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History dictates that there are certain currencies that are traded quite a lot these days.
Since the world is full of different types of currencies, the question is how would people know what currency pairs to trade? Which currencies are the best to trade?
There are many different types of currency pairs. First there are major pairs. These are the currency pairs that are traded the most. They have the most transactions happening between them.
Then there are cross currency pairs. These are currency trades that occur without the United States dollar. From a trader’s perspective, these are naturally behind when it comes to trading. Finally, are exotic pairs. These are currency pairs between countries that have less economic standing.
Now, let’s take a look at the best currency pairs to trade this year.
Euro to Norwegian Krone
First of all, we have the Euro to the Norwegian Krone. This pair is not one that people can identify as major. However, there is some interest generating between these two currencies.
The Krone’s rise and fall is attached to the oil prices right now, as it is one of the biggest exports of Norway. At the same time, Europe has been creating some policies that make the trades between these pairs very viable.
US Dollar to Japanese Yen
Next up we have the US Dollar to Japanese Yen. This pair is one that can be considered major as it is one of the best traded currency pairs.
An interesting to note between these currencies is that it spikes whenever risks abound. With rising risks around the globe, the price of these currency pairs rises as well.
This year has been quite interesting with what is happening around the globe. Expect big things to happen with this currency pair.
These are only a couple of the best currency pairs to trade in 2018. We hope that these have helped shine some light on which currencies you should watch out for this year and moving forward.
While currencies are constructs created by man, the fact is that real situations and events have the power to affect the currency’s exchange rates at any given moment.
Let’s take a historical look at several big events that affected the currency exchange rates of several countries.
The first event we’ll be looking at is how the Brexit affected the Pound. When the Brexit vote went through, most of the population was stunned. Naturally, people though about what this would mean for the economies around the globe.
As many predicted, the British Pound currency value did go down. It actually dropped by 12 percent, with more people believing that more was to come.
However, the Brexit also taught us another thing. The British state is actually in good standings with countries that have strong and stable economies and currencies. As such, this allowed them to stabilize pretty quickly and stop any more bleeding.
This taught us that sometimes, it is about who you know. Traders should look at the relationships of countries and how it would affect the currency rates.
United States’ Sanctions Against Iran
Eight years ago, in 2012, the United States set sanctions against Iran and affected their currency. The United States had an ultimatum: you could continue working with Iran’s central bank and sever ties with the United States, or just stop working Iran banks altogether.
The thing about this was the central bank of Iran was the same bank that was taking care of all the oil exports to the world. On the other hand, the United States had one of the strongest currencies and economies.
People were confused as what to do at the moment, but sure enough, there was a decline of 60 percent in just a week’s time for Iran. What did we learn here? Perhaps to plan your actions well when United States is in the picture.
These are only a few historical events that effected currency exchange rates. We hope that these have taught you the importance of looking at current events for what affects currencies.
The Forex is centered around trading currencies. Thus, it is important to understand the exchange rates of each currencies. As much as five trillion dollars is traded every day. And it is this amount that people want to get into and hopefully share in.
Let’s check out several of the most traded currencies today. This will allow traders to see what exact currencies and exchange rates they should look at and focus on.
The Japanese Yen
First of all, we have a surprising entrant in the Japanese Yen. The Japanese Yen is Japan’s central currency. Apart from though, it is also the currency that is the most traded within Asia. As such, this currency acts much like a United States dollar in that it is like a reserve currency.
This distinction elevates it to a high status within the other currencies of the world.
According to financial studies, whenever there is something happening in Western countries, investors move over to invest in the Yen. Another reason why they tend to do so is the fact that Japan is one of the biggest exporters in the world.
As of 2017, the Japanese Yen came in third and constituted to about 21 percent of all money traded.
The United States Dollar
Without much surprise, the United States dollar is part of this list. Without much contest, the dollar is the most traded currency in the world.
There are a number of reasons why this is so. Like the Japanese Yen, it also acts as a sort of currency reserve. However, it is also traded widely due to the fact that it is acknowledged and recognized in many of the countries around the globe.
In terms of exchange rates, the U.S. dollar serves as the benchmark at which all currencies are measured against.
These are only a couple of the most traded currencies in the world. We hope that this will help you identify which currencies you need to watch, as well as the exchange rates that you need to watch out for.
In the previous article, we spoke about tips to become a good trader. One of them was to get a broker. This is a very important tip, and in this article, we’ll flesh out how you will do this.
A broker is an essential thing that all traders should have. More importantly, people have to find the right broker for their needs. It should fit their plans, goals, and what they want to achieve and focus on.
In order to do so, beginner traders can begin by availing of the services of the Forex Introducing Broker. FX Introducing Brokers are able to assist you in finding the right broker and Forex Trading Platform for your trading. Most typically also offer some other tangible value add service, such as a cash back rebate.
Still feeling lost? Don’t worry. We’re here to present to you four great brokers that you can consider when trading.
First of all, we have ThinkMarkets. They have quickly grown to be one of the best Forex trading brokers. Having got their start as a New Zealand based broker they quickly expanded and upgrading their regulatory licenses to also include an ASIC license in Australia and an FCA license in the United Kingdom.
One of the things that separates ThinkMarkets from other brokers is the fact that they have trading technologies that are unique to them, including the Forex Trading Platform TradeInterceptor. The Trade Interceptor Forex trading platform is considered by many to be one of the best trading platforms available to Forex traders. They are considered the very best at currency offerings.
FXCM is considered one of the best brokers overall. Forexbrokers.com once reviewed as many as 50 brokers and FXCM came out on top.
They offer pricing that is very competitive and attractive to traders. They are also visible across the globe and have access to many different markets.
FXDD is a brokerage company that excels in its applications for traders. They have been around for a long time and once were regulated by the NFA in the United States. Since around 2011 though they have shifted their focus to other parts of the world and are now regulated in Malta and the Bahamas. With them, you can trade on the go.
Finally, we have Oanda. This is the best option for United States residents. This is good asOanda is known for its fantastic support services.
These are only a few of brokers you should consider.
Forex trading is a great way to earn extra money on the side. The truly successful traders are able to earn huge sums of money in a short amount of time.
While the rewards are great, the risks are greater. There is a considerable chance that the money people put in will never be gotten back. We are not trying to scare you though. We are only trying to paint the reality of trading in the Forex.
We hope you aren’t discouraged, and if you are, don’t stay that way. We are here to present several tips for you to become great at trading. Let’s take a look.
Define Your Plan
Like everything in life, a plan is needed in order to be successful. For trading, it is important to have a plan that defines a clear schedule for you, as well as a goal. This goal will be the indication of when your trading career is successful.
There are a lot of things that you need to think about when you define your plan. For instance, you have to plot out how much time you can spend on trading, how much you want to reach, and how much losses you can stomach.
For that last point, if you are just starting up, it is inevitable that there are losses.
Get a Broker
Broker’s are an important piece of the trading puzzle. The plan that you have made in the previous point should directly match the broker that you will be getting. The broker needs to be able to validate and help you reach your goals.
There are a lot of different Forex brokers out there. If you don’t know how or where to look, you can start by going to Forex Introducing Brokers. These are companies that will help you find the right broker.
Study the Exchange Rates
Finally, you should devote much time on studying the exchange rates. These rates are central to Forex trading. Thus, you should study what currencies are strong and which are weak.
You should also consider studying the many different factors that affect the exchange rate and study those as well.
These are only a few tips for becoming a great trader. Stay tuned for more articles to help you along the way.
The world has opened up. Due to the internet and Forex trading platform technology, people who are thousands of miles away can be contacted at any time with a click of a button. The internet has also allowed people to search about different places of the world.
After these, it is quite natural for people to want to get out there and explore the world beyond the internet. In order to do so though, money is of prime importance. There is a need for people to exchange the currency of their own countries into something that can be used where they are going.
Most of the time, people will plan their trips, go to the money changer when it is time, and get their foreign currency (FOREX). However, there are things that people can do to get exchange rates that will be favorable to their trip. With the right time, they can get far more money for their journey ahead.
Here are three things that you can do to get a better exchange rate.
Communicate with Forex Brokers
People who trade in the Forex markets have a better chance of understanding when the exchange rate is favorable for them. If you aren’t though and you don’t have a clue how to go about it, don’t sweat it.
It is in your best interest to communicate with Forex brokers for these things. Trading in the FX markets can also serve as a way for you to earn extra money on the side.
A Forex broker is a company that will help you with your trading. They have access to the trading platforms that will allow you to trade in the Forex markets. They will also serve as your guides for any information that you may need to know.
If you don’t know how to find the broker for you, you can always look for the Forex Introducing Broker companies. These companies specialize in helping Forex traders finding the right brokerage solutions and Forex trading platforms that will help in their trading needs.
Study the Forex Rates
Another thing that you can do is to watch and study the exchange rates between your currency and the currency of the place you are going to.
At least a month before your trip, watch the foreign exchange rate and try to find some patterns. One thing to understand about currencies is that they change very often. You can download a Forex trading platform or mobile trading app to help stay on top of the rate fluctuations.
These are only a couple of things to do to get a better exchange rate. We hope you can use this information to have an amazing trip.