Forex Mentors

Are you considering a career as a regulated Forex broker? Forex brokers work in the ever changing field of foreign currency, making millions for their customers. They also earn quite a bit of money in commissions for themselves, betting on which countries exchange rates are going to rise or fall in the future.

Who Regulates Forex Brokers?

Since Forex brokers work throughout the world in numerous different countries and cities, no single agency regulates all Forex brokers. Instead, brokers are regulated through the local brokerage regulation agency in their respective home countries. Hence, U.S. Forex brokers are regulated by the Securities Exchange Commission (SEC), the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of that currency.

Forex brokers located in Japan are regulated through the Financial Services Agency, while Forex brokers in Iraq are regulated by the Iraq Securities Commission.

What Rules Cover Forex Traders?

Trading on foreign exchanges is very different than trading on the NYSE or the Nasdaq. The rules for Forex trading are made by the National Futures Association. The majority of trades involve the major currencies: The American, Australian, and Canadian dollars; The Euro, British Pound, the Japanese Yen, and so on.

National Futures Association

Regulations such as these are set forth in the National Futures Association Retail Off Exchange Foreign Currency Rules. Included in these rules is information about assessments as well as dues, requirements for managing a Forex account, obligations of assignees, and an assortment of additional situations that arise throughout the course of trading.

The online website of the National Futures Association carries a wealth of information for the starting Forex broker as well as Forex Investor. There you will learn rules that govern Forex traders; Forex investor alerts; Forex requirements for reporting, notices to Forex members, notice of judgments interpreting the rules, as well as other resources for individuals who wish to learn more about Forex.

The website also furnishes links to resources for electronic filings needed to establish and maintain a Forex brokerage: promotional materials, exemptions, Forex reporting, complaints, and the annual questionnaire.

Be Wary of Unregulated Brokers

An increasingly pervasive problem that investors need to aware of is Forex fraud. The Commodity Futures Trading Commission approximates that customers have lost over $395 million dollars in fraudulent Forex schemes.

For Additional Information

If you are looking to learn more about Forex that can be found on the National Futures Association website, you can find out more Forex trading information by a self study program or by taking a course.

Most of the courses, trading e-books, forex mentors and all other sources I encountered shares “the secret” in Forex trading, and no, I am not talking about the popular movie made by Bob Proctor etc. What “secret” the forex mentors and “gurus” out there may have teach you, directly or indirectly, is to Day Trade, which leads to OVERTRADING. Most say that you need to make a career out of Forex in order to succeed in it. This is not the secret to financial freedom.

What do I mean by that? I mean like replacing your current job with Forex, and yeah… you just did “fire your boss”, but you are not free,not at your best, you have just created another boss that is harder to battle than your current, YOU. Forex is an opportunity to enjoy life, a part-time income source, yet a full time devotion. You can enjoy financial freedom now with Forex.

You can be rich trading yet have time for your kids, do that hobby you always wanted, have vacations with all your forex profit (which means a lot), and whatever you want to do with your life it is possible with Forex, no wonder it already is becoming one of the most popular home business nowadays, without the competition of MLM and other businesses, but the profit potential is just huge!

The myth is, that if you cannot be successful in day trading, therefore you cannot be successful trading by end of day as well.

The truth is that there are many more Forex Traders growing by the minute, but not all of them are full time. It is so impossible to just stare at charts and day trade all day and have that job also. You cannot indeed serve two masters at the same time. And by the way, staring at charts all day requires so much attention that if you miss any detail, you may have lose the opportunity to gain profit.

Do you believe that there is always a better and more convenient way to trade at Forex? Contrary to the myth I just mentioned, you can still be successful and very wealthy in Forex even in trading by end of day, simply because they have different rules to follow and different attitudes required, but in the end, the less stressful and equally profitable choice to trade is at the trading by end of day.

Along with using technical factors, trading by end of day allows you to spend more time to see “the big picture” or the long term trends — is there really a trend? Am I doing it right? You can do this in a more peaceful trading hours following the New York close ( 5:00 pm eastern time). It also possible you spend 20-30 minutes in it.

Here’s a brief example:

Using a recent chart of the EUR/USD pair, from March 2009, shows a strong move from the 1.2600 range to 1.3000 — a 400 pip gain, which took about 7 days to complete and should have been captured by a good end of day trading method. However, that same chart shows more extreme fluctuations as the price ranged sideways in a 200 pip channel — if a forex trader is trying to day trade in that channel, the trader can quickly find themselves on the wrong side of a trade in more extreme short term volatility.

Simple, trading by end of day requires more patience, your own analysis (this is where the fruits of education and discipline comes in), another approach in trading methods, but is equally profitable as the stressful day trading. If you want to tap in the Forex goldmine yet still have a job, or a life, this is the best time for you. You do not want stress and still want to be rich with Forex right?

What if you can still have your cake and eat it too; that you can still have great taste without the calories, sounds heaven sent? Believe me it is not. There is always a better way.

Do you purchase or sell your own stocks on the stock market? Do you trade the securities that are in your IRA? Are you the type of person that manages your own mutual funds?

If you answered yes to any one of these questions, then you may be competent enough to manage your own Forex account. If not you should have a managed Forex account, so Forex traders that are qualified can do all the heavy work for you.

Forex Trading – Not for the Faint of Heart

The sun never goes down on the foreign exchange currency market. Five days a week, Monday to Friday, 24 hours a day, it feels like every small piece of world news makes Forex fortunes rise and fall. For many people it is in their best interest to find an experienced discipline broker and have them do a managed Forex account for them then try to manage the accounts on their own.

When you choose a brokerage for your managed Forex account, seek out a brokerage house whose sales team has experience and has worked for the larger names such as Fuji Bank, Societe Generale, Swiss Volksbank, or Merrill Lynch.

Something else to watch out for when you choose a Forex account manager is a company with experienced staff of brokers who often write articles that have to do with the Forex market or direct seminars about the Forex market. These individuals will know quite a bit about the Forex market, and they have a reputation to maintain as a teacher and as a Forex trader.

Senior Management

New traders that are fresh have unbelievable energy that may translate into a trading strategy that is aggressive. A better approach would be to combine new traders that are fresh along with senior traders that are experienced who might give advice to be more disciplined in their approach to trading. It is this mixture of enthusiasm and experience that makes having a managed Forex account a better idea.

The primary idea of a managed Forex account is a reduction in risk to you. Trading decisions need to be made by consensus, on a committee basis, to draw from the experience of everybody on the trading team.

Memberships

A clearing firm for your managed Forex account should be a member of the National Futures Association, the Commodity Futures Trading Commission, and the FSA. A clearing firm should have a lot of excess cash on hand and should be able to clear millions if not billions of dollars each month.

How Do Managed Accounts Work?

To open a managed Forex account, you add money to your account and assign trading responsibility by signing and conveying a limited power of attorney. The trader then makes all the trades for you and keeps 30% of all profits on trades made on your behalf; you keep 70% of all traded funds. This type of compensation system provides excellent motivation for your Forex trader to do the very best that they possibly can for you.