MARKET STRUCTURE
The Forex market trades 24hrs daily, 5 days per week from 6.00 pm Eastern Time which is 11.00 pm
Nigeria Time on Sunday to 5.00 pm EST Friday afternoon (i.e. 10.00 pm NGT). Although, opening and
closing time varies from Forex brokers. The market begins at Wellington, New Zealand and following
by Melbourne in Australia, and finally starts in Tokyo, Japan, which accounts for over 18 percent of the
daily volume of the financial market. Immediately the Tokyo session is closing, the FX dealers in
Frankfurt, Germany will resume for trading business at about 2.00 am EST (i.e. 7.00 am NGT).
Meanwhile, one hour later (8.00 am) the London trading session will start in England with over 260
major dealing houses and over 45% of the average daily volume, which takes the heart of the Forex
market. Finally, banks, institutions and hedge fund traders will resume trading on the Wall Street in
Greenwich, America at 8.00 am (i.e. 1.00 pm NGT).
Go to www.google.com, type forex.timezoneconverter.com and search. Click on the first search result
on the list and it will take you to the website. Check the diagram below: Then, from the TIME ZONE
drop menu, select AFRICA/LAGOS and automatically you will get the trading sessions and time.
This will really help and contribute to the success of your trading.
WHAT MOVES AND DRIVES THE FOREX MARKET?
There are different factors that drive the Forex market. It could be Fundamental, Political, Ethic,
Terrorism etc. There are also primary dealers including large money center banks such as Bank of
America (BOC), Citibank, and also powerhouses like Goldman Sachs (that recently had problem in the
USA) and Morgan Stanley; that have the power to influence the direction of the Forex market, even
sentimentally.
Since the financial trading involves currencies transaction of one country for another; then
multinational companies and the huge, multibillion-dollars hedge funds firms are also the major players
in the trading game as the big money banks like Deutsche Bank, Bank of Tokyo, Bank of America,
Citibank etc in connection with financial trading houses that act as primary market makers that are
supplying liquidity to the market.
The multinational corporations are the primary hedgers in the FX market looking at offsetting their
business risk. The hedge funds are the large speculators looking to profits from changes in major
economic and political trends. Meanwhile, the world’s central banks also participate in the market for
diversity of reason. Some Central Banks came into the market just to balance their books and adjust
their foreign reserves. Other, sometimes trade billions of dollars daily within the shortest period when
they foresee the market situation (trend) with greater opportunity of increasing the profits for their
reserve vaults. Also, other Central Banks do come to the market to manipulate or defend their country’s
currency to protect their trade advantage. The game in the FX market is really interesting if you are
ready to learn the tricks behind it, because money flows into one sector and out of another. That is the
simple analogy!
KICK OFF THE TRADING BUSINESS
I’m sure you have been waiting for this topic before now. Visions for abundance is running within you
right now, and at this stage you can’t just wait for the dollars to starting rolling into your bank account.
Anyway, that’s one those things. Immediately your documentations to open live Forex account are
ready, then you can move to this next level now!
DETERMINING RELIABLE FOREX BROKER / BROKERAGE FIRM
Forex Broker / FX Brokerage firm buys and sells orders due to trader’s instructions while they charge
indirect commission that is known as SPREAD for any transaction made by trader. Before you register
Live Forex trading account with any brokerage firm, you need to make thorough research as to
determine the genuineness of the company. Some of the brokers are scammers and they act as if they
are real.
Forex is regulated by Regulatory Agencies even while it is popularly said that the Forex market is an
unregulated market but some countries have agencies that regulates the activities and registration of
brokerage firms. Moreover, any fraudulent act by brokers could be reported to the regulatory agencies:
1. National Futures Association (NFA), Securities and Exchange Commission (SEC),
Commodities Futures Trading Commission (CFTC). These are the regulatory agencies that regulate the
activities of all brokerage firms in the United States of America. You can visit their websites for more
research and info; www.nfa.futures.org, www.sec.gov, www.cftc.gov.
2. Financial Services Authority (FSA) is the only agency that regulates the activities of brokerage
firms in the United Kingdom. Visit www.fsa.gov.uk for more details.
3. Financial Services Agency (FSA) is in charge of regulating the Forex trading brokers in Japan
while you can access their website at www.fsa.go.jp/en/index.html
4. Securities and Futures Commission (SFC) is an independent non-governmental body that is
responsible for regulating the securities and futures market in Hong Kong. Check
www.sfc.hk/sfc/html/en
5. Australian Securities and Investment Commission (ASIC) is Australia’s corporate markets and
financial services regulator. While you can also search for companies and businesses that are ASIC
registered on their website www.asic.gov.au/aisc
6. Canada is another strong and stable country that handles Forex brokerage firms’ issues
professionally. There are two commissions that regulate the activities of brokerage firms in Canada,
and they are: British Columbia Securities Commission (BCSC) and Ontario Securities Commission
(OSC). Check www.bcsc.bc.ca, www.osc.gov.on.ca
7. Danish FSA is the regulatory agency/commission that supervises financial understandings and
securities market in Denmark. Visit www.finanstilsynet.dk. When you get to the website, change the
language to English at the right hand side – top.
8. Bundesbank and German Federal Financial Supervisory Authority (BaFin) oversees banking
and financial services in Germany. More details can be found on www.bundesbank.de. Change to
English!
9. Switzerland is another good place to open FX account with brokers because their regulation is
the strongest in the whole world. And they have many regulatory bodies:
a. Gruopenent Suisse des Conseils en Gestion Independants: GSCGI is directly
translated in English as the Swiss Association of Independent Financial Advisors
(S.A.I.F.A.). It's a group of economic interests formed by specialized independent
financial intermediaries who are confirmed professionals in the financial services
industry. However the group is opened to contacts with any person interested in the
business of wealth management seeking to promote dialogue with the banking partners
and authorities at all levels. Visit http://www.gscgi.ch for info.
b. PolyReg is a self-regulatory body recognized by the Swiss Federal Money
Laundering Control Authority. It is established according to Article 24 of the Swiss
Money laundering act (MLA) and acts as regulatory and supervising Organisation for its
members. Read more on http://www.polyreg.ch/e/polyreg/index.html
d. Association Romande Des Intermediaires Financiers (ARIF) is a private nonprofit
association of public utility, whose purpose is to assist in the prevention of and the
fight against money laundering in relation with the Swiss Federal Act on
Combating Money Laundering and Terrorist Financing in the Financial Sector (MLA).
http://www.arif.ch/en/index.htm
e. Swiss Federal Department of Finance (PFD): See more details on
http://www.efd.admin.ch/index.html?lang=en
The novice trader must be aware of Off-Exchange Currency Dealers (offensively called “bucket
shops”). When you want to choose potential FOREX broker, find out with which regulatory agencies
each dealer is registered from the above-mentioned, if any. The FOREX market is allocated as an
“unregulated” market, and basically it is. Regulation is typically reactive; occurring only after the
damage has been done.
There are numerous reliable and reputable FOREX brokers to choose from; consider your specific
needs and likes/dislikes before making a selection. We recommend the followings to mention few from
those we traded with:
Boston Merchant Management Services - http://www.bmfn.com
Master Forex - http://www.masterforex.org
Delta Stock - http://www.deltastock.com/english/home/deltastock_home.asp
ODL Securities - http://www.odlmarkets.com Although, FXCM is planning to acquire this company
soon and this will really make them one of the strongest brokers in the world.
Alpari (UK) Limited - http:// www.alpari.co.uk
FxPro - https://www.fxpro.com...