Forex 500

As long as price stays within the confines of the upward channel or exceed the upper threshold, then the market has a bullish bias.

Top-3 forex bonuses

S; P 500, Dow Jones; Nasdaq 100 Charts – Continuing to Channel Higher, forex 500.

It is when the lower threshold is broken and price starts to buck the trend that the market may be on the cusp of a trend reversal. ---written by paul robinson, market analyst

S&P 500, dow jones & nasdaq 100 charts – continuing to channel higher

U.S. Indices technical highlights:

S&P 500 continues to work its way higher within a channel

Dow jones treading water in record territory

Nasdaq 100 trending within confines of neat upward structure

SPX, dow, NDX continue to look headed higher

The S&P 500 continues to look bullish with price trending higher within the confines of a neat upward channel structure. These patterns can act as excellent guides for shaping a trading bias whether looking to get long/stay long, or get short/stay short.

As long as price stays within the confines of the upward channel or exceed the upper threshold, then the market has a bullish bias. It is when the lower threshold is broken and price starts to buck the trend that the market may be on the cusp of a trend reversal.

How high the SPX can trade is hard to say given it is in record territory. On the downside, should the lower parallel get breached, look for price to potentially drop back towards the march trend-line in the low 3600s.

S&P 500 daily chart (staying with the channel)

The dow jones is trying to hang onto the top portion of its own upward channel. The notable line of resistance from june is helping keep a ceiling in for now. This was noted last week as having potential to act as resistance, and could continue to keep the upside in check in the near-term.

First, a breakout above the most recent record high at 31193 is needed before the upper trend-line can be tested again. On the downside, should a little near-term weakness set in, the lower parallel of the channel will be first viewed as support. If it breaks, then the bias may turn negative towards the march trend-line.

Dow jones daily chart (top-side trend-line acting as resistance)

The nasdaq 100 has a very nice channel structure nearly identical to that of the S&P 500. The story here is the same, stay inside or above the upper parallel and the outlook is for higher prices. Break below the lower parallel and things could turn bearish. Not far below the channel, though, is the march trend-line. This line of support could be quick to put in a floor if tested and held.

Nasdaq 100 daily chart (looking higher for now)

Resources for forex traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment , quarterly trading forecasts , analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex .

---written by paul robinson, market analyst

You can follow paul on twitter at @paulrobinsonfx

Dailyfx provides forex news and technical analysis on the trends that influence the global currency markets.

Trade forex cfds with plus500

Trade the most popular forex pairs like EUR/USD, GBP/USD and EUR/GBP at plus500. Use our advanced trading tools to protect your profits and limit losses.

Trade on 60+ forex pairs with leverage

Trade forex with up to 1:300 leverage. With as little as $100 you can gain the effect of $30,000 capital!

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Use our trading tools such as stop loss, stop limit and guaranteed stop to limit losses and lock in profits. Get FREE real-time forex quotes and set indicators to easily analyse charts.

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Apply for an account in a few minutes, practice trading with our FREE unlimited demo account until you're ready to move to the next level.

Learn more about trading

What is forex?

Popular forex terms you should know

How to trade forex cfds

Basic forex trading strategies and indicators

What events impact forex trading?

Forex trading alerts

Crypto and forex

Why plus500?

Simple & intuitive platform

Authorised and regulated

Negative balance protection

What is forex and how does forex trading work?

Forex trading (also commonly known as foreign exchange, currency or FX trading) is a global market for trading one country’s currency in exchange for another country's currency. It serves as the backbone of international trade and investment: imports and exports of goods and services; financial transactions by governments, economic institutions or individuals; global tourism and travel – all these require the use of capital in the form of swapping one currency for a certain amount of another currency.

When trading forex cfds, you are essentially speculating on the price changes in their exchange rate. For example, in the EUR/USD pair the value of one euro (EUR) is determined in comparison to the US dollar (USD), and in the GBP/JPY pair the value of one british pound sterling (GBP) is quoted against the japanese yen (JPY).

If you think the exchange rate will rise you can open a ‘buy’ position. Conversely, if you think the exchange rate will fall you can open a ‘sell’ position.

To see a full list of currency pairs offered by plus500, click here.

What economic factors may affect forex rates?

Forex rates are impacted by an array of political and economic factors relating to the difference in value of a currency or economic region in comparison to another country's currency, such as the US dollar (USD) versus the offshore chinese yuan (CNH) – these are the currencies of the two largest economies in the world.

Among the factors that might influence forex rates are the terms of trade, political relations and overall economic performance between the two countries or economic regions. This also includes their economic stability (for example GDP growth rate), interest and inflation rates, production of goods and services, and balance of payments.

To learn more, use our economic calendar to find real-time data on a wide range of events and releases that affect the forex market.

How is trading forex different from trading the stock market?

The 4 main differences between trading forex and shares are:

Trading volume – the forex market has a larger trading volume than the stock market.

Instrument diversity – there are thousands of stocks to choose from, as opposed to several dozen currency pairs.

Market volatility – stock prices can fluctuate wildly from one day to the next, and their fluctuations are generally sharper than the ones found in forex markets.

Leverage ratios – the available leverage for forex cfds on the plus500 platform is 1:300, while the leverage for shares cfds is 1:300.

Please note that when trading forex or shares cfds you do not actually own the underlying instrument, but are rather trading on their anticipated price change.

What are the risks involved in forex trading?

Foreign exchange trading has a number of risks that you should be aware of before opening a position. These include:

Risks related to leverage – in volatile market conditions, leveraged trading can result in greater losses (as well as greater capital gains).

Risks related to the issuing country – the political and economic stability of a country can affect its currency strength. In general, currencies from major economies have greater liquidity and generally lower volatility than those of developing countries.

Risks related to interest rates – countries’ interest rate policy has a major effect on their exchange rates. When a country raises or lowers interest rates, its currency will usually rise or fall as a result.

We offer risk management tools that can help you minimise your trading risks.

If you're ready to start trading forex with plus500, click here.

103# system 500 trading system

Submit by joy22 (written by colin atkins)

Getting started

‘ system 500’ allows the user to trade over long periods in a calm manner with no need to rush to get onto a trade. You can take your time analysing the setup and even take a number of hours before making your final decision if you wish. The typical duration of a trade is 2 – 10 days. ‘ system 500’ identifies trends and allows the user to then trade with the trend.

Charts setup

1. Open your charting package

2. Open a currency / forex chart e.G. GBP/USD

4. Remove any indicators you may have on this chart

A. Exponential moving average (EMA) period set to 2 coloured blue

B. Exponential moving average (EMA) period set to 6 coloured black

C. Exponential moving average (EMA) period set to 12 coloured green

D. Exponential moving average (EMA) period set to 34 coloured red

E. Bollinger bands with no change to settings

6. Open an additional chart on the same currency / forex pair

7. Change the chart candle period to daily

8. Duplicate the settings for emas and bollinger band (as in point 5)

9. Open an additional chart on the same currency / forex pair

10. Change the chart candle period to weekly

11. Duplicate the settings for emas and bollinger bands (as in point 5)

12. Save these 3 charts as a template if possible (dependant on your charting package) call the template system 500.

Trading system 500

How ‘system 500’ works

‘ system 500’ works by finding entry points during a confirmed trend. I don’t worry about getting in at the start of a trend or a reversal. We are ‘trend riding’, getting on to the trade when it is already in motion.

This way we can greatly increase our chances of success buy taking advantage of buying or selling momentum that is already ‘in play’. System 500 uses a unique strategy that works!!

These are the 7 currency pairs that we trade.

Buy trades for rising prices – in an UP TREND “going long”

1. Look at the 4 hour chart.

2. Look at the bollinger bands. The price (candle(s) must have broken through (pierced) the lower band.

3. Staying on the 4 hour chart. The blue EMA 2 (exponential moving average) must clearly cross ABOVE the black EMA 6.

Rule: the bollinger band must be pierced ‘AND THEN’ the EMA 2 must cross the EMA

6. This is your trade signal.

4. Now look at the daily chart to confirm that the correct trend direction is in force, in this case upward.

5. On the daily chart: the blue EMA 2 must be ABOVE the black EMA 6. Both emas must be angled upwards and clearly separating (see example below)

6. On the daily chart: both the blue EMA 2 and black EMA 6 must clearly be ABOVE the green

7. If points 5 and 6 are confirmed we consider an UP TREND to be in effect.

Sell trades for falling prices – in a DOWN TREND “going short”

1. Look at the 4 hour chart

2. Look at the bollinger bands. The price (candle(s) must have broken through (pierced) the upper band.

3. Staying on the 4 hour chart. The blue EMA 2 (exponential moving average) must clearly cross

Rule: the bollinger band must be pierced ‘AND THEN’ the EMA 2 must cross the

EMA 6. This is your trade signal.

4. Now look at the daily chart to confirm that the correct trend direction is in force, in this case downward.

5. On the daily chart: the blue EMA 2 must be BELOW the black EMA 6. Both emas must be angled downwards and clearly separating (see example below).

6. On the daily chart: both the blue EMA 2 and black EMA 6 must clearly be BELOW the green

7. If points 5 and 6 are confirmed we consider a DOWN TREND to be in effect.

To capture the biggest moves possible our main reason to exit trades are:

1. The emas crossing

Emas crossing back over on the ‘lower time frame’.

A. A potential exit is reached when the EMA 2 crosses the EMA 6 and they both cross the

B. The confirmation should be found by waiting for a new candle to start. If the emas are

Still crossed the exit should be taken.

2. Stop loss is triggered

A stop loss or trailing stop loss is triggered

A. All trades should be backed up with a stop loss or trailing stop loss.

B. Your stop loss should initially be set to approx 50 – 60 points

C. When the trade is fully under way you can adjust your stop loss to either

I. 20 points beyond the EMA 12

Ii. 10 points beyond the EMA 34

Iii. Your decision of which to choose will be lead by previous price action. To find

Out what this means look back through your chart and see if the price tends to

Move back to the EMA 12 level or as far as the EMA 34.

As your trade moves into profit you should move your ‘stop loss’ in the same direction behind it and keep doing this to lock in your profits. To determine how far behind you should keep your ‘ stop loss’ take a look at previous price action. You need to give the market enough room to breath. Measure how big the previous price swings have been. Quite often you will see that the

The minimum capital required to start day trading forex

Martin child / getty images

It's easy to start day trading currencies because the foreign exchange (forex) market is one of the most accessible financial markets. Some forex brokers require a minimum initial deposit of only $50 to open an account and some accounts can be opened with an initial deposit of $0.

And unlike the stock market, for which the securities and exchange commission requires day traders to maintain an account with $25,000 in assets, there is no legal minimum amount required for forex trading.

But just because you could start with as little as $50 doesn't mean that's the amount you should start with. You may want to consider some scenarios involving the potential risks and rewards of various investment amounts before determining how much money to put in your forex trading account.

Risk management

Day traders shouldn't risk more than 1% of their forex account on a single trade. You should make that a hard and fast rule. That means, if your account contains $1,000, then the most you'll want to risk on a trade is $10. If your account contains $10,000, you shouldn't risk more than $100 per trade.

Even great traders have strings of losses; if you keep the risk on each trade small, a losing streak can't significantly deplete your capital. Risk is determined by the difference between your entry price and the price at which your stop-loss order goes into effect, multiplied by the position size and the pip value.

Pip values and trading lots

The forex market moves in pips. Let's say the euro-U.S. Dollar (EUR/USD) currency pair is priced at 1.3025. That means the value of one euro, the first currency in the pair, which is known as the base currency, is $1.3025.

For most currency pairs, a pip is 0.0001, which is equivalent to 1/100th of a percent. If the EUR/USD price changes to 1.3026, that's a one pip move. If it changes to 1.3125, that's a 100 pip move. An exception to the pip value "rule" is made for the japanese yen. A pip for currency pairs in which is the yen is the second currency—called the quote currency—is 0.01, which is equivalent to 1 percent.

Forex pairs trade in units of 1,000, 10,000 or 100,000, called micro, mini, and standard lots.

When USD is listed second in the pair, as in EUR/USD or AUD/USD (australian dollar-U.S. Dollar), and your account is funded with U.S. Dollars, the value of the pip per type of lot is fixed. If you hold a micro lot of 1,000 units, each pip movement is worth $0.10. If you hold a mini lot of 10,000, then each pip move is $1. if you hold a standard lot of 100,000, then each pip move is $10. Pip values can vary by price and pair, so knowing the pip value of the pair you're trading is critical in determining position size and risk.

Stop-loss orders

When trading currencies, it's important to enter a stop-loss order in case the value of the base currency goes in the opposite direction of your bet. A simple stop-loss order would be 10 pips below the current price when you expect the price to rise or 10 pips above the current price when you expect the price to fall.

Capital scenarios

$100 in the account

Assume you open an account for $100. You will want to limit your risk on each trade to $1 (1% of $100).

If you place a trade in EUR/USD, buying or selling one micro lot, your stop-loss order must be within 10 pips of your entry price. Since each pip is worth $0.10, if your stop loss were 11 pips away, your risk would be $1.10 (11 x $0.10), which is more risk than you want.

You can see how opening an account with only $100 severely limits how you can trade. Also, if you are risking a very small dollar amount on each trade, by extension you're going to be making only small gains when you bet correctly. To make bigger gains—and possibly derive a reasonable amount of income from your trading activity—you will require more capital.

$500 in the account

Now assume you open an account with $500. You can risk up to $5 per trade and buy multiple lots. For example, you can set a stop loss 10 pips away from your entry price and buy five micro lots and still be within your risk limit (because 10 pips x $0.10 x 5 micro lots = $5 at risk).

Or if you choose to place a stop loss 25 pips away from the entry price, you can buy two micro lots to keep the risk on the trade below 1% of the account. You would buy only two micro lots because 25 pips x $0.10 x 2 micro lots = $5.

Starting with $500 will provide greater trading flexibility and produce more daily income than starting with $100. But most day traders will still be able to make only $5 to $15 per day off this amount with any regularity.

$5,000 in the account

If you start with $5,000, you have even more flexibility and can trade mini lots as well as micro lots. If you buy the EUR/USD at 1.3025 and place a stop loss at 1.3017 (eight pips of risk), you could buy 6 mini lots and 2 micro lots.

Your maximum risk is $50 (1% of $5,000), and you can trade in mini lots because each pip is worth $1 and you've chosen an 8 pip stop-loss. Divide the risk ($50) by (8 pips x $1) to get 6.25 for the number of mini lots you could buy without exceeding your risk. You would break up 6.25 mini lots into 6 mini lots (6 x $1 x 8 pips = $48) and 2 micro lots (2 x $0.10 x 8 pips = $1.60), which puts a total of only $49.60 at risk.

With this amount of capital and the ability to risk $50 on each trade, the income potential moves up, and traders can potentially make $50 to $150 a day, or more, depending on their forex strategy.

Recommended capital

Starting out with at least $500 gives you flexibility in how you can trade that an account with only $100 in it does not have. Starting with $5,000 or more is even better because it can help you produce a reasonable amount of income that will compensate you for the time you're spending on trading.

Leverage 1:500 forex brokers

If you want to be a successful online trader, then you have to understand the global markets and know the basics of trading. One of the first things every beginner needs to learn about is leverage – what this is and how it can be used to maximize profits. Furthermore, forex brokers offer leverage ranging from 1:5 to 1:1000 or even more sometimes and traders need to decide what leverage is suitable for them.

Leverage is an extremely important part of every successful trading strategy. In forex, investors apply it to increase the potential profits from fluctuations in exchange rates between any two currencies. It represents something like a loan, a line of credit brokers extend to their clients for trading on the foreign exchange market. If brokers offer 1:500 leverage, this means that for every $1 of their capital, traders receive $500 to trade with.

Best forex brokers for united states

The first thing they need to do is to open an account with a trustworthy brokerage firm and then choose the level of leverage they want to use. Retail traders should always keep in mind that with higher leverage, higher wins/losses will be generated. This is why they need to carefully adjust their strategy and apply some risk management techniques. Trading with 1:500 leverage is recommended only for those who have some experience in the foreign exchange market. Novices should be warned that if they try to apply it, they are likely to lose their entire account balance – probably in a matter of seconds.

What is financial leverage?

Before looking into leveraged trading products such as cfds or forex pairs, we need to better understand how leverage works and how it is applied. There are various forms of leverage that could arise in different situations but in general, it is the use of borrowed funds (rather than one’s own money) in the purchase of an asset. The idea is that the future profits of this investment will be much higher than the borrowing cost.

Financial leverage could be used by firms, banks, and individuals and although the specifics may differ significantly, the basics are pretty much the same. Investment funds, for instance, may leverage their assets by funding a portion of their portfolios with fresh capital resulting from the sale of other assets. Businesses may also leverage their investments by borrowing funds so they can use less equity (their own capital). Another example is purchasing a home and financing a portion of the price with mortgage debt.

Let’s assume for instance that we buy a property for $100,000 with the intention to sell it for double the purchase price. We use 50% equity and 50% debt and within a few months, we manage to sell our asset for $200,000. We will repay the bank only the nominal value of the debt plus some interest, of course, which will leave us with around $150,000 (before the borrowing costs). This means that we have managed to leverage our initial capital and have increased our wealth by 200%.

How does leverage work in forex?

Once we have described the basic concept of using leverage, we should be able to apply it in currency trading, as well. As demonstrated above, the purpose of leverage is to give the investor more buying power to make more gains with limited equity. The same applies to forex trading, as well. Brokers offer their clients leverage so that they can generate higher profits with only a portion of the transaction value.

But how exactly does leverage work in forex trading? It is shown as multiple of the trader’s equity – it could be 10, 50, or 200 times the client’s own funds. Most brokers display it as the ratio of the trader’s money to the funds borrowed from the firm or vice versa – 500:1 or 1:500. These two refer to the same thing – the broker allows the trader to open a position worth 500 times his capital. If we deposit $1,000, for instance, and use 1:500 leverage, we will be able to trade volumes at a value of $500,000.

However, there are several additional things forex traders should be aware of when using leverage. One of them is the margin requirement set by the broker.

Margin

In order to provide leverage to their clients, forex brokers require a certain amount of funds to be deposited in the trading account as collateral to cover the risk associated with taking leverage. This deposit is called margin and leveraged trading is sometimes referred to as trading on margin. Each broker has a different margin requirement, based on the type of account (standard, mini, professional, etc.), the funds deposited by the trader, and the type of financial instrument that will be traded.

The initial margin requirement is usually displayed as a percentage of the total transaction value and it could be 0.5%, 1%, 2%, etc. There are various formulas for margin and leverage that could clearly show how these two fundamental concepts are linked. For instance, we can calculate the margin by dividing the value of the transaction by the leverage. If we use the same example from above and have $1,000 as balance in our account, the broker offers us quite high leverage of 1:500 (or 500:1 more precisely).

We want to buy 1 standard lot of the EUR/USD pair on a USD-denominated account. To get the margin for this specific position, we need the value of the transaction, which is €100,000, and the leverage, which is 500 (500:1). When we divide €100,000 by 500, we get €200, which is 0.2% of the transaction value. This means that while our position is open, our balance may remain $1,000 but our equity will be less – €200×1.10 (the EUR/USD exchange rate)= $219,52. This is the margin that needs to remain “locked” as collateral so our equity will be $780.48.

Leverage and expected returns

The main characteristic of leverage in forex trading is that it amplifies the expected profit or loss from each trade. This means that traders can earn a lot more from a successful transaction with leverage than they would if they invested only their own equity. If we take the 1:500 level, each $1 profit from regular, non-leveraged trading would translate to $500. To better illustrate the effect of leverage on the expected returns, let’s use the same example from above.

We are holding a long position on 1 standard EUR/USD lot (€100,000), which we have purchased at a rate of $1.10. Usually, the price for this major currency pair does not move by more than 100 pips per day (1 pip is one-hundredth of one percent or in this case, the fourth decimal place in the bid-ask price). Let’s say the euro increases in value relative to the US dollar and the movement is only 45 pips. This means that when we sell and close the position, €1 will be equal to $1.1045.

This does not sound like a lot – it is a movement of only a fraction of a cent. However, our profit will be €100,000 x (1.1045 – 1.10) or $450. Note that we have kept this position open only for a few hours and the price movement was very slight. With a minimum required margin of only $219,52, we have made a profit of $450. In other words, we have doubled our equity.

Is 1:500 suitable for you?

When determining what leverage to use, traders should take several important things into consideration. First of all, they should keep in mind that 1:500 or 500:1 is an extremely high level of leverage in trading and it is not allowed in many jurisdictions due to the high risk for losing one’s capital. This includes major forex markets such as the US, japan, and the european union where brokers are required to restrict the leverage offered to retail clients. In the EU, for instance, traders can get maximum leverage of 1:30 for major currency pairs.

The high risk of excessive leverage also means that traders should be skilled and have sufficient experience in the foreign exchange market before taking 1:500 leverage. Another thing they should consider is the strategy they are about to apply and their overall trading style. More importantly, it is essential to determine all conditions of the trade before opening a position and this involves its duration. Usually, traders who open and close positions within a few hours would prefer using higher leverage – 1:100 and higher.

This way they can squeeze the highest possible profits out of short-term transactions. Such high leverage – around 1:500, is particularly popular among so-called scalpers. Scalping is quite an interesting strategy in forex trading where positions are kept open only for a few minutes or even seconds.

Advantages of 1:500 leverage

Until a few years ago, the forex market became extremely popular among retail traders and one of the reasons for this was the opportunity to get high leverage and make the most of your limited capital. Nowadays, you would not find many brokers offering 1:500 leverage due to regulatory changes aiming at creating a more secure and sustainable trading environment. Although such high levels of leverage may seem too extreme to some traders, they do provide us with the chance to increase our potential profits by multiple times – by 500 times compared to any profits we could generate without leverage, to be precise.

Of course, traders should know that although leverage works as borrowed capital, i.E. As a line of credit as some would say, it has no additional cost. Traders do not have to pay interest on the leverage they get. There is no need to repay any debt or pay for anything else – the only cost for the transaction will be clearly displayed by the broker beforehand.

Last, but not least, traders should understand that in most cases, leveraged trading is the only way for them to access the foreign exchange market. Typically, transaction volumes here are within the six and seven-figure rate and only a handful of retail traders could afford to open trades with their own equity. When using leverage, however, everyone can trade against leading banks, hedge funds, and other institutional traders.

Risks of using 1:500 leverage

Leveraged trading is always linked with great opportunities for profits and high risks. While leverage is used with the purpose to magnify the profit from a trade, it may also magnify the negative outcomes from unsuccessful trading – i.E. The financial losses. This is one of the most underestimated dangers to beginner traders – they would get 1:500 leverage tempted by the attractive promise for huge profits but without a solid, reliable strategy and good knowledge of the market, they risk losing all their capital within days or even hours.

To avoid losses, they should first learn how to apply leverage and determine how much leverage would be suitable to them. In addition, they should apply different risk management techniques and tools – many of these are readily available once you open a retail client account with an online forex broker. Great risk and management tools are stop losses, for example, but to be effective, they need to be placed correctly by the trader.

Best high leverage forex brokers

Dan schmidt

Contributor, benzinga

Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.Com

Currency traders have a few advantages over traders of other types of securities. The market stays open 24 hours a day during the work week and the best forex broker commissions are often a fraction of what online stock brokers charge. But the biggest edge is margin requirements and leverage. You don’t need a big infusion of capital to begin a career as a forex trader, just the right tools and the right broker.

Best high leverage forex brokers:

Best overall: FOREX.Com – open an account

HYCM

Avatrade

IC markets

Pepperstone

Best for

Overall rating

Best for

1 minute review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.

Best for

New forex traders who are still learning the ropes

Traders who prefer a simple, clean interface

Forex traders who trade primarily on a tablet

Easy-to-navigate platform is easy for beginners to master

Mobile and tablet platforms offer full functionality of the desktop version

Margin rates are easy to understand and affordable

Access to over 80 currency pairs

U.S. Traders can currently only trade forex

Customer service options are lacking

No 2-factor authentication on mobile

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

FOREX.Com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.Com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.Com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.Com is impressive, remember that it isn’t a standard broker.

Best for

Impressive, easy-to-navigate platform

Wide range of education and research tools

Access to over 80 currencies to buy and sell

Leverage available up to 50:1

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

Though australian and british traders might know etoro for its easy stock and mobile trading, the broker is now expanding into the united states with cryptocurrency trading. U.S. Traders can begin buying and selling both major cryptocurrencies (like bitcoin and ethereum) as well as smaller names (like tron coin and stellar lumens).

Etoro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though etoro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best for

International forex/CFD traders

New cryptocurrency traders looking for an easy-to-use platform

Traders who want to buy and sell cryptocurrencies on-the-go

Simple platform that is easy to master

Copytrader feature that allows new traders to copy the same strategies used by professionals

Virtual dummy account that gives you $100,000 to practice trades

U.S. Traders currently limited to cryptocurrencies

Only 15 major coins available to trade

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the united states, it can be a great choice for residents of the other 140 countries where it offers service.

Best for

Investors who want a customizable fee schedule

Traders comfortable using the metatrader platform

Islamic traders who need swap-free accounts that don’t build interest

Wide range of currency pairs available

Excellent selection of educational tools

$0 deposit and withdrawal fees

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

A fully regulated broker with a presence in europe, south africa, the middle east, british virgin islands, australia and japan, avatrade deals with mainly forex and cfds on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in dublin, ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best for

Beginners

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Choice offered in terms of trading platforms

Support available in 14 languages and trading platforms in 20 languages

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Breadth of trading assets

Does not accept customers from the U.S. As it isn’t regulated in the U.S.

Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

What’s leverage and margin in forex trading?

Traditional stock brokers in the united states often offer margin trading to their clients. The broker will lend money to the client for additional stock purchases and then make money in interest when the loan is repaid. Margin rates vary, but most online brokers charge clients between 5% and 9% to borrow money, depending on the amount. Why would clients want to borrow money for the stock market from their brokers?

They want to crank up the leverage on trades.

Leverage refers to how much borrowed money is involved in a trade. In most stock brokerages, investors can get 2:1 leverage, which means they need $50 in their account to trade $100 in capital. Obviously, leverage adds risk to any trade. Since you don’t just lose your capital if it goes bad, you owe your broker money.

Excessive leverage has killed many financial firms, including lehman brothers and long term capital management. But when it’s used properly, you can generate tremendous profits with little upfront capital.

In forex trading, leverage can often be as high as 500:1. Since currencies move incrementally compared to stocks, using leverage doesn’t carry the same risks. When trades are measured in fractions of a penny, 500:1 leverage doesn’t seem excessive. Forex brokers use margin requirements to determine how much leverage currency traders can use per trade. This is expressed as a percentage, such as USD/EUR trades that require a 2% margin.

United states limitations

Forex trading is subject to stricter regulations in the united states than most countries in the world. Europe and australia have no aversion to leverage as high as 500:1, but U.S. Law limits forex brokers to 50:1 leverage.

Additionally, many forex brokers offer contracts for difference (cfds) on indices, bonds, commodities and even cryptocurrencies. These products are highly speculative and banned entirely in the U.S., which means metatrader 5 has practically no uptake.

What to look for in A high leverage forex broker

Choosing a forex broker depends not only on your trading preferences but also the country you live in. United states forex traders won’t be able to use the highest available leverage or use popular trading programs like metatrader 5. When you pick a broker, here are a few things to pay attention to:

Margin requirements: in the united states, margin requirements are limited to 2% (50:1 leverage). Internationally, you can lever trades up to 500:1 on most major currencies. You don’t need to use high leverage on all trades, but make sure to pick a broker with limits that work for you.

Commissions and fees: forex brokers make money in two ways: from commissions or from the spread. Many brokers have spread-only and commission accounts available, and commission accounts get reduced spreads. Brokers have fee charts on their websites. Make sure you understand all charges before you open an account.

Support for trading software: many forex brokers have their own proprietary trading software, but also offer popular platforms like metatrader 4 and ctrader. If you like to trade using metatrader 4, make sure the broker you choose supports it!

Account and trade minimums: capital required to open an account varies by the broker, as does the amount needed to complete a trade. Some brokers may have no account minimum, but all will have trade minimums.

The best high leverage forex brokers

Using the above criteria, benzinga has identified the best high leverage forex brokers on the market today. High leverage in the united states is limited to 50:1, but for international brokers to qualify, they must offer 500:1 leverage for at least a few major pairs.

S&P 500, dow jones & nasdaq 100 charts – continuing to channel higher

U.S. Indices technical highlights:

S&P 500 continues to work its way higher within a channel

Dow jones treading water in record territory

Nasdaq 100 trending within confines of neat upward structure

SPX, dow, NDX continue to look headed higher

S&P 500 daily chart (staying with the channel)

Dow jones daily chart (top-side trend-line acting as resistance)

Nasdaq 100 daily chart (looking higher for now)

Resources for forex traders

---written by paul robinson, market analyst

You can follow paul on twitter at @paulrobinsonfx

Dailyfx provides forex news and technical analysis on the trends that influence the global currency markets.

How to trade S&P 500 index: strategies, tips & trading hours

The S&P 500 (standard & poor’s 500) is a market capitalization-weighted index that represents the general level of strength of the U.S. Economy and is used as a leading indicator for business cycles. It is also known as the SPX or just S&P. This article will touch on strategies and tips for how to trade the S&P 500.

Why trade the S&P 500?

Whether you are a short-term or long-term trader, trading the S&P 500 gives you a diversified exposure to the U.S. Market.

Other reasons to trade the S&P 500 include:

Clear technical chart patterns which give you distinct entry and exit signals.

Tight spreads generally offer inexpensive costs to enter and exit a trade.

The S&P is widely covered by analysts who conduct comprehensive technical and fundamental analysis.

The SPX trades almost 24/5 allowing you more flexibility.

How to trade S&P 500: the importance of a strategy

A strategy is of utmost importance when it comes to SPX trading. Professional traders have a set of guidelines and principles that they follow to be successful.

The importance of a trading strategy:

An effective trading strategy helps to discount market noise, enabling traders to focus in on their entry and exit signals.

A strategy provides traders with predetermined levels of entry, exit and trade size. Professional traders know what they are risking and what they could gain before entering a trade.

Strategies tame your emotions. They allow you to be more structured with your trading with regards to leverage, risk management and realistic entry and exit points.

The S&P trades almost 24/5. Professional traders like to trade the S&P 500 during its main market hours because it is more liquid, and they can get tighter spreads. The main market is between 9:30am and 4:00pm eastern time.

A possible next step to trading the S&P 500 index would be to formulate a strategy based on fundamental analysis, technical analysis, or a combination of both.

Using fundamental and technical analysis to trade S&P 500

Traders generally use either fundamentals like economic data (which you can find on an economic calendar ) or technical indicators . Read our guide to combining technical and fundamental analysis for expert insight.

Fundamentals behind the S&P 500

General economic data can move the S&P, as can employment, CPI, interest rates, and GDP. This data can signal whether the federal reserve bank must increase the interest rate to combat inflation due to an overheating economy. These higher interest rates lead to higher yields on government bonds which cause investors to move from equities to bonds for the higher return and for the decreased risk on their capital.

The move from equities to bonds could cause a decrease in the price of the S&P due to the increased selling pressure. It is important to consider these fundamentals when formulating your strategy because the underlying trend is based on the general well-being of the U.S. Economy. The dailyfx economic calendar displays the economic events from the US economy.

SPX trading using technical indicators

An S&P 500 trading strategy could use a combination of price action, oscillators, support and resistance levels, trend channels, ichimoku, moving averages and triangle price patterns to name a few. The graph below shows the S&P futures with support and resistance levels and a trend channel. These are just a few of the many indicators you can use in your strategy.

Traders increase the probability of their trades by looking for buy-signals that are in line with the current market trend. For example, if the S&P has been trending upwards traders will look to buy at support levels (the green line in the chart below) and likewise if the market has been trending downwards they will look to sell at resistance levels (red line).

Traders will also fine tune entries using common technical tools like the relative strength index. The chart above shows an hourly S&P 500 chart with an RSI (relative strength index) buy signal at the green circle. When the RSI dips below a level of 30 it signals that the market may be oversold. Traders can use this information as a possible buy signal if they determined the larger trend to be up . Traders can likewise use the RSI as a sell signal when the RSI breaches 70 in a larger downtrend .

Common technical indicators used for technical analysis include:

Relative strength index (RSI )

Moving average convergence divergence (MACD )

Stochastic oscillator(stoch) - how to trade with stochastic oscillator

Head and shoulders

Bull/bear flags

Triangles

It is important for traders to understand both technical indicators and the fundamentals when trading the SPX. When traders understand both, they can decide what to use in their strategy. If you haven’t got a trading strategy yet, or want to work on your current one see our series on how to build a strategy .

Different traders will have different holding periods. It is important to identify a trading style that fits your personality.

Scalping/day trading - traders attempt to take advantage of very small price moves on very short time frames using price action . Day traders are attracted to the S&P due to the high liquidity, tight spreads and 24/5 trading hours.

Intra-day - traders will look for short-term trades that do not last longer than a couple of days using technical analysis, mainly, but also possibly fundamental analysis or trading news events. Intra-day traders are drawn to the SP500 due to its clear technical patterns or daily momentum moves that the market is known to create.

Swing trading - traders will look for medium-term moves; days to weeks and possibly even months. Swing traders trade based on technical analysis and fundamental analysis. Swing traders prefer a fewer number of trades but generally choose higher risk-reward ratio trades.

Each quarter, read dailyfx’s forecast for equities so you can see fundamental and technical analysis in action.

S&P 500 trading: top tips

Decide on stop-loss and take-profit levels before entering a trade. Use a positive risk to reward ratio on your trades.

Manage your risk and limit your exposure. We suggest limiting exposure to less than 5% on all open trades. Find out more on how to determine appropriate leverage . .

Always use a stop-loss!

Do not revenge trade or take trades because you are bored.

Economic data can create volatility in the market; be aware of when high-impact economic data is being released.

Journal your trades. Log all the trades you take in a trading journal with the reason you took your trade, your risk-reward metric, and how confident you felt before you took the trade.

Review your trading journal every week to assess which trades were successful or not- and why. Once you know why you were right or wrong you can evolve your strategy accordingly.

Happy trading and good luck!

Dailyfx provides forex news and technical analysis on the trends that influence the global currency markets.

US SP 500 US SP 500

Latest research

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Bad data, possibility of canceling olympics pushing USD/JPY higher. Can it continue into fiscal year-end?

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Pivot points

Distance

Distance shows the difference between the pivot point and bid rate. It is calculated by subtracting the ask rate from the pivot point rate.

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Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Contracts for difference (cfds) are not available to US residents.

FOREX.Com is a trading name of GAIN global markets inc. Which is authorized and regulated by the cayman islands monetary authority under the securities investment business law of the cayman islands (as revised) with license number 25033.

FOREX.Com may, from time to time, offer payment processing services with respect to card deposits through its affiliate, GAIN capital UK ltd, devon house, 58 st katharine’s way, london, E1W 1JP, united kingdom.

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Trade forex cfds with plus500

Trade the most popular forex pairs like EUR/USD, GBP/USD and EUR/GBP at plus500. Use our advanced trading tools to protect your profits and limit losses.

Plus500uk ltd is authorised and regulated by the financial conduct authority (FRN 509909)
based in london

Trade on 60+ forex pairs with leverage

Trade forex with up to 1:30 leverage. With as little as £100 you can gain the effect of £3,000 capital!

Advanced trading tools

Use our trading tools such as stop loss, stop limit and guaranteed stop to limit losses and lock in profits. Get FREE real-time forex quotes and set indicators to easily analyse charts.

Easy account opening

Apply for an account in a few minutes, practice trading with our FREE unlimited demo account until you're ready to move to the next level.

Learn more about trading

What is forex?

Popular forex terms you should know

How to trade forex cfds

Basic forex trading strategies and indicators

What events impact forex trading?

Forex trading alerts

Crypto and forex

Why plus500?

Simple & intuitive platform

Authorised and regulated

What is forex and how does forex trading work?

If you think the exchange rate will rise you can open a ‘buy’ position. Conversely, if you think the exchange rate will fall you can open a ‘sell’ position.

To see a full list of currency pairs offered by plus500, click here.

What economic factors may affect forex rates?

To learn more, use our economic calendar to find real-time data on a wide range of events and releases that affect the forex market.

How is trading forex different from trading the stock market?

The 4 main differences between trading forex and shares are:

Trading volume – the forex market has a larger trading volume than the stock market.

Instrument diversity – there are thousands of stocks to choose from, as opposed to several dozen currency pairs.

Market volatility – stock prices can fluctuate wildly from one day to the next, and their fluctuations are generally sharper than the ones found in forex markets.

Leverage ratios – the available leverage for forex cfds on the plus500 platform is 1:30, while the leverage for shares cfds is 1:5.

Please note that when trading forex or shares cfds you do not actually own the underlying instrument, but are rather trading on their anticipated price change.

What are the risks involved in forex trading?

Foreign exchange trading has a number of risks that you should be aware of before opening a position. These include:

Risks related to leverage – in volatile market conditions, leveraged trading can result in greater losses (as well as greater capital gains).

Risks related to the issuing country – the political and economic stability of a country can affect its currency strength. In general, currencies from major economies have greater liquidity and generally lower volatility than those of developing countries.

Risks related to interest rates – countries’ interest rate policy has a major effect on their exchange rates. When a country raises or lowers interest rates, its currency will usually rise or fall as a result.

We offer risk management tools that can help you minimise your trading risks.

If you're ready to start trading forex with plus500, click here.

Need help?

Cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money.

Plus500 is mainly compensated for its services through the bid/ask spread. Check our fees & charges

Plus500 is a trademark of plus500 ltd. Plus500 ltd operates through the following subsidiaries:
plus500uk ltd is authorised and regulated by the financial conduct authority (FRN 509909). Cryptocurrency cfds are not available to retail clients. Office address: plus500uk ltd, 8 angel court, copthall avenue | london EC2R 7HJ.
Plus500cy ltd is authorised and regulated by the cyprus securities and exchange commission (licence no. 250/14). Cryptocurrency cfds are not available to UK retail clients.
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