Tag Archives: Forex figures

FXCM Acquires Majority Interest in Faros Trading

Continuing in its ongoing expansion efforts, US based Forex broker FXCM, a leading online provider of foreign exchange, announced the purchase of 50.1% of foreign exchange intelligence company Faros Trading LLC. No further details of the transaction were made available.

Faros Trading is a global leader in foreign exchange intelligence, market coverage, and execution services to the institutional foreign exchange market. Faros, based in Connecticut, provides research and execution services to clients in the foreign exchange industry.

Faros CEO Ray Kamrath said the deal will help FXCM add a more personal touch to its institutional services, while allowing Faros to grow faster.

“We focus on helping clients make money through research, while FXCM focuses on helping clients save money through electronic trading and low cost,” he said.

The acquisition comes after FXCM launched an unsuccessful, $210 million all-stock takeover bid for Gain Capital in April but comes on the heels of FXCM’s recent acquisition of Alpari US.

According to Drew Niv, chief executive of FXCM “The combination (with Faros) should expand our market reach and deliver a compelling suite of services to institutional FX traders.”

Banc De Binary Now Regulated by CySEC

Banc De Binary, a leading binary options platform, has recently opened an office in Limassol, Cyprus, which will serve as the company’s headquarters for business conducted in Europe and the Middle East. The opening of this office constitutes a multi million euro investment in the island which is also the home to many other Forex brokers and binary options brokers such as FXCC, OptionYard and Trade Rush. 

New York based Banc De Binary was founded in 2009 and is one of the only licensed binary options brokerages in the world (CySEC license 188/13) and after becoming the first EU regulated binary options brokerage, has been in talks with the Commodity Futures Trading Commission (CFTC) in order to be approved for operation as a binary options exchange in the United States.

Regarding its move to Cyprus, Banc De Binary founder and CEO Oren Laurent, said: “Cyprus’s geographic location, excellent infrastructure and high-calibre labor pool made the island our first and only choice for our European and Middle Eastern headquarters”. The licensing obtained from the Cyprus Securities and Exchange Commission (CySEC) provides the company’s clients with an additional layer of security and transparency, wherein all trading accounts are now fully-protected by the Investor Compensation Fund in accordance with CySEC’s regulations.

Binary options, also referred to as Fixed Return Options (FROs), contrast to other traditional investments in that investors select only the direction of an asset movement in order to complete a successful trade. Binary options offer only two possible outcomes: “Up” or “down”.

Cyprus expects to see the benefit of the continued growth of the binary options industry with the creation of over 1,200 new jobs and Banc De Binary is expecting annual earnings of well over 100 million euros, a very important factor during these challenging economic times. The binary options industry in Cyprus is currently valued at 500 million euro per year.

Banc De Binary CEO Oren Laurent with DailyForex.com team member Sari Holtz at the iFXEXPO in Macau, January 23-24, 2012

 

Tim Musomba Interview with DailyForex.com

Tim Musomba is a trader, Live Room moderator and this year launched his managed accounts career. He has spent several years building his own unique self-developed method for trading the markets.

Tim sat down with the DailyForex.com Senior Analyst, Huzefa Hamid, to have a chat about the markets…

[DF] How did your journey into trading begin? I’ve been a computer enthused since I was 13; I built my first computer and started a small computer repair business with a friend of mine when I was 15. My father had always been a businessman. When I was around 16 years old, I remember having conversations with him about various import/export business, as well as currency & commodities exchange. At 18, he gave me a Forex CD. It sat on my desk for a couple of years, and when I went into college I took a serious interest in it. I would say the combination of my love for computer technology and my father’s business focus found its connection in the financial markets as I entered university. In college, I met a good friend of mine, Jamal, whose father had worked with my father and who had also expressed an interest in the markets. We started to explore trading ideas together and the rest is history.

[DF] This year you’ve been a moderator for TheForexRoom.com. Tell us a little about that. I love it. It’s been a blast working with Colin & Greg and the clients. It’s a group where everyone has a passion to trade together. And the people are from all over the world – Europe, Canada, the US, Australia… it’s humbling to have people from all around the world hear what I have to say and ask me for my opinion. And Greg’s got the best sense of humour I have to add!

[DF] One of the backbones of your trading is using tick charts over regular time based charts. In simple terms, what are tick charts and why is it effective? I started using Tick Charts in futures because it calculates the number of trades per bar; after a specific number of trades, the bar is completed. It makes the charts cleaner because it’s based on activity. It gauges the flow of the market versus an arbitrary timeframe. It’s almost like a hybrid of a larger timeframe chart with a short-term view. What we’re doing is trading price action and Tick Charts looks at that more precisely than time based charts.

[DF] You also use a MACD and a Moving Average. How do you use it? Firstly, the MACD tends to be my Holy Grail of where the overall market is heading. It’s considered a very traditional tool amongst traders for very good reason – everyone wants to trade in the direction the market is going and MACD gives a great indication of that. So it gives me the bias I want to trade in – Long or Short. Secondly, the Moving Average – I use a Simply Moving Average just use for Pullbacks. Once the MACD gives me the direction, I look for pullbacks to my Simply Moving Average to help me pin my entries.

[DF] Typically how long are you in a trade? Most of my trades are between 45 and 90 minutes. Sometimes they can go on longer, but 80% of my trades fall within that timeframe.

[DF] Tell us a little about the trading education you’ve received – books or courses – and what you’ve found effective. The internet has been very effective for me; I believe it’s the most effective tool in this day & age; I’ve spent hours searching for what I need and developing my knowledge base from what’s already available online. I’d definitely recommend Investopedia and Wikipedia. Especially in my early days when I needed to learn the terms used in trading Forex and trading, those sites brought me the logic behind the indicators, acronyms and general concepts.

[DF] Over the years, have the markets changed in terms of how you can apply your methods? One thing that stays true is volatility and price action. My view point hasn’t changed in terms of how I look at the market technically. Of course, the markets change in terms of fundamentals and how price responds to fundamentals. But overall technically, my views have remained the same.inflatable bouncers canada

[DF] Are there any market conditions when your strategy does not perform well? During the holiday season, there’s always a decrease in volatility. I adjust my trading to take that into account – price action very often won’t break a range and I’ll trade the highs and lows of that range but still applying my system rules to the trades. Often, I’ll be taking profits earlier than normal just to account for the tighter trading.

[DF] How does news & fundamentals effect affect your trading? Not so much. I’d say the markets will always do what they’re going to do; you as a trader have to stick to what you know. Sticking to my game plan is where I’ve seen profit during news and fundamentals.

[DF] What trading hours do you keep? Ideally the London Open to London Close. That way when the London market closes at 10am CST, the New York Open has completed as well. I trade four days a week – Monday to Thursday.

[DF] What platform do you favour for executing your trades? Nowadays I use MT4; I’ve used different platforms as I’ve experimented with different brokers but as long as the spreads are good, any platform is viable.

[DF] What mistakes do you see other traders make? Patience. It’s a virtue I practice on a daily basis. As I’ve gotten older, I’ve seen how patience pays dividends. I’ve seen traders adjust a strategy in the middle of a trade out of impatience and I think it’s a huge mistake when they adjust their game plan without proper reason. Without patience, you’re forcing trades. And then they tolerate losing trades getting out of hand – the complete opposite of what you’re supposed to do! If you’re able to eliminate the emotion and remain strategic, then you’re able to change your entire outlook to the market.

[DF] What advice would you give new traders entering Forex? Discover a way to look and interpret the market in a way that you’re comfortable. I’ve noticed that a lot of beginners test everything that they read books and forums but without really understanding what’s going on underneath. When you know your strategy comfortably, you’ll trade it well and you’ll be in a good place mentally as well. And you’ll know how to adjust that strategy and refine it to get the best out of it. It definitely doesn’t happen overnight and many people get discouraged at the beginning. If you can get past that initial phase, you’ll find success.

Interview with Brian Twomey

Brian Twomey is a full-time trader, author of “Inside the Currency Market” published by Wiley and a new upcoming book, “Using the Z-Score to Trade Foreign Exchange and Other Financial Instruments”. Brian has a very unique self-developed method of applying statistical analysis, and in particular Standard Deviation calculations, to plan his trades.

Brian sat down with the DailyForex.com Senior Analyst, Huzefa Hamid, to discuss his views on the market.

[DF] What was your professional background prior to trading?

[BT] I’ve been teaching college since 1996 in Florida & South Carolina, teaching Political Science; I taught classes such as Public Administration, International Relations, American Government, Political Parties and Political Philosophy. I was actually a stockbroker in my early twenties for a few years; I grew up with stocks & bonds because my grandfather was an investor – I grew up reading the Wall Street Journal all my life.

[DF] How did your journey into trading begin?

[BT] By sheer accident! One day in late 2004 I was watching CNBC in the afternoon waiting for class, and I was watching the Japanese Yen and watching the prices and then the next day and the day after that and so on. I thought to myself there’s money to be made in this but I don’t know. So I started a research journey first. I placed my first live trade in Forex in mid-2005.

[DF] You made some interesting public trade calls recently. Tell us a little about that.

[BT] I did that based on a conversation with a guy about how mathematics and statistics can predict markets. So over October 2012, I made 20 public predictions with entries and targets in the members’ section of a leading Forex portal; all 20 trades hit their targets.

[DF] One of the backbones of your trading is Standard Deviation. In simple terms, what does Standard Deviation measure and why is it effective?

[BT] Standard Deviation is the spread of price from the [arithmetical] mean or average. Currency prices align so perfectly with Standard Deviations. I would not consider using anything else, ever, in its place.

[DF] You also use Moving Averages extensively. How do you use them?

[BT] I only use Simple Moving Averages. The others – Exponential, Weighted etc. are distortions. Simple MAs based on closing prices are a clean tool. The shortest MA I use is 5 SMA and the longest 253 SMA.

[DF] What timeframes do you use to plan your trades?

[BT] I use Daily closing prices to calculate my MAs. And then I calculate my Standard Deviations from those Moving Average calculations.

[DF] Tell us a little more about your two books and what they offer traders.

[BT] With the first book, Inside the Currency Market, I wanted a book that would bring an understanding of the currency market from many different perspectives that hasn’t been covered as thoroughly before. For example, how many people know the relationship of Australian bonds to the Australian yield curve, or the relationship of Australian bonds & yields to the Australian bank bills? How many understand what New Zealand’s OCR rate does and how it operates? The most important interest rate in Canada is the Overnight Money Market Financing Rate, or OMMFR. How many understand that compared to a market interest rate? I wanted to cover factors that nobody knew about, talked about, but were pertinent to currency markets and prices in particular.

My second book, Using the Z-Score to Trade Foreign Exchange and Other Financial Instruments, is a complete statistical strategy to trade currency prices, to understand currency prices in terms of averages, Standard Deviations, Z-Scores, Standard Deviations of average ranges, and Standard Deviations of price distributions. I’m in love with the topic.

[DF] Over the years, have the markets changed in terms of how you can apply your methods?

[BT] It works in all market, anytime. It works without fail. It’ll work in equities, for example. But I’d rather trade something volatile such as the NASDAQ rather than say the S&P. You want an index or a price that moves so you can catch the deviations in the averages.

[DF] Are there any market conditions when your strategy does not perform well?

[BT] It’s perfect for a trend but it still catches small ranges. It catches every market price that records, but it’s a beautiful trend system. It catches great 50 pip moves all the way up to 200 to 300 pip moves.

[DF] How does news & fundamentals effect affect your trading?

[BT] Volatility is seen in the numbers. I call volatility information already priced in the market. For example, today Mario Draghi made comments after the ECB rate decision and sent the market spinning 50 pips. But my system saw it coming. In the morning I will see what’s happening with NFP before NFP is released.

[DF] What trading hours do you keep?

[BT] I’m up just after the European Open, around 3am Eastern Time and I’m up until the afternoon when I often do a little more research or work on another project. I’m in love with information and research. Once I place a trade, I let it run; I don’t worry about it. If a position goes against me on those rare days, I just add to the position with the same target objective. Usually a trade is 1-2 days but it could be longer.

[DF] What platform do you favour for executing your trades?

[BT] FXCM TradeStation – I keep it as simple as simple because I’m not a huge computer guy.

[DF] What mistakes do you still make today as a trader?

[BT] I may mistime an entry. For example, the markets were closed for Thanksgiving for 2 days; when it reopened, it opened wildly against me by about 100-150 pips (I placed the trade the night before Thanksgiving). Don’t trade when bond markets are closed because currency prices won’t price correctly due to its price misconnection to a bond or yield price. And never trade when banks are closed. Trade Sunday through to Thursday and only take short-term trades on Fridays.

Another GFT Bigwig Leaves, Joins Forex.com

Only days after the company’s celebrated Forex analysts Kathy Lien and Boris Schlossberg announced their intentions to leave the brokerage, comes the announcement that GFT’s executive vice president and chief operating officer Muhammad Rasoul has left his 16 year post to join GAIN Capital, the parent company mega broker Forex.com.

Mr. Rasoul’s new title is Executive Vice President – Chief Product Officer, which is a newly created position. In this capacity, Mr. Rasoul has been tasked with developing and executing GAIN Capital’s product strategy and managing the company’s product lines for both retail and institutional traders. In addition to having vast experience cultivated by managing the global operations of GFT Forex, Mr. Rasoul also holds Series 7 and Series 3 licenses and is a certified leveraged Forex representative by the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA).

GAIN Capital is celebrating another victory this week, after becoming the newest brokerage to get accepted as a member to Canada’s IIROC (Investment Industry Regulatory Organization of Canada), which will allow the brokerage to serve Canadian traders. Still, despite these triumphs, GAIN Capital also announced this week that it saw lower net revenues and EBITDA in Q1 2012 as compared to 2012. Based on his high esteem in the industry and years of experience, Mr. Rasoul’s appointment, combined with the brokerage’s continued expansion should help the company’s overall reports improve in the coming quarter. Now, if only the political economy would stabilize the markets…

Reuters Launches FX Buzz Intraday Market Analysis

Thompson Reuters has long been respected as a leading news provider, a portal to which both financiers and lay people have turned to get the latest updates from across the globe. In addition to the free news and limited analysis that the news agency provides for free, it also offers a range of paid services aimed at providing higher level analyses to investors of all types to enhance the efficiency of their trading and to help sculpt their trading strategies.

To further contribute to their offerings, Reuters has launched FX Buzz, a new service that provides deeper insights and analysis into the Forex market. The service will be available via Reuters’s Eikon and 3000 extra services, both of which are counted among the company’s premium business services. Prices for these services are not available on the agency’s website, though demo accounts are available to allow traders and companies to test out the service before committing.

The specific goal of FX Buzz is to use the company’s top news reporting agency to track developing news stories that will impact the currency markets and to provide concise analyses of how these developments are likely to move the markets. The agency will focus on the major G1 currencies including USD, GBP, CAD, AUD, NZD and more, as well as primary currencies in Asia, EMA and Latin America, such as SGD, INR, HUF, RUB, MXN, CLP and BRL. FX Buzz will combine both fundamental and technical analysis on these currencies and others from Reuters’s respected staff of analysts.

Learn more about FX Buzz here.

Lien and Schlossberg Leaving GFT to Start their Own Management Fund

When choosing a Forex broker, many traders look for a brokerage that has not only good trading conditions, but a reputable staff of analysts who can provide regular support and explanation of market trends. Among those that have shot to fame are Kathy Lien, formerly of FXCM and now of GFT Forex, Bastian Rubben of SunbirdFX and Nour Eldeen Al-Hammoury from Amana Capital.

Although she is only 31, Kathy Lien has become an icon in the Forex world, making regular television appearances, authoring several Forex-related books and providing regular market analysis that is read by thousands of traders daily. For this reason, many traders were shocked when Lien announced that she is leaving GFT with her colleague Boris Schlossberg to open their own asset management firm.

Schlossberg and Lien have been working together for seven years, first at FXCM and then at GFT, and have been asked regularly to manage accounts, but could never do so because of various regulations and legal restrictions. On her website, Ms. Lien describes herself as a ‘trader first, analyst second’, so it is not entirely surprising that she would choose to pursue a venture that would allow her to spend more time trading, and (perhaps) less time analyzing on the front lines.

The good news for Forex traders is that there are many reliable Forex analysts that provide regular market updates, both via specific brokerages, or through content-based websites like DailyForex which provide quality analysis with no strings attached.

Which Forex analyst do you follow regularly?