Trading Center

How to Choose a Forex Broker

How to Choose a Forex Broker

Choosing the right Forex broker can be an overwhelming task especially for beginners.

ECN BROKERS

After sharpening your learning trading skills, you need to find a reliable Forex broker. A Forex broker operates as a bridge between retail traders and liquidity providers (commercial banks, central banks, hedge funds, etc.). It is very important to select the right broker.

Here are some basic tips when choosing a Forex broker:

DEMO ACCOUNT

The vast majority of Forex firms offers a demo account to all new clients. This provides a good chance for understanding how the system of opening/closing positions actually works. Moreover, a demo account is also important for testing the trading cost (spreads) and the actual slippage on order execution.

→ Offering a Demo/Practice Account

RELIABILITY AND REGULATION

Retail forex trading is an OTC industry and that means there is no centralized control over the operations of every participant. However, Forex brokers will be forced to follow some rules as long they are regulated by a reliable authority. Here are some key points towards ensuring the reliability of Forex brokerage services:

→ Headquarters country

→ Regulated by a reliable authority (for example FCA UK)

→ Client account segregation (separating client funds from operating funds)

Read more...

Different Binary Options Trading Strategies

Forex IndicatorsDifferent Binary Options Trading Strategies

In a previous article, Trading Center presented readers with the basics of binary options trading. The article touched on the technical and general rules for trading binary options. Now, let's delve a bit deeper into binary options by studying different trading strategies that you can use for your sessions.

The Basic Options Strategy

This style is one of the most utilized strategies by binary options traders and for good reason. With basic options strategy, traders are protecting themselves from incurring a lot of losses. This strategy is about picking an underlying asset or a Forex pair and then waiting for any market movements of the strike price. If the prices are heading up, investors place a call option. 

Let's use the USD/EUR currency pair for this example. Say that this pair is predicted to hit 1:3000, and you get $100 if you're right. You place the call option, which will expire in an hour. The payout is 70% if you win and 30% if you lose. Say in the first 30 minutes, the price of the USD/EUR pairing hits 1:3016. This is good so you buy a put option for the same pairing at 1:3016 expiring in the next 30 minutes. In this case, there are two possible outcomes when your binary options contract expires. 

First outcome: your one hour call option wins, and the 15 minutes put option will lose. If this happens, you'll earn $170 from your 70% call earnings, and 15% refund from the put option that lost. Of course, the reverse can always happen, meaning you only win 30% of your capital and a 15% rebate from your call option. 

Second outcome: this is the best scenario because both your call and put options were predicted correctly. You will get $340 in total ($170 x 2). 

It's impossible to lose in both scenarios so you're only risking the loss of $15 during your sessions.

Read more...

Advertise with us

Advertise today on TradingCenter.org as long as your services can be proved reliable ► e-mail us today!