World Class Provider Of Foreign Exchange Trading Services
If you are new to commodity trading you should leave this page and go watch the movie Trading Places because you are not ready for commodity trading. Most advanced commodity traders or respectable ones will tell you be prepared to lose a pile of money very quickly, if you don't think so watch another movie Cocktail or Rogue Traded based on a true story.
First off if you are using full-service for your commodity trading and paying over $50 per contract you are being robbed. A broker's job is to earn commission. Right or wrong in the trade the broker still gets paid. So he or she will give the investors ideas to put the money to work. Is their research any better then what you can read all over the web???? Probably Not. Other main goal of a full service broker is to try and keep you around or try to preserve your equity, which means you may end up being moved around quickly from one market to another, generating commissions or also called churning. That is something to keep a watch for and if it happens to you close your account and move on.
Full-Service Commodity Trading Things to watch out for when opening a Commodity Trading Account
1.High Commissions $50 per contract or higher and even $30 seems to high for full-service
2.Being Moved Around Quickly the market is not looking good lets go into this because so and so is going on, right after you got in the trade
3.Broker asking for more money within the first few weeks of setting up the account Called Loading a Client
4.High Pressure Sales Tactics You have to move now etc.., there is always opportunities up, down, sideways or whatever.
Also before opening a Commodity Trading Account you will want to do a background check on your commodity trading broker and commodity trading firm.
Part of the C.F.T.C's mission is to protect market users and the public from fraud, manipulation, and abusive practices.
Note the above statement does not guarantee you will not get burned in trading commodities. Here are a few examples.
1. What did the CFTC do with the dramatic run in Crude Oil to $150 per Barrel. That's B.S. to think the move was based on fundamentals. It's not rocket science to figure out the large investment banks were behind that move. The drive higher cost the American people not only in gas and heating their homes but also ripped up companies not able to pass on the additional fuel costs. Creating Job losses and severe damage not only to the U.S. Economy but the global economy as well. That's one of the greatest ripoff's in history and they have done nothing, take from everyday people and transfer their cash into Wall Street Bonuses. Another Ponzi Scheme Win for Investment banks.
2. Enron before they went under. Rolling brown outs in California and Cash Market Prices for Natural Gas spiking to $70 per btu for imm. delivery. Who got ripped off from that and did the residents of CA and the small speculators trading Natural Gas get any money back.
3. Recent CFTC Actions
Opportunities from Around the World
ADVANTAGES OF THE FOREX MARKET
– Forex is open 24 hours a day. – Forex is the most liquid market in the world. – Trading on more than 18 currencies. – No restrictions on shorting which allows you to equal trading facility during rising or falling markets.
Over the last three decades the foreign exchange market has become the world's largest financial market, with over $1.5 trillion USD traded daily. Forex is part of the bank-to-bank currency market known as the 24-hour Interbank market. The Interbank market literally follows the sun around the world, moving from major banking centers of the United States to Australia, New Zealand to the Far East, to Europe then back to the United States.
Until recently, the forex market wasn't for the average trader or individual speculator. With the large minimum transaction sizes and often-stringent financial requirements, banks, hedge funds, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the forex market vs. other markets, including fantastic liquidity and the strong trending nature of the world's primary currency exchange rates.
Traders Exchange Gives You The Access and Resources to Trade Forex
By offering smaller transactional sizes that allow traders of almost any size, including individual speculators or smaller companies, the opportunity to trade the same rates and price movements as the large players who once dominated the forex market.
The forex market removes the traditional barriers that exist in other markets without restricting the forex traders' ability to make a trade at the right times.
Some examples include:
Limited floor trading hours dictated by the time zone of the trading location, significantly restricting the number of hours a market is open and when it can be accessed.
The Forex market is open 24 hours a day, 5.5 days a week. Because of the decentralized clearing of trades and overlap of major markets in Asia, London and the United States, the market remains open and liquid throughout the day and overnight.
Threat of liquidity drying up after market hours or because many market participants decide to stay on the sidelines or move to more popular markets.
Most liquid market in the world eclipsing all others in comparison. Most transactions must continue, since currency exchange is a required mechanism needed to facilitate world commerce.
Traders are gouged with fees, such as commissions, clearing fees, exchange fees and government fees.
Commission-Free traders pay a spread in between the bid and ask prices.
Large capital requirements, high margin rates, restrictions on shorting, very little autonomy.
Low margin rates
Short selling and stop order restrictions.
Pattern daytraders subject to restrictions requiring account balances in excess of $50,000.