refer a low spread Forex trading platform from them.

A good Forex trading platform shows live prices that you can actually trade at, and not indicative quotes. The low spread Forex trading platform should be clean and should let you know the actual prices so that you can have an intent of the spread.

While choosing the low spread Forex trading platform you wish to trade from the factors you should think about are:

Platform execution – This refers to how fast and consistent the execution of trades are.

Fractional trading – The low spread Forex trading platform grants the investors and traders to trade on a fractional basis. Instead of full lots “100,000 units” or “300,000 units”, it grants you to trade “163,345 units” or “325,911 units”. This is very helpful for traders risking certain percentage of their equilibrise on apiece trade.

User friendly – The trading platform should be simple to use and understand. It should be reliable during fast moving markets. The platform should offer services like one click buying or selling, trading directly from a chart, supports mobile devices, trailing stops, etc. Lowest Forex Spreads

Recently I wrote some articles and outlined 2 x trades using both fundamentals and technical inputs combined. The trades prefabricated almost 1,000 pips and you can look them up and see. Most traders think you can’t use both – but you can. Here I will show you how to do it and target triple digit gains.

Let’s first look at a simple equation for forex price movement.

Supply and Demand Facts + Investor Perception of = Price

Traders Make a Price

So it’s not the facts that are important by themselves, it’s all the investors trading views of them combined that gives us the final price

Now it’s a fact that markets do move to the long term fundamentals – but the traders make their trades based upon their knowledge and their emotions. They will as always, near prices away from clean value and the long term fundamentals.

A look at any forex chart will show you that these spikes always end and prices come back to clean value.

Seeing the News in a Different Way to the Majority

So how do we get advance warning that prices have been pushed to far?

Not by a chart – that just tells you what is happening not what might happen. To get clues to the future you need to look at the market sentiment and try and judge if prices have been pushed to far or not.

Many traders try and trade the news and the views of so called experts – but this is a waste of time. These are just views and reflect the crowd psychology.

What you want to look for is – when the price is out of step with the fundamentals and greed and fear have taken hold and this is simple to spot:

- Watch for a general view there is no top or bottom in sight

- Watch for news that should be bullish or bearish which fails to move the market the way it should. If bullish news fails to rally a market for example this is telling you what might happen next

- Check a key technical level and use your forex charts to key off it and do the opposite of the majority

Judge Sentiment and Win Big

Sentiment is the key to where markets go and you don’t look at the news from the appearance of what is stated – but how price reacts to it.

You are looking for the Opposite of everyone else.

It’s then time to time your entry with technical tools and use support and resistance to key off.

Prices don’t move to fundamentals so you shouldn’t use it on its own. Prices also don’t move to some hocus pocus repetitive scientific number sequence either. Forex markets are an odds game and you need to judge sentiment to win.

You can only do this by combining both disciplines and if you don’t believe it works – check out my 2 current articles which prefabricated almost 1,000 pips in less than two weeks.

If you use fundamentals and technical and learn to use them the right way you can make large gains.