Services for Individuals

ForexGen offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

Dollar Moves in Thin Trading

Dollar mixed, moving within tight ranges in light Christmas week trading

In light holiday trading, the dollar dipped against the euro, but edged higher against the yen and pound Friday.
The 15-nation euro rose to $1.4067 in late New York trading Friday from $1.3999 late Wednesday, while the British pound slipped to $1.4677 from $1.4752.
The dollar also rose to 90.58 Japanese yen Friday from 90.39 yen late Wednesday ahead of the Christmas holiday.
With a lack of economic reports or government financing actions to direct trading, the greenback moved within tight ranges against the major currencies.

As expected, preliminary data showed a lackluster holiday shopping season compared with last year, but equities in the U.S. traded higher on the heels of the Federal Reserve's agreement to make General Motors Corp.'s financing arm, GMAC Financial Services, eligible for bank rescue aid. The Dow Jones industrials rose about 47 points.
In other New York trading, the buck fell to 1.0675 Swiss francs from 1.0740 francs late Wednesday, but gained to 1.2221

How does this affect your forex trading account?

If you are long the currency bearing the higher interest rate then you should earn interest, automatically credited to your trading account. Conversely, if you are short the currency bearing the higher interest rate then you should experience a small debit to your account.

Be aware that most forex brokers require a 2% margin set for your account in order to receive interest. If not, you will have to pay for the rollover, it doesn't matter whether you are long or short the currency bearing the higher interest rate

Day Traders

For day traders, who almost never hold any overnight positions, the rollover is not applicable because there are no positions to roll, and therefore no interest is earned or paid.

Swing Traders

If you are a swing, position or long term trader, the rollover will affect your account since you'll earn or pay interest on a daily basis. Therefore, it is recommend to set your account at 2% margin and only try to long the currency bearing the higher interest rate.

A strategy for the longer term trader is the carry trade, which relies on a big interest rate differential between the two traded currencies.
For example the NZD/JPY currency cross pair.

Currently, traders earn a $13 daily rollover interest, credited to their accounts at 5PM EST while holding a long position in this pair for each standard lot(1 standard lot equals 100,000 units) traded; BUT, if you are short NDZ/JPY, your account will be debited $14/day for each standard lot traded! Interesting fact to know, isn't it?

Rollover example

If you are long 300,000 EUR/USD at rollover (5PM est) and EUR/USD at rollover is trading at 1.3200, the EUR short-term interest rate is 3.50% and the USD short-term interest rate is 5.25%

How to read and interpret a weekly economic calendar: Producer Price Index (PPI) –

PPI is a measure of the average price level for a fixed basket of capital and consumer goods paid by producers. The PPI measures price changes in the manufacturing sector.

It measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries for their output. Inflation at this producer level often gets passed through to the consumer price index (CPI). The relationship between inflation and interest rates is the key to understanding how data like the PPI influence the markets and your investments.

How to read and interpret a weekly economic calendar: Nonfarm Payroll –

The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time and full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. This is without a doubt the economic report that move the markets the most. The employment data give the most comprehensive report on how many people are looking for jobs, how many have them, what they’re getting paid and how many hours they are working.

These numbers are the best way to gauge the current state and future direction of the economy. They also provide insight on wage trends, and wage inflation is high on the list of enemies for the Federal Reserve. By tracking the jobs data, investors can sense the degree of tightness in the job market.

Why ForexGen Can Offer Better Trade Execution

Our size and financial strength means better execution for our clients. Because the Forex market is an over the counter market with no centralised exchange, not everyone receives access to the same prices or quality of execution. The worlds largest banks tend to provide better prices and execution to institutions with the largest trade volume and the most solid financials. ForexGen is one of the most well-capitalised Forex Dealer Members. According to the financial data posted on the CFTC website, as one of the oldest and largest high-volume retail online Forex brokers, ForexGen has built strong execution relationships with many of the world's largest international banks. ForexGen receives and is able to pass on the benefits of size, better prices, and better execution to our client.