All Forex Brokers
All Forex Brokers
Why do Forex accounts harass you to death?
I opened a mock forex account and the broker calls me all the time trying to force me to put money in my account. How desperate are these guys for accounts?
Online forex brokers are required to maintain a certain amount of capital or they will be shut down.
IMO, online firms that are aggressive in getting people to trade with them are either undercapitalized and wants to generate more business, or they have just hired a bunch of salesmen to generate more business.
If i were in your shoes, I'd move my demo account to a different online broker. Pick out the top 5. These brokers will let you trade a demo account with the least solicitation. Maybe an email every now and then.
I trade with OANDA.com. They have a demo account that you can trade without limit. Although I get email from them once a month for the demo account, this is more to update me on latest developments, than to get me to open a live account with them.
Hope this helps.
http://jsforex.blogspot.com
Is buying & taking physical custody of currency good?
I want to buy foriegn currencies & already have an idea of which ones. I am not putting in a great deal (maybe $100 sporatically here & there, put in over time). Is it a good idea to go to a currency exchange place downtown & just buy it & let it grow, which it has & all indications show it will, even more & faster.
Most of those Forex (not bashing any trader or broker, thats just the most popular one that I see) type traders tend to have high minimums just like brokers in order to do business, plus fees. I know that exchangers have fees too, but considering that I cant get into the market any other way, what do you think?
Box815:
Thanks for the insight! I know that I would be up against issues like that, but what are the options, if any, other than doing that & not being able to do it at all, using the big currency brokers with high minimums?
No, what you're suggesting is, to be blunt, stupid.
To actually buy $100 of a foreign currency is very expensive. First, your bank will charge you a fee. Mine charges $2.00. Then they sell you the currency at a disadvantageous price. Let's say you're buying Euros. The value of the Euro may be $1.32 but they'll charge something like $1.35. So, you're out over 2% and you have some Euros. Now, you can't earn any money on your Euros. No one will let you deposit them in an account that will earn interest so they're just sitting there.
But, let's say you're right and the Euro appreciates 10% against the dollar. You have to pay another $2 fee to change them back into dollars (plus the spread between what they give and what they're worth, $1.32 vs. $1.35 in the previous example.). You will have made roughly 7.58 Euros, or about $10, less the original $2 fee, less the second $2 fee or about $6. Whoopee.
And, it's not guaranteed that the currency you buy will appreciate. If inflation picks back up a little and the Fed raises interest rates again then all currencies will lose value against the dollar.
The expenses involved in what you're trying to do will increase your risk of loss dramatically. This is the same reason that low cost stock market strategies, such as index funds, are so popular.
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