When trading foreign exchange Sydney, the value of a good broker is in providing you with good bid/ask spreads, excellent “limit order” fills and perfect records of your trades. Many advertise the first, but may fall through on providing the second. Is this a worry? Well, if you’re a “swing trader” or a “trend trader”, not really. However, if you’re a “day trader” – where every tenth of a pip counts – how good your fills are is an extremely valid concern. In day trading, your profit is everything that you didn’t pay to execute your trade, but if the costs of execution begin to equal your profits, you’re really just feeding your broker. Lastly, if the day ever comes that record keeping “mistakes” start to appear on your account, stop everything and move. Legally speaking, there is no valid reason for sloppy records.
Trading regions off against each other can be profitable. Get up early and watch the AUD/USD each morning and you should see others doing it – profitably.
How Will A Broker Help With Foreign Exchange Sydney?
The type and quality of a broker you have is far more important for day trading activities than it is for longer-term trading. When you’re day trading, your trade execution costs can become a significant percentage amount of your trading profit. To the extent that you can drive those costs down, your bottom line increases. In addition, your trading profit may depend upon how well any limit order you have is filled. If it’s a partial fill or a “no fill”, then your ability to make a profit directly declines. A string of those can make for a bad hair week. Finally, there’s the whole issue of how wide bid/ask spreads are. The tighter, the better. It pays to shop around.
Tips For Choosing The Best Broker For Foreign Exchange Sydney
For day traders, a “good broker” is one that can consistently deliver a tight bid/ask spread, while – at the same time – rapidly filling all limit orders. This allows for precision trading at its best – exactly what is needed to make a profit in day trading. For traders with a more long-term vision, tight bid/ask spreads are important, but the need for rapid fills on limit orders is usually not evident (since overall positioning within an evolving trend is far more important than 1 pricing number as opposed to another). In addition, accurate record keeping is a must as is a customer service department that’s open when you need them. Lastly, there’s nothing wrong with having 2 brokerage accounts; legal diversification is good.
Producing A Return From Foreign Exchange Sydney Trading
There’s an interesting global dynamic at work, in the forex market, that you should be aware of. Essentially, it has to do with Asia piling up too many US dollars or euros, compared to other regions of the world. As a result, it’s fairly common for Asia to trade in the opposite direction of what just happened in North America. For example, if the banks in New York just finished selling off the AUD/USD, the banks in Sydney will probably avail themselves of a “cheap” AUD/USD. Similarly, a rising Australian dollar means a declining EUR/AUD – something that all the banks in London are interested in buying into (if the euro gets trashed enough by the banks in Sydney and Singapore).
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