Okay so i have been looking at some ways to make money and i came across Forex trading. Well the trading actually looks legit, but i'm not so sure about this learning course at options university. Can someone tell me about their experience with this, or if you know an even better way to learn, say from a better book. Also do you have to pay for the options university training course?

Answer
The Forex is real, however there are two forms of "Forex Trading".
"On Exchange" and "Off Exchange" This is a fact that few people know about.
On Exchange currency trading is only offered by two companies at the time I was doing my research. Ducas Copy and FXCM. Only one is American:

FXCM. and they only trade "On Exchange" if you have an account with 25k or more in it. And with them you want to ask for an off shore trade account- so you wont be limited in leverage and your allowed to hedge.

All... yes- I mean ALL the other brokerages trade "OFF EXCHANGE" Gain Capital , ACM, CMS, MB,PFG,easy forex, jforex, to name a few.

"OFF EXCHANGE" means just that- its not traded on the real exchange. What it is traded on is an online game that each company creates themselves. Creates, controls, and alters at will. No different than playing online poker. Your playing against the house and the table is controlled by them. Since they always take the position of the opposing party- its in their best interest that you loose.

Example of how they make you loose: (exerpt from Gain Capital's account contract section 4.2:
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.In cases where the prevailing market represents prices different from the prices GAIN Capital has posted on our screen, GAIN Capital will attempt, on a best efforts basis, to execute trades on or close to the prevailing market prices.These prevailing market prices will be the prices, which are ultimately reflected on the Customer Statements.This may or may not adversely affect customer realized and unrealized gains and losses.
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This means they are trading your account not using the numbers you are being shown on the screen- but by the real market prices.On the game version you can see- the shoots up so you hit the buy tab- in reality the price dropped- in the game you think you made money- then your statement shows up- showing you lost money that day- there's nothing you can do about it either because you signed the contract that says they are allowed to do all sorts of things to make you loose.

As for the university- save your money! go to FXCM's website- open a practice account- you will have access to all their tutorials- however- all you need to know is to buy when the price drops- then sell when it peaks in the other direction- about 2-7 minutes later. Don't trade on Fridays or when they are making financial announcements on the news. Open an account with at least 25k or you will be trading off exchange Plus- opening an account with anything less wont get you anywhere fast. With 25k you can make 15k a day. I can- so you can too. Never use more than 1/3 of your margin.Don't ever use "stops" Always sit and watch the chart anytime your holding a contract.


good luck!

What are the advantages of spread betting?

I am a newbie in Forex can anybody tell me what are the advantages of spread betting.

Answer
1. Tax exempt profits: Yes, you have read right. One of the main reasons why people just love spread betting is that the earnings from it are tax free. So, this is one thing one can involve in to earn some extra profit and that too totally tax free. The reason is that there is no physical exchange between the betting person and the company; it is only a contract without involving any exchange of commodities. Apart from this there is stamp duty exemption also. This makes the stock much cheaper.

2. High profits with less investment: This type of betting is also known as trading on margin. This means that a person does not loose everything if things go against him. Hence, one is not required to pay all the payment in one go. Because of this, the profits are comparatively high with less investment.

3. Commission free: In case of conventional betting one needs to pay a broker fee to the broker however this is not the case in a scenario of financial spread betting. Hence, when one talks about buying and selling, the later term is much more cost effective. Here, a person can involve in to various buying and selling transaction without spending extra money as broker fee for doing so.

4. Trade beyond trade hours: Almost all spread betting companies work for twenty four hours a day. Because of this, a person can actually involve in to financial spread betting without worrying about trading hours. This is another benefit of spread betting over conventional betting.

5. Huge amount of capital is not required: There are so many new investors who are taking up this newer concept of betting. The main reason for this is that in case of this kind of betting, it does not require huge amount of capital to start. Anyone with limited capital can also venture in spread betting.

6. Facilities for credit: If someone is experience and people know him for his credibility, it is easy for that person to bet in the spread betting market on credit.

7. Fast dealings: Transactions can be completed within one single minute. The reason for this is that here in this case, there are no brokers involved. This saves a lot of times of transactions. Another thing to note down is that in old or normal betting world, a person can only bet when there is another person to bet with. However, in case of spread betting, one can bet even when there is no other person available as the betting is done with companies working for twenty four hours a day.

With so many advantages, it is natural that more and more people are attracted towards this comparatively newer concept of betting. Who would not want to maximise their profits with minimum capital investment. And above everything, tax free earnings are always welcomed!!