question regarding live account

Discussion in 'Newbie Questions' started by fxnewbiee, Sep 17, 2012.

  1. fxnewbiee

    fxnewbiee Trader

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    hi,

    i am new to FX thus i have a stupid question/doubt i wanted to clear before i open a live account. i was looking into some broker that people have been referring as well as been talking on this forum but i wasn't sure about some of them as i am from canada and these brokers dont allow deposit in the CAD for the account but in USD or other currencies.
    Is it a good idea to register with these brokers or should i just look into the ones that let me deposit in my own currency.

    thanks
     
  2. Fxpipper

    Fxpipper Master Trader

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    As regards the deposit currency, yes more often than not brokers will require that you deposit funds in USD or Euro..it should not be much of a prob and all brokers will require a deposit in one currency or the other. And as regards a broker being good or a scam does not depend on what currency is required for depositing funds.
     
  3. Brain

    Brain Trader

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    you wouldn't have a problem trading in USD if you live in Canada. you can just convert your currency and make the deposit and you'll be good to go.
     
  4. PaladinFX

    PaladinFX Active Trader

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    Keep in mind that you automatically enter a long-term trade if you run an account in a currency not your own.

    Incase you just went 'Huh? What you mean, I enter a trade just by opening an account?':
    If you take your Canadian Dollars to open a USD/EUR/whatever account, your broker will exchange your CAD into the foreign currency at the going rate; you then trade for two years and decide to withdraw some of your profits; your broker will exchange the foreign currency back into CAD (again at the going rate) and wire you the money.

    This means that you will to all effect have executed a long-term trade.

    Example (from the past, so I can use actual prices and don't have to speculate):
    On 1 April 2008 you have deposited CAD 10,000 into your USD-run account. USDCAD was 1.0252 at that time. Therefore your opening balance was USD 9,754.19.
    On 1 April 2010 you have decided to close your account, because you didn't like forex trading anymore. USDCAD stood at 1.0151. By coincidence (so we can keep it simple) your account balance was exactly the same as your opening balance ('OMG, I've wasted two years!').
    USD 9,754.19 are now CAD 9,901.47.
    You have lost CAD 98.53 on a long-term forex trade.
    You might also have gained on the different rate of exchange, of course, but in any case you have traded USDCAD for a duration of two years.

    Fortunately USDCAD is rather stable and slow-moving, so you don't take much risk there (even though the above example cost you nearly 1%). This might look very differently if you run your account in any other currency; EURCAD moved approx. 15.3% between April 2008 and April 2010, for example.


    Cheers,
    P.
     
  5. ezrydn

    ezrydn Active Trader

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    By your own admission, you're new. We take that as you're new and don't know what to do. Put your money away and focus on learning and practicing what you learn on a Demo Acct. That is, unless you're hell-bent on losing which you will.

    Believe me, it's time well spent. And will save you hundreds in the long run.
     
  6. Fxpipper

    Fxpipper Master Trader

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    Yup! Going to second that..and do review some of the online edu resources, and demo before going live.
     
  7. Easy Trader

    Easy Trader Master Trader

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    Spot on Paladin:)....you will be taking a bullish position on the USD/CAD. Now if the USD gains strength you will be making some money just for opening the account, but if the opposite happens and you cash out you may get less back. This is a tricky one. But im sure your not the only Canadian FX trader. EDIT: I guess the idea is to deposit in a currency that you think will gain in value against your own over time, this will void the exchange from nibbling away at your deposit and profits.
     
    Last edited: Aug 15, 2013
  8. michael77

    michael77 Trader

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    This is not a real problem you are facing. One of the main challenges usually a newbie face is to find out a good and reputable brokers. I wold like to suggest you forget about currency and concentrate more on brokers Forex at this stage. You can easily convert CAD to USD, so it is not a big deal. I would like to share a list of top 10 broker Forex in Canada to you so that you would get a change to review all of them and find out the better one by yourself.

    Here is the list of top 10 broker Forex in Canada:

    1. FXCM
    2. eToro
    3. Markets
    4. AVAFX
    5. FOREX
    6. FX Renew
    7. Trading Point
    8. SwissDirekt
    9. ECMarkets and
    10. Option Range
     
  9. inggo

    inggo Master Trader

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    I have not traded with eToro, but seriously they are in the 2nd position in the top 10 brokers in canada? they had lots of gray areas surrounding them lately
     
  10. Fxpipper

    Fxpipper Master Trader

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    Just read up on some of the online reviews regarding etoro, but FWIW, I don't think I can recommend them to others. Just a read of some of the reviews should highlight the issues..
     
  11. Lydia Harrison

    Lydia Harrison Banned

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    can you give me the top 3 or 5 broker in London?
     
  12. Mc Kerry

    Mc Kerry Trader

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    happens to all brokers all the time. Finding a broker without any negative reviews isn't easy. Someone could just post their opinion, it doesn't matter whether they have used the broker or not......
     
  13. Fxpipper

    Fxpipper Master Trader

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    True but honestly though, some of the issues listed is enough to make anyone think twice. And agreed, finding a broker sans any negative review is kind of like trying to locate a needle in a haystack..
     
  14. Cacarot

    Cacarot Trader

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    If I'm not wrong, here's the list of top forex brokers in UK:

    1. XEMarkets
    2. HotForex
    3. Markets
    4. VantageFx
    5. eToro
    6. Plus500
    7. ForexYard
    8. YouTradeFX
    9. Finexo
    10. Infin Markets
     
  15. tabalo

    tabalo Confirmed HotForex Representative

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    All brokers are from UK or they are popular in UK?
     
  16. Cacarot

    Cacarot Trader

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    Hi Tabalo,

    Some of these are from UK. But the list is retrieved as the top popular brokers in the UK.
     
  17. Azforex

    Azforex Trader

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    According to me those Brokers are popular but I`m sure those are not from UK. They have HQ in some other countries.
     
  18. tabalo

    tabalo Confirmed HotForex Representative

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    Ok, thanks. Your list is good, I can found my broker and some well-known brokers there.
     
  19. Emibluz

    Emibluz Banned

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    Depositing in USD and depositing in CAD, does it matter? If you are using paypal, your money will be converted immediately.
     
  20. dodo

    dodo Confirmed ProfiForex Representative

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    To confirm a reliable broker, you have to know if the broker have the major currencies for trading and if you can convert from one to the other. Talking about live trading, involves real money and there are risks involve but also with great rewards, that's why before thinking of the real market I suggest we undergo demo for practicing the market effectively.
     

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