The forex broker Dukascopy is a Swiss on-line forex broker operating on the Forex market, with an office in Geneva.

Residence, Regulation, and Company Management Structure

Dukascopy is a company resident of Switzerland. The company is incorporated in the national regulative organisation – ARIF, reference to the license is mentioned. The address of the office is stated, there is even a map. Managers of the company on the site are not, however, mentioned

Company’s Market Position

The company obviously names itself an ECN broker; on the site it is possible to find mentions of banking-partners.

The company offers basic brokerage services – of trading accounts, and managed accounts. There are the also well-developed partner programmes. For example, granting a trading platform, with the right to create one’s own structure of spreads and commissions.

MBT are one of the best ECNs out there for low-capital forex brokers. MBT forex broker allow trades down to micro lots, which helps traders with small margin accounts perform appropriate risk management. MBT forex broker follow a true ECN model, where your limit order becomes the bid or ask, enabling you to make or at least avoid the spread. MBT forex broker don't manipulate prices at all... it's not in their best interest, as they only make money on interest. It is of course possible that their liquidity sources (the banks) manipulate prices to stop hunt or the like, but that will happen on any broker out there that uses bank feeds (essentially all of them).

One clear downside is their relatively expensive commission of $10 per 100,000 USD traded round-turn. In effect, that adds roughly a pip to the existing spread. Thus, a 1-pip spread becomes 2, or a 2-pip spread becomes 3. On the other hand, if the spread is 2, you could be earning 1 pip net if you make the spread (that is, you sell limit at the ask and buy limit at the bid). Thus, the spreads are generally kept low by arbitrageurs who are always in the market to make the spread.

1. Plan your trade and trade your plan: You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a sound money management strategy. A good plan will remove all the emotions from your trades.
2. The trend is your friend: Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.
3. Focus on capital preservation: This is the most important step that you must take when you deal with your trading capital. You main goal is to preserve the capital. Do not trade more than 10% of your deposit in a single trade. For example, if your total deposit is $10,000, every trade should limit to $1000. If you don't do this, you'll be out of the market very soon.
4. Know when to cut loss: If a trade goes against you, sell it and let go. Do not hold on to a bad trade hoping that the price will go up. Most likely, you end up losing more money. Before you enter a trade, decide your stop loss price, a price where you must sell when the trade turns sour. It depends on your risk profile as of how much you should set for the stop loss.
5. Take profit when the trade is good: Before entering a trade, decide how much profit you are willing to take. When a trade turns out to be good, take the profit. You can take profit all at one go, or take profit in stages. When you've recovered your trading cost, you have nothing to lose. Sit tight and watch the profit run.
6. Be emotionless: Two biggest emotions in trading: Greed and Fear. Do not let greed and fear influence your trade. Trading is a mechanical process and it's not for the emotional ones. As Dr. Alexander Elder said in his book "Trading For A Living", if you sit in front of a successful trader and observe how he trades, you might not be able to tell whether he is making or losing money. That's how emotionally stable a successful trader is.
7. Do not trade based on a tip from a friend or broker: Trade only when you have done your own research and analysis. Be an informed trader.
8. Keep a trading journal: When you buy a currency or stock, write down the reasons why you buy, and your feelings at that time. You do the same when you sell. Analyze and write down the mistakes you've made, as well as things that you've done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and keep improving.
9. When in doubt, stay out: When you have doubt and not sure where the market or stock is going, stay on the sideline. Sometimes, doing nothing is the best thing to do.
10. Do not overtrade: Ideally you should have 3-5 positions at a time. No more than that. If you have too many positions, you tend to be out of control and make emotional decisions when there is a change in market. Do not trade for the sake of trading.

Every good trader has a strategy (or many). There are many good strategies out there – not just one. Stop wasting your time looking for “the best” strategy. It doesn’t exist!

Below is a strategy to get you started. We’ll progress to more advanced information in the e-books that follow.

Setting up the Platform

Add a 5-period simple moving average (SMA) and a 14-period RSI (relative strength indicator) on a 5-minute candlestick chart.

When to Enter

BUY when the price crosses over the 5 SMA line by 5 pips and the RSI is greater than 50 (over the middle line).

SELL when the price crosses under the 5 SMA line by 5 pips and the RSI is less than 50 (under the middle line).

Your Stop

Set a stop loss order 10 pips away from your entry price.

When to Exit

Exit when the price moves 10 pips in your favor.