VPS Hosting with FxEthos

Hi Guys,

   Trading in a 24hrs market needs constant connectivity with a world class reliable communication network. Trading with automated trading systems and high frequency trading strategies demands top tier data networks to deliver your trades with the lowest latency and absolute speed.

Fxethos understand their clients needs and has partnered with Trading VPS to offer their clients exactly. Due to this,most of the  FxEthos customers subscribe directly with TradingVPS. With just 50 standard lot traded in each calender month, they rebate of US$50 directly to their trading account regardless to their account size.

Which type of broker should you choose?

Hi,

   That's completely up to you because one type of broker isn't better than the other because it will all depend on the type of trader you are. Usually, day traders and scalpers prefer the tighter spreads because it is easier to take small profits as the market needs less ground to cover to get over transaction costs.
Meanwhile, wider spreads tend to be insignificant to longer term swing or position traders.

 To make your decision much easier, here is a summary of the major difference between Market Makers, STP brokers and STP+ECN brokers:

Dealing Desk (Market Maker)	No Dealing Desk  (STP)	No Dealing Desk (STP+ECN)
Fixed Spreads	Most have variable spreads	Variable spreads or commission fees
Take the opposite side of your trade	Simply a bridge between client and liquidity provider	A bridge between client and liquidity provider and other participants
Artificial quotes	Prices come from liquidity providers	Prices come from liquidity providers and other ECN particpants
Orders are filled by broker on a discretionary basis	Automatic execution, no re-quotes	Automatic, no re-quotes
		Displays the Depth of Market (DOM) or liquidity information

Lot size in FxEthos

 Hi guys,

    FxEthos provides their clients with lot size which they have micro and mini in which mini lot size is 10,000 units and micro is 1000 units or 0.01 lot for gold.

What is Ranging Market?

Hi,

  A ranging market is one in which price bounces in between a specific high price and low price. The high price acts as a major resistance level in which price can't seem to break through. Market movement could be classified as horizontal or sideways.

Whats is Trending Markets?

Hi,

  A trending market is one which  price is generally moving in one direction. Trends are usually noted by "higher highs" and "higher lows" in an uptrend and "lower highs" and "lower lows" in a downtrend. When trading a trend based strategy, traders usually pick the major currencies as well as any other currency utilizing the dollars because these pairs tend to trend and be more liquid than other pairs.

Metatrader 4

Hi Guys,
 
   Meta Trader 4 also known as MT4, which is an electronic trading p[platform widely used by online retail foreign exchange speculative traders. This software is licensed to foreign exchange brokers who provide the software to their clients. The software consists of both a client and server component. The server component is run by the broker and the client software is provided to the brokers customers, which use it to see live streaming prices, charts and to place orders as well as mange their account.

Actually what do you mean by Slippage and how you can reduce it?

Hi Guys,

  The difference between the price specified in a trade vs the actual transaction price. It is usually caused by the latency between trade order and execution. Since the forex market is so fast and liquid, slippage is usually very small.

Due to technologies reasons, there will always be some slippage between the requested price and the execution price. Nevertheless, you should find a broker that allows trading with minimum slippage that will not kill your account. Brokers with advanced technology and systems, an ECN broker that broadcasts all of its client's orders straight to the market and provides the market's real quotes and prices.You can also avoid large slippage in your current broker by not trading while high impact news is released or during 'dead' hours.

Slippage problem

Hi Guys,

   In a natural dealing environment, slippages are possible. However, every effort and measures is taken to ensure the slippage of the clients orders, do not put trades at an extreme disadvantages. For example, more than 97% of their orders do not suffer any slippage whatsoever and those that do, only suffer less than 1 pip of slippage.

Swap Rate in Forex

Hi Guys,

   The amount paid or earned as a result of the differential interest rates applicable to currency pairs when a trader holds a position over night is the Swap or Rollover rate. It is calculated on daily basic at 4:59 PM/ET. For trade position it must have been opened before 4:59 PM/ET and held open past this time. Swap Rates are tripled on Wednesday at 4:59 PM/ET. Swap rate is opposite for each currency pairs and depend on either long or short.

How to find Swap rates within the MT4 Platform

Hi Guys,

  Within the MT4 Trading Platform,

1. Ensure that you have the market watch panel enabled.
2. Within the panel, right click and select "Symbols" from the popup menu.
3. Within the "Symbols" window, select the currency pair you want to find out the swap rates for and left click on it.
4. Then left click on properties button on the right.
5. A new window will appear and within this you will find the various properties of the currency pair.
6. There are 2 rates you must look at:
    a) Swap Long - Rate you will pay/receive if you are holding a long position overnight.
    b) Swap Short - Rate you will pay/receive if you are holding a long position overnight.
Or else, you can go to www.fxethos.com, under "Trade Tools" menu option, visit Swaps/Rollover Rates.

Foriegn Exchange Reserves (FX Reserves)

Hi Guys,

   These are the assets which is held by banks and monetary authorities,usually in different reserve currencies, mostly the US Dollar and to lesser extent the euro, the UN Pound Sterling and the Japanese yen.
Foriegn Exchange reserves are also called Reserve Assets in the Balance of Payments and are located under the financial account. They are an important part of IIP ( International Investment Poasition) of the country.
In terms of financial assets classifications, they are classified as Gold bullion, Unallocated gold accounts, interbank position, loans, equity and options.Usually, when the monetary authority of a country has some kind of liability, this will be included in other categories such as Others Investments.

Fundamental Analysis

Hi,

   Fundamental analysis is the methodical analysis of a collection of relevant market information within a specific time frame in order to determine the intrinsic value of the market which is used to compare against actual market prices so as to derive a conclusion on the market.
This is the biggest advantages which establishes the cause and effect using scientific and rigorous analysis.

The main reasons are:
1) Its practical application requires traders to have an extremely high level of professional knowlegde.

2) It requires an extensive collection of real-time information and the establishment of a comprehensive database.

3) The biggest setback of fundamental analysis is that it is not quantifiable.
Fundamental analysis offers a comprehensive view of the market and a glimpse of the possible trends.

Broker's Policy on Insufficient Fund

Hi ,

    1. Different brokers have different policies on insufficient margin balance in the trader's account.
    2. Some brokers will square your open position when the unrealized profit and loss falls below the        required margin, resulting in a zero balance in your account.
    3. Othert brokers may open a corresponding opposite position on your behalf to 'lock in' your losses. In this way, your account balance will not be reduced to zero.
     4. Most brokers will require clients to top up the margin in their trading accounts within a specific deadline. If the margin is not topped up by the deadline, the broker will square the client's open position, even if the client's realized profit and loss may be lower than the current balance.
   

Fear of Spread Widen while trading

Hi Guys,

   FxEthos offers their clients with very strict and competitive spread structure for all their clients. They often take the best spread feed and clear their orders to ensure so that their clients gets the best fills. But they cannot guarantee that spreads will never widen because when the market conditions get really volatile or extremely illiquid trading conditions gets inefficient and when most or all of liquidity providers widen their spreads.

FxEthos provides Trust Facilities

Hi,

    Trust facilities are only offered for the clients with high net worth and large account sizes or it is often comes with extra charges. They have setup this facility with absolute no charges to their clients, which ensures your fund safety. Even if the broker has his funds in segregated account, it doesn't mean that the clients funds are safe for poor financial responsibilities. There are some cases where financial firms misuse or make poor investments decisions with their clients funds that's why FxEthos has got a purpose of appointing a trustee to ensure that their clients funds are not being used for any other purposes apart from supporting clients trade settlements. 

Audit Process and Techniques

Hi Guys,

     For collection and accumulation of audit evidence, certain methods and means generally adopted by auditors are:

1. Posting checking
2. Testing the existence and effectiveness of management controls that prevent financial statement misstatement.
3. Casting checking
4. Physical examination and count.
5. Confirmation
6. Inquiry
7. Inspection
8.Year-end security
9. Re- computation
10. Tracing in subsequent period.
11. Bank reconciliation
12. Vouching
13. Verification of existence.

Power of Attorney (POA)

Hi Guys,

    FxEthos provides POA to those clients which is used only if the clients allows someone else the right to trade over their accounts, such as money/ fund manager. If the clients accepts it, then the money/fund manager should able to provide their clients one automatically.

 While the account is managed by the money manager by using the POA document, the clients can request for withdrawals or closure for an account but only when it is approved by the money manager. This provides a total protection to their interests as some of the clients withdraw capital/profits without any knowledge of the money manager and this may clash with their trading systems or the interests. Therefore, such a check is very much necessary.  

Financial Auditing

Hi,

   A financial audit is the verification of the financial statements of a legal entity with a view express an audit opinion. The audit opinion is intended to provide reasonable assurance, but not absolute assurance, that the financial statements presented fairly, in all material respects. The purpose of and audit is provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increases user confidence in the financial statements, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements.

Auditing Standard with FxEthos

Hi Guys,

     In the case of fxethos, auditing is a very crucial and necessary process that all companies should embark on, to ensure good financial health, proper fiduciary controls and the most important is the trust and confiudence in its customers of its responsible corporate governance.
This is the area where they never compromise on and engage the top audit firms each year to inspect. Auditing is an expensive and an arduous process, but it nevertheless understand the sense of comfort and peace of mind that they provide to the clients.

Taking Risk in Forex

Hi,

   If you are taking risk in forex market it can make difference between your survival or sudden death with forex trading. You can have the best trading system in the world and still you fail without proper risk management.
Talking about the risk management is nothing but the combination of multiple ideas to control your trading risk,whether it is limiting your trade lot size, hedging, or during certain hours or days and knowing when to take losses.But this an easy concept to grasp for traders but its actually difficult to apply because most brokers likes to talk about the leverage and keep focus on the drawbacks. This causes the traders to make a mindset that they should be taking a large risk and aim for the big bucks.
Once you join for a demo account its seems easy for the clients to trade but once to start trading with the real money automatically emotions comes in, everything changes. This is where true risk management appears and it is the most important part of the trading which you face for.

Cary Trade in Forex

Hi,

    As we see that currency carry trade refers to the act of borrowing one currency that has a low interest rate in order to purchase another with a higher interest rate. A large difference in rates can be highly profitable for the traders, especially if high leverage is used. However, with all levered investments this is double edged sword, and large exchange rate fluctuations which can suddenly be swing to trade into a huge loss.

FxEthos Performance with Clients

Hi Guys,

    FxEthos strives to provide with the clients with best services irrespective of their size or space. They ensure the best enivorment for their clients by making them success in forex which is much easier.

 Their performance audit shows that in terms of trade execution which is measured by:

1. Execution time to fill orders.
2. Execution time for trade completion.
3. Number of requites.
4. Average spreads details.

 

Types of Auto Trading

Hi Guys,

    To be continued with the topic of auto trading, we have seen what's auto trading does in Forex world. Now about the types, basically it has two types-

1. Fully automated or Robotic Forex trading: This is very similar to algorithmic trading or we can say black-box trading, where a computer algorithm decides on aspects of the order such as the timing, price or quantity and initiates the order automatically.

2. Signal- based Forex auto trading: This model is based on manually executing orders generated by a trading system. For example, a typical approach is use as a service where traders over the world is making their strategies available to anyone interested in the form of signals. Traders may choose to manually execute any of these signals in their own broker accounts.

Forex AutoTrading

Hi,

   It is trading strategy where buy and sell orders are placed automatically based on an underlying or program on the foreign exchange market. The buy or sell orders are sent out to be executed in the market when a certain set of criteria is set.

Auto trading systems, or programs to form buy and sell forex signals, are used typically by active traders who enter and exit positions more frequently than the average investor. The auto trading criteria differ greatly, however they are mostly based on technical analysis.

Get Started With the Trading

Hi Guys,
 
   To be continued with the trading, once you are well known with the demo trading which is similar to live account. So, you can open a live account with FxEthos to start trading. The only thing you have to do is open a live account and deposit around $250 and submit the documents which all needed and start your trading business with FxEthos.

Foreign Exchange Fixing

Hi guys,

  Foreign Exchange Fixing is a daily monetary exchange rate fixed by the national bank of each country. The idea is that the central banks use the fixing time and exchange rate to evaluate behavior of their currency. Fixing exchange rates reflects the real value of equilibrium in the market. Banks, dealers and traders use fixing rates as a trend indicator.

Fund Admistration

Hi

  Sometimes, we think that if we are starting to trade with some broker, we think of our money whether to take risk of funding, whether they have the company which  has a trustee or not.So, if you want to trade in such a company where their is a safer place to fund your amount, then FxEthos is the preferred place to fund your amount.

Therefore, FxEthos have taken extra caution care and meticulous effort to give you a complete comfort in a way that they administrate your funds. FxEthos has addressed this concern by setting up a trust facility which is certified by the law firm in New Zealand, who use to inspect and authenticate every single transaction in or out of the account. Also, the trustee is a joint signatory on the bank account holding your funds, there is no permission to withdrawal/invest these funds for company's interest. So, with FxEthos each and every single account and dollar within is facilitated under this trust entity.
 

Investment Management Firms

Hi Guys,

   Investment management firms uses the foriegn exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase ans sell several pairs of foreign currencies to pay for foreign securities purchases.

Some investment management firms also have more speculative specialist currency overlay operations, which manage client's currency exposures with the aim if generating profits as well as limiting risk. While the number of this type of specialist firms is quite small, many have a large value of assets under management and, hence can generate large trades.

Fresher In Trader

Hi,

 If you want to trade with FxEthos and if you are new to it then FxEthos has open up a demo account which is free to use. You will be able to see all the details how to trade, etc...
The only way to do is go to their website, click to the demo account and register your details. Then, you will get a mail from FxEthos in which the MT4 setup link will be given to you. Download that and start trading, they will provide you with $100,000 USD virtual deposit to start your account. Try trading as long as you are comfortable and move to a live trading once you are ready.

Hedge Funds as Speculators

Hi

 About 70% to 90% of the foreign exchange transaction are speculative. In other words we can say that if the person or institution who bought or sold  the currency has no plan to actually take delivery of the currency in the end, rather they were solely speculating on the movement of that particular currency. Hedge funds have gained a reputation for aggressive currency since 1996. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm interview by central banks to support almost any currency, if the economic fundamentals are in the hedge funds favor.

Money Manager

Hi guys,

 If you want to trade your money with a partner like a fund manager/money maker then FxEthos is the preferred choice for  many fund managers worldwide. you will get a satisfaction with the fund/money managers, hedge funds and liquidity providers.

FxEthos handles multi-account managers which allows you to-

1. It manage the client accounts under various order allocation methods like by lot, percentage & proportion.

2. You can trade any number of accounts whether you have 5 or 5000 accounts, the work required will be exactly the same.

3. Trades from the MT4 terminal just like trading from any MT4 platform.

4. Full order placement, pending order, partial close functionality.

5. EA/Hedging/High Frequency Trading (HFT) friendly.

6. Track commissions, order volume, P&L statements all are done by the same platform.

Forex Financial Instruments

Hi,

In forex exchange, we can see some financial instruments which is divide into various terms:

1.Spot
           This trade represents a "direct exchange" between two currencies, which has shortest time frame, involves cash rather than, a contract and interest.

2. Forward
             This is one way deal to take risk in foreign exchange is the forward transaction.In this transaction, money does not actually change hands until some agreed upon the future dates. Usually,the date is decided by both the parties and then the forward contract is negotiated and agreed by both the parties.

3. Swap
             Two parties exchange curriencies for certain length of time and agree to reverse the transaction. These are not standardized contracts and are not traded through an exchange. A deposit is often required in order to hold the position open until the transaction is completed.

4.Future
            Futures are standardized forward contracts and are usually traded on an exchange  created. The average contract length is roughly 3 months. Thses are usually inclusive of any interest amounts.

5. Option 
            A foreign exchange option is derivative where the owner has the right but not obligation to exchange money denominated in one currency into another currency.These is the deepest, largest and most liquid market for options of any kind in this world.

Introducing White Label Partner

Hi Guys,

 Well, Fxethos has designed to benefit Introducing Broker, Instituition, Hegding, and Money Manager, whose clients will trade directly with them by providing a customized client interface.
 This interface allows the client to maintain and promote your company brand, but without incurring the expense of developing the dealing application. The clinet interface will provide full charting capabilities also, completes the user behaviour flexibility.
If you are launching a trading platform under your brand name, along with customized currency pairs, spreads, swap rates and margin requirements which will take less than 30 days.

Leverage

Hi Guys,

In finance, leverage is a genaral term for any technique to multiply gains and losses. Leverage exits when an investor achieves the right to return on a capital base that exceeds the investment which the inventor has personally contributed to the entity or instrument achieving a return.
FxEthos has set a default leverage 1:100, if the quantity is huge, then client can send a mail to them for increasing the leverage level higher. But if the clients want to change the leverage to 1:500 for trading their account, the clients can simply to their back office and the leverage.

Forex Analysis

Hi Guys,

Forex analysis is used by the retail forex day trader to determine whether to buy or sell a  currency pair at any one time. Forex analysis could be technical in nature or it can be fundamental in nature, using economic indicators. The currency trading system use analysis that create buy or sell decisions when they point in the same direction.

Fundamental Analysis

   It is often used to analyze changes in the forex market by monitoring factors, such as interest rates, unemployment rates, Gross Domestic Product(GDP) and many others economic releases that comes out of the countries in question.

Technical Analysis

This analysis can be either manual or automated and the system that uses past price movement to determine where a given currency may be headed. A manual system involves a trader analysis analyzing technical indicators and interpreting whether to buy or sell. An automated trading analysis, involves the trader "teaching" the software  and how to interpret them. Automated analysis takes out the human element of psychology that is detrimental to a lot of traders.

Reason to chose FOREX

Hi,

The reasons why do we choose to trade in Forex because they have many advantages where we can sit and relax and do your trading like

1. Meta Trader 4 & Forex
    They have a tight spreads, quality executions, free EA hosting, Integrated order management features and free research. Even they have 29 languages are available in which trading can be done in familiar surroundings.

2. Mobile Tradings
      You can trade the market along anytime, anywhere with Meta Trader mobile. Likewise, Android, iPhone and iPad apps let you to place trades, monitor your account and also use technical indicators and sets audible rate alerts.

3. Funds Safety
     An Meta Trader 4 account allows you to trade in the knowledge that you will never lose more than you deposit.

Education with FxEthos

Hi Guys,

Well, FxEthos provides you with quality education by bringing the best curriculum to your arsenal. They have put up some of the best training material and are offering this to you absolutely free of charge as long as you are joined with FxEthos.
They are giving you three course:
   1. Fx Beginner's Course
   2. Fx Advanced Course
   3. Fx Mastery Course.

Minting Money

Hi,

"A fantasy world where trees have bank notes and bear coins instead of fruits might sound like a dream come true. Economists will be the devil's messengers in that world when they break the news that your money is as good as dry leaves"

If you are looking for a machine that can print money, just meet someone who actually owns one of the government. Money is printed by governments, but they cannot print all the money they need. When a government prints money to meet its needs without the economy growing at the same pace, the result can be catastrophic.

In the past economy. governments used to back their currencies with gold reserves or a foreign currency such as the US dollar that could be converted into gold on demand. The gold standard currency system was abandoned as there was not enough gold to issue money and currency valuations fluctuated with the supply and demand of gold.
In the modern economy, governments print money based on their assessment of future economic growth and demand. The purchasing power of the currency remains constant if the increase in money supply is equal to the rise in gross domestic product and other factors influencing the currency remain unchanged. 

Requirement of the Margin in FxEthos.

Hi Guys,

Margin requirements are to be strictly adhered when you are trading with leverage instruments. If the margin requirements are not available and the capital drops below your margin requirements, then all the open trading positions will be closed and liquidated.

 FxEthos provides two conditions for all the accounts:

 1. Margin Alert

If your available capital in the trading account drops to 100% of all open position margin usage. They  warn their clients of an imminent danger if the clients account is over exposed.

2.      2.  Margin Call                                                             

If your available capital in your trading account drops to 50% of all open positions margin usage, they will be force to closed, only when  50% of the margin used.