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View Full Version : Trading Forex.... how do I do it?



blackcap
25-12-2008, 02:42 AM
Hi there guys, have been following you forex forum for a while, enjoy the jokes. Am currenty residing in Holland and want to start trading Forex again. I used to use CMC NZ but didnt like their attitude and customer service.

Are there any good reliable firms that you could recommend me. I dont want to trade large amounts... look to have a balance of about $5000 and trade mainly EUR US, US NZD, NZ AUD, just the main big ones really.

Thanks for your help here and merry christmas.

Blackcap.

arco
27-12-2008, 11:27 AM
Maybe have a look at Forexpeacearmy, they have broker reviews.

If you want to deal in NZ or Australia and like Metatrader platforms, you could have a look at GOmarkets Aus, and I think Latitude NZ may also have MT now. Both of these I believe are regulated but please do your own research.

Oanda have been good but there have been a few compaints creeping in lately. They have a large capital base...check on the broker thread here.

arco

GeorgeW
03-01-2009, 01:47 AM
I also use Oanda and I think they're fine.
However, I really recommend having 2 brokers, at least. Just in case.

I used to be with FXSolutions, but their swap rates were killing me. I'm thinking of opening an account (besides my Oanda one) with InterbankFX (they're pretty large), or Man Financial. Cannot make up my mind yet.

Best for 2009!

blackcap
08-01-2009, 01:09 AM
thanks for the replies fellows. Have been away on holdiay. Apreciate the feedback.

Blackcap

aucklander
11-01-2009, 04:53 PM
Hi guys!

Can you please have patience and read the description of what I do, and maybe advise better ways of trading? I exchange NZD from my saving / term deposits accounts with a bank in NZ into a currency I believe will strenghten in the (near) future. I ask the bank to open an FCA, which usually takes 48 hours and is free of charge. I deposit the foreign currency into that FCA. When the exchange rate is good, I just ask for the FCA to be emptied and transferred into my NZD account.

This way, I have to wait first for the bank's margin to be compensated by the exchange rate. Now I have GBP (bought on Jan 5th) and the bank's margin is roughly 2.81%; I did this before with USD (bought on 0.8, sold on 0.65) and AUD late last year (bought on 0.9, sold on 0.82). Buy currency when is weak (cheap) and wait to strenghten (get more expensive). (By the way, did anyone notice the Thailand Baht? It strenghten like 25% at least, in just few months). I do not even want to think at the looks they will give me if I step into the bank asking for a THB account to be opened. I mentioned once the Norwegian Krone (NOK), and they asked: "What country is that??"...

On the other hand, the exchage rate used by the Bank is the best of the three rates displayed (TT Buy Rate / Cheques / Cash Buy). No chash handled at any times.

Disadvantages: I have to go to the bank every time I want to make a transaction. The bank does not trade currency on weekends. The bank has quite strict "trading hours". Sometimes the very good rates were available late in the night. They already know me when I step into the bank, last time when I asked for the GBP account to be open, the lady asked very shocked: "Another FCA account??". This is embarrasing...

I am also not completely sure if my FCA accounts are covered by the bank's guarantee mentioned by the Governement late last year? (you get 100% money back from Govt is the Bank gets bankrupt, something like that - applicable to money into accounts only - but it was never specified in what currency the money has to be in!).

Is this a bad or uneconomical way to play the forex market? I assume is the less profitable one, but I believe it is the safest way, as there is no broker to "run with your money" or to raise his shoulders when you ask him where the money is gone... I made a profit at least three times the term deposit rates, would I make more with other tools? At what cost?

Oh! And another thing: whatever I made this way, gets added to my salary and therefore taxed with the highest rate possible... any way around this? Of course, a perfectly legal way!

AMR
12-01-2009, 01:26 PM
I believe that might have been the "old fashioned way"

For NZD/USD from a forex broker the spread will be around 3-5 pips. What sort of spreads are you paying for ASB?