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Forex FAQ: Are Stop Orders Blocked in Forex Trading?

The following blog post is a response to a question I received from a rapid forex blog reader. This is a question that many forex traders would be curious about, so I’m sharing it as part of the Forex FAQ feature of the rapid forex blog!

Here’s the message I received:

“Hi Brian:

I’ve traded futures but not forex and would like to do some forex trading. I understand that the rules have changed for forex recently and that stop orders can no longer be accepted by forex brokers. If that is correct, how can a small trader like myself protect a trading position without using stops?

Thanks,
George”

That’s a great question.  I think you’re referring to the US forex regulations that kicked in last year. I’ve had no problems using stop orders in my forex trading account, but I thought I would also ask my top two favorite Forex Brokers just to make sure using stops is still possible with the most popular brokers.

I asked FXCM about placing stop orders on their platform and their response is below:

Brian Campbell: I understand that the rules have changed for forex recently and that stop orders can no longer be accepted by forex brokers. Is that correct?

FXCM’s Response: yes, you can trade using stops

Brian Campbell: Has there been any news regarding stops changing in the forex?

FXCM’s Response: yes there has been, the major change that US regulators facilitated is now that all trades must be FIFO compliant.  FIFO stands for first in first out, meaning, if you have a few trades in 1 instrument then you can only choose to close the position that you opened first. That is why no stops on individual tickets are allowed, but you can put a stop on a whole currency pair and then if you have more then on 1 trade on it, the trade opened first will be closed first with that stop.

Alternatively, you can open a FXCM UK account in dollars, where the stop functionality has not changed.

I also asked ACM for their policy on placing stop orders for online forex trading. And got the following:

Brian Campbell: I understand that the rules have changed for forex recently and that stop orders can no longer be accepted by forex brokers. Is that correct?

ACM’s Response: Maybe this rules applicable with some brokers but not in ACM, you still can use stop loss orders – even for US clients.

Brian Campbell: Do you offer the option to open an account in the UK like fxcm does?

ACM’s Response: No, we don’t as we are Swiss based broker. As we are a FINMA member, we don’t need to have a rep offices somewhere else to go around the lows. we have enough license to offer the best for our traders and thats what we do with ACM, you will have the option for short selling, leverage and orders in addition to tax free trading in Geneva.

For my current top 3 brokers (I’m currently testing out eToro), you’re able to place stop & limit orders. If you’re interested in researching other forex brokers, just ask them if you can place stop orders before you create an account with them.

Posted in Forex FAQ

Get a Job Trading Forex Online

The economy is getting worse. Unemployment rates continue to increase in the US and in many countries worldwide.  Many people are being pushed into a corner financially.

What can you do?

Get a job trading Forex online!

Here are 5 sweet benefits of online forex trading:

1. FOREX trading online doesn’t require a good economy (in fact a rapidly dropping economy is a good thing as you can benefit financially from it).
2. Immunity from unemployment – you can’t be fired when you understand how trading forex online works.
3. Pay for performance - instead of being pigeon-holed into a fixed salary with only the hope of a small 0%-3% annual raise, you can give yourself a pay raise every time you attain a higher forex trading skill level. This can also be a double edged sword as you can make less money. The truth is that nothing is guaranteed in today’s economy and there is no  real way to play it safe.
4. Create Your Own Hours – with forex trading online, you can work any hours you choose Monday through Friday. For these 5 days a week, forex trading online is happening 24 HOURS A DAY!
5. No Commuting – when you get a job trading forex online, you will be able to work from home and avoid the hassles of rush hour traffic and the expense of filling your gas tank. Your commute will become a 5 second task as you walk into your forex trading room.

How You Can Get a Job Trading Forex Online

To get a job trading forex online, you will need to become self-employed.  Forex trading is a skill that can easily be learned online. The best place to start learning how to become an independent forex trader is to get the free Forex Sailing Course at rapidforex.com.  The free eCourse contains some of the best forex information online (in my humble opinion), and will direct you to all of the tools and resources you need to become successful at online forex trading.

No Experience Required

If you want to learn forex trading, it’s a skill that can be learned. To do this will require you to study and practice. You can practice in a demo account with “fake money.”  Online Forex brokers provide demo accounts for free so you can get used to their trading platform.

Need to pick a great forex broker? Here are 5 Tips for Picking the Best Online Forex Broker.

Learn Forex Trading Online from Scratch

To master forex trading online, you’ll need to study forex trading from an expert trader using an easy to follow system that’s worked consistently for many years.  The best way to learn a skill is to have someone who is successful teach you. Check out the Hedge Report today to learn how to trade in under 10 minutes a day.

Posted in News

5 Tips for Picking the Best Online Forex Broker

You just discovered online forex trading and you want to get started trading forex with the best online forex broker.  Where do you turn when there are so many different brokers offering seemingly different offers?  In this post  I’ll help you pick the best online forex broker for your needs.

There are five main things to consider when picking online forex brokers:

1. Do you like their forex charts? They all have free charting software included, but each broker’s forex charts will be different.  You can usually try the forex chart software for free in a demo (practice) account.
2. Do you like their platform? You should be able to easily navigate any online forex broker’s platform. Placing market, limit and stop orders should be easy for you to understand and do. You can practice this in a forex demo account.
3. How much to open an account? The minimum will vary according to the forex broker. This could be as low as $25, or several thousand depending on the online forex brokers you look at.
4. What’s the spread? The spread is the difference between the bid & ask price. Tighter spreads (smaller numbers) means more money for you. Most brokers will be fairly competitive.
5. Are they legit? Although legitimate new forex brokers emerge online from time to time, avoid brokers that are brand new, don’t have a professional website, don’t have a decent alexa rating (should be under 200,000).  Alexa Tip: search for a website and you’ll see it’s alexa rating. If they aren’t in the top 200,000 worldwide, they are too new or too rinky-dink for you to mess with them.

So how do you pick the best forex brokers online?

Option #1 (laborous, full due dilligence): If you want to go through lists of online forex brokers to make sure you’re getting the best deal, you can check out forex-ratings.com for comparisons of online forex brokers.  They’ve got a list 49 top online forex brokers along with ratings. I don’t fully agree with the ratings personally, but it is a good list to examine if you’re looking to do some research.

Option #2 (easy, follow my picks): Over the past 10 years, I’ve seen plenty of online forex brokers come and go. Here are my top five picks for the best online forex brokers. I’m picking them because I’ve either used them, or people I know and trust have used them.  My picks also all pass my 5 guidelines above for good forex brokers.

1. Fxcm (Forex Capital Markets) – I’ve always liked FXCM. I started in my first demo account almost 10 years ago with them, and I’ve always liked using their platform. I’ve found it easy to use and they are a completely legitimate online forex broker. Plus with their micro-lot account, you can now trade forex for only $25!
2. ACM – The favorite of many forex traders that I know. Their platform is a little more advanced, but when you trade forex online for awhile you’ll start to like ACM more (like when you try a MAC, you understand how difficult windows is).
3. Easy Forex – The name says it all. A good broker for beginners. They are well established and have a great reputation for an online forex broker. Their platform and free forex charts are easy to use & you’ll enjoy using them.
4. Oanda – this is a major forex broker that’s been online for a long time. They cater to slightly more experienced traders, but beginners can use them successfully. They call a demo account an “fxgame account,” but it works the same as a demo.
5. FX Solutions – another broker that’s been around for ages. Many rapid forex traders have given me positive reports of FX Solutions in the past. They are one of the best.

There are certainly other good forex brokers online, but these are my top 5 short list of the best online forex brokers.  If you were to pick any one of the 5 forex brokers above, you’ll probably have a great experience with their demo account, trading platform, and forex charts.  If you want even more forex broker choices, feel free to explore 49 forex brokers & reviews to choose from!

Posted in Online Forex Bokers