As interest in foreign exchange markets has grown, traders and individuals alike have been looking for software programs that can enhance their chances for success. These software programs however, are a tool and should be used along with the appropriate broker who will work along with you to achieve your goals. In common terminology, these software programs are referred to as Forex robots.
For those who are new to the foreign exchange market, or FOREX, you will need to learn a little about the types of brokers who work in this environment in order to determine what the best fit is for you. Basically, there are four types of brokers working in FOREX. They are:
Market operators Market makers Small brokers Kitchens
Market Operators work with very large multinational companies because these companies can invest extremely large amounts of capital. The average investment is $1 million. Market operators are large commercial banks and are therefore required to abide by strict banking regulations. If you are a single investor or do not meet the criteria to invest these large amounts into the market, this is not the type of broker that you would work with.
The Market Makers are financial companies specializing in working with smaller brokerage firms. The minimum investment with a Market Maker is $50,000. Both the Market Maker and the Market Operators provide safe and regulated FOREX trading options, but may require too much of a financial investment for the smaller or newer trader.
Most individual traders work with Small Brokers. Small brokers pull together the resources from several clients in order to qualify to work with a Market Operator or Market Maker. Investments can range from a few hundred dollars and up. Traders can discuss their investments with the broker. However, keep in mind that if the investment goes well, your profit is the gross profit minus the spreads and commission fee. Even if the deal does not go well, you are still responsible for the broker's commission.
Kitchens are primarily a scam that teaches new traders how to invest. Each investor is "taught" how to maneuver the FOREX environment with simulations and other techniques for free. Each time the investor loses, it is considered another lesson towards market invincibility. Overall, you want to avoid these schemes and stick with a more reliable broker.
So, now that we understand the types of brokers involved in Foreign Exchange markets, how does the Forex Megadroid software help you? First, recognize that as an individual trader, you will be working primarily with a small brokerage firm. The savvy investor needs to have a good grasp on the market and be able to recognize trends and invest accordingly. Second, find an appropriate software package that will be able to assist you with your analysis of the market. Many FOREX software trading programs will come with lists of suggested brokers.
One such program to consider is the Forex Megadroid software program. This new package was just introduced in March of 2009 and incorporates artificial intelligence to not only evaluate trends, but also to learn from mistakes. The result is minimal losses and very limited streaks of poor investments. Early results show an accuracy rate of over 95%.
Remember, the more stable and reliable a brokerage company is, the more money you will need to invest. However, working with a smaller brokerage firms may require you to spend more on the commission or spread. You will need to do some research on the brokers and determine who will work best with your style and investment goals. Many firms have demo accounts that allow you to test their services without the risk of losing any money. Take advantage of these opportunities to find the right fit for you.
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