That's fantastic, especially when considering that most jurisdictions that will let you open a bank account remotely usually require high amounts for the minimum deposit and minimum balance. That's not the case here, generally. Low Fees With Full Transparency: One of the issues which prevent many investors from getting into Forex trading is transparency issues. However, that's not the case with all banks. Some banks provide a wholly transparent pricing structure that offers competitive fees and commissions.

This will give you the certainty that you're not being overcharged, allowing you to keep almost all of your earnings. Friendly Tax Regime: Our associates work with jurisdictions that generally don't have dividends tax or capital gains tax. They also have a territorial base for their tax rate, which means they only tax nationally-sourced income. You may also like:. Similarly, when looking forward to something on sale, you must be willing to buy it yourself.

Thus, buying and selling are the two counterparts in every transaction in the market. The same thing applies true for smart money as well. In the forex bank trading strategy, accumulation plays a vital role. However, you must understand this strategy accurately to be a successful trader. Your goal should be to track and find out the areas where, when, and how the smart money, i.

To be more precise, you need to find their accumulating secret cautiously. You know when smart money will most likely enter the market, and their respective positions will be your key to success. In that case, you can also specify the directions where the market will most probably move in the future. When you have an accurate idea of where the market will be moving next, it will benefit a profitable trading strategy.

This is the second step that comes after a successful accumulation. Market manipulation is quite a complex concept. Despite the complexity, you will still be urged to understand this strategy to trade successfully. For example, when you just wait to enter a respective market area, you will soon notice the market moves in the opposite direction. After a considerable accumulation period, s short-term wrong push or market manipulation period must be present in every market. More precisely, they will drive and manipulate the market to sell off their stuff after a considerable accumulation.

This is a short-term manipulation period where the market trend may move differently. It may appear that the market is behaving against you during this time! But you will need to be smart and cautious at this point.

This short-term manipulation gives you an extraordinary hint about a possible accumulation when the market trend increases. If you recall any significant market move before, you will surely notice a tight range-bound period known as accumulation. After the megabanks have accumulated a position in the market, there will be a period of false push or market manipulation. Many forex traders may consider this market manipulation period at the wrong time.

But, if you can carefully visualize and analyze the market, you can avoid being a pawn of market manipulation. You can instead make a profit out of it. After the phases of accumulation and manipulation, there is a distribution phase of the market. This is when the banks will attempt to push the price of the market area. Megabanks play a vital role in the overall market.

To study their movements, you must carefully follow three steps, i. Before any significant market moves, these three steps above are bound to happen. Therefore, as an ambitious trader, you must closely watch these three steps. As we said, accumulation is the first step of the market in the bank trading system. Smart money trading without accumulation may not allow banks to take any position in any currency market.

During this first phase, smart money accumulation must be identified when looking for a market setup. There is no alternative option that smart money can enter the market other than through this accumulation period.

Before moving to the next phase, we need to see an hour of sideways accumulation. This stage is critical for the trade setup since it is not advisable for the smart money to spike the market because this may give away what they had already accumulated. During the accumulation stage, smart money can achieve a better total entry price by keeping costs relatively stable and entering overtime. In this example, we have bad economic news for EURUSD see :. In May, we see a bullish market push.

No economic impact on the price to go bullish. Forex traders feel insecure during this stage since they feel it is wrong to enter the market. Many traders experience market changes that seem to move in the worst direction, but that may not be the case since this stage is inevitable; it is also crucial in the product market. This point is what we term the manipulation stage. This forex manipulation stage always comes immediately after the initial accumulation stage.

This is a stop-run stage before moving to the final stage, i. These two existing accumulations of wrong push are;. This is a false push beyond the low of the actual accumulation period, and this means that the short-term period is beginning since the smart money seems to have been buying into the real market.

The forex market trend is the final phase in the smart money cycle. In this stage, the market experienced a very aggressive experience in the short run. Bank traders SELL after a short-time bullish trend!!!!

A smart money strategy is created for more extensive time frames, such as weekly and monthly. This strategy is part of position trading strategies, where traders hold positions for several weeks or months.

Banks trade forex most frequently after the daily opening range half an hour after market opening and during the high liquidity when market trading sessions overlap. Forex trading needs severe analysis and more research on new and productive ways for a unique and profitable trade. Forex learners should invest more time learning different trading strategies to improve the outcome.

Unfortunately, most traders have dropped the trading business following discouraging expectations. Also, traders should analyze strategies, whether predictive or reactive. They need to trade for a given period, say almost a year, to see if it is productive, then choose the right strategy that can work.

The basic understanding is about relating trading activities with the nature of being reactive. This means that the trading software will start producing buy signals, and the falling trade market indicates the sell signals when the market rises.

Following the rise in the market will lead to more buying pressure, while falling in the market induces selling pressure. Almost every primary strategy used in trading is reactive, so smart money automatically identifies how to convince you to buy. Also, they know how to direct you toward selling.

This is why traders often talk about the trading market that seems to be experiencing a tremendous change in buying or selling once they enter. The quite uncertain thing about this scenario is that smart money is the only source of information and the actual information is the most potent fact we require. Still, we will be successful if we are lenient with them and trade as they need. The frequent price manipulation perfectly reflects how far they have accumulated and the desired direction to control the price.

Suppose you focus on how large the market moved before deducing the vast majority of the significant moves. In that case, you will realize a tight and actual accumulation followed by manipulation in the other direction of the market trend.

As more and more people show an increased interest in trading forex, intuitional entities like banks are equally active in forex trade. Indeed, they are likely to be engaged more because of money, power, and quality think-tank. Further, they can research the market themselves and make sound decisions. Banks execute their trading based on a set of valuable practical data. Banks are among the most significant participants in forex trading thanks to their electronic networks.

As a result, banks play a critical role in influencing the volume of forex to affect the trends of markets. When banks are active in the market, they make up the market. No other entity in the market can perform as competently as banks. First, they make all the decisions based on fundamental and technical analysis of the pattern that happens in the market.

Then, they make the decision superfast. Banks focus on the actual parameters. There is no place for human emotions to influence investment decisions n forex trade.

Instead, they focus on price and fundamentals. This enables them to sound judgments. Several factors influence the market trend and hence the direction of forex trade. Fundamental tendencies in the market are highly complex, and it takes a long time to come — years to get perfections in analyzing the market. Besides commercial banks, central banks also take part in forex markets.

The most important factors that influence trade are two. First, you must have a ground understanding of how the fundamental analysis works. Second, you must also thoroughly grasp how the data releases influence the market. The second aspect is how you should act execute without being influenced by any external factor and solely with market data with razor-sharp precision.

The economic data that come out are the most influential in forex markets. Central banks formulate their monetary and credit policies to accommodate their economy based on economic data. Many traders at various banks keep moving around the room to witness the deals and keep moving to the other traders.

Alternatively, they take a short break and go out with the brokers. As a result, they are never at the computer for over a few hours. We advise you to take a similar approach. To trade like the big banks, you need to be ready to hold a position for several weeks or months as a position trader, analyze macroeconomic data, and monitor critical price levels in the trend distribution phase.

Once you are clear with capital management, market fundamentals, and the like, you need to understand simple strategies to apply your knowledge. According to current market definitions, the smart money is the actual source or the cash invested by experienced investors, with the collective force of a certain amount of money that can change market patterns.

In this case, the central bank is behind the smart money, while the rest respond to any market trend. So we can start trading like banks, to think long term. Talking about banks as one of the main aspects of the smart money that controls most daily market volumes, other subsidiary banks act as the market makers for several traders, including some mentioned above. Of course, the banks play a significant role in controlling the daily volume, but many traders trade daily, and they are the basis of daily market making but not speculations.

This strategic-based information is provided to educate traders on important tips in smart trading. It also helps teach banks the role of primary market makers and direct traders in learning from existing market trends without complicating trading strategies.

This is the process of finding out the strategies used by prominent market participants, especially by devising trading setups designed to find likely areas of demand and supply. This process is sometimes referred to as manipulative points. It may be easy for a retailer to find the likely point where smart money traders buy and sell.

Still, difficulty arises due to the issues about the financing capability to drive market forces. The central banks continuously track the paths to which smart money is waving since they are among the able market participants.

The latter can successfully drive the market forces and alter smart money operations by introducing certain trading decisions. The only option retail traders dealing with forex trade can follow the market trends and the rules set by prominent market participants to achieve consistent results rather than introducing their rules in the market and losing their chances of success.

There are no shortcuts or gimmicks to help you in the forex trade. No system of indicators exists similar to the market. You must understand how the leading bankers in trade look into the market. You will succeed in the forex trade if you gain in these aspects. Privacy Policy. Home Choose a broker Best Forex Brokers Learn trading Affiliate Contact About us. Home » Education » How Banks Trade Forex? Table of Contents. Author Recent Posts.

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It is becoming harder ever day to trust the brokers see the links I have posted at the bottom of this article. Therefore, Forex traders either have to forget about trading, or find another way of having access to the currency market.

Forex trading through a bank account looks like a good alternative. Because banks are more reliable and trusted organizations and governments have more supervision on them, you can trust them more than brokers, or at least you will not be faced with most of the problems that you have with the brokers.

They are there to make money, and they will do their best to make more money every day. Therefore, it is expected that even banks try to cheat their clients to make more money sometimes.

However, it is less probable. Before trying to open a Forex trading account with a bank, first you have to make sure that you are already a consistently profitable trader, otherwise there is point to think about having a Forex trading bank account. If you are not a consistently profitable trader yet, keep practicing and learning and passing the stages I have explained here , and then think about having a Forex trading bank account.

To do that, first you have to find a bank that offers such a service in your country. You have to refer to each bank and talk to the account managers and consultants. You have to tell them that you want to open an account to trade currencies against each other, not just to have a regular saving or checking account.

Trading through a bank account is different from trading through a broker. The first difference is that there is no currency pair in your bank account. You should open a multi currency bank account and when you want to trade the currencies against each other, you have to convert one currency to another one. Your bank account has to cover all these currencies otherwise you will not be able to trade some of the currencies against the other ones:. After having all these accounts under your bank account, you have to deposit some money in each account.

It has to be a lot more. As you know, you can wipe out your account or even have a negative balance only when your account is leveraged. Although you can lose money even when your account is not leveraged I will explain how , you can never wipe out your account even if the market goes against you for thousands of pips.

The other difference is in the spread that the banks offer. Of course, you can always negotiate with the banks and ask them to offer you a good deal. They usually do it specially if you open a big account with them. They are prefect for Forex trading. It means you can convert the currencies to each other for free and without paying any fees or spread.

As I mentioned, there is no currency pair when you trade through a bank. It means you pay USD to receive EUR. In other words, it means you convert the money you have in your USD account to EUR. You can do this through the Internet and your online bank account. You have to use your online banking system to convert the currencies against each other.

But that is not a problem at all. You can use the demo platform of a broker to do your analysis. Of course, the prices you see on the MT4 platform of a broker will not be exactly the same as the prices that your bank offers, but this is normal. There is no two banks or brokers that offer exactly the same price.

You hold EURs and the price moves accordingly which means EUR goes up against USD as you expected and it reaches 1. I mean your money is not wiped out. This is because there is no leverage here. If there was a leverage, then all your USD would be wiped out long time before the price reached 1. As I mentioned earlier, avoid the banks that offer any leverage, because obviously they want to act like brokers and make your account wiped out as soon as possible.

You may ask what advantages it will have for the banks to offer such services to traders while they charge no fees and offer no leverage for converting the currencies to each other? Banks want you to deposit your money with them, no matter if you trade Forex or you want to do something else.

They use your money to offer loans and mortgages to their other clients to make more money. They use your money to work and make more money. Unlike the retail brokers, banks have too many ways to make more money out of your money. It is the brokers who have to cheat to cover their expenses and make profit. I am not saying that banks are saints and angels. They just have some better options to make money than cheating their clients.

Indeed, trading through a bank account, be it currencies or stocks, is what almost all professional traders and investors do. You can hardly find a professional trader that trades through the retail brokers, not because brokers cheat and can hardly be trusted, but because trading through a bank account has several other advantages and is more trusted.

One of the most important advantages of trading through a bank account is protecting your money while the sudden and strong movements like The Swiss Franc Tsunami occur. If this happens while you have a position and the price goes against you for thousands of pips like something that happened on Negative balance happens only when your account is leveraged.

Although you will lose money if the market goes against you when your account is not leveraged, it will never get wiped out and will never end up with a negative balance. But the other reason which is even more important is that your account with a retail broker can be in one currency. For example you open a USD or EUR account and then you can trade the currency pairs through it. After opening a multi-currency account with a bank, you have to deposit money in each of the accounts to become able to exchange currencies to each other.

For example you deposit 10, unit in your USD, EUR, GBP, CHF, JPY, CAD, AUD and NZD. Therefore, your whole account will never be wiped out if something like the CHF tsunami happens. The reason is that only those currencies that are involved will be affected, not the other currencies. Then the CHF tsunami happens and CAD loses its value against CHF. Then only the CAD you have bought will be affected not the money you still have in your USD, EUR, GBP, CHF, JPY, AUD and NZD accounts.

This is a big advantage of trading through a bank account, because your money will be safe automatically against the strong and sudden movements. But there is a problem here which is money. You can keep on making and saving money through your routine job and the other opportunities while you are learning how to trade and you are improving your trading skills.

Maybe the money you make through your full time job is not enough even to cover your expenses, and so, you can never save any money to become able to open a trading bank account.

This is the problem that many of those who are learning to trade forex have. Chances are the lose their interest and give up on trading for good.

For this reason, we thought about creating a good source of income for our website followers. You need a good source of income, no matter if you are already a consistently profitable trader, or you are still learning how to trade. If you are still learning how to trade, then you have to be able to cover your expenses and keep on learning how to trade with peace of mind.

Even if you can afford to open a reasonable live trading account, you still need an extra source of income to cover some probable losses that can happen sometimes, and also to be able to survive when there is no trade setup for a long time. Therefore, you need another source of income that makes money for you consistently while you trade and invest to make more money.

This is what all professionals do. They have several sources of income including trading and investment. They make money, and then they make their money make more money for them through trading and investment. Here at LuckScout. com, we have thought about all these things. That is why we are working on creating some great opportunities to support you and help you to make your dreams come true. Those who follow us properly, will become able to become financially free.

I don't believe in luck. I believe in sweat. The more you sweat, the luckier you get. I had heard of Forex Trading through ones personal bank account before. It is a lot less risky than the brokers accounts. please tell me i have some money that i have win in my trading account with the forex trading now i want the money to be withdrawal they said i must open my bank account for them to do that is this wise please give me an answer thank you.

very informative article!. I just have a question, is there any bank that does provide forex trading services. Skip to content It is becoming harder ever day to trust the brokers see the links I have posted at the bottom of this article. How To Trade Forex Through A Bank Account Before trying to open a Forex trading account with a bank, first you have to make sure that you are already a consistently profitable trader, otherwise there is point to think about having a Forex trading bank account.

Before you read the rest of this article, submit your email, not to miss the messages that nobody can afford to miss:. By The LuckScout Team I don't believe in luck. View all of The LuckScout Team 's posts.

Notify of. new follow-up comments new replies to my comments. Newest Oldest Most Voted. Inline Feedbacks. Myriam Pierre. The LuckScout Team. Reply to ron 2 years ago.

However, you must understand this strategy accurately to be a successful trader. In this case, the central bank is behind the smart money, while the rest respond to any market trend. The overall expenses depend on many factors — quality of the application documents, fulfillment of the AML, CFT and substance requirements, the services covered, the brokerage market, and many other aspects. That's not the case here, generally. Others may use fundamental analysis tools such as economic indicators or news events to help forecast future market movements. Please note that these participants have an extremely crucial and substantial part of the market. Forex smart money concept represents a bank trading strategy based on determining accumulation, manipulation, and distribution trading phases.

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