Forex Blog

A new addition to the articles section of the site - one article about Elliott waves theory (and their practical implication) by Joseph Plazo and another about Tom Demark’s trendlines (or pivot points) by Michael A. Jones:

Discover Some Magic to Beat The Forex: The Elliott Wave Theory for Forex Markets - Elliott waves are one of the most powerful technical Forex tools; with proper use such indicator can help detect breakouts and currency pairs peaks with a very high accuracy level.

Forex Information: How To Draw DeMark Trendlines - DeMark trendlines are not difficult to understand and use, they might be of help for the basic support/resistance levels on both long and short term charts.

Trade at Man is a British Forex broker (division of a Man Group company) with $10,000 minimum account size and a low leverage – 1:40. Such conditions are looking very unattractive to most Forex traders, especially beginners, who got used to 1:100 leverage with $1 minimum. But they have a newbie-friendly trading platform which is completely insufficient for professionals. So, it is kind of difficult to understand whom are they aiming for. But if you deposit $10,000 with Trade at Man, you’ll be able to trade not only Forex, but also CFD, options and futures with this regulated broker.

MGFOREX is a Forex broker that offers its own trading platform for its clients. The main drawdown of this trading software is that it handles positions only in a FIFO (First In First Out) manner – so, if you just cannot close a new position if there is some another position for the same currency pair is still open. On first sight, this shouldn’t be a big problem, because this will limit only positions for the same currency pairs, but having different longevity and hedging position is very important for the professional Forex traders, and this limit will obviously make their life different. As for the good sides of MGFOREX, I can mention – first, Forex trading contests (on demo accounts) and the fact, that Muslims can open no-interest accounts, where overnight interest is removed with fees.

General trend: bearish.

Last day of a Forex trading week brought some good results for EUR/USD currency pairs, moving it past 1.3450 level (but still not breaking the recent downtrend). The main reasons of such behavior of EUR/USD can be seen in slightly better than expected April industrial orders which in year-to-year period changed by +12.2% against +8.7% anticipated by experts. Also, Jean-Claude Trichet, President of ECB, spoke about Eurozone economics marking it mostly in very optimistic epithets, that could give Euro bulls some hope for the faster interest rates increase by ECB.

ODL Securities is a Metatrader 4 Forex broker that states that you there is no minimum account size as well as no minimum amount to deposit, while the actual minimum is not zero – you’ll have to deposit at least 100$ to open the minimum lot size position available with 1:100 leverage. As to deposit options – traders are limited to credit card, check and bank wire. As with some other Metatrader brokers you can also trade CFD, but with ODL Securities you’ll have to open additional trading account specifically to trade CFD.

EUR/USD is still ranging making this week pretty calm compared to some previous weeks which showed us an amazing volatility and trendiness. The main reason for this slow Forex market I can see in the rather neutral economic releases we’ve seen this week. While the number and the market importance of these releases were relatively low. Today the most important data were initial jobless claims which appeared 14K above expected number - 324K against 314K for the previous period (10K increase). Leading indicators, which usually don’t do much for the Forex came 0.1% higher than expected - at the level of 0.3%. Federal Reserve Bank of Philadelphia manufacturers report showed a notable improvement in May.

Royal Forex Trading is a relatively new broker that started its services in the end of 2006. It supports Metatrader 4 trading software, but it has not many features to attract Forex traders - $300 minimum deposit (which is not very low compared to some other brokers) and the fact that it is regulated by NFA and CFTC (which can mean a lot to some people, while be insignificant to others). To start trading with them you’ll need to deposit money with one of the following ways: PayPal, BPS, Wire Transfer, credit cards or check.

EUR/USD Forex pair was still today again. Some insignificant volatility didn’t even break 15 pips corridor. This day was low on macroeconomic releases, except for major release by the Bank of England - minutes of their latest meeting in June 6 and 7. This publication added some more weight to pound moving GBP/USD slightly higher during the day. Minutes showed that there are two more possible interest rates adjustment for 0.25% by the end of 2007.

Questrade FX is a Canadian Forex broker that has a web based (java based) trading platform that allows you to trade just from your browser window. Just like with Oanda or Easy Forex you don’t need to install any additional software – so technically you can trade from any place with a PC, even a local library (though, that wouldn’t be wise for real Forex accounts, because of security problems). Questrade FX is a registered company and accepts only checks and Wire Transfer, but one can start with only $250. A reasonable choice for new traders from U.S. or Canada seeking a web based Forex broker.