There are many challenges faced by profitable Forex traders, that all traders should consider when choosing their ideal broker for their investments.
As an estimated 85% of retail Forex brokers are Dealing Desk brokers (market makers), profitable traders are at an extreme disadvantage due to the fact this broker model makes money when clients lose and lose money when client’s win.
The most common trading strategies to be affected the most are Scalpers, News Traders and Day Traders, and the reason is because these strategies can be very profitable, and executed by trading robots (EA’s), meaning that any trader can make profits trading the Forex markets. When an EA or manual trading strategy is profitable, a dealing desk broker losses money, and can often implement restrictions to ensure that the trader’s profit is limited, limit the ability to trade using these strategies or even disqualify the trader completely.
To combat this, profitable Forex traders choose to trade at STP/DMA brokers as there are no conflicts of interest. STP brokers make money on the spread or ECN commissions only, and do not make money on client’s losses, giving traders a level playing field and a fair chance in the markets. Below are some of the key facts about trading with a True STP Broker:
Trades
Traders are placed with liquidity providers, often tier-1 banks and ECN’s to ensure no dealing or intervention on your trades. Identifying an STP broker can be tricky, look for 5-digit pricing, market execution and variable spreads.
Trading Conditions
STP brokers offer neutral prices that mirror the global (real) market conditions. You will benefit from more competitive pricing (tighter spreads), no-requotes and price improvements (positive slippage). There will be no restrictions or limitations for scalping, hedging, news trading and HFT’s.
No Conflicts
STP (DMA or ECN) brokers have no conflicts of interest with their client’s trading activity. You can be confident that your trades won’t be manipulated for the broker to have odds stacked in their favour as it would be with a dealing desk broker.
Advanced Forex Trading
Highly sophisticated and profitable trading systems are extremely sensitive to many market aspects. So anonymous trading highly recommended. Anonymous trading ensures that the liquidity bank or ECN (execution venue) doesn’t have access to any details about the trader and his/her orders. This includes protecting how the client is trading (manual or EA), having pending actions hidden (SL/TP/Pending Orders) and of course no history on the trader’s past, profitability or strategy.
In conclusion, there is clear proof that trading with an STP broker is highly beneficial for profitable traders, EAs or strategies. We would like to invite all interested traders to review the Yadix STP Broker services and benefits to learn more: https://www.yadix.com/about-us/stp-forex-model/
The U.S Non-Farm Payrolls will be released Friday, 5th of April 2019 12:30 GMT and is a key economic indicator that can cause volatility in the markets.
What to Expect this Month?
Non-farm payrolls are expected to add 180,000 workers for March, this follows 20,000 in February. Manufacturing employment should rise by 10,000, up from 4,000 in February and the unemployment rate is expected to be stable at 3.8%. Average hourly earnings are forecast to gain 0.3% on the month, down from 0.4% in February stabilizing the yearly rate to be 3.4%.
The markets are keen to learn whether February’s dramatic drop to only 20,000 new jobs was a blip or as a more concrete sign of weakness in the US economy, this will be reflected in another month of weak statistics, below the estimated 180K as fore casted. During the past five years the lowest months reports were 2018, 108,000 in September; 2017, 18,000 in September; 2016, 15,000 in May; 2015, 77,000 in March and 2014, 168,000 in February, and on each occasion the following two months delivered better than expected results.
For the past two years, the markets have seen some of the strongest job creation reports for many years, particularly in the manufacturing sectors, however there are several trade and economic issues including negotiations between US-China, the U.K’s withdrawal from the EU and an evident slowdown in global growth that could encourage caution and delayed hiring processes for big companies.
So far, February’s poor figures have not influenced trends dramatically and for the labour markets, there is no evidence that the current trend could change dramatically. However, another report under the expected figures may cause a change in direction. On the other hand, a strong US jobs report could indicate for at least one Fed rate hike this year.
Opportunities Around the NFP Reports:
Regardless of the results of the Non Farm Payrolls, the markets always experience moves immediately after the release which offer traders excellent short-term trading opportunities. Positive or negative reports will affect market sentiment which can create new trends and trading opportunities.
After several weeks of Terresa May facing a barrage of rejection on Brexit deal votes in parliament, the Prime Minister has been to the EU to request a Brexit delay.
The EU has granted a few extra weeks for May to alter her Brexit plan, to get her proposals passed through parliament in order to avoid a no no-deal Brexit, the new deadline has been extended from March 29th to April 12th for the U.K to finally leave the EU.
The Prime Minister has faced a torrid time with the politicians, she needs to convince parliament that the deal is good. At the same momentum is gathering in the U.K public, with sections calling to revoke article 50 or hold a second referendum, in order to remain in the EU.
Currently, the government will be able to request a longer extension during the already extended period if it can “indicate a way forward” and agree to hold European elections. In the unlikely event that May does win the support of the Commons during the next vote on this coming Tuesday, the UK will remain a member state until May 22nd to allow necessary withdrawal legislation to be passed.
Donald Tusk, the European council president said that the options left available to the U.K are “The UK government will still have a choice of a deal, no-deal, a long extension or revoking article 50.” It seems that the EU are willing to display patience till the “very end” to allow the U.K to finalise all aspects.
The negotiations are at a critical moment, and it seems the May has no alternative back-up plan, other than just to try to push through the current deal again, and there seems to be a lack of confidence in the prime minister at home and within the EU leaders.
Tuesday’s vote could prove to be critical, and whatever the decision, traders can expect market volatility once the results of the votes are announced.
Head to Yadix, to maximize the markets with institutional level ECN trading: https://www.yadix.com/trading-conditions/account-comparison/
Fed’s Chairman Jerome Powell has commented that the central bank has no bias as to whether the next interest rate move will be up or down, but his colleagues are expected to deliver a more aggressive message.
The committee is expected to forecast one interest-rate increase during 2019, and one more in 2020 which is a downgrade on the two proposed for 2019, back in December. Furthermore, the committee is set to add importance to remaining patient regarding future adjustments as well as announcing the end of reducing its $4 trillion balance sheet.
The forecasts from the upcoming report could dampen investors expectations that the Fed may end rate hikes . The two-year U.S Treasury yield have fallen 0.5% since November as growth has slowed globally and central banks are less confident on their outlooks. Many investors may have misjudged the Fed’s tightening plans, and they could announce plans for one or two further hikes this year that may surprise many investors.
Whilst the FOMC may well closely mirror January’s statement, current economic conditions could be lowered. One key indication will be the median economic growth forecast which is likely to be cut to 2.2 percent from 2.3 percent from December and at the same time unemployment could creep higher.
The markets will be looking for changes in the Fed’s tone, as recent data has been unstable suggesting that the Fed could be facing uncertainty regarding the recovery rate and inflation. Global growth has slowed as shown with the recent announcement from the European Central Bank that has cur its forecasts and subsequently implemented a new round of stimulus.
Monitor all crucial economic events and reports by using our in-depth economic calendar: https://www.yadix.com/forex-trading-community/economic-calendar/
The U.S Non-Farm Payrolls will be released Friday, 8th of March 2019 13:30 GMT and is a key economic indicator that can cause volatility in the markets.
What to Expect this Month:
The Euro currency suffered heavy losses against the US Dollar this week following the news that the European Central Bank announced a new targeted long-term refinancing program, this news forced the Euro to its lowest point in 17 months and has failed to see a positive trading day since February 26th.
Further losses on the Euro are expected and today’s Non-Farm Payrolls could be the catalyst to drive the single currency lower, should the jobs report be strong. Toady’s figure will be lower than January’s 304K increase as this was much stronger than expected, and the effect of the government shutdown will effect certainly influence today’s report.
Investors will be looking towards a figure of 160K or more in February, and if there is a revision of January’s figures that remains above 200K, investors should be satisfied enough to keep the US Dollar on the up, and put additional pressure on the Euro. There will also be focus on the average hourly earnings, with wage growth expected to pick up in February.
If average hourly earnings growth is 0.3% or better and NFPs rise by 160K or more, EUR/USD could be forced to the 1.10 trading level. The saviour for the Euro could be if the four Week Jobless Claims Rises to 229K from 220K and should a revision of last month’s report reduce the figure to under the 200K mark.
Opportunities around the NFP Reports:
Regardless of the results of the Non Farm Payrolls, the markets always experience moves immediately after the release which offer traders excellent short-term trading opportunities. Positive or negative reports will affect market sentiment which can create new trends and trading opportunities.
Register an account today to benefit from leading trading conditions and fast execution: https://www.yadix.com/trading-conditions/account-comparison/
We are happy to announce the inclusion of additionally Liquidity Providers to ensure stability and to deliver excellent order execution for profitable traders.
As part of our vision to provide superior order execution for all clients, all trading strategies and under each account type, we have introduced the new Liquidity Provider that is targeted for accepting trading systems such as Scalping and HFT systems.
By continually adding alternative liquidity sources, we able to deliver a stable trading environment, exceptional order execution speeds and accurate order fills for traders that rely on speed, accuracy without any detriment to trading conditions and costs.
When comparing a true STP, ECN or DMA broker model to the dealing desk or market making model, there are several major differences in regards to the order execution flow that differ greatly for the benefit of the profitable Forex trader. As a true STP broker, all orders are immediately executed through to liquidity banks and ECN’s that provide the support the fast and accurate execution of orders in our trading environment, and this is in keeping with the no conflict of interest philosophy that ensures that the broker is not taking the opposite side to client’s trades.
This no conflict execution model allows Yadix to welcome all profitable traders and Asset Managers without having to restrict their trading activities. Due to the fact that there are no dealing desk activities, we are able to deliver attractive trading conditions and no trading restrictions that are crucial for generating profits, with the ability for our client’s to trade with no limits or levels on stop loss, take profit and all types of pending orders.
To learn more about the advantages that Yadix can offer your Forex trading strategy or your client portfolio, please feel free to contact their professional support team.
Read more:https://www.yadix.com/about-us/stp-forex-model/
Please be reminded that now its the time to claim your February 2019 monthly rebates: 1 pip per lot on Rebate Account, 0.3 pip per lot on Classic Account and $12 per lot on the Super Rebate Account.
To claim your rebates simply send us an email in between the 1st and 5th of each month. Please include your MT4 account number and the number of lots that you have traded.
*Learn more on the new Cash Backs Program – Up to $12 Per Lot!
We are looking forward to hearing from you.
Best regards,
David Bergman
Account Manager
Yadix Forex Broker
Telephone: +44(0) 20 3239 6117
E-mail: support@yadix.com
Skype: yadix.forex
