Monday, July 25, 2016

Importance of Forex Demo Accounts

Once you’ve learned the basics of Forex trading, it might be tempting to begin live trading immediately in order to start making significant profits. However, you must not proceed to that route right away, as it might just lead you to failure, which I’m sure is not what you want to achieve. 

To achieve success in Forex trading, one needs knowledge and experience that cannot be learned by reading articles and attending seminars alone. To be able to act and decide properly in live and real trading, you must first experience how to trade using the real trading platform, but without real money involved.

Forex Demo Account

Gladly, most forex brokers offer demo accounts to their potential clients, enabling them to test the trading platform before proceeding to live trading. Demo accounts are very useful especially to the newcomers, as it allows them to get a “feel” of the market first before they start trading with their real money. 

Using a demo account before proceeding to the real thing is very important for traders, as it enables them to test out the different functions of the trading platform first before going for the real thing. It allows the trader to familiarize himself with all the functions and features of the broker’s trading platform in a risk-free environment. 

A demo account is a vital tool for traders, especially for the newcomers as it allows them to “simulate” a real trade, enabling them to test out different strategies first without having to risk a large sum of real money. 

Spending a reasonable amount of time in a demo account allows the trader to do all the possible mistakes in trading and learn from it, so once he dives into real trading, he knows which things to do and which to avoid. Combine it with daily article reading, and you will be equipped with all the knowledge you need to be successful in trading.

forex demo


Forex trading is a very risky activity, but by equipping yourself with proper knowledge, education and strategy, the risks involved will be significantly reduced. 

Read our educational forex blogs to further enhance your forex trading knowledge! See who the best forex brokers are, visit Wibestbroker.com to find out!

Thursday, July 21, 2016

What is a Forex Robot

If you’ve been trading Forex for a little while now, chances are, you might have already encountered the term “Forex Robot”. Are you interested to know what it is? Then just keep reading this article and let us explain it to you.

When you first heard of the term Forex robot, you might have imagined something that looks like a mechanical object made of metal, with a currency-like appearance. However, the real forex robot is far from that description. Forex Robot, or what other traders refer to as “Expert Advisors” (EA), is a piece of automated trading software that does the forex trading transaction without requiring human interaction. 

Forex Robot

What forex robot does is it automates all your trades, so you don’t always have to be in front of your computer to be able to trade. It runs and makes its own trading decisions based on the algorithms pre-programmed in it, so traders can really just “sit back and relax”.

Forex robots work well in removing the interference of human emotions in Forex trading. Since it was proven that emotions in trading are what often push traders to make irrational trading decisions, this will be pretty useful for the traders who are having a difficult time controlling their emotions during a trade.

However, the saying “there’s no such thing as a perfect system” also applies to the forex robots currently available in the market. Forex robots only follow a pre-programmed set of rules and algorithms, and thus cannot cope up with the ever-changing market conditions. 

Forex Trading Robot

I cannot attest to the reliability and effectiveness of the forex robots, as I have yet to encounter anyone who became successful by using these kinds of systems. I would still recommend that traders should work on expanding their knowledge regarding Forex to further refine the strategies that they are currently using.

Further enhance your knowledge about Forex trading by reading our educational Forex blogs. See who the best forex brokers are, visit our official website: Wibestbroker.com!

Wednesday, July 20, 2016

How To Detect Forex Scams

The popularity of the foreign currency exchange market has significantly increased in the recent years, and we have also seen a sudden rise in the number of the available forex brokers in the market. Because of that, many traders and investors are enjoying a large number of investment opportunities in the market. 

Identifying Fake Forex Brokers

However, along with this growth is the increase in the number of foreign currency trading scams. While these scams can easily be detected by well-informed traders, budding and uninformed forex traders are still having a hard time distinguishing a dependable broker from fraud ones. That is why it is really important to make an extensive research about the company first before deciding to entrust your hard-earned funds to the broker. 

Here are some of the factors you need to look into in order to be able to distinguish a Forex scam.


Forex Companies That Promises Risk-Free Transactions


Everyone knows that trading in the Forex Market involves a high level of risk, so anyone who is claiming that they can wipe the risk out of forex trading is either false advertising or luring unsuspecting traders into their fraud scheme. To minimize the risks in forex trading, one must incorporate a proper risk management into his trading plan. There is no magic trick or software that can completely remove the risk in forex trading. 

Detecting Forex Scams

Companies That Promises Guaranteed Profits


Anyone that claims that they can make you rich overnight is promising something that they cannot deliver. These kinds of claims are not true and are usually just a tactic to lure you into their trap. Your success depends on how well you perform in trading, and is not determined by the false promises of these fraud companies. 

Remember, to be successful in forex trading, a person should have the required skills, knowledge, discipline and an effective trading strategy.

Further enhance your knowledge and expertise in Forex trading by reading our educational Forex blogs. See who the best forex brokers are, visit our official website, Wibestbroker.com to find out!

Monday, July 11, 2016

What is a Risk/Reward Ratio

You probably might have heard this terminology several times while reading some educational trading blogs, but maybe you’re still left asking what ‘Risk/Reward ratio’ is, and why is it important to understand what it is. Don’t worry, it’s the purpose of this article to discuss with you what a risk/reward ratio is. 


One of the reason why most traders end up losing money in trading is because they fail to manage their risks. Most investors don’t appreciate or have no idea about the significance of risk management and risk/reward ratio, so they fail to include these measures in their trading strategies.

A Risk/Reward ratio is a common term used in the financial markets to compare the amount of the expected profit from the investment to the amount of risk undertaken to earn these profits. To make it more simple, investing your hard-earned money in trading is pretty risky, and if you’re going to risk your cash, it is just right to expect a reasonable amount of potential returns.

For example, if somebody asks to borrow $30 from you and offers to pay you $45 in two weeks, you might think that it’s not worth the risk. But, what if someone asks to borrow the same amount and offers to pay $60 in return? The risk of losing $30 to potentially earn $60 in return might now sound appealing to you.

The most common mistake traders make is they use a negative Risk/Reward ratio, wherein the amount of risk exceeds the amount of reward. Negative risk/reward ratio puts you in an unfavorable position as it needs a much higher winning percentage in order to make up for the losses and be seen as profitable. 


A risk / reward ratio is a measure of the amount of profit you expect to earn in a trade, relative to what you are risking in the event of a loss. Familiarizing yourself with this ratio allows you to manage risk by setting expectations for the outcome of a trade prior to entry. The trick here is to set a positive ratio for your strategy. This way, you can increase the margin of profit during winning trades, relative to the amount you lose during losing trades.

However, you should not rely on this strategy alone if you want to be successful in trading. You should continue studying and reading educational forex articles to know which strategies you should include in your current trading plan.

Learn more about forex trading by regularly reading the articles posted on our educational forex blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!

Wednesday, July 6, 2016

How to Profit When Prices Are Going Down

If you are quite new in the trading world, you might think that the only way to gain a significant amount of profit from trading is to trade with booming markets. However, you should know by now that it isn’t true. The truth is, you can earn significant profits from financial markets, regardless if it’s in an upward or downward trend.


So, you might be asking, how might it be possible? The answer is simple: Short-Selling! This strategy is used by traders who wants to take advantage of the sudden decline in the financial markets, which makes them earn significant amount of profits while the market is in a downward trend. 

For those who doesn’t have any idea about what short selling is, just keep reading and we’ll explain to you what it is.

Short selling is the strategy used by most traders who wants to profit from falling markets. Basically, what they do is sell a security they don’t currently own, in hopes that the price of the security will fall further in the future. Once the price of the security falls to their desired level, they buy the securities back to return the borrowed asset. And since they bought back the securities at a lower price than what they initially sold it on, they’re making significant profits based on that price difference. 

For example, in hopes that Microsoft will go down in the near future, a trader borrows and sells 10 shares of the said company for $10 per share. A week later, due to the unsuccessful launch of the Windows phone, the price of the Microsoft’s stocks went lower, and it is now valued at $8 per share. Because of the significant price difference, the trader decided to buy back 10 Microsoft shares. Since it is now priced at $8 per share, the trader only has to pay $80 per share, which is $20 lower than what he initially sold it on. He then returns the shares back to the broker whom he borrowed it on, and gets to keep the $20 he gained from the said transaction.


However, you must remember that short selling, just like any trading strategies, carries a significant level of risk. Supposedly the price goes up instead of going lower, you will end up having to buy back the securities at a higher price, generating a significant amount of loss. 

It is important to be aware of the risks associated with trading before you start trading with a live account. 

Further refine your trading strategies and learn more about the forex market by reading the articles on our educational blogs. See who the best forex brokers are, visit Wibestbroker.com to find out!