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Learn the basics on how to choose a forex broker and analyze the currency markets.

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  1. Forex Brokers 101

    The first step in the real world of forex is opening an account with a forex broker. Here's what you need to before you choose a broker.

    1. How to Choose a Forex Broker

      Choosing a forex broker will be the first crucial decision you’ll make as a new trader. Here’s what you need to know.

    2. How Do Forex Brokers Work?

      How do forex brokers work? Here’s a story that helps explain what forex brokers actually do.

    3. Is the Forex Broker a Legit Company?

      You are about to open a trading account with a forex broker and deposit your money so you can trade. Can you trust it?

    4. Is the Forex Broker Licensed and Regulated?

      Is your forex broker licensed and regulated? Learn why you should choose a regulated broker and how to verify its status.

    5. What Are You Actually Trading In Forex?

      Retail forex traders do not buy or sell actual currencies. If that’s the case, then WHAT are you actually trading?

    6. Trading Forex with CFDs

      Learn how retail traders who trade forex use derivatives called CFDs and rolling spot FX contracts.

    7. Where Are Retail Forex Traders Actually Trading?

      Retail forex traders do not trade in the “real” FX market. If that’s the case, then WHERE are you actually trading?

    8. How Forex Brokers Manage Their Risk and Make Money

      Learn how forex brokers make money and manage the risk on the other side of your trades.

    9. B-Book: How Forex Brokers Manage Their Risk

      Learn how forex brokers take the opposite side of your trade and accept the market risk by using B-Book execution.

    10. A-Book: How Forex Brokers Manage Their Risk

      Learn how forex brokers transfer their market risk by using A-Book execution.

    11. How A-Book Brokers Make Money

      Learn how forex brokers who use A-Book execution make money.

    12. Challenges of A-Book Execution

      A-Book execution for forex brokers is not risk-free and comes with its own challenges. Learn how A-Book brokers can end up as a money-losing business.

    13. STP Execution: How Forex Brokers Manage Their Risk

      Learn about the STP execution model. Forex brokers may use STP and A-Book interchangeably but they are different.

    14. Internalization: How Forex Brokers Aggregate Orders and Hedge Residual Risk

      Instead of managing the risk of each trade individually, internalization allows a forex broker to aggregate customer trades that are similar so it only has to hedge any excess exposure.

    15. Why Do Forex Brokers B-Book?

      Learn why forex brokers choose to B-Book even though it exposes themselves to market risk and losing money.

    16. The “Hybrid Model” Used By Forex Brokers

      A forex broker is not limited to just one form of hedging. It can A-Book, B-Book, or do both. This is known as the Hybrid Model.

    17. C-Book: How Forex Brokers Manage Their Risk

      Aside from forex brokers who “A-Book” or “B-Book”, you might also come across the term “C-Book”. Learn about this controversial order execution method.

    18. Know Your Forex Broker’s Hedging Policy

      Make sure you understand your broker’s hedging policy so you can properly assess counterparty risk in dealing with your broker.

    19. Where Does the Forex Broker’s Price Come From?

      Did you know that your forex broker may show any price it wishes? Are you sure that the prices are the same as the real FX market?

    20. What is the Forex Broker’s Order Execution Quality?

      There are shady brokers out there that manipulate order execution conditions in their favor.  Is your forex broker committed to treating you fairly when it executes your orders?

  2. Three Types of Analysis

    What's it gonna be? The red pill, the green pill, or the blue pill?

    1. 3 Types of Forex Market Analysis

      There are three basic types of market analysis: technical, fundamental, and market sentiment. Which suits you?

    2. What is Technical Analysis?

      Technical analysis is the framework in which traders study price movement.

    3. What is Fundamental Analysis?

      If you like analyzing social, economic, and political factors that affect currency supply and demand, then fundamental analysis is for you!

    4. What is Sentiment Analysis?

      Sometimes it’s not always about the numbers, but how market players feel…how do you figure out and trade forex off of that?

    5. Which Type of Analysis for Forex Trading is Best?

      Discover the best type of analysis for trading—technical, fundamental, or sentiment. Learn how each approach works and which is best suited to your trading style.

  3. Types of Charts

    What's your type? (By that we mean charts.)

    1. 3 Types of Price Charts and How to Read Them

      Sometimes, it’s all about perspective when understanding a market. Different types of charts can influence how you analyze an asset like currencies.

    2. Choosing the Right Chart: Line vs. Bar vs. Candlestick

      Not sure which chart to use? Explore the pros and cons of line, bar, and candlestick charts to optimize your trading approach.

Procrastination is the thief of time.Edward Young