Can i pay someone to trade forex for me

Last week forexsq experts got an email and someone asked can someone day trade for me?

Huge forex bonuses

Pay someone to trade Forex for me, Can someone day trade for me, can i pay someone to trade forex for me.

Another investor from different country asked is it possible to pay someone to trade forex for me? The simple answer is yes you can pay someone to trade forex for you, many forex managed accounts brokers or hedge fund managers companies provide you such this service and can trade on your behalf. You open forex account and give the user and password and they trade for you and after a while share profit with you, but this is the good part of paying someone day trade for you and handle trading for you. Pay someone to trade forex for me is the question of most investors, the forexsq financial experts answer the question of can someone day trade for me? The answer is yes but below is how you must do it.

Pay someone to trade forex for me, can someone day trade for me?

Pay someone to trade forex for me is the question of most investors, the forexsq financial experts answer the question of can someone day trade for me? The answer is yes but below is how you must do it.

Can someone day trade for me

Last week forexsq experts got an email and someone asked can someone day trade for me? Another investor from different country asked is it possible to pay someone to trade forex for me? The simple answer is yes you can pay someone to trade forex for you, many forex managed accounts brokers or hedge fund managers companies provide you such this service and can trade on your behalf. You open forex account and give the user and password and they trade for you and after a while share profit with you, but this is the good part of paying someone day trade for you and handle trading for you.

However some forex managed account companies like fxstay team use international money managers around the world in their team to handle trading for you but there are alot of companies who are not qualified that you pay them to handle trading on your forex account.

So what is the best answer to the question of “pay someone to trade forex for me?” the forexsq experts suggest if you want to paying some trade on stock markets or forex market then share your main capital between several managed companies and after while increase your investment with those companies that you like their trading style and bring you more profit.

Pay someone to trade forex for me conclusion

Now you know how to pay someone to trade forex for me so if you like this article so tip forexsq experts please by share this article on social media networks and help other investors to know about can someone day trade for me ?

Can you hire someone to trade forex for me, on my behalf?

Hiring A trader to trade for you

Hiring a team to administer your FX trading trading that you have confidence in is crucial. Acorn2oak offers you a totally FREE service that allows you to compare the best services, all in one location. We will link you up with money managers who will share their performance reports to make sure you have all the information you need prior to making a deposit.

Our top priority is to help you with administered FX by providing specialist advice and guidance to help you save time and money. If you want to benefit from this FREE service that allows you to compare services, please enter your details in the form above, it takes less than a minute.

Managed FX accounts services

Here at acorn2oak, we have pre approved a range of providers that we believe put the performance of their investor’s accounts first. They offer:

• access to trading teams with considerable experience in managing money
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• A proven trading strategy that has demonstrated consistent returns

More and more individuals are attracted to fund administration for their trading account because they simply don’t have the time to buy and sell or are yet to access the profits of the markets. If this is you we have made it our number one goal to connect you with the highest quality of services that best suit your requirements.

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Can you hire someone to trade forex for me, on my behalf?

Can I hire someone to trade forex for me, on my behalf? I hear you ask.

Yes you can.

In fact, hiring someone to buy and sell in the forex market for you is a becoming a popular thing to do and increasingly more so as folk, like yourself, discover them.

They are a relatively unknown investment, that historically have been only accessible to large financial institutions and investors with a lot of money behind them. With the advent of the internet and high speed broadband connections, they have become accessible to everyone.

You are probably wondering how it is done, well, I will tell you.

It is all very straightforward. First of all you don’t need to go out and find a trader for yourself, nor do you need to negotiate deals with them. No, it is all done for you. You end up paying them to buy and sell currency for you but it is taken out of the profits that they make for you.

This type of trading is called managed FX trading, and you can read all about them on this site, starting here acorn2oak-fx.Com.

In summary though, this is what happens –

• you open up a forex trading account in your name.
• you fund the account.
• you give the trader an LPOA (limited power of attorney). This enables them to buy and sell FX for you.
• they do the buying and selling for you.
• the trader takes a performance fee from the profits. Usually 25% to 50%. Although I have found one that only charges 15% .
• you withdraw funds whenever you want to.

Quite simple really: as I said, you will find much more info on this site, FAQ, due diligence etc.

COMPARE LEADING FOREX FUND MANAGERS – GET YOUR PERSONALISED QUOTE NOW

Can I pay someone to trade forex for me? 2020

“is it possible to pay someone to trade forex for me?”

I have heard that phrase many times during the time I have been involved with this website and my other websites.

The simple answer to this question is that, yes, there are companies that trade forex on your behalf.

The word “pay” is slightly erroneous because you don’t actually pay the company from your own money, the forex trader will get his payment from the profits that you make on your account. So yes, he gets paid because of you but it doesn’t actually cost you anything.

The type of investment that will get someone to trade for you is called forex managed accounts. Check out our sister site www.Acorn2oak-fx.Com/managedforexaccounts/blog/ukcitizens.Html they are not widely known as they are a type of alternative investment and are therefore different from traditional investments such as insurance, savings accounts, bonds, mutual funds etc.

A managed account that will trade your forex account for you are becoming more and more popular year by year, mainly because ease of access.

Only a decade ago, it was only high net worth individuals and institutional investors that had a minimum of 100,000 dollars and more often 1,000,000 dollars to take part in this investment, and they had to be invited to join.

Nowadays, managed forex companies will trade forex on your behalf with as little you depositing a minimum opening balance of £5,000 or $10,000 dollars. Some companies will let you start with as little as $1,000, but I would be very aware of these companies as the will not be regulated by the regulating body, such as the FCA (financial conduct authority) in the UK.

Why hire someone to trade forex for you? A little background information

In recent years, the forex market has become one of the largest liquid and fastest growing trading markets in the world. About $ 5 trillion dollars is expected to be exchanged in daily foreign exchange transactions, exchanged and paid at foreign exchange prices.

The bulk of trading has traditionally been large banks and multinational corporations that seek to minimise the impact of fluctuations in currency exchanges as professional fund managers

The emergence of electronic trading platforms such as metatrader 4 has made it possible for foreign investors to trade globally, and they trade around the clock, resulting in a very liquid and volatile market capable of generating huge profits as well as potentially large losses.

Forex is an incredibly complex market, influenced by many factors and very sudden movements and changes. It is important to be aware of market news, major economic news and further market fluctuations.

Various charts and technical analysis are available to help traders understand market movements and make decisions based on evidence and statistical modelling. However, in a poor world, learning how to effectively take all this information and make decisions on strategy and oversight is difficult if not your full time job.

Thus, more and more investors are turning to managed foreign exchange accounts and professional traders as a solution to participate in a potentially extremely profitable market and risk losses due to lack of time or understanding of the complexities of forex trading.

Interest in managed foreign exchange accounts is increasing from the early stages for many online forex brokers. In the last month alone, one of the leading brokers licensed to deal with the EU has noted an increase in the number of clients who are nominated from professional fund managers.

According to industry experts, if your account is run by someone who has a proven track record of trading and has excellent understanding and knowledge of the foreign exchange markets, this is potentially a great advantage.

Many traders have decided to hire a trader to trade forex for them because it is effective, like a shadow at work, and you have the opportunity to watch the expert trading your account, while you follow the markets and take away all the information available to you. This can be a great way to gain experience and speed up the learning curve without the risk of making many mistakes.

The challenge, as always, is to find someone who can do this effectively for you and who can provide ample evidence of successful trading history and experience, knowing that they will be right with their funds and seizing opportunities when they present themselves.

While many forex brokers actually manage accounts for retail investors, some provide fund managers with the ideal account management environment, as well as all the tools they need to effectively monitor their managed foreign exchange accounts on behalf of individual clients.

Fund managers are particularly interested in brokers who offer a high level of service, in particular on an individual basis, and some will prefer direct contact with an account manager without a commission or commission structure, allowing them to trade in the best conditions for their clients.

Some brokers also offer a variety of tools for managed currency accounts, such as the multi-account management tool or MAM and multitrader. Professional money managers also often become business partners for online forex brokers to generate additional income.

Can I get someone to trade forex for me? (auto trading explained)

Are you a newbie forex trader? If yes, then you must be new to different terms and concepts of the forex market. As a newbie forex trader, you don’t want to lose money and learn. When you are completely new to this market, you have two options – either learn to trade from scratch or get someone to trade forex on your behalf.

So can you get somebody to trade forex for you?

Yes, you can get someone to trade forex on your behalf. There are so many professional forex traders out there in the market that can help you with forex trading. Getting this type of service to allow you to invest in the market without having expert-level knowledge. New traders often choose this kind of service, because this way they invest in the market and reduce the chances of losing money.

FOREX managed account brokers

A forex managed account is the account managed by the professional forex trader on behalf of his/her client. There are so many forex managed account brokers out there in the market. If you don’t want to spend time doing research, studying the market, and invest in the forex, then you can hire a professional forex trader or money manager for it.

The professional trader you hire will keep an eye on trading opportunities and based on his/her knowledge & experience, he/she will manage your forex trading account.

A managed forex account can be compared with the investment accounts of equities. These are the accounts in which the manager handles the account. Before hiring a particular forex professional to trade on your behalf, the money manager (forex professional) and you (client) have to sign a contract.

The signed agreement or document states that the client allows the trader to trade in the forex market on his/her behalf. By getting someone to trade forex on your behalf, you will not require any technical knowledge or skills regarding the forex market. Apart from this, this also helps you to save a great amount of time.

This way, you do not have to spend time researching the market and learning how to trade. While hiring someone trade forex for you, make sure the hired forex professional is reliable and trustable.

Pros & cons of letting someone trade forex for you

Whether you invest in the market by yourself or let someone trade for you, both of them have their pros and cons. Which one you should choose is based on your situation.

Pros of letting someone trade forex for you

Here are some benefits of getting someone trade forex for you:

1. You don’t have to spend time researching

The major headache in trading forex is you have to spend a huge amount of time doing research and understanding the market. If you don’t have enough time sitting and doing research, then letting someone trade forex on your behalf is a good idea. This way, you can avoid getting bored by doing research and looking at data charts for hours.

2. You don’t have to spend time studying the forex

If you are a newbie and want to start investing in the forex market, you have two options first, hire someone trade forex for you and the second one, trade forex by yourself. The major advantage of getting someone to trade forex for newbies is they don’t have to spend a huge amount of time studying the forex. When you have someone trading on your behalf, you don’t have to worry about studying from scratch (if you are new to the market)

Cons of letting someone trade forex for you

There are also some cons of letting someone trade forex for you. Here are some cons:

1. Hiring a professional forex trader can be expensive

The major disadvantage of hiring a professional trader is it can be really expensive. When you hire someone to trade for you, you have to pay commissions, depending upon the expertise of the trader.

2. Not all of them are reliable

While getting someone trade forex for you, you need to make sure that the professional you have selected is trustable and reliable. You don’t need to give access to your account and money to some stranger or the person you don’t trust. Hence, getting the wrong person for this may result in huge losses.

So these are some pros and cons of letting someone trade forex on your behalf. Depending upon your situation, this could be ideal for you. Now let’s discuss some pros and cons of trading forex by yourself.

Pros & cons of trading the forex by yourself

If you have got knowledge and experience in the forex market, then it is advisable to trade by yourself. Again, trading by self has its own pros and cons. Here’s the list:

Pros of trading the forex by yourself

Are you an experienced forex trader? Then, you should trade by yourself. Here are some major advantages of trading in the forex market on your own:

1. You don’t have to pay commissions

Hiring a professional forex trader for trading on your behalf can be expensive. And, this may not be suitable for each and every person out there. The best thing about trading your own is you do not have to pay any commission and you will earn all the profits you make. You will be responsible for the profits or losses that occur. So, if you have experience in forex trading, you should not hire anyone to trade on your behalf.

2. Don’t worry about finding the right trader

Another advantage of doing it yourself is you do not have to worry about finding the right professional forex trader. For the people who want to hire someone who can trade on their behalf, they have to mess with finding the right person. It is essential because no one would like to give account access & money to the professional who is not trustable.

Cons of trading the forex by yourself

There are also some disadvantages when it comes to doing forex trading your own. Here are some of them:

1. You have to mess with researching

If you don’t like researching and spending long hours looking at data charts, then you should consider hiring a professional who can trade forex on your behalf. In order to make correct decisions and make the most, it is important to focus on the research part. So, the major disadvantage of trading the forex by yourself is you have to spend long hours doing research.

2. You need to learn so much

If you are a complete beginner in this field, you should not simply start doing trading. If you get started in this field without having proper knowledge, the chances are you will lose. For a newbie, it is advisable to gain proper knowledge then get started with forex trading. Hence, if you want to trade forex by yourself, you have to spend a great amount of time learning.

Conclusion

So, the answer to this question is yes, you can get someone to trade forex on your behalf. By getting someone to trade for you, you will be worry-free and stress-free. This way, you do not have to worry about doing market research and spending long hours looking at data charts.

Forex managed account brokers provide this kind of service. They are the professional forex traders. While hiring someone to trade on your behalf, keep in mind the trust and reliability factor. It is essential because you should not give your account access to the stranger or someone unreliable.

Can you get someone to trade forex for me, on my behalf?

Can I get someone to trade forex for me, on my behalf? I hear you ask.

Yes you can. In fact paying someone to trade the forex market for you is a very popular thing to do and is becoming ever more so. You are probably wondering how it is done, well, I will tell you.

It is all very straightforward. First of all you don’t need to go out and find a trader for yourself, nor do you need to negotiate deals with the trader. No, it is all done for you. You end up paying the trader to trade for you but it is taken out of the profits that the trader makes for you.

This type of trading is called managed forex accounts trading, and you can read all about them on this site, starting here acorn2oak-fx.Com/managedforexaccounts.Html.

In summary though, this is what happens –

You open up a forex trading account in your name.

You fund the account.

You give the trader an LPOA (limited power of attorney). This enables them to trade your account for you.

The trader makes the trades for you.

The trader takes a performance fee from the profits. Usually 25% to 50%. Although I have found one that only charges 15% .

You withdraw funds whenever you want to.

Quite simple really: as I said, you will find much more info on this site, FAQ, due diligence etc.

The trader I was talking about that above, charges a 15% performance fee, I was thinking about letting him trade forex for me, has a very good return of over 600% profit. That was for each of the last two years, 2014 and 2015. Read more about him here.

This post first appeared on acorn2oak-FX - forex investment opportunities, please read the originial post: here

GET PAID TO TRADE

Get paid to trade!

Now, what I am going to tell you about here is something that EVERY TRADER should be doing in their trading!

This is a way to share in the profits of brokers on ALL your transactions with them!

I mean think about it…if you could:

Get money back on your credit card transactions, would you?

Get money back from the car dealer when you buy a car, would you?

Get money back from your supermarket when you pay for your groceries, would you?

Share in the profit that your bank makes off of you, would you?

There is always some form of this happening in all the industries around you, and we all take advantage of such things like cash back offers on certain purchases or air miles through credit card companies, but this has never happened in the trading business for end users…until now!

This surpasses all the things mentioned above because we are not talking about a single transaction here, we are talking about making cash back on EVERY single trade, REGARDLESS OF IF YOU WIN OR LOSE in that trade!

Think about what that actually means:

This compounded over time will SKYROCKET your trading account, ALL WITH MONEY YOU WOULD NEVER HAVE RECEIVED!

Who ever has the chance to share in your brokers profits.

Well now you can! With this ingenious company called cash back forex!

Here is what their business plan is, and how YOU make money from your broker account through them (even on your existing broker accounts):

Why use cashbackforex?

Here are some faqs:

Can I receive cash back on my existing broker account?

Yes you can! Please visit the individual broker pages (on the cashbackforex site) for more details on how to receive cash back on an existing account.

The rebate agreements we have with each broker is different, and brokers also have their own policies regarding earning rebates on existing accounts that were not opened from cashbackforex.Com. For these reasons, the existing account procedure is different for each broker.

For example, the process for IC markets is as follows:

“to receive rebates as an existing IC markets client, you would go to the link on their broker page and would simply follow the instructions under the title “to receive cash back from an existing account”.

Whereas the process for pepperstone is much different:

“to receive rebates with an existing pepperstone account, please follow one of these two steps:

1) if your account is not already under any IB, please contact pepperstone directly and ask them if it is possible to have “clear markets, ltd.” listed as the IB on your account.

2) if your account already has an IB, please contact pepperstone directly and ask them if they will let you change the IB in your existing account to “clear markets, ltd.” (parent company of cashbackforex.Com) or if they will let you open a new account using the links on our website. Please let us know the outcome of any conversation you may choose to have with the broker.”

These are just two examples, but all of the brokers on our website have different procedures. In most cases, the instructions for receiving rebates on an existing account are listed on the broker’s page under the title “to receive cash back on an existing account”. If there are no instructions listed or you have any questions about the instructions, please feel free to contact us for more information.

Will my spreads and/or commissions increase if I open an account through you?

Never! When you open an account through us, your spreads and commissions will be EXACTLY the same as those offered on the broker’s website.

How so? The broker pays the introducing broker (us) part of the spread as compensation for referring a trader to them. The trader gets access to the same tight spreads that are available to all other clients of the brokerage. We, in turn, share a potion of our compensation with our clients as a cash refund on every trade they take; as a way of saying thank you for signup up through us.

Thus, you will receive exactly the same spreads, commission, execution, and other levels of service from your chosen forex broker as if registering direct with that broker.

The only difference is that, by opening your account through us, you will receive cash back!

What I love about this rebate program is that it all makes perfect sense!

We all know that there are introducing brokers out there that make a commission for referring trades over to brokers, and what cashbackforex is simply doing is taking a big cut from brokers profits, and then sharing that with the end user….YOU!

So this is why I say that I think EVERY trader should be doing this!

You’d be crazy not to! It is literally free money that you would never see if it wasn’t for this rebate program, and you are doing nothing different with your trading, just carry out your trades, and receive money back for doing so.

Remember, over time, this is going to be a lot of money, especially when you think about compounding the proven profits made by the FX edge members. ��

Signup now or connect your existing broker account to cashbackforex:

Chapter 3. Why forex is or isn’t for you

Chapter 3

Why forex is or isn’t for you

Don’t have time to read the guide now? Request a PDF version.

So, you might like the idea of being a forex trader, but it is not right for everyone.

Back in 2016 the UK’s financial services regulator, the FCA, conducted a review of retail trading – not just forex, but all types including CFD trading and binary options – and found 82% of retail traders lost money. Trading is a zero-sum game so there are going to be winners and losers but this ratio led us to two conclusions:

about 1 in 5

We’ve pulled together the reasons traders should and shouldn’t be trading forex for. All aspiring forex traders should be asking themselves their reasons for getting into forex trading before they get started.

If you can honestly say its for the right reasons, and not the wrong reasons you’ll have a much greater chance of making a success of it, of being in the 1 in 5 group of traders, over the long term.

Learn more, take our premium course: trading for beginners

5 reasons why you shouldn’t trade forex

In addition to the inherent risk linked to trading, with forex trading you need to add margin trading and leverage, which means that you can trade large amounts with little initial capital.

So, this high level of risk means that you need to be sure that you do not use money that you need to live on – it sounds an odd thing to say, but make sure you always trade with money you can afford to lose!

If you have no trading experience, and you do not know how markets work and relate to each other, forex trading might not be right for you – at least not yet.

That’s fine – as long as your profits are higher than your losses. Losing trades are part of the trading game – you need to be prepared for this and not take it personally!

In forex trading, you need to quickly recognise when you’re wrong, and close losing trades as early as possible. It’s important to develop your ability to accept your losses and learn from your trading experience.

But do remember, it’s ok to be wrong – you can’t be right 100% of the time in every single trade you execute. And if you can’t handle losing, you won’t be able to be profitable in the long run.

You can make huge returns in the FX market, but these kinds of returns do not come without risks, especially when using leverage.

So, if you’re generally a risk-averse person, forex trading is not going to fit your personality.

There are several trading styles you can use when trading currencies, each requiring a certain amount of time in front of the screens.

For example, you can use a trend following method, or position trading strategy, which will require less time than short term trades, like scalping or day trading.

Keep in mind that learning about trading, the forex market and how to develop the right trading plan takes time. You’d better be sure you have time to dedicate to this activity before starting to trade in currency pairs.

5 reasons you should trade forex

It provides great flexibility for traders who want to trade part-time and as there are no market opening or market closing times the opportunity for potential profits is 24 hours per day, 5 days per week!

Of course, trading volume varies depending on how many sessions overlap, and it often decreases when there are bank holidays in major sessions such as on wall street.

The impact of news is also strong on the forex market, as currencies quickly react to macroeconomic news, political events and economic data.

So, as a forex trader, you should monitor the economic calendar for fundamentals to determine when currency pair prices might accelerate and break important levels thanks to higher volatility.

Another example would be to adapt the size of your positions depending on the current trading conditions and the evolution of your trading capital. All these rules should be part of your trading plan and to be profitable, you should always stick to your plan!

Having a trading plan to follow when trading is vital if you want to be successful, but most importantly you need to be committed to follow it, and patience to open/close your positions according to your set-ups.

You need to develop your strategy first, or trading system, before trading real money on the forex markets – if not, how do you know what you’re doing, and that what you’re doing is making money?

A trading plan is a description of your trading method:

According to the 2016 triennial central bank survey of FX and over-the-counter (OTC) derivatives markets from the BIS, trading in foreign exchange markets averaged $5.1 trillion per day in april 2016.

This high trading volume increases the liquidity of the market, which means that it’s easy and fast for a trader to enter a trade and also reduces the risk of potential price manipulation from others.

Forex trading also uses leverage that can magnify your returns (as well as your losses) in a very short period of time. This leverage allows you to manage more money than you currently have in your trading account for potentially higher profits.

Take our free course: getting started with charts

take our free course: how traders interact with the markets

take our premium course: trading for beginners

Rule of thumb

Deciding whether to trade or not to trade the forex markets is up to you, but remember that even if you’re one of the smallest actors on the forex market, you can still profit from it. Take your time going through your reasons for wanting to trade and you’re doing it for the right reasons – if you are it is more likely you’ll make a success of it.

If you want to take advantage of forex trading, it’s a good idea to use a demo account before risking real money in your trading account.

There is very little chance that you can be successful without trying out your broker’s trading platform first. This includes real-time charts and trading tools, its trading conditions to test your own trading system.

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My trading skills® is a registered trademark and trading name of PMJ publishing limited. The material on this website is for general educational purposes only and users are bound by the sites terms and conditions. Any discussions held, views and opinions expressed and materials provided are for general information purposes and are not intended as investment advice or a solicitation to buy or sell financial securities. Any person acting on this information does so entirely at their own risk. Trading is high risk, it does not guarantee any return and losses can exceed deposits. My trading skills®, its employees and directors shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein. Trading may not be suitable for you and you must therefore ensure you understand the risks and seek independent advice. The information on this site is not directed at residents of the united states or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

How much money can I make forex day trading?

Julie bang @ the balance 2021

Many people like trading foreign currencies on the foreign exchange (forex) market because it requires the least amount of capital to start day trading. Forex trades 24 hours a day during the week and offers a lot of profit potential due to the leverage provided by forex brokers. forex trading can be extremely volatile and an inexperienced trader can lose substantial sums.

The following scenario shows the potential, using a risk-controlled forex day trading strategy.

Forex day trading risk management

Every successful forex day trader manages their risk; it is one of, if not the most, crucial elements of ongoing profitability.

To start, you must keep your risk on each trade very small, and 1% or less is typical. this means if you have a $3,000 account, you shouldn't lose more than $30 on a single trade. That may seem small, but losses do add up, and even a good day-trading strategy will see strings of losses. Risk is managed using a stop-loss order, which will be discussed in the scenario sections below.

Forex day trading strategy

While a strategy can potentially have many components and can be analyzed for profitability in various ways, a strategy is often ranked based on its win-rate and risk/reward ratio.

Win rate

Your win rate represents the number of trades you win out a given total number of trades. Say you win 55 out of 100 trades, your win rate is 55 percent. While it isn't required, having a win rate above 50 percent is ideal for most day traders, and 55 percent is acceptable and attainable.

Risk/reward

Risk/reward signifies how much capital is being risked to attain a certain profit. If a trader loses 10 pips on losing trades but makes 15 on winning trades, she is making more on the winners than she's losing on losers. This means that even if the trader only wins 50% of her trades, she will be profitable. Therefore, making more on winning trades is also a strategic component for which many forex day traders strive.

A higher win rate for trades means more flexibility with your risk/reward, and a high risk/reward means your win rate can be lower and you'd still be profitable.

Hypothetical scenario

Assume a trader has $5,000 in capital funds, and they have a decent win rate of 55% on their trades. They risk only 1% of their capital or $50 per trade. This is accomplished by using a stop-loss order. For this scenario, a stop-loss order is placed 5 pips away from the trade entry price, and a target is placed 8 pips away.

This means that the potential reward for each trade is 1.6 times greater than the risk (8 pips divided by 5 pips). Remember, you want winners to be bigger than losers.

While trading a forex pair for two hours during an active time of day it's usually possible to make about five round turn trades (round turn includes entry and exit) using the above parameters. If there are 20 trading days in a month, the trader is making 100 trades, on average, in a month.

Trading leverage

In the U.S., forex brokers provide leverage up to 50:1 on major currency pairs. for this example, assume the trader is using 30:1 leverage, as usually that is more than enough leverage for forex day traders. Since the trader has $5,000, and leverage is 30:1, the trader is able to take positions worth up to $150,000. Risk is still based on the original $5,000; this keeps the risk limited to a small portion of the deposited capital.

Forex brokers often don't charge a commission, but rather increase the spread between the bid and ask, thus making it more difficult to day trade profitably. ECN brokers offer a very small spread, making it easier to trade profitably, but they typically charge about $2.50 for every $100,000 traded ($5 round turn).

Trading currency pairs

If you're day trading a currency pair like the USD/CAD, you can risk $50 on each trade, and each pip of movement is worth $10 with a standard lot (100,000 units worth of currency). therefore you can take a position of one standard lot with a 5-pip stop-loss order, which will keep the risk of loss to $50 on the trade. That also means a winning trade is worth $80 (8 pips x $10).

This estimate can show how much a forex day trader could make in a month by executing 100 trades:

Gross profit is $4,400 - $2,250 = $2,150 if no commissions (win rate would likely be lower though)

Net profit is $2,150 - $500 = $1, 650 if using a commission broker (win rate would be like be higher though)

Assuming a net profit of $1,650, the return on the account for the month is 33 percent ($1,650 divided by $5,000). This may seem very high, and it is a very good return. See refinements below to see how this return may be affected.

Slippage larger than expected loss

It won't always be possible to find five good day trades each day, especially when the market is moving very slowly for extended periods.

Slippage is an inevitable part of trading. It results in a larger loss than expected, even when using a stop-loss order. It's common in very fast-moving markets.

To account for slippage in the calculation of your potential profit, reduce the net profit by 10% (this is a high estimate for slippage, assuming you avoid holding through major economic data releases). This would reduce the net profit potential generated by your $5,000 trading capital to $1,485 per month.

You can adjust the scenario above based on your typical stop loss and target, capital, slippage, win rate, position size, and commission parameters.

The final word

This simple risk-controlled strategy indicates that with a 55% win rate, and making more on winners than you lose on losing trades, it's possible to attain returns north of 20% per month with forex day trading. Most traders shouldn't expect to make this much; while it sounds simple, in reality, it's more difficult.

Even so, with a decent win rate and risk/reward ratio, a dedicated forex day trader with a decent strategy can make between 5% and 15% a month thanks to leverage. Also remember, you don't need much capital to get started; $500 to $1,000 is usually enough.

The balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

Benefits and risks of trading forex with bitcoin

The forex market is the largest and most liquid market in the world. It's a truly global currency market, open 24 hours a day, seven days a week, everywhere.

As if forex was not dynamic enough, cryptocurrencies like bitcoin have added a fascinating new dimension to currency trading. In recent years, many forex brokers have begun to accept bitcoins for currency trading, with some accepting a variety of other digital currencies as well.

Should you jump in and begin using your hard-mined bitcoins in the forex markets? Find out the risks and benefits first.

Key takeaways

The forex market is dedicated to trading in the world's currencies.

Many forex brokers now accept bitcoin and other cryptocurrencies.

Bitcoin trades benefit from the anonymity and decentralized valuation system the currency represents.

They add a new layer of risk to forex trading, exacerbated by the extreme volatility of crypto-currencies.

A standard forex trade

Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works.

A forex trade is simply an exchange of one currency for another at its current rate. Unlike tourists who exchange their home currency for local spending money, forex traders are trying to make money off the continual fluctuations in the real value of one currency against another.

Trading a 'pair'

Imagine you are an american trader betting that the british pound will lose value compared to the U.S. Dollar. This is called trading on the british pound/U.S. Dollar currency pair (GBP/USD).

You deposit $100 with a forex broker. Assuming the rate of $1 = £0.5, you will receive £50 for your $100. If the GBP/USD rate changes to 0.45, you close the position to 50/0.45 = $111.11. That is, you make an 11.11% profit over your initial $100 deposit.

Most forex trading is conducted in a decentralized fashion via over-the-counter markets. However, the fact that the forex market is decentralized and that bitcoin is considered to be a decentralized digital currency does not mean that the two are equivalent.

The impact of decentralization

The key distinction is that, though forex exchanges might be decentralized, the currencies themselves are backed by central banks in the countries that issue them. It's the job of those banks to stabilize the value of their currencies and keep them stable.

Bitcoin and most other cryptocurrencies do not have that support.

A forex trade using bitcoin

Now consider an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins. These include avatrade, etoro, and liteforex. you then transfer 2 bitcoins from your digital wallet to the forex broker’s digital wallet.

If you want to trade using bitcoin, use only a locally regulated forex brokerage. And avoid using leverage until you know what you're doing.

Assuming the current bitcoin to U.S. Dollar rate is 1 bitcoin = $7,500, your deposit of 2 bitcoins is worth $15,000. Now, assume that you want to take a position in british pounds. If the exchange rate is £0.5 = $1, you will receive £7,500. After some time, the GBP/USD rate changes to 0.45, and you square off your position to get $1,666.65 in your trading account. You have made a tidy 11.11% profit and you are ready to cash out.

The bitcoin effect

However, suppose that the bitcoin to U.S. Dollar rate has changed during this period of time to 1 bitcoin = $8,500. When you withdraw your money in bitcoins, you receive ($16,666.65/$8,500) = 1.961 bitcoins.

$5,332-$11,982

The range in value of a bitcoin over the year ending in july 2020.

Despite the fact that your bet on british pounds earned you an 11.11% profit (from $15,000 to $16,666.65), the fluctuation in the bitcoin to U.S. Dollar rate means that you sustain a loss of 0.039 bitcoin or about -2.%. (initial deposit of 2 bitcoins — 1.961 bitcoins = .039 bitcoin).

However, had the bitcoin to U.S. Dollar exchange rate changed to 1 bitcoin = $7,000, you would realize a profit from both the forex trade and the bitcoin exchange. You would have received ($16,666.65/$7,000) = 2.381 bitcoins, a profit of 19.1%.

Increased unpredictability

This hypothetical example illustrates the big reason to exercise caution when using digital currencies for forex trading. Even the most popular and widely used cryptocurrency, the bitcoin, is highly volatile compared to most traditional currencies.

In the year ending july 24, 2020, the value of a bitcoin ranged from $5,532 to $11,982.

This unpredictability means that the risks associated with trading forex using bitcoin are that much greater.

Beyond the exchange rate fluctuations impacting profit and loss, there are other benefits and risks to consider before trading forex with bitcoin.

Benefits of trading forex with bitcoin

Decentralized valuations: A major advantage of trading forex with the bitcoin is that the bitcoin is not tied to a central bank. Digital currencies are free from central geopolitical influence and from macroeconomic issues like country-specific inflation or interest rates.

High leverage: many forex brokers offer leverage for bitcoin trades. Experienced traders can use this to their benefit. However, such high margins should also be approached with great caution as they magnify the potential for losses.

Low deposit amount: A trader can start with as little as $25 with some bitcoin forex trading firms. A few forex trading firms have even offered promotions like a matching deposit amount. Traders should check that the broker is legitimate and appropriately regulated.

Low cost of trading: most forex brokers that accept cryptocurrency are keeping brokerage costs very low to attract new clients.

Security: you don’t need to reveal your bank account or credit card details to make a bitcoin transaction. This is a big advantage in terms of cost and financial security.

No global boundaries: bitcoin transactions have no global boundaries. A trader based in south africa can trade forex through a broker based in the united kingdom. Regulatory challenges may remain a concern, but if both traders and brokers are willing to transact, there are no geographical boundaries.

Risks of trading forex with bitcoin

Different exchange rates: bitcoin trades on multiple exchanges and exchange rates vary. Traders must ensure they understand which bitcoin exchange rates the forex broker will be using.

U.S. Dollar rate risk: while receiving bitcoin deposits from clients, almost all brokers instantly sell the bitcoins and hold the amount in U.S. Dollars. Even if a trader does not take a forex trade position immediately after the deposit, he or she is still exposed to the bitcoin-to-U.S. Dollar rate risk from deposit to withdrawal.

Danger of volatility: historically, bitcoin prices have exhibited high volatility. In the absence of regulations, volatility can be used by unregulated brokers to their advantage and a trader’s disadvantage. For example, assume the intraday bitcoin rate fluctuates from $5,000 to $5,300 U.S. Dollars per bitcoin. For an incoming deposit of 2 bitcoins, the unregulated broker may apply the lowest rates to credit the trader $10,000 (2 bitcoins * $5,000 = $10,000). However, once the trader is ready to make a withdrawal, the broker may use the lowest exchange rate. Instead of the original 2 bitcoins deposited, the trader receives only 1.88679 bitcoins ($10,000/$5,300 = 1.88679 bitcoins). The unregulated broker may be exchanging bitcoins and dollars at, say, $5,150, and pocketing the difference at the expense of the client.

Security risks inherent to bitcoin: deposited bitcoins are prone to theft by hacking, even from a broker’s digital wallet. To reduce this risk, look for a broker who has insurance protection against theft.

Risk of leverage: using leverage is risky for new traders who may not understand the exposure. This risk is not unique to cryptocurrency forex trading and comes into play in traditional forex transactions as well.

Asset class mixing: cryptocurrency is a different asset class altogether and has its own valuation mechanism. Trading forex with bitcoins essentially introduces a new intermediate currency which can impact profit and loss in unexpected ways. Any money that is not locked down in a trader’s base currency is a risk.

The bottom line

Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. But the tradeoff is essentially adding a third currency to what was a trading pair.

Traders who want to take on that risk should use only a locally regulated forex brokerage.

Forex signals provider: this is what they hope you never find out

Last updated: october 28, 2020

Do you want a forex signal provider that gives accurate calls regularly?

You can rely on their signals and generate consistent profits every month.

And it won’t be long before you can quit your job and have your FREEDOM — no boss, no politics, and no stress.

No money worries because your forex signal is doing all the “work” for you.

Now, how great would that be?

There’s always a BUT, right?

It’s only a fantasy (I’ll explain why later).

For now, you might be wondering…

“what’s a forex signals provider and how does it work?”

A forex signals provider gives buy & sell “calls” so the user can generate profits from the market.

And you’re charged a monthly fee for this service (whether you make money or not).

Still, you might consider it when you see profits like this…

“this makes sense as I’m getting signals from a professional trader. So all I need to do is follow his trades and I’ll be successful like him.”

You won’t have the confidence to trade the forex signals

You’ve no idea how your forex signals are generated.

It can be a “professional” trader giving out discretionary buy/sell calls, or a “black box” programmed to spit out buy/sell signals.

And this is a problem because…

When the drawdown comes (and it definitely will), you’ll lose the confidence to stick to the trading strategy.

You’ll have thoughts like…

“did the trading strategy stopped working?”

“do I still follow the strategy after the last 5 losses?”

If you don’t know how a trading strategy works, or WHY it works — you’ll never have the confidence to trade it.

You won’t make money even if the forex signals are “working”, here’s why…

Most forex signals provider charge about $100/month (or more) for their service.

You have a $3000 forex trading account

You pay $100/month for forex signals

This means at the end of the year, you need a return of 40% to break even.

Because with a $2000 account, you need a return of 60% to break even.

And with a $1000 account, you need a return of 120% to break even.

You’re better off gambling at the casinos; at least you have free booze.

Free forex signals is a LIE

You’ve probably come across “traders” giving free forex signals.

Nope. It’s a lie and here’s why…

Yes, you don’t have to pay a monthly subscription fee but…

You’ll have to sign up at a brokerage of their choice.

It’s because they’ll earn a “commission” every time you place a trade with them.

The more you trade

The higher your transactions costs

The more they profit from you

Clearly, there’s a conflict of interest here.

So be aware of this marketing gimmick because there’s no such thing as free forex signals.

The markets are always changing

The markets are always changing. It moves from trend to range, low volatility to high volatility, downtrend to uptrend, etc.

This means your forex signals might work for now.

Will the signal still work?

If you don’t know how or why a trading strategy works, you’ll have no confidence to trade it — especially in ever-changing market conditions.

You’ve realized that most signal service is junk.

But, if you still want to subscribe to one, then here’s what you must do…

Put the odds in your favor, here’s how…

I said with a $3000 account, you need 40% a year to break even.

However, if you increase your account size, you reduce the returns needed to be break-even.

You have a $30,000 trading account

You pay $100/month for forex signals

This means you need a return of 4% per year to break even.

And if you have a $100,000 account, you need only 1% per year to break even.

However, you might not have a large trading capital.

Well, what you can do is opt for a profit-sharing scheme.

If you have a 30–70 profit-sharing scheme, you’ll pay 30% of your profits to your signal provider and keep the remaining 70%.

If there’s no profit, you pay nothing.

Do you want to grow your trading account steadily? Then you must have this one thing…

You can find a profitable forex signal provider.

You can have the appropriate account size.

But without proper risk management, you’ll still lose.

And this is something your forex signal provider can’t help you with.

There are two traders, john and sally.

John is an aggressive trader, and he risks 25% of his account on each trade.

Sally is a conservative trader, and she risks 1% of her account on each trade.

Both receive profitable forex signals that win 50% of the time with an average of 1:2 risk to reward.

Over the next 8 trades, the outcomes are lose lose lose lose win win win win.

Here’s the outcome for john:

Here’s the outcome for sally:

So as a guideline, you don’t want to lose over 1% of your trading capital on each trade.

This means if you have a $10,000 trading account, your maximum loss per trade shouldn’t be more than $100 (1% of 10,000).

Why you must know the trading strategy inside out

Let’s take trend following for an example…

You trade breakouts across many markets

Those breakouts that fail, you cut your losses

Those breakouts that trend, you ride your winners

Because of fear and greed in the markets.

In times of greed, traders keep buying and it pushes the price higher.

In times of fear (or recession), traders keep selling to stop “the pain”.

So, as a trend follower, you can take advantage of this phenomenon as you buy high and sell higher (and vice versa).

Does this work all the time?

Which brings me to my next point…

A simple test to tell whether your forex signal provider is legit (hint: 99% of them will fail this test)

One year of trading results isn’t enough to prove that your trading strategy works.

Because market conditions change.

In 2017, bitcoin traders were “killing” it as the market was in a strong uptrend.

You could buy and close two eyes and still make money at the end of the month.

But in 2018, things changed drastically.

The price of bitcoin collapsed 60%, and many traders blew up their account.

These traders were using the same trading strategy.

In 2017 they made huge profits, but in 2018 they lost everything.

Because market conditions change.

If you want to know whether a trading strategy will work, you must verify the results over the last 5 years and take into account one major recession.

A backtest period of 2007 to 2011 is good because it has 5 years of results that includes the 2008 financial crisis.

So, before you sign up for a forex signal service, make sure they can pass this test.

Frequently asked questions

#1: do you consider offering forex signal service which I can follow?

No, I don’t offer forex signal service. I’d rather teach you how to fish (and you’ll be able to fish for a lifetime) than to simply give you the fish.

#2: which forex broker do you use?

I don’t wish to publicise and disclose which brokers to use over here, but if you want more information, you can just reach out to support(at)tradingwithrayner(dot)com and I’ll be glad to give you some recommendations.

#3: if the forex signal services are provided by professionals, wouldn’t they adapt to the change in market condition?

Yes, that’s possible. If a signal service is given by a professional trader, then the signal could possibly adapt to changing market conditions. But so far, I haven’t come across any who survives in the long run.

Conclusion

Here’s what you’ve learned today:

If you don’t know how a forex signal is generated, you won’t have the confidence to trade it when the drawdown comes

It doesn’t make sense to use a forex signal service if your account size is small

Forex signal usually stops working when market conditions change

And if you want to subscribe to a forex signal provider:

Have a decent account size

Adopt proper risk management

Understand the trading strategy used

Know how the strategy performs over the last 10 years

Now here’s a question for you…

Do you use a forex signal service and did it work for you?

Leave a comment below and share your thoughts with me.

So, let's see, what we have: pay someone to trade forex for me is the question of most investors, forexsq experts answer can someone day trade for me ? The answer is yes but at can i pay someone to trade forex for me