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Wednesday, 24 May 05:37 (GMT -05:00)



Foreign exchange market

Masterforex-V Academy Names Forex Brokers with Hidden Commissions (Big Swaps) of 40 Pips a Week


Most Forex traders out there always try to find a way to make big money without any risk. On the surface, some of such ways do really look unbeatable. However, those solutions eventually fail if applied under the trading conditions that leave much to be desired as they are offered by some brokers disinterested in their clients’ success. At the end of the day, such solutions end up causing big losses instead of generating stellar profits. This is something Masterforex-V Academy experts figured out after conducting in-depth analysis of the FX brokerage industry.

 

 

 

 
Experts on how expectations of huge success turn into a big failure.
 
Not so long ago, a major investor addressed Masterforex-V Academy experts to help him assess the risks of going long EURUSD and investing a big amount of money in the deal. His plan was pretty straightforward – to enter at 1,05 and to exit at 1,25, thereby capturing 2000 points of profit. To accomplish this ambitious goal, he was ready to invest 1 million dollars and wait for 2 o 4 years to take profit.
 
By his estimate, over the mentioned period of time, 1 million dollars would turn into 5 million dollars. He was going to trade with FxPro or Dukascopy given their promises to offer the best market conditions available in the industry.
 

Indeed, the current market bias is really bullish when it comes to EURUSD. The currency pair has been undervalued for a quite long time, even though the price may still go down while driven by some policy changes coming from the Fed or the ECB.e0b8f34468fb.png

Anyway, Masterforex-V Academy experts agree that the chances of EURUSD reaching 1,25 in 4 years’ time are fairly high. The chances of going further down are much scantier. The whole point is, the investor is essentially right when saying that in case the prediction does manifest itself, the profit will be a couple of thousand points. However, will he really manage to quintuple his investment in this case? Let’s try to figure this out together.
 
Later on, Masterforex-V Academy experts checked the mentioned brokers for hidden fees and commissions only to find out that the hidden fees and commissions won’t let the investor make money. Moreover, they will even burn a certain part of his investment. Simply put, given the hidden fees and commissions this investment idea is destined to become a loser in a couple of years or so.
 
The magic of swaps. Where to look for hidden fees and commissions?
 
Masterforex-V Academy experts analyzed the trading conditions offered by a range of popular FX brokers and found out the following things:
 
1. Most brokers stick to certain marketing strategies that advertise zero or minimal fees and commissions, including zero or tight spreads. As a result, traders and investors start believing in a delusion, which says that opening and holding long-terms trades can actually be profitable. The thing is, when the broker says that they don’t make money from spreads, commissions and other fees, this sound a little bit strange. Since any broker has to make money from something, it’s time to ask them how such brokers sustain their businesses and make money.
 
2. Most brokers conceal the size of their swaps during their ad campaigns, which also create delusions in traders and investors’ minds. In case you don’t know, a swap is paid each time you want to extend your trade overnight. Even though swaps can be positive, more often than not the are negative, which means you are charged a certain amount as a fee for extending the trade. There is nothing wrong with swaps since this is common practice with all brokers, even those who truly have access to the interbank liquidity. However, it’s hard to understand why those swaps vary from broker to broker. On top of that, the biggest swaps are usually charged by those brokers and dealing centers that don’t have access to the interbank liquidity.
 

 

Below you can see the swaps for long (buy) EURUSD trades:
 
Tight swaps:
- NordFX (-0,4);
- Roboforex (-0,6);
- FortFS (-0,68).
Moderate swaps:
- Tele Trade (-0,88);
Alpari (-1,23).
Huge swaps:
- FxPro (-6,66);
- XM (-6,84);
- Fibo Group (-12,5).
 
Fibo Group swaps are more than 30 times as big as NordFX swaps!!!
 

 

The chart below shows you how those 5-7-point swaps by Dukascopy Bank SA, Swissquote Bank SA, Saxo Bank, XM.com actually burn the trader’s capital over time (the long trade volume is 1 standard lot):

As we can see, all those promises of zero spreads and commissions usually end up being just a smoke screen to hide the real state of affairs, which is to talk the client into depositing funds and hold long trades only to lose money in the long run.
 
OK, now let’s assume that we are going to make the very 2000 points of profits we talked about at the beginning of the article. The size of the invested capital doesn’t really matter in this case. So, a trading year contains slightly over 250 trading days (excluding weekends and holidays). We tale 250 days just to simplify our calculations. This is 500 days in 2 years. Given the 2000 points we expect to make, this is just 4 points a day on average. Now, let’s compare this average daily profit with the amount of daily swaps. I guess everything is obvious.
 
 
Masterforex-V Academy’s way out
 
As you may have noticed, high swaps may turn out to be a legal way to deprive clients of their money over time. By now, you are probably thinking that by making shorter-term trades, you will avoid those pitfalls. But the thing is that when opening more trades, on top of paying swaps, you spend more money on spreads as well.
 
Masterforex-V Academy experts say that even under tough trading conditions, you can still make money if you follow a strategy preventing the broker from taking money away from you. If you want to know the ins and outs of successful; trading and investing, you are invited to visit Masterforex-V Academy’s online forum for traders and investors. For now, let’s take a closer look at some of the key factors when it comes the negative consequences of swaps.
 
This is what the experts actually offer:

If you prefer scalping and other intraday strategies, choose the brokers with tight spreads and zero commissions. If you close at least 95% of your trades within the same trading day, just ignore swaps since this is something you don’t have to worry about.
 
If you prefer longer-term strategies and you have to leave them overnight, choose the brokers with the tightest negative swaps. Keep in mind that the spread or commission is paid once per transaction while swaps are paid in a daily basis each time you decide to extend the trade overnight.
 
Use the potential of positive swaps to the full. This is something for everyone looking for unbeatable strategies. Even though your broker is smart, they just have to set positive swaps for certain currency pairs and in certain trade directions.  Positive swaps mean that you get paid each time you leave the trade open overnight.
 

However, no trade has ever seen a positive swap bigger than a negative one. Still, choosing pairs with positive swaps doesn’t mean this is a panacea. You still have to enter the market in the right place and at the right time and choose the right direction to make money over time. It’s just that positive swaps will help you make some extra money instead of losing it with negative swaps written off your balance every day until you close the long-term trade. That’s the only reasonable way to help yourself profit from long-term trades.

 

You are free to discuss this article here:   forum for traders and investors

 

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Euro. New Optimism

The 2017 GDP forecast for the European Union is reported to have been increased by the Euro Commission from 1,6% up to 1,7%. This means that the economic growth in 28 EU countries, according to the general estimate, is likely to reach 1,9%. The Euro Commission has reported about economic growth for the 5th year in a row. They expect the tendency to remain this and next year as well. The unemployment rate is expected to shrink all the way down to 9,4% this year.

 

 
Publication date: 17 May 07:04 AM

Pro-rebate.com: $400 of Profit Made by Auto-Copying Masterforex-V’s Best Traders In April 2017

 The strategy that Masterforex-V Academy has been sticking for years now keeps on brining fruit to traders and investors. The main distinctive feature that makes these investments stand out from the crowd is the fact that they are 100% reliable and there is zero chance of losing money. Those investments are based on sound money management without Martingale and other tricks. All of those investment accounts are monitored at myfxbook.com. VIP traders has been showing consistent profits ever since they were launched more than 2 years ago.

Publication date: 13 May 12:40 AM

Online Forums for FX Traders – Recourses to Leverage Your Trading or Another Way to Trick You into Losing Money?

As you probably know, there is no such thing as a free lunch. Most of us like this saying. But how do we apply it in real life? A good example is when we are offered to participate in a promo and get a chance to benefit from it in a certain way. Frankly speaking, each and every FX broker out there offers a certain kind of bonuses or promos to retail clients. Most of the time, you are offered a welcome bonus, deposit bonus, or even no-deposit deposit bonus. Should all of that be treated seriously?

 

 
Publication date: 12 May 04:21 AM

Masterforex-V EXPO Names Best Forex Brokers for Beginners in May 2017

No matter whether you are a beginning or an advanced trader, at some point during your trading career you have to choose an FX broker. And when choosing it, you obviously want to choose a reputable broker.

 

 

 

Publication date: 10 May 08:59 PM

Masterforex-V Expo Names Best MT4 Brokers in May 2017

Metatrader 4 (or MT4 for short) is still the world’s most popular Forex trading software. It was created to make the trader’s life easier and improve their trading performance. Today, there is even a web-based version of the trading software allowing you to access the market via any browser you like.
 
Publication date: 10 May 08:39 PM

Bitcoin Exchange Rate Goes Above $1700

Bitcoin is reported to have set a new record by seeing its exchange rate go above $1700. This is a 45% gain over the last 4 weeks. Given the increasing interest in the crypto-currency shown all around the world, international experts predict that by the end of 2017, BTC may reach even $4000.
 
Publication date: 10 May 07:47 PM

Trump Doesn’t need a Strong Dollar

A couple of weeks ago, Donald Trump made a statement related to the USA’s money-and-credit policy. This leads us to believe that in the near future Washington may well abandon the policy leading to a stronger dollar.

 

 
Publication date: 10 May 05:16 AM

FortFS, Masterforex-V Academy and PRO-Rebate Open «Double Bonus» Season

One of the leading international Forex companies named Fort Financial Services, which was recognized the world’s best FX broker for beginners in 2016, keeps on making clients happy with the help of various pleasant surprises.

Publication date: 04 May 10:37 AM

Forex Means Market Without Crisis

Most of us have already felt what an economic crisis is. Most likely, we keep on looking for extra income and financial stability. Is it possible? Yes, indeed, if discover Forex. What is conventional Forex?

 

 
Back in 1989, the daily FX turnover used to be as little as 600 million dollars a day.  In 1998, another global crisis broke in. Back then, the turnover easily exceeded 1 trillion dollars a day. By 2010, the turnover had already reached 3,5 trillion dollars. This time, it was the 2008 crisis that contributed to this growth. These days, the daily FX turnover is well above 5 trillion dollars a day. For the sake of comparison, the monthly NYSE turnover is well below the daily FX turnover. It sounds a little bit shocking, doesn’t it?
Publication date: 01 May 09:36 AM

What Currency May Replace Dollar As Global Currency?

For decades, the international expert community has been discussing the privileged position of the U.S. Dollar in the international currency market. Some experts predict that the dollar is likely to lose its stability as a global currency.

 

 
Publication date: 30 April 11:55 PM