Month: April 2014

Guest Post by Alex Eliades of www.xglobalmarkets.com

Most traders have a tough time selecting a good broker and with good reason too. Not only do they have to watch out for the good, the bad and the unregulated brokers but they also need to understand the terms and conditions of the different account types on offer and also understand why some accounts with the same broker have huge minimum deposit restrictions, charge commissions and have sub-pip spreads while others don’t.

At first visitors might get the impression that they have to deposit many thousands of dollars to get a professional trading account that has the tools and conditions that they need to profit from trading. In most cases (not all) that would be a misconception and it is more likely a marketing ploy that is associated with offering different accounts. The goal would be for brokers to acquire clients with certain deposit thresholds. The reality is that some brokers offer trading accounts with barely any deposit requirements that have similar conditions to those with brokers that have huge deposit requirements.

In order to understand the different types of account offerings we must first focus in on the variables that trading accounts typically feature.

One variable is the spreads and commission charges; it is common for brokers to make money from a mark-up in the spread or from commission fees per traded lot and sometimes a combination of the two. Generally the typical retail account has wider spreads but the trader is not charged commission fees. These accounts usually have very low deposit requirements and are accessible to most traders. Accounts that are targeted at high depositing traders are usually offered with tight spreads and commission fees per traded lot, which may better suit larger trades.

Another variable would be the type of trade execution featured in an account. The typical retail trading account is often connected to a dealing room and the broker practices market making. In this scenario trades over a certain threshold are executed manually and require dealer approval. If the dealer can make the trade profitable either by covering it at a better rate with a liquidity provider or by taking the other side of the trade the client will have their order approved, otherwise the dealer will issue a re-quote or process the trade with negative slippage. This can take several seconds although in the cases of smaller trades a virtual dealer is often used, which speeds up the execution. A more professional type of execution model is known as STP or straight through processing, which is also inherent in an ECN account.  Instead of a dealing room being involved, orders are executed directly with a liquidity provider without any intervention. This provides the trader with direct market access, orders will be placed within milliseconds and re-quotes will never be issued. The only drawback is that the spreads will always be variable and orders can receive pricing slippage, both of which are traits of trading directly on the market.

Another variable that we will cover here is whether or not the spreads are fixed or variable. Quite often traders prefer fixed spreads if they are using expert advisors or some form of automated trading. The thing is fixed spreads can never be offered when a trader has direct market access as the spread is made up from the lowest bid/ask prices from multiple liquidity providers. Therefore, fixed spreads will only usually be available when a dealing room is involved. In all other cases such as ECN/STP accounts the prices should always be variable.

The final thing worth mentioning is that sometimes accounts can be classified by the type of trading platform on offer. For example Sirix or MetaTrader 4 is a common platform that is offered by the majority of retail Forex brokers. Currenex or SaxoTrader on the other hand is a more professional trading platform that is used more for institutional clients or for brokerages to trade themselves. Therefore, some brokers offer a Currenex account which they demand a high deposit to access.

We have covered some of the more important features that different account types might feature but note that there are other important things to consider such as leverage offered, liquidation level, lowest required margin trading instruments, whether hedging or scalping is allowed, the use of EAs, swap-free/Islamic as well as additional services like Trading Central or Autochartist.

Now we have gone over some of the variables that are usually thrown in you need to understand that even though a broker requires a $10k deposit for an ECN account it doesn’t necessarily mean that you can’t find another broker that offers an ECN account with similar conditions but just requiring a minimum $200 deposit. However, some brokers might require high deposit requirements in order to provide institutional trading conditions that are not so profitable for the broker with smaller and less frequent trades. In this case the broker needs to ensure that they are able to cover their operating costs so they add a minimum deposit level. Be aware though that a true ECN broker will not benefit from large deposits, only a high volume of trades but there is some correlation with deposit level and trade volume. It’s also important to mention that clients with large deposits are likely to get VIP treatment by brokers vs regular clients.

Despite some brokers requiring relatively large deposits for very competitive conditions, we have seen brokers out there that offer the same type of institutional grade trading conditions with low minimum deposits so the bottom line is if you a looking for professional trading conditions you don’t always need a huge deposit but it might help you secure excellent customer service and a professional trading platform.

XGLOBAL Markets offers a single trading account with spreads starting at 0.8 pips with no commission in a swap free environment. All trades are executed on the companies ECN providing direct market access through an MT4 bridge. They do not have a minimum deposit requirement, so traders can get started with the minimum amount it would take to place the smallest trade.

About the Author

This article was a guest post by Alex Eliades of xglobalmarkets.com

Reports from the US disappointed today. The US Trade Balance posted a larger than expected deficit of -42.3B, up from -39.3B in January. Unemployment Claims, at 326K, also exceeded the expected figure of 319K. Meanwhile Canada’s merchandise exports grew, resulting in a trade surplus of $290 million in February.

Technical Analysis

USD/CAD has formed a triangle formation this week, with tight boundaries compared to the recent swings. Even so, the pair has managed to respect the boundaries on each touch, with the support trendline being tested on four separate occasions.

The pair lacked any major reactions early in the US session, as traders are waiting in anticipation of tomorrow’s US NFP report and Canadian Unemployment Rate.

The main support is the round handle 1.1000, also coinciding with 38.2% Fibonacci retracement on the December-March uptrend. The current trend configuration remains bearish, since price broke below the last swing low from March and stabilized below the 200 Simple Moving Average on 4H timeframe.

A break below 1.1000 will lead to a sell-off towards 0.9093-0.9118, where February’s low and the 50% Fibonacci retracement form a decent support confluence.

Bullish breaks of the triangle are unlikely at this point, but it this will happen the 50-Day Moving Average and 200 SMA on 4H, sitting between 1.1080 and 1.1090, should be noted as potential reversal points.

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Prepared by Alexandru Z., Chief Currency Strategist at Capital Trust Markets

By CentralBankNews.info
    The European Central Bank (ECB), which earlier today left its benchmark refinancing rate at a record low of 0.25 percent,  is ready to use “unconventional instruments” and further rate cuts to tackle the risk of inflation remaining too low for a long period of time.
    “We are resolute in our determination to maintain a high degree of monetary accommodation and to act swiftly if required,” ECB President Mario Draghi told a press conference, sharpening the central bank’s forward guidance about its intended monetary policy.
    “Hence, we do not exclude further monetary policy easing and we firmly reiterate that we continue to expect the key ECB interest rates to remain at present or lower levels for an extended period of time,” Draghi said, adding:
    “The Governing Council is unanimous in its commitment to using also unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation.”
    In his prepared statement, Draghi did not provide any details of the type of monetary tools that the ECB is considering using to further boost inflation, which has remained below 2 percent for 14 months.
    In March inflation in the 18-nation euro zone fell to 0.5 percent from 0.7 percent in February. The ECB targets inflation of close to but below 2 percent.
   
  

By HY Markets Forex Blog

The 18-block euro traded flat against the US dollar on Thursday, after the release of a set of services PMI data from the eurozone. Traders are focusing on the European Central Bank (ECB) meeting which would be followed by a press conference from the bank’s President Mario Draghi later in the day. The market will be paying attention to Draghi’s comments which could set a different direction for the currency pair.

The euro weakened against the greenback, dropping 0.02% lower to $1.3764 at the time of writing.

Euro – Services PMI

A set of services PMI data were released from the eurozone, with the services PMI in Germany dropping to 53 points in March, compared to the previous reading of 55.9 points seen in February.

In France, the country’s services sector climbed towards an expansion rate in March, with the PMI reading rising to 51.5, compared to 47.2 recorded in the previous month.

Italy’s services sector declined in March, with the PMI dropping to 49.5 from 52.9 recorded in February and compared to estimates of 52.3.

The services sector in Spain advanced higher than expected in March, with the services PMI rising to 54 points, surpassing the previous reading of 53.7 points.

The final PMI for the eurozone’s services sector slipped to 52.2 points lower in March, compared to February’s reading of 52.6 points.

ECB Meeting

European Central Bank‘s (ECB) meeting has been the main focus for the market, as the bank is expected to announce its monthly interest-rate decision later in the day. The bank’s officials are expected to maintain its benchmark rate and leave it unchanged at a record low of 0.25%.

“Draghi’s post-rate decision press conference will be closely watched. Recent rhetoric from ECB officials has been generally dovish, and Draghi will likely present a similarly dovish stance,” Lloyds Bank quoted on Thursday.

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The post Euro Little Changed; ECB Meeting In Spotlight appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By CentralBankNews.info
    The European Central Bank (ECB) maintained its benchmark refinancing rate at 0.25 percent, as expected, along with its other main rates.
    The ECB said its president, Mario Draghi would comment on the reasons for this decision at a press conference later today.
   

EURJPY- With the cross halting its weakness on Wednesday, further decline is likely in the days ahead. Resistance resides at the 143.78 level. Further out, resistance comes in at the 144.00 level where a break will turn attention to the 144.50 level and then the 144.00 level. A violation will push it further higher towards the 145.50 level. Conversely, on pullbacks support comes in at the 141.97 level where a reversal of roles as support is expected. Further down support lies at the 141.00 level where a breach will target the 140.43 level. Bulls may come in here but if this fails to occur, further decline will follow towards the 139.96 level. All in all, the cross remains biased to the upside on recovery.

Article by http://www.fxtechstrategy.com/daily-technical-strategist-on-eurjpy-new-17

Article by Investazor.com

As I was expecting yesterday, the volatility rose around US publications. The release of the ADP did not surprise the market since it came around expectations, but triggered optimism in what concerns the NFP release from Friday. The surprise of the day came with the release of the Factory Orders. I was pretty sceptic in what concerns this release, but it surprised me as well as the market. The US Factory orders registered 1.6% rise.

These two releases have triggered dollar buying. The EURUSD dropped all the way to 1.3750. The down move was also sustain by the risk aversion triggered by the bomb explosion from the Cairo University.

See yesterday analysis: EUR/USD Forecast And Price Action for April 2^nd;

Today from the Euro Area were released the Spanish Services PMI in line with expectations 54.0; Italian Services PMI below expectations and below 50.0 level (49.5) and the EU Retail Services up 0.4%. These did not have a great impact on the EURUSD quotation. The price was held between 1.3750 and 1.3770. Continue this article to see what the main events for today are and what the price action is telling traders

The following are expected next:

EU – Minimum Bid Rate (12:45). In the economic calendar the interest rate it is expected to remain at 0.25%. 57 of 60 Bloomberg analysts are expecting ECB to maintain the interest rate at current level and only 3 of them are expecting a diminish. For the moment I am also with maintaining it.

The post EUR/USD Forecast And Price Action For April 3rd appeared first on investazor.com.

Article By RoboForex.com

Analysis for April 3^rd, 2014

EUR USD, “Euro vs US Dollar”

Eurodollar is starting new descending movement. I opened another sell order during correction. Main target is still near the group of lower fibo levels at 1.3665.

As we can see at H1 chart, yesterday pair rebounded from local correctional level of 61.8%. Bears are returning to the market and may break latest minimum during the day. According to analysis of temporary fibo-zones, lower target levels may be reached until the end of the trading week.

USD CHF, “US Dollar vs Swiss Franc”

Franc is starting new ascending movement and I decided to move stop on my buy order into the black. Possibly, price may break local maximum in the nearest future. Target is still near the group of upper fibo levels at 0.8930.

As we can see at H1 chart, bulls were able to rebound from local level of 61.8%. Most likely, they will reach upper targets on Friday. If later pair rebounds from these levels, market may start new and more serious correction.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

Analysis for April 3^rd, 2014

GBP USD, “Great Britain Pound vs US Dollar”

GBP USD, Time Frame H4. Tenkan-Sen and Kijun-Sen are close to each other above Kumo Cloud (1); Kijun-Sen and Senkou Span A are directed upwards, Tenkan-Sen is moving downwards. Ichimoku Cloud is going up (2), and Chinkou Lagging Span is on the chart. Short‑term forecast: we can expect support from D Senkou Span A, and growth of the price.

GBP USD, Time Frame H1. Tenkan-Sen and Kijun-Sen are close to each other below Kumo Cloud (1); all lines are directed downwards. Ichimoku Cloud is closed (2), and Chinkou Lagging Span is below the chart. Short‑term forecast: we can expect support from H4 Kijun-Sen.

XAU USD, “Gold vs US Dollar”

XAU USD, Time Frame H4. Tenkan-Sen and Kijun-Sen are very close to each other below Kumo Cloud; Kijun-Sen is directed downwards. Ichimoku Cloud is going down, and Chinkou Lagging Span is below the chart. Short-term forecast: we can expect decline of the price towards support from D Senkou Span B.

XAU USD, Time Frame H1. Tenkan-Sen and Kijun-Sen are very close to each other above Kumo Cloud. Ichimoku Cloud is going up (2), and Chinkou Lagging Span is above the chart. Short‑term forecast: we can expect support from Senkou Span A and resistance from Tenkan-Sen.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By WallStreetDaily.com

For months, the experts have been duking it out about whether or not the biotech sector is in a full-blown bubble.

In one corner, we have the Richard Bernsteins of the world. Even though the iShares Nasdaq Biotechnology Fund (IBB) essentially doubled in price over the last two years, they’re dismissive.

“Bubbles pervade society,” says Bernstein. “They are bigger than the financial markets. I don’t think the biotech speculation is that broad… So, no bubble, in my opinion.”

In the other corner, we have those like Reformed Broker’s Josh Brown, who believes that the bubble is plain as day.

“Anyone with a protein compound under a microscope and a clean suit can go public right now,” says Brown.

Now, I admit that the data backs Brown up.

An uncharacteristically high number of biotech companies (37) went public last year. Yet the pace isn’t letting up one bit. By March 20, another 24 biotech companies have gone public in 2014.

So is there more pain in store for biotech stocks? And, more importantly, does it really matter to investors who aren’t invested in the sector? Let’s discuss.

A Risky Proposition

Let’s be honest about one thing: If any sector in the market is pre-disposed to overheating, it’s biotech.

After all, an investment in any biotech stock is a speculation on the future sales of an unproven drug. So by nature, every bet you place in the sector is extremely hit or miss.

Yet, true to form, we’re prone to focus on the potential upside more than the downside risk. Especially since analysts tend to be exceedingly optimistic, too…

Case in point: After analyzing over 1,700 analyst forecasts, Morgan Stanley’s (MS) Matthew Harrison and Dr. David Friedman found that consensus drug sales estimates were completely inaccurate.

“Most consensus forecasts were wrong, often substantially. And although consensus forecasts improved over time as more information became available, accuracy remained an issue several years post-launch.”

And when the researchers say “substantial,” they mean substantial. “A significant number (53) of consensus forecasts were overly optimistic by more than 160% of the actual peak revenue of the product.”

If nothing else, let this be a reminder to all of us to 1) take any expectations we have about a biotech’s potential and 2) slash it in half – immediately.

Getting back to the matter of a biotech bubble, average valuations certainly appear frothy.

The IBB fund trades at a price-to-earnings ratio of 44.1 and a price-to-book ratio of 11.23, which compares to 18.0 and 2.6 for the S&P 500 Index, respectively.

So there certainly could be more bloodletting ahead. But only time will tell whether or not the 15% pullback for the sector since February 25 represents the beginning of the end, or just another breather before the next upward charge.

My take? If you’re sitting on profits in the sector, protect them with trailing stops. It’s better to be safe than sorry.

Don’t Sweat the Little Stuff

If you’re not invested in any biotech stocks, it’s only natural to still be concerned that a nasty downturn in the sector could end up sinking the entire stock market.

Fight your instincts! It’s not a legitimate concern.

Although investments in biotech stocks might represent a good measuring stick for investors’ appetite for speculation, the sector’s significance in the big picture is minimal at best.

Or, as Howard Silverblatt of S&P Dow Jones Indices notes, the market cap of the S&P biotech industry is only equal to about 2.4% of the entire market cap of the S&P 500.

Granted, that’s swelled noticeably from the 0.4% level during the height of the 1999/2000 bubble. But it’s still too small to matter much.

Put simply, even if the biotech sector disappeared completely, 97.6% of the S&P 500 would remain intact. And the overall impact on performance would be minimal.

Bottom line: We can’t be certain whether or not the impressive bull run for biotech stocks is officially over. One thing we can be certain about, though, is that no matter what happens next with biotech stocks, it won’t unduly impact the broad market.

Ahead of the tape,

Louis Basenese

The post The One Sector Where Crash Helmets Are Advised appeared first on Wall Street Daily.

Article By WallStreetDaily.com

Original Article: The One Sector Where Crash Helmets Are Advised