Forex Broker Guide

Introduction

The following is a list of questions you may like to consider before opening an account. You can use this checklist to narrow down your selection of companies that fit your requirements. You may also wish to refer to the forex broker ratings page on this site to read about traders unique experiences with particular brokers.

Important Note to Traders: GoForex recommends you do not open an account with a U.S. based forex broker regulated by the CFTC and NFA, due to excessive and over-bearing regulation imposed on retail forex brokers including reduced leverage levels, the "no-hedging" rule and the FIFO (first-in, first-out) rule which affects the way you trade.

The following links will also give you some background information on U.S. FCM's (Futures Commission Merchants).

• Selected Financial Data for FCM's
• NFA Background Affiliation Status

1. Word of Mouth

• What do other traders say about the broker? See Forex Broker Ratings & Forex Broker Reviews
• What is their customer service like?

2. Customer Protection

• Is the broker regulated?
• What regulatory organisation are they registered with and what protections does it afford the client?
• Are client funds protected against fraud?
• Are client funds protected against bankruptcy?

3. Execution

• What business model do they operate? i.e. Are they a Market Maker[?], ECN[?] or no-dealing desk broker[?]?
• How fast is their order execution?
• Are orders manually or automatically executed? [?]
• What is the maximum trade size before you have to request a quote?
• Are all clients trades offset?

4. Spread [?]

• How small is the spread?
• Is it fixed or variable?

5. Slippage [?]

• How much slippage can be expected in normal and fast moving markets?

6. Margin [?]

• What is the margin requirement? e.g. 0.25% margin = max 400:1 leverage [?]), 0.5% margin = max 200:1 leverage, 1% margin = max 100:1 leverage, 2% margin = max 50:1 leverage, etc.
• Does the margin requirement change for different currency pairs or days of the week?
• At what point does the broker issue a margin call?
• Is required margin the same for standard and mini accounts? [?]

7. Commissions

• Does the broker charge commissions? (Most market makers commissions are built into the spread)

8. Rollover Policy [?]

• Is there a minimum margin requirement in order to earn rollover interest?
• What are the swap rates like for going long or short in a particular currency pair?
• Are there any other conditions for earning rollover interest?

9. Trading Platform

• How intuitive and functional is it to use?
• Are there many disconnections during trading hours?
• How reliable is it during fast moving markets and news announcements?
• How many different currency pairs are available to trade?
• Does the broker offer an Application Programming Interface (API) to allow clients to automate their trading systems?
• Does the broker offer any other special features? (e.g. One click dealing, trading from the chart, trailing stops, mobile trading etc.)

10. Trading Account

• What is the minimum balance required to open an account?
• What is the minimum trade size?
• Can clients adjust the standard lot size traded? [?]
• Can clients earn interest on the unused margin in their account?

Finding the Best Mortgage Lender

Mortgages have been stealing the headlines these days, from the beginning of the crisis through the anticipation concerning current financial reform. But there’s one thing that hasn’t changed – if you want a mortgage loan, you need to find a lender. With so many banks to choose from, you may feel confused and overwhelmed. If you’re looking for your mortgage lender, here are some tips to help you find the one that’s right for you.

Mortgage lender search

Step one is to search the Internet. You’ll be asked a few basic questions, like the property type, the home value, and the kind of mortgage rate you’re looking for. Then you’ll be matched with lenders who do business in your area who will give you quotes and relevant information. Next, visit any brick and mortar institutions in your neighborhood, especially the bank where you already have your account. Many offer lower preferred rates to existing customers.

If you’re working a realtor, ask her for lender suggestions. She’s been around the closing block a few times and can offer great tips on who to, and who not to, use. Warning: Don’t be compelled or pressured to take her suggestion. Her recommendation is just another quote for you to compare with the others.

Make a list of the different lenders, and what they’re offering, so that you can compare them side by side. Remember to include the various closing costs, application fees, APR, etc. so you can compare every aspect of the potential loan. Also request information about the application process, the documentation that you’ll need, and how long the entire process will take. Be wary of anyone who promises you a speedy closing. As a result of the recent mortgage crisis, every aspect of acquiring a home mortgage is taking longer to process. Plus, in Congress’s new legislation, it’s incumbent upon lenders to make sure that you have the ability to repay the loan, so they’ll be doing their due diligence.

Doing better business

Once you have a list of lenders, narrow it down to three. Then, check their records with the Better Business Bureau. When you type in the name of the organization you’re researching, you’ll have access to a reliability report, which rates the company from F to A+. Then you can scroll to read the specific complaints, and whether they’ve been resolved.

If the offers are comparable, trust your intuition, and select the person with whom you feel most comfortable. You’re going to be in a close relationship with the loan officer until your mortgage is funded, so make sure it’s someone who you can easily call to field any questions. If someone doesn’t return your calls, or is short with you, you won’t have a good experience.

Now that you’re armed with the information, it's time to find your mortgage lender. Choose the bank that offers the best deal, and a lending officer with whom you feel comfortable. Then the only headline you’ll be seeing is “mortgage successfully closed.”

Check The Best Interest Rate Before Buying A Mortgage Read more: http://www.articlesbase.com/mortgage-articles/check-the-best-interest-rate-before-bu

You can be offered very different house loan mortgage rates by different loan companies. Checking the mortgage lending companies to find out which ones have the cheaper mortgage rates of interest can save you lots of dollars long term. Every little bit that you can save will help.

Write down the interest rates of all the mortgages that you can find next to the name of the lender. The rates will not be too dissimilar to the ones you hear on the television on a daily basis. Wall Street stock exchange rates ultimately will determine the level of interest us property owners pay.

The sum that you can afford to borrow can be calculated by a combination of your personal once a month available earnings and the interest rate that you will be charged. Then look at the amount you have for a deposit and it is possible to determine the value of home that you must start searching for.

Any time that home interest rates are high indicates that you might ought to settle for a smaller home or even one that is less expensive as it needs some work doing to it.

You will notice that the smaller the percentage of the value of the house that you are purchasing is being borrowed, the lower the rate that the mortgage lender will offer to you. If at all possible you will need to come up with something more than twenty five % of the buying price to get a good deal on loan rates

.

Also, obviously you would have a smaller loan so the repayments would be more manageable too. You will reap huge long term benefits if you can start putting some money aside for your deposit as quickly as possible. Another major factor that will affect your monthly payments is the term of the mortgage loan. The more years that you take to settle your mortgage, the higher that the interest rate is likely to be.

I hope that you can imagine the vast amount of extra interest you would pay if you had to pay even just 1% extra on your interest rate for thirty years rather than 1% less for 15. It can work out at tens of thousands of extra dollars that the mortgage company get from you.

When you are comparing prices ensure that you compare the same stats. Read all the fine print as the terminology used in the home loan field is rather confusing sometimes.

The last but possibly most important thing to consider is whether you want to opt for a variable rate mortgage or a fixed rate mortgage. You should decide whether you think that the average mortgage rate will go up or go down over the period of your mortgage.

A fixed rate of interest house loan will give you the comfort of being able to budget your money better as the monthly amount you pay continues to be the same. With the variable rate you could find yourself having to pay large sums extra month to month. They say that you pay your money and take your chance. The chance that home loan mortgage rates will go down and go on

There is still no action after audit slams SABC

Auditor-general Terence Nombembe has proved an exemplary example of independence, displaying fair-mindedness in his auditing decisions. No more so than when he found hundreds of millions of rands worth of alleged financial mismanagement and corruption in his special investigation into the SABC.

What a contrast he is to members of the parliamentary communications committee, who insisted this week on closing a hearing with the SABC - supposedly the public broadcaster - over which it has insight. While members of the parliamentary press gallery were squatting on the floor outside of the meeting room - waiting for a court order to end the closed meeting - I couldn't help thinking what a mockery it was to call it a "communications" committee.

What an irony that Parliament used the police to protect the MPs - from journalists! Whereas, they should have been deployed to protect transparency and the public pursuit of truth by MPs.

It is just short of a year since the damning auditor-general's report. Only in February was the Special Investigating Unit - headed by state crime buster Willie Hofmeyr - roped in to probe these allegations. One of the more extraordinary auditor-general's findings was that senior managers had notched up millions of rands of misuse of SABC petrol supplies, some surely requiring vehicles to be lined up all day to be filled up. It makes hiding behind closed doors by MPs deeply suspicious.

It has been a rough year for the SABC, with an interim board appointing - at the eleventh hour - Solly Mokoetle, as the chief executive, just before its handover to a new board headed by chairman Ben Ngubane.

Now it appears that all board members, with the exception of Ngubane, have turned against Mokoetle. He has been given notice of his suspension, in spite of protestations all along by Ngubane that "the factual situation is that all the non-executive board members accepted the new group chief executive", as he was reported saying to Sapa in January.

Then there is the saga of the appointment of Phil Molefe, a former parliamentary press gallery member, as the head of SABC news.

Before she left office as interim board chairwoman, billionaire businesswoman Irene Charnley said at the handover meeting that the interim board's core focuses were to stabilise the corporation after a severe financial crisis, leaving the broadcaster with a deficit last year of R900 million. She noted that the government had stepped in with a R200m additional injection and a guarantee of a further R1.4 billion. It was her board, however, which thrust Mokoetle into office.

The auditor-general's report last year was damning. He found 20 employees were directors or members of 20 companies or close corporations which received payments from the broadcaster to the tune of R3.4m. Few if any heads have rolled since. Four senior managers were suspended but their heads never rolled. What a pickle.

Upward mobility is no distraction for Woolworths

Good news, just in time for Women's Month, is Woolworths' decision to shed (no pun intended) several layers of its historically conservative approach to underwear. It will be displaying a new range of provocative lingerie soon.

Whether Distraction - as the new range is aptly named - will contribute towards lifting the share price to new levels has not yet been determined. But the lingerie goes a long way to satisfy female customer demands, especially plus-sized women who have asked for "sexier, glamorous" offerings, according to Ian Moir, the managing director of retail at Woolworths.

While its retail sales have climbed, Woolworths has lost market share in the lingerie section, Moir revealed at the group's results presentation yesterday.

Some 16 stores will be kitted out with a new lingerie set-up. A Distraction ad campaign will appear on television and in print publications.

Woolworths is on a mission to fine tune its customer-centric strategy and place emphasis on customer segmentation, a loyalty programme, getting store formats right and cultivating a sustainable online strategy - all in the interests of convenience for the consumer.

Customers can look forward to a tiered loyalty programme which will be designed to, among several things, build more profitable long-term relationships with customers, and provide a platform to use customer insights to drive sales. Smart.

It is maybe not all that innovative but still an effort from the company whose displays 10 years ago resembled a downtown men's outfitters, judging from photographs outgoing chief executive officer Simon Susman hauled out as evidence that Woolworths had indeed evolved.

Woolworths makes a convincing case for this continuing facelift, producing data showing more South Africans are drifting from the lower to the higher end of the Living Standards Measure and it wants to be well-positioned for that shift.

It will aim to have "the mind of a supermarket and the soul of a deli", according to the charismatic Moir. We'll see.



China

China has reached an important turning point in its development this year. Citi, the research arm of Citibank, says the country's ratio of dependants to total population is likely to reach a trough of just over 39 percent this year. Dependants include children aged up to 15 years and people of 65 and over. Citi predicts the ratio will be rising steadily for the foreseeable future as the population ages.

This has all sorts of implications. China has a limited social security system and its one-child policy has placed an enormous burden on the single child to care for ageing parents. As the population ages, the burden will rise.

However the good news for the workers is that they are likely to earn more.

China has had virtually unlimited resources of labour over the past few decades. As a result labour's share of gross domestic product fell from about 50 percent of gross domestic product in 2002 to 42 percent in 2005, possibly the lowest of any major country in the world, says Citi.
Now the success of the one-child policy is moderating labour force growth. At the same time rural development will reduce the flow of workers from rural to urban areas. The New York Times reported recently that big manufacturers were "moving to raise salaries because they are desperate to attract new workers at a time when many coastal factory cities are struggling with labour shortages".

And it is not just market forces that are at work. The newspaper said: "Beijing is supporting wage increases as a way to stimulate domestic consumption and make the country less dependent on low-priced exports."

Moreover, Citi says the emergence of more independent labour unions will improve the bargaining power of labour.

The news will cheer the hearts of workers all over the world. Goods imported from China have been competing successfully in most countries, including South Africa. The playing fields are levelling out.


Nafcoc

The National African Federated Chamber of Commerce's (Nafcoc's) plans to acquire 15 percent of one of the local banks before the end of this year looked set to be a modern miracle: controversy-free and peaceful.

This was in view of the fact that the new leadership at the 600 000-strong business chamber had promised stability in the organisation going forward.

But that expectation is now suddenly tinged with anxiety as we were recently informed Nafcoc's members were concerned they might not get their cash payouts promised when Nafcoc disposed of R1.5 billion worth of shares in Tsogo Sun.

Nafcoc had promised qualifying members would receive cash payouts for the value of their shares.

But it turns out some members think Nafcoc is not going to pay them this money. It would invest it all into purchasing a 15 percent stake in The Employment Bureau of Africa (Teba) Bank.

Some members claim that the deal has already been concluded and they were not made aware of this.

They feel they will be indebted to Teba Bank as the loan still had to be paid back. They want their money and nothing else.

But earlier this month, the chamber confirmed it had been in talks with the aim of obtaining a stake in Teba Bank. It, however, said this was not the only bank it was talking to. And nothing had been finalised.

The president of Nafcoc, Lawrence Mavundla, has been at pains in the past few weeks, trying to explain that this deal had not been struck.

Who exactly is stoking the fires at this organisation? Is it the bitter individuals who think they were pushed out of the organisation? If this is the case, then we have not seen the end of controversy and conflict at this trail-blazing business organisation.

Understanding Health Care and Free Insurance Quotes

The following lines will demystify all about Health Care and how to get the insurance by getting a Free Quotation for the best plan that fits you without that feeling of taking a big load on your shoulders and easy to suit on a month's budget for every family in USA. Health Care has become a precious asset in the contemporary life due to all of our harmful habits mostly forced by the inescapable unhealthy way-of-life. Therefore, health is a mandatory concept to overcome the obstacles nowadays and that's what we most have to care for.

To understand how to get the best rates available to assure an extraordinary Health Care and get it unleashed despite whichever bad experience you have had on this sort of painful research you will be led to an easy and trustful online process which will doubtless clear your mind up to get your ready to make your best choice ever when it comes to look after yourself and your family.

Browsing around on the internet you may find many sites where you can get a Free Insurance Quotation whose provider should deliver a proper Health Care service but unfortunately in most cases you are requested to turn your personal information inside out. However, in the genuine cases, before disclosing personal details, you simply enter your name, some information about past medical diagnoses and email to find out more about the process before being committed to anything. This makes the process safe and easy, and gives us no reason to take a little look deeper at how we can benefit.

Take advantage from this clever and easy engine that will help you get rid of the villain of most middle class US families. Health Care is no longer something that will haunt your dreams from now on. Get the quotation with the best rates available to assure an extraordinary long and joyful life for you and your beloveds.

Hopefully, you will be more encouraged now to take advantage of this greats offers, and see how you, your family, working friends and personal friends can benefit from it once you will be saving money and enjoying a new Health care service that will attend all your expectations and don't ever forget - Health is what we most have to care for.

Visit us at http://www.free-health-insurancequotes.com to see more about how to get an online Free Quote Request and gain a little more understanding about how you can benefit with all that is being offered for you.

Reverse Mortgages: Understanding the Pros and Cons

Older citizens may want to consider a reverse mortgage, which borrows against the equity in a home to give you cash in hand month after month. For a vast majority of older Americans who own their homes and get a reverse mortgage, this would mean a steady source of income for the remainder of their lives. The proceeds from sale of the real estate after the passing of the mortgage holder is used then to pay the lender, the remainder still owed on the mortgage.

A reverse mortgage may be a good solution that will provide you with reliable income and eliminate the stress of paying a mortgage on a fixed income. Reverse mortgages are not a good solution for everyone wanting to overhaul their mortgages to make them more cost-friendly. Take a closer look at the pros and cons of reverse mortgages to help you understand the benefits and risks.

The Pros of Reverse Mortgages

• You have the flexibility of choosing whether to take payment from the equity in your home in a singe lump payment, or as month payments and even a line of credit you access as needed. You can also combine any of these options which may be especially helpful to you when unexpected household repairs, or illness and injuries occur and you need a large amount of money quickly in the short term.
• The money is exempt from taxes and a guaranteed income that continues until your death.
• You can remain in your home which is very important to many of us, as we get older.
• You can never owe more than your home’s value, regardless of the balance still owed on a mortgage at the time of your passing.
• Home owners are not required to own their homes outright in order to qualify for a reverse mortgage, which helps if you are still paying on a mortgage.
• At the time of your passing if your home’s value is more than the remaining balance still owed on the reverse mortgage that difference will be paid to the heirs of your estate.
• If you decide to repay the money you have received with a reverse mortgage, you can do this without having to sell your home.
• Medicare and Social Security incomes are not affected by income from reverse mortgages. You will not lose your benefits by obtaining a reverse mortgage.
• The title of your home remains in your name.
• There are no monthly payments for you to make such as you would need to by taking out a home equity line of credit loan.
• In a reverse of the typical considerations for determining a loan like your credit score, income, and savings: your health, age, and your home’s net value and the equity it has built up are how reverse mortgages amounts are determined.
• You have a three day ‘buyer’s remorse’ clause of protection in case you decide against a reverse mortgage within three days of its closing.


The Cons of Reverse Mortgages

• Fees, interest rates, insurance, and closing costs can culminate together into quite an expensive mortgage that you may not want to carry at this stage in your life.
• You must be at least 62 years of age in order to qualify for a reverse mortgage.
• The heirs to your estate may receive less because there was a greater balance owed on the mortgage than the proceeds from the sale of your real estate netted.
• Failing to keep up with your property taxes, home insurance, and repair costs could lead to you having to pay back your reverse mortgage early.
• If you are the holder of a mortgage at the time of acquiring a reverse mortgage, the amount you still owe on your mortgage is added into the amount of your reverse mortgage.
• If you sell your home or move to another residence, you will have to pay your reverse mortgage back. A reverse mortgage loan is paid prior to heirs receiving money from your estate upon your passing as well.
• There are caps in place that limit how much you money you can borrow with a reverse mortgage.
• Reverse mortgages are typically more expensive than other types of mortgages.
• You must meet with a mortgage counselor prior to getting approval on a reverse mortgage loan.
• Refinancing a reverse mortgage after the three day ‘buyer’s remorse’ period has expired can be expensive and difficult to accomplish.

Is This Any Way to Stimulate Global Trade?

As the global economy slowly finds its footing in the wake of the credit crisis, regulators are tightening risk standards for banks. Though this response is understandable, keeping a close hand through tighter regulations also requires a closer eye to avoid disruptions in global trade. Broad-brushstroke regulatory changes should come with a warning label-and with sufficient time for informative exchanges between affected parties.

At the encouragement of the G-20, the Basel Committee on Banking Supervision drafted recommendations for changing bank capital and liquidity standards (often called "Basel III") in an effort to promote a more resilient banking sector that can be a foundation for sustainable economic growth. The fundamental goals of stronger capital and liquidity are on target, but some of the recommendations work at cross-purposes to those goals.

In comment letters to the Basel Committee, BAFT-IFSA outlined some of our key concerns that focus on trade finance, which has historically maintained a low risk profile in comparison with other financial transactions. As background, trade finance transactions generally involve fixed, short-term instruments that cover the movement of goods. They are not automatically renewed or extended upon maturity and they are self-liquidating by nature. In stress situations, countries and banks have traditionally continued to prioritize the repayment of short-term trade finance obligations as they fall due because these obligations are fundamental to commercial exchange. Failure to honor them can put at risk invaluable trading partner relationships. And, as a result of the short-term, self-liquidating nature of trade finance transactions, banks active in this business are generally able to react swiftly to deteriorations in bank and country risk.

This notwithstanding, the implementation of the Basel II accords, concomitant with the global recession, put more pressure on banks to not only meet additional capital requirements under Basel II, but also to reconsider certain proposed transactions because of global risk deterioration. This dynamic propelled deleveraging even further during the economic crisis.

Recent surveys conducted jointly by BAFT-IFSA and the IMF indicated dramatic changes in the volume and value of trade finance transactions during the crisis. In particular there was a growing sense among banks that the value of transactions had declined because of decreased demand for trade activities.

Trade underpins the prospects of global economic recovery, and any measures that potentially restrict the willingness or ability of banks to support trade have the potential to disrupt global economic growth. Take the Basel Committee's latest recommendations regarding capital. For the purposes of calculating a leverage ratio constraint under Basel II, the committee would require banks to hold a higher quantity and quality of capital, and proposes increasing the credit conversion factor (CCF) for trade-finance instruments and other off-balance-sheet items to 100 percent. Currently, the most frequently used value for trade-related contingencies is 20 percent. Increasing the CCF by a factor of five for trade-related contingencies does not account for their intrinsically safe structure and could disadvantage banks that are focused on trade finance. Such a high leverage ratio may encourage the diversion of capital to other financial instruments, resulting in significantly reduced lending or increased cost of providing trade finance for customers.

The Basel Committee also proposed specific tests designed to improve liquidity management. Banks engaged in transaction banking generally support creation of a framework for a quantitative liquidity regime. Recent indications that the timeframe may be extended for implementing some of the liquidity recommendations have been well received; allowing for a greater understanding of the impact the liquidity proposals will have on banks' ability to provide transaction banking services is crucial.

The financial crisis was not driven by transaction banking, and just as too much risk is undesirable, regulations that go too far in their attempt to purge certain risks from bank loan portfolios have the potential to hamper recovery. Global trade relies on cost-effective and accessible financing for trade transactions. And as global trade has grown, trade finance has grown with it, facilitating the reliable and secure movement of goods and services across the globe. That is well worth preserving.

Learn Forex While Making Money

With the proper education and training anyone can learn forex and generate big profits. Beginners usually spend more time playing with a calculator figuring out how much money they can make instead of learning the skills and tools they need to actually have a chance of reaching their goals.

The main reason that over 95% of traders lose money trading forex over and over again comes down to poor trading education and training regarding how difficult trading actually is and what it takes to make money consistently and not blow their accounts out. Forex trading takes a lot of planning and hard work to be successful and it is important to understand that so you can begin approaching the markets with that mindset.

Knowing how difficult it is to be successful at trading forex it makes sense that a normal forex education is not going to be enough to be profitable. The best way you can learn forex is to find an experienced trader willing to work with you and allow you to trade along side them.

Sure if you have all the time in the world you can seek out all the free information available online needed to learn how to trade profitability. Consider the for a moment the value of a free forex trading education and compare that to the value of proven forex trading school from an experienced trader and mentor.

It is highly recommended that all beginners to forex start by studying, reading and absorbing as much information as possible. Find a profitable trading strategy from a pro trader that you can begin with by following and then later see if you can improve upon it and make your own strategy that is even a little bit better.

While it is nice there is a ton of free information available online to help you learn forex the fact of the matter is the majority of it is going to only help you to form bad habits and loss money. Make sure to be aware of traders posting in forums as their advice tends to be the worst as they prefer an audience and fan clubs more than making pips in the markets.