Are you finding it challenging to pick the currency pair for forex trading? We can understand your confusion because you have a lot of options. Furthermore, forex experts have different opinions.

This article will provide the details regarding all the famous currency pairs. So, without any delay, let’s dive into it.

List of Best Currency Pairs

Currency pairs hold immense significance in forex trading. Therefore, a forex trader must choose the currency pair carefully. So, here we will enlist the best currency pairs; therefore, you can pick one that suits you the most.

USD/EUR 

It is undoubtedly the most extensively traded pair around the globe. We can define this currency pair as the United States Dollar conversion to euros. It is worth mentioning that the Euro is a strong and stable currency.

Moreover, it is the official currency of the 19 European Union members. The list of countries that have the Euro as their official currency includes Belgium, France, Finland, Cyprus, Malta, Luxembourg, Spain, Italy, Greece, Portugal, Netherlands, Lithuania, Estonia, Iceland, Malta, Latvia, Slovakia, Slovenia, and Austria.

Bear in mind that this pair has been greatly impacted by the political movements that influence USD or Euro.

USD/JPY

JPY or Japanese Yen is Japan’s official currency. After World War II, the JPY lost its value significantly but slowly became stable. Commonly the yen is placed as the reserve currency after the United States Dollar, Euro, and GBP.

It should be noted that the yen value fluctuates greatly daily. But Japan’s central banks buy and sell the yen frequently. The reason behind it is that they want to maintain the exchange rates.

The government of Japan puts a big premium to keep the yen value low. They do so to make their export market more competitive. So, if you are holding the United States dollar, then there are chances that you can make big profits by capitalizing on these fluctuations that happen daily. But it can only be possible if you buy it at the most appropriate time. 

USD/CAD

Canada is one of the most influential trading partners of the USA. That’s why the value of CAD and USD are pretty close to each other. It is also vital to mention here that the CAD is strongly associated with commodity prices.

Furthermore, the oil price has a huge influence on the CAD; the reason behind it is the dependency of the Canadian economy on the exportation of oil.

If we talk about 2016, the price of oil fell, and as a result, CAD has to suffer to a great extent. Before exchanging USD for CAD, it is highly important to keep an eye on the oil prices and figure out the most suitable time for buying it.

GBP/USD

The British pound is the official currency of the United Kingdom( Wales, England, and Scotland). The United Kingdom never made the Euro their official currency when they were a member of the European Union.

When it comes to the list of widely traded currencies, GBP holds third position. In history, two events have influenced the worth of GBP on an extensive basis. 

Firstly, in 2007-2008, the fluctuation in GBP was due to the great recession. Secondly, in 2016 GBP lost its worth due to Brexit. Brexit is defined as the vote that can separate the UK from the EU.

USD/CHF 

CHF or Swiss Franc is Switzerland’s official currency. Most of the investors who invest in the Swiss Franc protect their assets during difficult times. Therefore, it proves to be a Safe-haven currency for the traders.

It means that if another currency value collapses and there is high volatility, the CHF will be better than others. On the flip side, if other currencies are doing well, then the value of CHF will likely lose its value.

In the Great Recession, except for JPY, the value of CHF increased against other currencies. Keep in mind that during the times of movement of major markets, JPY and CHF are the two currencies that are considered safe owing to their low volatility.

AUD/USD

AUD or Australian dollar is on the 6Th number in the list of widely-traded currency pairs, and it is Australia’s official currency as well. The AUD value has a close association with the value of the Canadian dollar, and the reason behind it is Canada and Australia’s economies independent relationship.

Furthermore, it is also notable to mention that Australia is the iron ore and coal’s biggest exporter globally; therefore, AUD is also considerably connected with the commodities market. If you want to hold AUD, you must keep a check on the pair of these commodities because they are significant for the economy of Australia.

Final Thoughts

Well, that’s all about the best currency pairs. We hope that it will assist you in choosing the most suitable currency pair. So, invest your time and learn about all currency pairs in-depth.

The post <strong>Best Currency Pairs You Can TradeIn Right Now</strong> appeared first on Open Europe.

So you don’t have time to trade and want to learn how to manage a forex account? If that’s the case, this guide will teach you everything you need to know about managed FX accounts. It’s a trading account where the account owner authorizes a professional manager to trade and transact on their behalf.

A managed forex account is a good option for investors who aren’t professionals in forex trading but wish to invest in this asset class. An investor should have a fundamental understanding of how the market works to get the best account manager.

Understanding Managed Forex Accounts

The managed forex account option is for investors who want experienced traders to manage their accounts and are willing to take on the risks associated with high leverage FX trading. After depositing monies in the account, professional traders trade their capital in the high leveraged forex market.

Only those investors who expect large profits from currency trading while also aware that they could lose a lot of money choose managed FX accounts. Managed FX accounts have a very different risk profile than stocks and bonds.

Forex trades benefit significantly as the value of one currency rises or falls in respect to another, unlike more traditional securities that give gains in share growth, interest payments, or dividends. 

Those who invest in currencies do so as a means of hedging risk in international markets or as speculators who realize the potential for significant price and value movements between global marketplaces. Individual investors and speculators frequently set up forex accounts and trade using their awareness. 

Why Do People Manage Their Forex Accounts?

A managed FX account is a trading account in which the account owner puts funds and authorizes an account manager to trade on their behalf. While the purpose of having an account manager is to keep the owner out of trading choices, having a thorough understanding of how the forex market operates and the variables involved might help you find a competent account manager.

Selecting a managed account executive would be difficult without a fundamental understanding of how the foreign exchange market operates. Experience how the forex market reacts and works might be beneficial when searching for the ideal account manager.

Quick Facts

Managed forex accounts serve the same purpose as managed futures accounts, which are alternative investment vehicles that focus on futures contracts, stock options, and rate agreements. They can take long and short positions in the securities they trade and employ leverage in their transactions.

Managed Forex Accounts: Security and Costs

Foreign exchange markets are frequently employed by experienced traders who use their skills to handle considerable sums of borrowed money to increase their profits. They have more liquidity and trade at a far faster rate than stock and bond markets—forex is the world’s most active market.

The Pros of Managed Forex Accounts

Forex is also a popular venue for people who enjoy the excitement of speculation because transaction costs are reduced. The most important benefit of a managed forex account is that it allows you to use your precious time in other activities.

The managers will handle your account and make the right decision for you. Ordinary investors can benefit from the skills of a seasoned and established FX trader by using a managed account.

Dangers of Forex

Forex markets can be risky for inexperienced traders who lack a thorough understanding of the effects of ample leverage on returns and a clear comprehension of how different news events affect currency prices.

The best forex account managers typically charge a high-performance fee of 20% to 30% of the trade’s gain. Moreover, you can’t learn to trade forex if you have managed your account.

How Does Managed Forex Account Work?

Forex-managed accounts involve having an experienced forex trader or account manager who will trade your capital. Your forex account manager will charge a performance fee that you have to pay after profit on your trade.

The forex account manager you have selected has the power to trade your money transparently. You can check your account balance whenever you want.

Best Account Type for Forex

The Standard Trading Account is the most helpful account for forex, but as we have mentioned earlier that this guide is for beginners, so we recommended  Mini Accounts. By trading in the Mini Account, you will make your loss as much as possible. You can open Mini Accounts with $250 to $500 with a leverage ratio of 400:1. 

Final Thoughts

If you have a clear idea that another person could manage your forex account best, you need to open a managed forex account. Opening an account with a competent forex account manager could benefit trading beginners and an investor.

You will have no power to decide on a managed forex account, but for beginners, having a manager for the forex account is more useful unless they blow up their forex account.

The post <strong>How To Manage A Forex Account? Guide For Beginners</strong> appeared first on Open Europe.

The Forex exchange market is the largest and most liquid market globally, where traders purchase and sell currencies for a profit. If you want to trade forex, you’ll need an internet account to do so. 

After you’ve signed up, you’ll need to choose from various forex accounts the accounts that best fit your needs. Standard, micro, VIP, and managed accounts are the three primary categories of accounts, each with its own set of benefits and drawbacks.

The appropriate type of account for you is determined by the risks you are willing to take, the quantity of your beginning capital, and the amount of time you have to trade each day. You’ll learn which account best suits your needs in this article. Let’s take a look at each account individually.

Standard Trading Accounts

The standard trading account is the most prevalent, and it allows users to trade average amounts of currency costing $100000 each. It does not imply that you must have a balance of $100,000 in your account to deal.

Because of the presence of margin and leverage (usually 100:1), you only need $1000 in your margin account to trade one standard lot. The number of leverage changes depending on several factors.

In the European Union, forex leverage is limited to 1:30, while in other parts of the world, brokers may offer leverage of up to 1:500 on standard accounts. Brokers provide comprehensive services to standard account holders. These are all depositing traders because such accounts demand an initial commitment.

The standard account, on the other hand, has considerable profit potential. The same is true in terms of lost potential. As a result, if you are an experienced trader, trading on a standard account is the ideal alternative. 

The Pros  

Most brokers provide more services than forex traders needs who have this type of account. The gain potential is one of the advantages of this account, which is for every $10 pip, if the position moves with $100, your gain will be $1000.

The Cons

For trading in this account, you need at least $2000, which the brokers require. Loss potential is one of the critical cons of this account. As mentioned earlier, you can gain $1000 for one pip of $10 when the position moves according to your choice. Similar is the case of loss, for $10 pip, if the pair moves against you, the loss will be $1000.

Managed Trading Account

Managed Trading Accounts are forex accounts in which you have possession of your capital but not of trading decisions. These accounts are just like Stock Managed Accounts, where you set the objectives and managers work for you. There are two types of these accounts: Pooled Funds and Individual Accounts. 

The Pros

In this type of account, professional brokers will handle your account. Moreover, if you don’t want to keep an eye all day on the rise and fall of the market, then this type of account is best for you.

The Cons

In this type of account, you will need a minimum of $2000 for Pooled funds and $10,000 for an individual account. Furthermore, the account managers will also demand commission or account maintenance fees for handling your account. Overall you will have no right to decide the rise and fall of the market.

Mini Trading Account

A Mini Trading Account is a trading account that allows traders to trade with small amounts of money. Most brokers also offer mini accounts as a strategy to attract new clients.

The Pros

Through Mini Trading Accounts, inexperienced traders can trade without the risk of blowing their accounts. The expert traders can also learn new trading strategies with a small amount of money. To open Mini Trading Accounts, you need only $250 to $500 with a high leverage ratio of 400:1.

The Cons

Little risk equals low gain. Mini Accounts on trading $10,000 can produce $1 per pip movement, which is the very least. This type of account is more helpful for beginners who want to improve their skills, not assets.

VIP Accounts

A VIP account is also one of the most common types of forex trading accounts.VIP Accounts are more useful for those traders who are financially stable. The minimum deposit limit is $10,000 and allows the traders to trade on standard lots.

The Pros

These types of accounts allow the traders to trade in the market directly. The advantage here is that you will make your decisions on your own about the market movements.

The Cons

To open this type of account, you will need a considerable amount of $10,000. So we can say that this type of account is a good one for those having high capital.

Final Thoughts

We have discussed with you the best forex accounts. All of these accounts have their pros and cons. It doesn’t matter what type of account you choose for your forex trading. The important thing is to evaluate your performance test. 

All beginner traders should start with a Demo Account which allows them to trade with zero risk. After that, the Micro and Mini accounts are the best choices as they allow beginners to trade forex on micro and nano lots.

The post <strong>Best Accounts Types For Forex Trading – Accounts Detailed</strong> appeared first on Open Europe.

The forex market is highly volatile. Trading in the forex market needs a lot of skills and knowledge. Without having a considerable amount of knowledge about forex trading, many traders end up blowing up their accounts.

If you are in the learning phase, you need to learn from the basics to the top trading strategies. While it is true that traders can make money in the forex market, it does necessitate specialized market knowledge.

After starting forex trading, you’ll need successful traders’ help and ideas to keep on top of market trends. You will want to improve your skills and become a successful forex trader. Do you want the best websites to educate yourself about forex trading? This article will discuss some best websites to help you learn forex trading.

Best Websites For Learning Forex Trading

1. Baby Pips

Baby Pips are the most famous website for learning free forex education. They are a community of traders that support each other in the trading journey. For more than a decade, Baby Pips.com has been one of the minor crappy websites to learn the currency trading market.

They have the school of pipsology, a free online course, and an article on forex news and trading strategies. It helps you to learn forex trading step by step from basics to top levels, and you will certainly like it.

Baby Pips.com exists to protect newbie traders from losing their money in the forex market due to poor trading decisions. A couple of free tools of Baby pips like gain and loss percentage calculator Pip value calculator are also available.

2. ForexSignals

ForexSignal.com is one of the comprehensive websites for learning forex trading.McDonald, a financial educator, founded ForexSignal.The goal of ForexSignal.com is to teach its students how to use their methods in trading. Its community has more than 80,000 members.

3. Traders Academy Club

Traders Academy Club has all the educational resources to become a successful forex trader. In Traders Academy Club, students access a comprehensive Media Zone for recorded webinars. It also includes recorded analysis videos for improving your skills. 

4. Asia Forex Mentor

Internationally renowned financial expert Ezekiel offered Asia Forex Mentor in 2008. This website is the best choice for traders who works in banks and fund management companies. Asia Forex Mentor includes the One Core Program and Golden Eye Group. 

Ezekiel’s most famous One Core Program teaches the traders how to trade in forex and stocks crypto, and others.

5. Forex FX Academy

Forex FX Academy is one of the most popular websites for learning forex trading.FX Academy, founded by experts at DailyForex.com, helps traders secure their trades in the rise and fall of the market.

FX Academy has a unique tool, Forex Strategy Stimulation, helpful for traders to define future trade strategies. In FX Academy, the skills are free of cost; we select it as the best website.

6. Six Figure Capital

Whether you are a newbie in forex trading or want to become a successful trader, Six Figure Capital is one of the best websites. Six-Figure Capital’s 14-day course will give a massive amount of information.

The founder of Six-Figure Capital, Lewis Glasglow, has been trading since 2013. Being an overnight successful trader leads Lewis to develop a 14-day course about the market experience. Students who graduate from a 14-day course can trade in forex with the least risk of blowing up an account.

7. Admiral Markets

Admiral market is a well-regulated Forex trading platform. Admiral rebrands to “Admirals” in 2021. The company was founded in 2001 and presented traders with access to update to MetaTrader 4 and 5 and had a lot of active accounts. Admirals ensure a competitive trading environment for all manual traders.

8. Forex Mentor Pro

Mark Walton and his team developed this program in 2008. Forex Mentor Pro has created a group of expert traders who can train others well. This program is highly centered on productive strategies, so beginners with no idea will benefit extensively from it.

9. Trading Academy

Eyal Shahar founded Trading Academy just for the purpose of helping people in financial education. This platform is helpful for all types of users. Trading Academy is packed with resources and the massive information you need for forex trading.

10. Bloomberg

Bloomberg is another helpful website for you to learn forex trading well. Bloomberg helps you see what forex pairs are currently moving and what impact the market. It also offers financial market radio and lives market TV if you are interested in listening and watching when you are trading.

Final Thoughts

The forex market is highly volatile and liquid; anyone can not rush and participate in the market. If someone wants to trade in forex and become a successful trader, you need to know from A to Z about the forex market.

There are so many websites that choosing the best one will be difficult. If you are a beginner, it’s better to start with primary educational content before using trading tools.

The post <strong>The 10 Best Websites To Learn Forex Trading In 2022</strong> appeared first on Open Europe.

As a forex trader, you know that finding the right tools and resources is essential to your success. In this blog post, we will outline some of the best tools that you can use to improve your trading performance. We’ll also provide tips on how to use these tools effectively. 

So if you’re looking for ways to take your trading career to the next level, read on! Forex traders use a variety of tools to make informed decisions when trading. While using any tool is not guaranteed success, using the right tools can undoubtedly increase your chances. 

However, there is no one-size-fits-all answer to this question, as the best tools for forex traders will vary depending on their individual needs and trading style. However, there are some general tools that all traders should use.

Trading Platform

A trading platform is essential for forex traders. It allows you to access the market and make trades. There are a variety of trading platforms available, so be sure to choose one that meets your needs. 

We recommend the MetaTrader 4 and 5; Meta Quotes provides this trading platform and comes with many unique features.

Forex Calculator

A forex calculator allows you to calculate your profits and losses on trades. It helps determine your risk/reward ratio and ensures that your trades are profitable. 

However, in the forex calculator category, you will find different types like the Volatility calculator, Margen calculator, Pip calculator, Correlation matrix and profit calculator.

Forex Charting Software

Forex charting software provides a visual representation of the market, which can help you make informed trading decisions. Choosing a charting software that meets your needs and provides the information you need is essential.

Forex News

Forex news can help you stay up-to-date on market news and events that may impact your trades. It is essential to stay informed about the market to make informed decisions. Generally, the premium financial news wires always provide you with updated information.

Forex Signals

Forex signals can help you identify trading opportunities and make better trades. Any trader who selects the signal provider that meets their needs and provides accurate signals will succeed in trading. If you are a beginner in forex trading, this will help you a lot in trading. 

Forex Trading Strategies

A forex trading strategy is a plan of action when trading the markets. It is essential to have a strategy that meets your needs and allows you to trade profitably.

Forex Trading Course

A forex trading course can teach you the basics of forex trading and help you develop a trading plan. It is essential to find a course that meets your needs and provides you with the necessary information to trade successfully.

Financial Calendar

It is one of the essential tools for forex traders. This tool allows you to stay up-to-date on upcoming economic events impacting the markets. By knowing when these events occur, you can make more informed trading decisions.

Technical Analysis Tools

In addition, forex traders should make use of technical analysis tools. These tools allow you to analyze price movements and identify potential trading opportunities. There are also technical analysis tools available, so you should be sure to find one that suits your individual needs.

Forex Broker

Another essential tool is a good forex broker. A good broker will provide you with access to quality trading platforms and offer competitive spreads. They should also be reliable and trustworthy, so you can feel confident that your money is safe.

Risk Management Tools

Finally, forex traders should always make use of risk management tools. These tools allow you to control your risk and protect your profits. There are various risk management tools available, so you should find one that fits your trading style.

Time Zone Converter

A time zone converter is a handy tool for forex traders who need to keep track of time differences between different countries. This tool allows you to quickly and easily convert times from one time zone to another. It can be helpful when planning trades.

Currency Correlation Matrix

A currency correlation matrix is a tool that helps forex traders identify relationships between different currencies. It can be helpful when trying to diversify your portfolio or when looking for trading opportunities. By understanding the correlations between different currencies, you can make more informed trading decisions.

Conclusion

It is essential to find the tools that work best for you. Using the right tools can increase your chances of success and trade profitably in the Forex market. I hope this article has been helpful and provided you with some useful information. 

The post <strong>Best Tools For Forex Traders To Use In 2022</strong> appeared first on Open Europe.

No task is easy in this world. Even eating would be a very complicated process if this weren’t involuntary. The most challenging task ever is earning money if you don’t know the right way. 

Similarly, forex trading is the best way to earn money quickly. However, it is a tough process with many complications and hurdles waiting ahead of you. Though there are many complications and challenges in this business, some of them are huge hurdles.

This article will cover all the hurdles that any beginner forex trader might face in his trading career. We also tried to give some tips and tricks to tackle these hurdles. So read carefully and start a successful forex trading business. 

Insufficient Capital

Having an insufficient amount to start a trading account is the most common hurdle most beginner traders face. However, you can open a forex account with low capital, which increases the chances of drawdowns, overleveraging, and over-trading. 

Moreover, with low capital, you might be affected by the fluctuations in the market and end up in a collapse. So, make sure you have enough resources for a  standard capital to put in your live account. 

Also, remember only to invest that much money you can afford to lose. It is because forex trading is a very risky business besides being the most fruitful one. Make sure you have enough resources for yourself to rely on in case you lose the capital. 

Tips To Overcome

The first and primary thing is to start with a demo account while collecting money for handsome capital. The demo account on hand will train you for the live version. While on the other hand will give you some time to add money to make sufficient capital to invest.

Lack of Focus

The next hurdle in forex trading is the lack of focus. Many entrepreneurs find it challenging to focus on trading for a long time. Remember that trading is not a sprint race. It is a marathon where you need to be steady and adhere to your goals to be successful. 

Forex trading is a complex process due to which it needs special attention along with time and dedication. You would need plenty of time to gather data, observe market situations, track your metric, and journal your trading decisions.

Also, sometimes, a huge burden of work can distract you, resulting in losing focus on your goals. 

Tips To Overcome

If you are facing a lack of focus in forex trading, try starting with something simple and small. Slow and steady wins the race. Don’t try to be a hare. Be the tortoise instead to succeed in the long run. 

When you start a strategy, don’t leave it after one or two trades when you start a strategy. Try it for at least 30 trades and then make any necessary adjustments. Remember to pick a plan only when you are sure it would work for you. 

Stuck In Biases

Some people might not agree with me, but it is also a big hurdle in the way of many beginner forex traders. I won’t say that biases would always confuse you while trading. However, sometimes it could be dangerous as it might affect your ability to read the market.

Moreover, wrong biases can result in stepping in the wrong direction and making unsuitable trading decisions. At last, it may wind up you in complete frustration and not able to do anything positive.

There are different types of biases common among forex traders, including recency bias, confirmation bias, and herding bias. Attribution bias and Addiction bias are also seen sometimes.

Tips To Overcome

This is the most technical hurdle faced by many beginner forex traders. The first thing you should do to overcome this hurdle is thinking in terms of probabilities. As the mindset is grown through experience, you will feel improvement after thinking in terms of probabilities.

Another thing you may do is consult books on trading. Look for trading books that cover the ups and downs of the market in the past. Reading about the major market shifts and black swan events can guide you about what to do in the current situation. 

Final Words

This was all about the hurdles you may face in forex trading and their possible anti-dotes. However, it is not necessary that every beginner may face only these hurdles. Some might face one or two of these issues, while others might face even more than these. 

Some other hurdles might include a lack of confidence and confusion about what to trade. Some people also face the problem of committing the same mistakes multiple times. This is due to a lack of focus. 

Do you think that there might be any other hurdle that beginners might face? Or have you experienced any other hurdles in your trading career? The comment section is open for you to share your thoughts. 

The post <strong>Hurdles You May Face In Forex Trading</strong> appeared first on Open Europe.

Is it worthwhile to trade forex in 2022 to profit? What are the benefits and drawbacks of FX trading? To clarify their minds, every newcomer wants to know the answers to these questions before going into forex trading.

If you’ve found your way here, it’s because you’re interested in learning more about the foreign exchange market and online trading. When it comes to forex trading, everyone wants to get the finest trading platforms, the best trading circumstances, and, of course, trade at the best market pricing.

Why do so many people pick forex as a trading platform? The answer is straightforward: they already know the foreign exchange market’s possibilities and have found forex trading appealing. These traders see the internet trading market’s profit potential and take advantage of any opportunities. 

So, why is forex trading worth it in 2022? There are numerous reasons for this, and we will analyze them all; however, before we do so, let us first review the history of the currency market. 

The Forex Market’s History 

The foreign exchange market is the largest and most liquid market globally. Its retail component arose as the Internet grew in popularity. Retail clients were able to trade Forex online using a variety of trading platforms as a result of this. 

In the late 1990s, Forex began accepting retail clients. The first retail online brokers started operating about this time. Before that, the forex market had been in operation for decades, but it only admitted institutional clients.

Retail clients now contribute only 5% of the total forex market trading volume, worth billions of dollars per day. But why is the FX market’s volume so large? Many sizeable global trade corporations, financial institutions, hedge funds, and other foreign organizations require currencies to operate. 

One currency is purchased online in exchange for another, resulting in a reasonably consistent flow of funds for those unaware. In another way, Forex is the world’s largest currency trading market.

Why Is It Worth To Trade Forex In 2022?

For choosing the forex market, different traders have different motives. Without a doubt! The popularity of forex trading is steadily increasing. Now, making money in the currency market is just as easy as in 2021. It is, however, becoming more complex.

Forex trading is a manipulated market with various social and economic factors that might cause market volatility. We want to deliver you the main reasons for the forex market to be the topmost.

1. The Volatility of The Forex Market

Everyone knows that the forex market is highly volatile. It can be rewarding if you have trading skills, good trading psychology, and persistence. Before entering the forex market as a trader, you are required to have a few ideas of how you will be making the decisions to accomplish your trades.

You must understand what details you will need to make a suitable decision on entering or exiting a trade. The more volatile the market is, the more opportunities there are to acquire 

Volatility in the forex market is excellent, and you can regularly see a price move for around 50 to 100 pips for a central currency pair.

2. Probabilities

The simple rule of forex trading is to buy a pair of currencies when the price is low and sell it when the price is high. Let’s suppose that you have 10,000 EUR on your account, and you want to trade with the USD/JPY currency pair.

Without actually purchasing either USD or JPY, you can simply go short on this pair and sell Yen for Dollars, while your actual account balance is in EUR. That is why trading forex is worth it in 2022. Moreover, you can make your asset in the short term by trading on leverage and margins.

3. Social Networks

Every day, social networks grow in popularity, and because Forex is the largest market, it also has the most trading forums and trading networks. The social networks allow you to interact with many Forex traders, making Forex the most social trading market.

Because the retail industry has been growing for about two decades, you may readily locate many specialists, contributors, educators, critics, and other community members in any language.

4. Accessibility In Forex Market

Even though Forex is highly volatile and can profit from a wide range of market movements, it is more accessible than any other online trading market. With as little as $100, you can begin trading Forex online.

What’s even better about the Forex market’s accessibility is that you may quickly open a trading account from your computer or mobile device. Although accessibility has little effect on market quality, it does justify it.

Final Words

The dangers and advantages of forex trading are evident. The currency market has helped some people become millionaires while others lose their fortunes. Because most currency traders lose money, only trade with risk capital that you can afford to lose entirely.

Also, do everything you can to understand how to trade and analyze markets, establish a winning strategy, and develop a sound trading mindset.

The post <strong>Is Forex Trading Worth It In 2022</strong> appeared first on Open Europe.

Have you heard the term swap-free in the forex world a lot but don’t know its meaning? Or do you want to create a swap-free forex account and want to know more about it? If yes then there is no need to take tension at all. 

The forex market is undoubtedly the biggest financial market and a large number of people are earning hefty amounts through forex trading. When it comes to Muslim traders they are quite hesitant to jump into forex trading because of the riba or interest. 

A lot of investors are unaware that now they have the solution in the form of swap-free accounts. So, in this article, we will talk about the swap-free account in detail. Therefore, without any delay let’s get straight into it. 

What Is A Swap-Free Account?

Before understanding the swap-free account it is imperative to comprehend the swap completely. So, swap is defined as the interest or swap that you get for holding your positions open overnight. 

If the currency rate is higher that you are buying as compared to the one that you are vending. So, you will get interest or swap. Contrary, if the value of the currency you are selling is more as compared to the one you are buying. Then you have to pay interest. 

What Is The Purpose Of Swap-Free Accounts?

According to the laws of shariah, interest or swap is prohibited for the Muslims. But in forex trading you give or receive the swap so for Muslim traders it becomes challenging to start forex trading because it is not coherent with the Islamic principles. 

Therefore, in order to assist Muslim forex traders, the brokers have introduced the swap-free account. If you go for them you can do forex trading without involving the swap. 

Do Brokers Offer Swap-Free Accounts? 

You must be thinking that how to open a swap-free account. OR how many options do you have when it comes to swap-free forex trading. Luckily you have an extensive range of options and all of them are providing services different from each other. Hence you can avail the option that is the most suitable for you. 

The top-notch forex brokers that offer swap-free accounts include XM, AvaTrade, eToro, etc. All of them have a great reputation and are trusted by a large number of traders. After analyzing their features you can pick any one of them. 

Is It Good To Go For A Swap-Free Account?

Some traders think that if they go for the swap-free account they may get less offering. Moreover, they also have a false perception that will affect their forex trading and they will not be able to get profit. 

But that’s not true at all. Most of the time you get the same trading conditions, spreads, commission, and minimum deposit. So, stop thinking like that and go for the swap-free account without having any fear.

Can Non-Muslims Go For A Swap-Free Account?

Although the swap-free or Islamic accounts are particularly designed for the convenience of the Muslims. But if you are not a big fan of swap and go for the swap-free account then you are free to go for. So, they are not restricted for the Muslim forex traders rather any trader can opt for this if they want. 

What Is The Process Of Calculating The Swap?

In this section, we are going to describe the calculation of swap. Let me explain to you with the help of an example. Suppose you are purchasing EUR and selling GBP. Let’s assume that the EUR’s interest rate is 4.25% and GBP’s is 3.5%. Therefore, in this case, the differential interest rate is 0.75%. 

If you subtract the differential interest from the commission of the broker and then multiply it with the lot price. After that, you have to divide it by 365, which is the total number of days in the year. 

The answer you get will be the rollover amount. It will either be added or deducted from your account. Bear in mind that the amount varies greatly. Sometimes it may be minor, such as 10$. On the other hand, sometimes it can be as high as 100$. Moreover, its value can be positive or negative. 

What Is The Earning Mechanism Of The Swap-Free Accounts?

Islamic accounts make revenue by foreign exchange. In this way, there is no gambling involved in your trading. Gambling is also not allowed in Isam. So, if you go for the swap-free account you can also get the chance to keep away from it. 

Final Thoughts

Well, that’s all about the swap-free account. We are hopeful that this article will assist you in understanding the swap-free account in a better way. Swap-free accounts are created easily without any difficulty and you can do trading through them. 

So, do market research and check out all the brokers and go for the one that is most suitable for you. If you have any queries feel free to ask in the comments section.

The post <strong>Swap-free Account – All You Need to Know About</strong> appeared first on Open Europe.

Forex trading is considered short-term trading because most positions are held for less than a year. In the foreign exchange market, traders want to improve their skills as soon as possible and wish to write their names on the list of successful traders.

Many traders prefer short-term trading in the forex market due to the market’s high volatility. Because they want to save themselves from paying too much tax, paying tax should be the topmost priority for a successful trader in the forex market. 

This article will discuss the mechanism of paying tax in the forex market. So if you are searching for how forex traders pay taxes in the forex market, you are in the right place to read this article till the end.

Why Do Forex Traders Pay Taxes For Trading?

Tax is an actual compulsory financial charge in a business and trading. Tax regulation and internal parameters mainly depend on the country you live in and the broker you trade with. The IRS will catch you if you don’t file correctly, and you will be very sorry. Pay the tax and be grateful that you live in a country to make money.

How Much Tax Will You Pay In the Forex Market?

The amount of tax you will pay depends on how much income you make overall. Gain from forex will just be added to your tax return and other income sources. For example, in the United States, options traders can take advantage of Section 1256, which treats all contracts as 60 percent long-term gains and 40 percent short-term gains. 

That’s a significant achievement. If you aren’t aware of it, you should consult an accountant ( CPA or EA). First and foremost, there are costs. You can deduct your expenditures from your income when calculating your taxes if you’re a full-time trader who isn’t claiming the Trading Allowance. 

Allowable expenses are whatever you’ve spent entirely, solely, and absolutely on your trading firm. Second, you should think about the size of your trading company. When deciding whether or not you owe tax, you should ask yourself the following questions: How much money do you make in total?

Types In The Forex Market

According to experts, there are two types of trades in the forex or currency market. The Over Counter Trade (OTC) or “spot trade’’ is when the traders buy a short-term contract that closes in a few days. The other type is a commodity future contract, in which a trader can set an agreement that can be completed in a few months.

1. Over the Counter Forex Taxes

Over-the-counter FOREX trading is automatically covered by the Internal Revenue Service under Section 988, which regards FOREX gains as short-term ordinary income and requires investors to pay conventional income tax rates on these profits.

While this tax approach does not allow investors to take advantage of the reduced capital-gains rate, it is a better alternative if they suffer losses from FOREX trading. However, this may be a minor benefit. If you experience net losses through your year-end trading in the category of the spot forex market as a “988 trader,” it is a substantial benefit.

According to the Wall Street Journal, FOREX is a risky investment that can challenge expectations and result in unanticipated losses for traders. The amount of tax to be paid in OTC is 40% of your overall gain in this short-term trade.

2. Taxes On Future Trades In Forex Market

FOREX futures contracts are taxed under IRS Section 1256. This method allows investors to take advantage of the lower capital-gains tax rate on 60% of FOREX profits, while the remaining 40% is taxed as regular income. Section 1256 provides a tax rate of 28 percent. 

FOREX-account is useful for those with the highest income tax bracket of 39.6 percent. However, the amount of losses that a taxpayer can deduct is limited due to this tax approach.

If an investor suffers unanticipated losses in their FOREX account, they may have to wait until the following year to deduct them, resulting in a more significant bill this year. To be eligible for Section 1256 tax treatment, the investor must apply for it before making any trades.

Which Contract Is Better?

Contracts under IRC 988 are less complicated than contracts under IRC 1256. When a trader reports losses, the tax rate remains consistent for both gains and losses, preferable. While 1256 contracts are more complex, they offer a trader with net profits a 12 percent increase in savings. 

Most accounting firms utilize 988 contracts for spot trading, and for futures traders, they use 1256 contracts. That is why, before investing, you should consult with your accountant. You won’t prefer one over the other once you start trading.

The Bottom Line

Whether you want a long-term contract or a short term to file correctly can save you lots of dollars. Traders in the United States can submit their trading earnings under section 988 or section 1258. Forex Traders should declare the overall annual sum when filing their tax returns instead of paying separately.

For traders who frequently lose money or fall into the 10% or 12% tax bracket, Section 988 may be a better option. Section 1258 may be a more enticing alternative for traders who receive consistent payouts and are in the 22 percent tax band or higher.

The post <strong>How Is Forex Taxed? All You Need To Know</strong> appeared first on Open Europe.

No one can deny that Forex trading requires experience and needs to learn from many mistakes and losses. The most common mistakes found in Forex trading are because of “human Errors”.

These common mistakes in trading have mainly come from newbie traders with less or no experience. If you identify these errors, it proves more helpful to become a successful and efficient Forex trader.

However, almost all traders make a few or more mistakes in their initials. These are regardless of understanding the reason behind, and experience can reduce the limited effect on consequences.

In this blog, you will know the common mistakes in Forex trading and control them better. Moreover, one should understand that these errors are vital for learning inflow. 

But the thing which matters a lot is that traders should identify them and try their best to prevent them in future.

Before stepping into the zone of Forex trading, you should think about these most found trading mistakes.

No Layout For Forex Trading

Many traders who step in with no Forex trading plan tend to face countless tragedies. The reason is they do not have any consistency in their layout. All the trading strategies in trade should have pre-planned approaches and guidelines. 

It is the primary thing that helps the trader avoid making illogical and unjustifiable decisions in case of unpropitious movement. So, the solution is the traders first make a plan and trial their strategy on the demo account.

 When you understand it well and become comfortable, apply it to your live trading account.

Over-Leveraging

It means the use of advance cash for open Forex trading posts. Whereas this thing needs few personal loans per trade, there is an increased possibility of dropping. 

When the trader considers leverage, it increases the probability of loss or profit. So, the key to understanding this point is to manage the leverage/margin amount.

In this case, you can also take the help of reliable brokers who will protect you from loss. But avoid those brokers that offer a considerable leverage level like 1000:1. If you are a new trader and inexperienced, you can be at a high-risk level. So, always consider the right Broker.

Deficiency of Time

Trading strategies require enough time to understand and work well. Each approach in Forex trading requires estimated time horizons. When you understand the plan, it will upgrade the approximate time frame for trade.

It is good to know that scalpers prefer to approach minimum or lesser time frames, but on the other hand, traders mainly target more extended time frames.

Slightest Research

If you do not do proper research on Forex trading strategies, it can lead to a considerable loss. In this way, a Forex trader must carry out and use a particular trading strategy by devoting complete research. 

One should learn trade marketing; the more you give time to understand the market, the higher you know. There are precisions between various pairs and their working strategies. So you have to examine these precisions, then trading becomes successful and fruitful for you.

Moreover, don’t listen to baseless advice and avoid any reaction toward the media, do confirm through the analysis of the implemented strategy. But all the information through the media is not useless and baseless, so investigate before taking any step.

Trading Involves Emotions

Any trading which involves emotion is known as emotion-based trading. It often results in unsuccessful trading because of irrational decisions.

In case of losing trade at some point, newbie traders set more positions to reimburse their recent drop. It is true that trading does not require educational background but techniques and experience.

Not Evaluating Trades

If you do not evaluate the trading strategies, it leads to undesirable results. So, it would be best to utilize the trading journal specifically for traders. It helps to recognize the common faults along with better facets. 

Besides, it also increases the understanding of Forex trade marketing strategies for the future.

Selecting The Wrong Broker

Among infinite brokers in the world, it has become quite tricky and complicated to select the best one. Before holding an account with suitable brokers, traders should have stable finance and reasonable regulation. 

All the information is necessary to be on the Broker website if the guideline is not reliable, and they never consider it because safety and privacy are essential.

Final Words

These are the mistakes that many traders make in Forex trading. No one can escape from errors because Forex trading only requires experience and understanding of the trading market. But before these entire mistakes, one should build confidence while stepping in trading. 

The summary of the whole blog is to know well the do’s and don’ts to become successful. Try to learn from previous mistakes and losses, which is the only key to achieving a goal.  

The post <strong>Mistakes To Avoid For Successful Forex Trading In 2022</strong> appeared first on Open Europe.