ForexGen | Is Forex Trading Really Commision Free? It's in the Spreads

Nothing affects your profitability more than the spreads offered by your Broker. But lowest pip spread in the market in the Forex charts spot market can be confusing to understand, and the marketing from many brokerages can be deceiving. Nearly every broker is claiming to have the tightest Forex charts and spreads in the industry. However, what does this mean, and how can you tell if a brokerage is delivering what they promise.
In order to understand the spread, you need to know what it is. A spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) that is quoted in the pips. The pips are the smallest unit of difference between the two currencies in the quote. If the quote between EUR/USD at a given moment is 1.2222/4, then the spread equals 2 pips, the difference between the 2 and the 4. If the quote is 1.22225/4, then the spread is going to equal 1.5 pips.

The spread is how brokers make their money. Wider Forex charts and will result in a higher asking price and a lower bid price. The end result of this is that you will pay more when you buy and get less when you sell, making it more difficult to realize a profit. Brokers generally don`t earn the full spread, especially when they hedge client positions. The spread helps to compensate the brokerage for the risk it assumes from the time it starts a client trade to when the broker`s net exposure is hedged (which could possibly be at a different price).
Forex charts and spreads affect the return on your trading strategy in a big way. As a trader, your sole interest is buying low and selling high (like futures and commodities trading). Wider lowest pip spread in the market charts and spreads means buying higher and having to sell lower. A half-pip lower spread doesn`t necessarily sound like much, but it can easily mean the difference between a profitable trading strategy and one that isn`t.

The tighter the spread is the better things are going to be for you. Nevertheless, tight Forex charts and spreads are only meaningful when they are paired up with good execution. A good example of this is when your screen shows a tight spread, but your trade is filled a few pips in the wrong direction, or is mysteriously rejected.
When this occurs repeatedly, it means that your broker is showing tight Forex charts and spreads but is effectively delivering wider Forex charts and spreads. Rejected trades, delayed execution, slipping, and stop-hunting are strategies that some brokers use to get rid of the promise of tight Forex charts and spreads.

Forex charts and spreads should always be considered in conjunction with depth of book. Oddly enough, when it comes to economies of scale, Forex charts doesn`t even act like most other markets. On the inter-bank market, for example; the larger the ticket size, the larger the spread is. So when you see a 1-pip spread on an ECN platform, you have to wonder if that spread is valid for a $2M, $5M or $10M trade, which it probably isn`t. In many cases, the tight spread that is offered applies only to a capped trade sizes that don`t work for most of the common trading strategies.
Spread policies change a great deal from broker to broker, and the policies are often difficult to understand. This makes comparing brokers difficult. Some brokers actually offer fixed Forex charts and spreads that are guaranteed to remain the same regardless of market liquidity. But since fixed Forex charts and spreads are traditionally higher than average variable spreads, you can end up paying an insurance premium during most of the trading day so that you can get protection from short-term volatility.
Other brokers offer traders variable Forex charts and spreads depending on market liquidity. Forex charts and spreads are tighter when there is good market liquidity but they will widen as liquidity dries up. When it comes to choosing between fixed and variable rates, the choice depends on your individual trading pattern. If you trade primarily on news announcements that you hear, you may be better off with fixed Forex charts and spreads. But only if the quality of execution is good.

Some brokers have base the Forex charts and spreads they offer their clients on the type of account the client has. For example, those clients that have larger accounts or those who make larger trades may receive tighter Forex charts and spreads, while the clients that are referred by an introducing broker might receive wider spreads in order to cover the costs of the referral. Other brokers offer the same spreads to everyone.
It is often difficult to get information on a company`s Forex charts and spread policy or its order book depth. Because of this, many traders are caught up in the promises they hear, often take a broker`s words at face value. This can be dangerous. The only real way to find out what a company`s policy really is to try out various brokers or talk to those who have.

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ForexGen | Experiment And The Different Culprit Of The Market

Overwhelming majority of new traders fail and loose their money. What are the successful traders doing differently? Are they using a better trading system, is their money management more sophisticated or is it their psychology that makes the difference?
Imagine picking out from the crowd two men that are from the same social background, graduated from the same school and are equally intelligent. You will ask them to trade. Both will get the same start capital and will follow the same money management and trading systems with exactly the same rules.
You would expect they achieve very similar results, right? But you may be surprised. After a month or two one of them may have lost all his capital while the other one may have returned a nice profit.

What can cause such a deadly difference? The trader’s own psychology is the culprit. Even though he should follow the same trading system lowest pip spread in the market, strategy and rules his emotions, his own fear, greed, denial, pride, panic, down tour or euphoria can alter his planned decisions.
Most traders think the right trading system is the winning formula for success. The truth is chocking. The trading system is only around 10% of the success. The money management makes another 30% and the most important, with the whole 60%, is the psychology of the trader.
Emotions
You need to learn to control your emotions and irrational behavior. The fear of losing is a very strong emotion. It is much stronger then the positive feelings associated with the trading gains. Most traders make mistakes, by abandoning their trading system and reacting emotionally to their fear or greed. Sometimes the market awards them for such a behavior and consequently make them incline to trust their lowest pip spread in the market guts and feelings instead of their trading system.
To trade successfully you must follow religiously the trading system and rules you have developed, follow the entry and exit points your system is suggesting and never allow your emotions to change that. The self-control and discipline are the keys for success. If you let your fear or greed to control your decisions, you cannot achieve any significant success in the long run and sooner or later you will loose all your money.

Can you learn to control your emotions? Can you learn to become a disciplined trader? The answer is YES. If you have the burning desire and commitment to succeed, you have the right predispositions for it.

About ForexGen
ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.
ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system

ForexGen Technical Analysis And Brokers Principles In The Market

The term "technical analysis" is a complicated sounding name for a very basic approach to investing. Simply put, technical analysis is the study of prices, with charts being the primary tool.
The roots of modern-day technical analysis stem from the Dow Theory, developed around 1900 by Charles Dow. Stemming either directly or indirectly from the Dow Theory, these roots include such principles as the trending nature of prices, prices discounting all known information, confirmation and divergence, volume mirroring changes in price, and support/resistance. And of course, the widely followed Dow Jones Industrial Average is a direct offspring of the Dow Theory.
Technical analysis differs from fundamental analysis in that technical analysis is applied only to the price action of the market and according to lowest pip spread in the market, ignoring fundamental factors. As fundamental data can often provide only a long-term or "delayed" forecast of exchange rate movements, technical analysis has become the primary tool with which to successfully trade shorter-term price movements, and to set stop loss and profit targets.

One of the many attractions of a forex broker is that its lowest pip spread in the market methodology can be applied almost identically in any market anywhere. The same techniques can be applied to currencies, commodities, bonds, interest rates and equities. They work as well in Japan as in Europe, in developed or developing markets. Data availability and reliability are the only obstacles to a universal application of methods and techniques. Success in the market, however, has another more insidious obstacle to overcome. Crowd behaviour, as shown in panics and periods of euphoria, can distort not only perceptions of a realistic valuation for markets, but also realistic price levels, given all the information being offered by price time series analysis. All forms of analysis rely heavily on historical data, but normal expectations based on past events can be confounded when market hysteria occurs. Even worse than this is personal mental and emotional weakness when it comes to making investment decisions. The study of mass and individual market behaviour and psychology is a branch of technical analysis, though as with so much of the methodology of technical analysis, there are some signs of poaching from the quantitative analysts in this area.

Technical analysis is based on three underlying principles:

1. Market action discounts everything
This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and lowest pip spread in the market. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.
2. lowest pip spread in the market move in trends
Technical analysis is used to identify patterns of market behaviour which have long been recognised as significant. For many given patterns there is a high probability that they will produce the expected results. Also there are recognised patterns which repeat themselves on a consistent basis.
3. History repeats itself
Chart patterns have been recognised and categorised for over 100 years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little with time.

ForexGen Customer Agreement

ForexGen presents specialized Forex online trading services. We support trading in variable currency pairs, available services 24 hours a day most of the week. Real time prices are supplied to facilitate the trading and make it more quick and efficient. Our trading terms & conditions are the most competitive trading terms & conditions for various trading kinds which represent our appreciation to every client starting from the smallest customers. ForexGen is re-setting professional trading technology, by a continuously tracing the competence offers and modifying our trading conditions and provided platforms.

Forexgen Courses in Currency Trading - Your Education Is First

If you are a novice in foreign currency trading or simply want to brush up on your skills, there are a number of courses in offered by schools, finance and currency trading companies. Some courses are even offered online and one can be comfortable in the trade in a matter of a few days or a few weeks by just enrolling online and being diligent in following the lessons offered online.
Courses in currency trading range from the very basic catering to those who are just starting to the more advanced courses intended as a review or brush up course to those who already have basic knowledge in currency trade. The courses offered are usually designed to provided an overview of the foreign exchange (forex or FX) market and enables students to acquire skills such as reading FX quotes, understanding and applying trading on the margin, reading and using technical analyses, and perhaps, other advanced topics. This will enable someone to confidently engage in the foreign currency trading business, identify market trends and opportunities, act on them, and do a successful trade.

The price of courses in currency trading range from free to the expensive. Free courses are usually in the form of self-paced demos or tutorials, which usually gives an overview of foreign exchange trading. Upon completion of such introductory courses and if it leaves you interested, you may yearn for more knowledge and decide to enroll in the more advanced, more intensive courses. The more expensive courses sometimes would feature one-on-one guidance with experts, 24×7 online support, free books, free software, CD’s and other references.
If you are going to invest in courses in currency trading, you should look for programs that would give the most value to your money.

Compare providers of courses and see what they offer. Also ask around fellow students and see what others’ experience had and what they have to say. Lastly, once you have made the decision and made the investment, you should take full advantage of it and make use of all the support being offered by the training program. This way, you do not throw away your money, and you are on your way to achieving your dream of becoming a foreign currency trader.

Forexgen Trading Support

Dealing Rooms


ForexGen dealing desk representatives are available during trading hours - 24/5 from Sunday 6:00pm EST to Friday at 2:00pm EST.

You are encouraged to contact the dealing room by phone in these situations:

• If you are not able to access the internet.
• Failing to receive a confirmation on an online order.
• Failing to connect to ForexGen server.

Whenever the trader asks for trading support, our team checks if the trader has performed the trading factually in order to facilitate the trading process and make it faster. Please pay attention to the following instructions before calling the trader support in the trading call center.

1. Your account number (visible in your Summary Report under ACID). While the User ID number is unverified.
2. 
   
3. Determine whether the order is a Market Order or a Limit Order and the number of units and the desired currency pair. ForexGen provides the trader with a factual changing quote stream. The prices can be changed more than three times at every second. Consequently the Market Orders will be maintained according to the current price the order was placed.
4. Specify your trade as "I would like to buy 5 lots of USD/JPY during the Market with a stop loss of 102.45 and a take profit of 102.62. . .".

Remark: The given price is un-negotiable. Traders have no permission to hang on the phone waiting for price changes. All phone calls are recorded to ensure the integrity of transactions.