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Forex Secret: Get Paid to Wait On Every Single Forex Trade You Make

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Forex Secret: Get Paid to Wait On Every Single Forex Trade You Make Empty Forex Secret: Get Paid to Wait On Every Single Forex Trade You Make

Post by Sean Sun May 31, 2009 6:41 am

I know I’ve always told you that “all Forex brokers are not the same” and here’s one more instance where this is true.

You see all Forex dealers offer you rollover interest on your Forex trades. This means that if you hold your currency trades over night, your Forex dealer pays you interest on that individual trades.

However, not all Forex dealers pay the same amount of interest... (even though they are dealing with the same countries that have the same interest rates).

Why? Larger, well- capitalized firms tend to be the “most honest” in this area when it comes to calculating rollover interest. Reason: They tend to operate under stricter regulations so they have to stay honest.

The Large, Highly Regulated Firms Got that Way for a Reason!
Larger firms became that way because they give their account holders what they want – tight regulation that operates under the strictest guidelines.

The big FX dealers realize that if you want to get big money AND keep big money at your firm, you have to go down the honest and upright road.

While the capitalization, regulation and fills you are more important than your rollover interest, the extra interest is nice too. And if you set up shop with the right firms, you can get higher rollover interest on every trade you place.

A little bit of difference can add a huge amount of interest to your account over long periods of time. So get all you can.

How can you tell who dishes out and how much? Download their demos and you’ll see something that looks like this below.

Get a Demo and Do Your Own Snooping Around

Each one will have a different set up, but most will have a place where you can find out what their rollover is. If not, chat with them and ask them.

You will find that there is a wide difference between brokers, especially between the one that pays out the most and the one that pays out the least. So do your homework ahead of time.

Years ago, when I first started out in this market, I didn’t know all of this…and I don’t know of anyone “on the inside” that’s dying to tell you either. So, just a word to the wise, go for the brokers that are well capitalized, well regulated AND pay out good rollover interest. It’s worth your time.



--------------------------------------------------------------------------------

Back to me…now that you know how to get the interest on currency trades, let's sit back and look at the currency landscape for a minute…

You Heard It Here First: Why the Dollar Is Sinking
For starters, you may be asking “what's causing this run on the dollar?”

Ahhh grasshopper... I kept telling you and telling you, that the debts were going to come home to roost in the U.S. economy. Eventually, the markets would get tired of choking down the debt issuance, and we would see a reversal of the "flight to safety" treasury buying that boosted the dollar from July 2008 - Feb 2009, would rule.

The reversal to sell-off in the dollar should be just as swift as the massive reversal to buy the buck last July and August!

You know, several people thought I was the "boy who cried wolf" as the dollar continued to rally over the past year. But still, I continued to point out the debts, and the fact that Treasury yields were rising, which meant traders were selling off Treasuries. If Treasuries sold off, the dollar rally would end. Now what I laid out months ago is finally happening…and the other bandwagon of experts are coming over to my side of the fence.

(Honestly, I’m not trying to blow my own horn here…I’m just saying the fundamentals have been in place for a dollar sell-off for months now.)

Eurozone Money Supply vs. U.S. Money Supply
There’s more news that’s helping the run-up in foreign currencies. (It's not all just "dollar selling.") Retail Sales in Germany showed a nice rise – the first rise in four months!

Meanwhile, Eurozone M3 (Money Supply) printed at +4.9%. Money Supply is basically inflation folks. Last time I looked, the U.S Money Supply, was running in the double digits.

So which economy is going to suffer from higher inflation pressures?

More not-so-bright news for the U.S. economy: The New York Times ran an article from the Mortgage Bankers Association (MBA) that showed 12.07% -- about 5.4 million -- of all U.S. home mortgages were delinquent. In other words, they foreclosed during the first quarter. That compares with 11.93% at the end of last year.

Ugh! That's awful news... And U.S. Consumer Confidence was higher this month? Really?

Well, folks... I just glanced at the currency screen while typing, and yes, I can do that, to see the euro cross the 1.41 level. So, now the move looks even stronger, because the euro has gone through two levels of resistance at 1.40 and 1.41.

Looks to me like the only thing that can stop this run-away bus is a bout of profit taking, or the invisible hand of the markets. Dare I say government intervention?

Speaking of, I'm seeing quite a few articles these days on how "unhappy" Big Ben Bernanke is with these rising interest rates. He sure has let his cow out of the barn, eh? His cow being artificially low interest rates on mortgages. Government intervention in this whole mess continues to muddy up the process, and Big Ben has had his hands right there in the mud! (As a Dad, I’m relieved my son, Andrew, got his home loan rate locked in, before this latest rise in mortgage rates!)

Treasury Market Gets Slammed Once Again…While Silver Takes Off
This morning, there's news from the South Korean Pension Fund that is shaking the foundations of the Treasury market...

The Fund has announced that they will reduce the amount of its exposure to U.S. Treasuries, and diversify into other assets. This fund is about US$200 Billion in size. So, not the likes of China and Japan, but still just another outlet for Treasuries to be apparently closed.

Meanwhile, precious metals including gold and silver are taking liberties with the dollar too! Lately the gold and silver ratio has been seriously out of whack. That indicates a good buying opportunity for silver.

Well, in the past week, silver has put in its best 1-week performance in 22 years! That's right, 1987, was the last time silver had a performance like it had this past week. And to move it out further, Silver has gained 25% this month! Wow!

Sean

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