many newbie fx questions

Discussion in 'Forex' started by qdz3, Apr 13, 2003.

  1. qdz3

    qdz3

    which brokers are among those the best well-known in the community with the best reputations?

    what are the tricks fx brokers can play given the fact that most of them do not charge commissions?

    is there no such a thing called limit order but only market order?

    is there one or many centralized exchanges?

    is there a universal time&sales which will include anyone's trades. Or is it just a local thing?

    who clear and ensure trades?

    is my fund with a fx broker insured?

    what is the minimum amount of initial deposit you recommend for a newbie fx trader, surely a day trader?

    what are the tricks for trading mini fx?

    what are the obvious important regulatory/exchange/brokerage rules that a fx trader must know?

    who are the regulators?

    Thanks.

    :confused:
     
  2. Flynn

    Flynn

    which brokers are among those the best well-known in the community with the best reputations?
    Saxo, CMC, IGmarkets, GNI, Refco, FXCM. That's imho.
    what are the tricks fx brokers can play given the fact that most of them do not charge commissions?
    As they say, they get narrow spread from interbank. But sometimes fx brokers practice and earn on slippage when trader opens and closes position.
    is there no such a thing called limit order but only market order?
    There is a limit order on forex
    is there one or many centralized exchanges?
    Actually many countries has own interbank currency exchange but they deal with local currency and no major pairs directly traded there. Only via local currency cross.
    is there a universal time&sales which will include anyone's trades. Or is it just a local thing?
    GMT is widely used to indicate time&sales on forex
    who clear and ensure trades?
    Broker's back-office cleares the trades. You never know if your order is taken to interbank. As far as i know brokers take to interbank orders over $10 mio.
    is my fund with a fx broker insured?
    Some brokers offer segregated accounts
    what is the minimum amount of initial deposit you recommend for a newbie fx trader, surely a day trader?
    Fore newby I would recommend mini-forex with $1000 initial deposit. Pips value is $1 and you'll be able to use proper money management. For regular 100k forex i would recomend minimum $10k
    what are the tricks for trading mini fx?
    What you meen by "trick" . Difference between mini and regular forex is lot size ( 10k vs. 100k) and pip value ($1 vs. $10 for EUR/USD pair) e.g. mini is 10 times smaller in all terms.
    who are the regulators?
    Forex is regulated only in Great Britan.