A lot of preconceived ideas have been changed because people have seen the true nature of Russia. In response to the March poisoning of Sergei and Yulia Skripal , British Prime Minister Theresa May announced that no British ministers or members of the royal family would attend the World Cup, and issued a warning to any travelling England fans. Thank you for allowing me absorbing your lesson. Considering the fact that XM experienced the highest growth rate in both new customers and trading volumes in the last two years, we can conclude that their promotion was well received and may be one of the many reasons for their great success. Its music video was released on 8 June
Alpari UK was wiped by the franc movement and on January 19 applied for formal insolvency. Another big name that was affected is FXCM. The shares in FXCM plunged after the event and have not recovered since see chart below.
The bailout from Leucadia was insufficient for FXCM to avoid its downfall as the company suffered irreparable damage to its reputation. Saxo Bank is also believed to have suffered up to million in losses from the SNB move, but in the end it managed to survive the event without much damage thanks to its very strong stocks trading and CFD business. There are also clear winners from the SNB shock. Overall, what represented the demise of Alpari UK and FXCM was a huge opportunity for other brokers, who were proven to have better hedging and protection systems in place.
The forex retail market is very dynamic as hundreds of brokers compete for clients around the world. Huge competition results in technological innovation and better service for the clients. As compared to several years ago, all major brokers feature several advanced trading platforms as well as mobile apps.
Spreads went down and execution speed went up. All for the benefit of the clients. In the last two years we have identified several factors that determined the success and volumes of retail forex brokers.
Tough regulation with high entry requirements and low maximum leverage has reduced competition in the United States and Japan, formerly known as the most important markets. With little competition from new entrants on their home markets, American and Japanese brokers had little incentive to innovate and adapt to global trends, and this can be seen in their very low market share in foreign markets.
American and Japanese brokers were unable to grow their business at a good rate in Europe, Asia, South America and Africa. On the other side, the low leverage enforced by the regulators has limited the upside on their home markets. This is why we can see American and Japanese brokers no longer dominating the global forex market as they used to do a few years ago.
However, the consolidation that happened in the US market because of the strict regulations resulted in Gain Capital Forex. A segregated market with no competition from the outside world is very bad for the retail client, but it is very profitable for the big corporations that manage to be the last ones standing. They benefit from the lack of competition as they can have a large client base without innovating and improving their services.
It seems that the right balance was found by Cysec The Cyprus Securities and Exchange Commission , which now regulates the fastest growing European brokers and it is the hot spot for regulation in the European Union. Brokers under Cysec regulation are doing very well worldwide and seem to be able to grow their business at a very fast rate. This resulted in Australian brokers gaining good market share in the global forex market. Saxo Bank , XM. Leverage plays an important role in increasing the volumes of traders with less capital and it is in high demand in emerging markets like Africa and Asia.
High leverage helps brokers attract more customers and allows them to lower the minimum deposit requirements. Since US brokers are not allowed to offer leverage higher than However, the SNB shock has proven that there is no link between maximum leverage and the broker being insulated from volatile markets. FXCM has lost millions of dollars although it was limited to a maximum of Brokers will often reduce the maximum leverage allowed before events that greatly increase market volatility, as it was observed during the Greek debt crisis when most brokers reduced leverage during high volatility weekends.
This means that forex brokers with good risk-management teams can navigate market volatility on their own without the need of tougher regulation.
Spreads are also an important factor for many traders when choosing their broker. Traders who do their due diligence well are more likely to choose a broker with lower spreads.
Forex brokers with lower spreads will have lower profit margins but have an advantage in client acquisition and tend to grow their client base and daily volumes faster. They also have a better client retention rate and higher profitability among their traders.
Execution is very important for scalpers and high frequency traders. Traders who use Expert Advisers to test their auto trading systems are also interested in the execution speed and quality.
Slippage and re-quotes can be very harmful for scalpers and this is why they tend to look for scalper-friendly brokers.
Hot Forex , XM. Promotions can be a very good incentive for new traders to choose a certain broker. High profile brokers like Forex. This strategy offered them higher profits in the last two years but hampered their growth and resulted in a loss of market share. While such promotion might be seen as a way of attracting only low capital clients, it proved to have many positive side effects that helped fuel the amazing growth experienced by XM.
A free bankroll creates a lot of buzz in the forex online community and a lot of positive feedback from those who receive it. XM also offers deposit bonuses that can add-up to the trading capital and are an additional incentive to choose them instead of other broker. Considering the fact that XM experienced the highest growth rate in both new customers and trading volumes in the last two years, we can conclude that their promotion was well received and may be one of the many reasons for their great success.
Hot Forex is another growth story and it also features some interesting promotions. All of them have different advantages for different types of traders, and in the end they can be a decisive factor when one chooses his forex broker.
Judging by the amazing growth rate of Hot Forex we can assume that their bonus policy was at least helpful. The Best Currency Pairs to Trade In the first part of this article we discussed which currency pairs are the best to trade and explained the differences between the majors, crosses, and exotics. When are the various forex trading sessions? The hour forex market trading day can be broken up into three major trading sessions: The Asian trading session: The New York trading session: What does it all mean?
Checkout Nial's Professional Trading Course here. Petersen August 16, at 7: Sally louw May 2, at Thank you have learnt a lot. Matsi July 4, at Woow, that was so very much empowering. Noko May 7, at 9: U r a straight talker. My hat is off Reply. William Pennington March 2, at 8: Wandi February 21, at 7: Hi A newbie in Forex Trading your lessons make sense and are informative. Akande Olalekan January 25, at 9: Jeh September 11, at 2: Pat Sheridan March 10, at Skenery June 23, at 8: Thanks Mr Nial Reply.
Doris Telfer November 15, at 9: Thanks for this powerful articlr Reply. Thank you very much for this wealth of knowledge you have given me through your article Reply. Daniel August 23, at 2: Manqoba Lukhele August 11, at 8: Powerful information u have imparted to us Master Nial! God bless u abundantly!! Manqoba Lukhele August 11, at 4: Powerful information professor Nial! U make trading forex simple!!! Awofeso May 15, at 5: Nial you are God sent to we traders, God bless you always.
Ben May 12, at Leon April 10, at 6: Thank you so much Nial. Sebastian April 8, at 4: Nial, i read all this stuff before but i wish i would have read yours first because it is so concise and wisely put together. Thank you Nail, very clear and informative. You have answered my mail and more… Reply. Vincent March 18, at 3: Thanks for great article Nial!
Jag February 24, at 3: Really very very helpful!! Thanks for increasing R: Bennyslex January 28, at 2: Nitka September 29, at 9: Thomas Sebastian May 28, at Nial, You article has given me the fundamental pre-requisites required before trading Forex.
God Bless You Reply. Shane April 11, at 7: Once again a great, concise and very helpful article Nial. Pham April 7, at 9: Thanks Nial for sharing.
A great article for all who starts learning and trading forex. Sean September 2, at 1: What a clear lesson for trading on Forex. Billy Mckeown July 7, at Stephen June 15, at 4: A very clear and detailed introduction for the best times to trade the markets.
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Thanks Nial, as usual clear and concise explanation Reply. Joshua March 9, at Very interesting and Its true. Keep on doing good work. George March 8, at 1: Thanx Nial for this part sessions. As always you explain all very clear. Alvin March 8, at Adek March 8, at 6: You are a great guy,you never disappoint in your write-ups.
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Paul D March 5, at Mohan Das March 5, at Very simple, clear, yet solid details. Very suitable for newcomers. John March 5, at 9: Mark March 5, at 6: Hi Nial Thanks for all the help and support over the last few months.
Nick March 5, at 6: Tyrone Kimble March 5, at 4: Well written article just the same… Ty Reply. Lanny March 5, at 2: Thanks Nial, More confirmation as to when to trade. Doug March 5, at 1: Your articles are much appreciated. Francis March 5, at 1: This is simply awesome advise. Learning not to over-trade is a skill nonetheless. Kent March 5, at 1: Ferdinand Arman March 4, at Very informative … Reply.