Latency is defined as the delay in the time it takes for data to travel from point A to point B. In the case of Forex trading, this equates to the distance between your broker and their respective liquidity sources.


Latency tends to be one of the most overlooked aspects of Forex trading. From a trader’s perspective the focus has always been on the front end trading software. However, reductions in latency should be one of the most important considerations in selecting a Forex broker. It is essential that an STP broker that connects to various liquidity sources lessen the time that trade messages takes to reach those sources of liquidity.


The Case for Colocation


As is the case with many businesses, a major key to success is “location, location, location”. Numerous studies have shown that the most effective way to limit latency is to make sure the physical location of the broker’s servers are in close physical proximity to the data source. DivisaFX accomplishes this by locating their servers within the same facility where Currenex hosts their servers. This means that trade messages travel the shortest distance possible and offer clients precious milliseconds advantage over other brokers.


Many algorithmic and high frequency traders take advantage of the improved execution times by hosting their trading system in a collocation with their broker. Through a partnership with TradeSpotFX, traders can now use the VPS (Virtual Private Server) service to reduce latency and maximize the effectiveness of their expert advisor or other automated trading system they might use.


Another benefit of server collocation is security. Financial institutions are required by law to adhere to the strictest levels of security and data integrity. They must also maintain server uptime of 99.99% so numerous backups are implemented to insure uninterrupted trading for clients of DivisaFX.

Have you ever noticed that most Forex brokers advertise their price spreads above all other factors? While this is an important factor to consider when trading, it is merely one piece of the puzzle that must be examined.


Certainly, a more important factor is the ability to execute trades at quoted prices around major market news events such as the monthly NFP report. As a trader who looks to profit from short-term price moves, you may not be able to execute your strategy whether manual or automated. One reason is the fact that a broker may act as the buyer of a Forex pair while you play the part of the seller. Sound like a mutually beneficial contract?


At its essence, this relationship pits the trader against the broker as one participant’s interests are opposite of the other’s. Simply stated, if your trade is profitable, the broker realizes a loss. Employing a Dealing Desk model is not inherently evil (to put it jokingly). Some may argue that Dealing Desks provided a service for those individuals who traditionally did not have access to the Forex market due to high barriers in the form of excessive charges and substantial deposit minimums. When Dealing Desks fail to perform their intended role of providing liquidity for retail Forex trades, the problem usually can be attributed to a breakdown in the firms’ risk management guidelines and/or systems. If not properly managed, a Dealing Desk can become a huge liability for a broker if steps have not been taken to offset excessive position risk. As a trader, are you willing to take this risk?


True STP brokers take the Dealing Desk model employed by most of world’s largest Forex firms and stand it on its head. How? The former always operates under the premise that the interests of both the client and the broker are aligned. The STP broker wants it’s traders to, in the words of Spock, “Live long and prosper”. This is the case since the STP broker only makes money when a client executes a trade. In order for this to be a profitable venture over the long term (and even the mid term), the broker wants to create an model where traders will use their appreciating account balances to generate an ever increasing number of revenue producing trades. This highlights my earlier point of why having interests that align is sensible to traders and non-traders alike.


DivisaFX True STP trading through a Multi-Bank Currenex Hub giving clients the ability to execute trades with multiple top tier banks ensuring efficient execution while eliminating the risks associated with a standalone Dealing Desk. A true STP broker will not discriminate against short-term trades as the firm is merely acting as an agent charging a fee for order execution and clearing. The Divisa Capital Currenex hub offers Executable Streaming Prices (ESP™) which give clients access to live, streaming, executable bids and offers that are available for instant execution on our trading platform. Requotes and delays are rare as this award winning technology ensures that a trade is done with the bank or institution providing the price at that moment. Until recently, the ability to transact directly with banks via the interbank market was reserved for large institutions. Finally, the trading public can choose to compete on a level playing field.



API Connectivity:





Traders using a black box algorithmic trading system or MetaTrader Expert Advisors can now connect directly to the Divisa Capital Currenex Hub. Currenex provides access to its multi-bank liquidity feeds through a FIX gateway (using FIX 4.2 protocol) for quick and seamless integration.

When trading, keenly watching the market for profit opportunities is the crux of the matter.

The problem is - Nobody would want to spend the whole day glued to their laptops, I mean isn't time for yourself the whole essence of venturing into an online business? In Forex, opportunities are near equal, and you could trade anytime, anywhere provided you have internet access. So why spend the whole day analyzing markets, trying to relax your emotions in the end you make dire mistakes due to tension and probably wipe your account out.

Think about this? AUTOMATION! that's actually the key to relative success trading the Forex markets. Even if you want to do all the work yourself, some forex robots out there could give you a sense of direction but imagine just sitting and watching money rolling in, literally hitting pips in the absence of manual interference.

How does this work?

The softwares are purchased from vendors, these contain a step-wise instruction on how to install, usage and time-frames best for optimal performance. It's as easy as that so you don't have to be a computer Engineer to do this; as long as you could check your email and have basic knowledge on internet usage.

Now, I don't intend boring you with details on different automation softwares out there today but, I want you to be careful when picking one for yourself because most of you know that fakes are all over the place today especially in this our age. I would suggest some few that are relatively excellent and could make you over 80% profit monthly and are also a relatively cheap investment compared to the huge amounts money you could get within a period. Here are two of those I just discussed; visit the following sites

1) http://tinyurl.com/yjvd8jt

2) http://tinyurl.com/ylrebyd

This article will help to clarify and provide a better understanding of what Currenex actually is and to debunk many of the myths that are out there in the marketplace.
What is an ECN?
In many instances the term ECN is used when referring to Currenex. An ECN, which stands for Electronic CommunicationsNetwork, attempts to eliminate the role of a third party in the execution of orders. This allows all market participants, big and small, to interact with Bid and Offer prices that are posted by other market participants. Some of the better known ECNs are ARCHIPELAGO (purchased by the NYSE in 2006) and ISLAND. The advent of ECNs led to greater transparency as well as spreads that narrowed dramatically.
What is an ESP?
Currenex refers to it's system as offering Executable Streaming Prices or ESP™. Currenex connects to multiple sources of liquidity, primarily banks, that offer "pools of liquidity" for better price discovery and drastically narrower spreads for traders. The prices that are offered on Currenex can be executed within these various pools of liquidity. In the past, a trader would be required to obtain a Prime Brokerage relationship with one or more of the major liquidity providers. Currenex is now being offered through brokers to retail trading public without the very high threshold and high expenses traditionally associated with establishing a Prime Brokerage account.
Not all Currenex Brokers are the same.
It is important to remember that Currenex is only as good as the liquidity that it is connected to the system. This can lead to dramatic differences in price spreads between a broker that offers 1-2 banks versus a broker that offers 8-10 banks. Finding a broker that offers "Tier 1 Liquidity" is essential to taking advantage of the Currenex trading system.
What is Straight Through Processing or STP?
The term STP is commonly used among Forex brokers. Many Forex brokers will use "interbank pricing" but will be acting as a counter party to the trades themselves. A true STP broker will facilitate the transaction through to the liquidity source. This should result in trade execution at the best possible price without interaction on the part of the broker.

Every Forex trader in the market should have an idea about the world's most widespread forex dealing software, The Mt , which is a limitless open source software you can download to your computer and use free of charge to buy and sell Forex.
Nearly all Forex dealers tender this software to their customers, in addition to their own bug infested and characteristic deficient platforms they developed causing traders to basically mislay cash by the moment in time they become skilled at how to use it. Learning mt4 is a necessity do earliest on demo accounts to steer clear of losing money in the valid account. Unsophisticated practice directives that can almost not top a piece of paper can save you a fortune in feasible losses owing to lack of awareness of this software. Every Forex agent must have his own kind of Metatrader4 dealing platform so it will reflect the broker policy in regard to hedging and margin guidelines.

Most attention should be paid to the Forex mt4 summary line, It provides a trader an idea of what is going on on the account as: Balance means account balance including recent takings, but hovering profit/loss not included, Equity means same balance but after hanging profit/loss integrated, Margin means the amount of your deposit laid out for your open orders, FREE MARGIN is the amount of shelter against the market and the amount of your Equity that is not used yet, and also not been consumed by your losing positions, When you run out of FREE Margin, one or more of your superior positions will be liquidated resultant on cruel loss ! To avoid margin calls do not use more 10% of your purchasing strength and you should be able to withstand ordinary market conditions, If market is very explosive use only 5% of your Free margin. Before you run out of Free Margin you have the choice to slam positions with smallest amount losses to Free Margin, After you run out of FREE margin most losing positions will be closed in order to unbound margin in the account.