Basics

Comprehend How Banks Interfere on Forex


One way or other banks are the main players in financial markets. Their influence increases as they become bigger and internationally competitive. Governments may sometimes help banks when they are close to bankruptcy, known as a “bailout” to help rescue them from failing.  This shows that banks are a crucial component of modern economics, including foreign exchange (forex).

🎯 Our mission is to help you invest efficiently in forex and improve your results. Get extra valuable forex trading ideas from leading finance experts on the trading Academy and on our free forex Telegram channel.

💡 When trading forex, we suggest you consider long term results.

Forex regulations

Many people ask whether forex is legit and who regulates fx trading. The answer is yes, Forex is a legit trading operation and it’s regulated. Let’s understand it better.

📌 So, Forex is an Over-The-Counter (OTC) global market that is decentralized, which means there is no single central location.

As a result of the forex market being global, it is the largest in the world, and despite this, forex may be regulated in some jurisdictions but is not regulated in many other countries.

Therefore, many forex market participants must self-regulate and demonstrate integrity for traders to trust them with their money when trading financial products.

💡📚 In this article we explain what are the best forex brokers in 2020 and how to invest in forex through AI trading and AI forex signals.

Banks in forex trading 🏦

Investments such as forex which are traded from a margin account are not usually offered by traditional banks to the general public. Retail forex trading takes place through a forex broker.

Many public and private banks trade forex directly but usually just for their own accounts or institutional and large corporate clients. When banks trade with other banks, it is either done peer-to-peer or through interbank platforms.

Banks hold the accounts for forex brokers too, as well as for central banks. Because of the important role that banks have in the forex market, they control major assets that directly affect the rate of forex pairs. In other words, certain large banks can cause an impact in forex market prices, if they chose to do intervene.

Banks also use forex to hedge their positions in various currencies. Commercial banks may also have obscure products like dark pools (an anonymous space to trade stocks with less transparency than regulated national stock exchanges).

The largest potential impact comes from monetary policy and the result of central bank intervention, which can directly move forex prices, by adding or removing liquidity from the market (usually by selling or buying currency).

Another way monetary policy is implemented is through quantitative easing (such as printing more money to increase the supply) or by changing the interest rates which affect the cost of capital and credit markets. Consequently, such changes to a country’s monetary policy also affect the value of related forex pairs and the direction of the forex market.

We discuss this topic further in an article about how interest rates affect forex.

Education and information are the best way to be aware of what is happening in the forex market. Wiseinvest has a complete economic archive for you to get started!

Wise Signals are better than reading newspapers to know what is going to change the market mood.

The best way to trade forex

There are two ways to invest with our AI in forex:

1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.

automated trading with ai bot

By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.

With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.

Automated AI trading benefits

  • Setup in 3 minutes.
  • Totally hands-off, from anywhere.
  • Invest from just $1.
  • APY of 40% over the past 13 years*.
  • Lightning-fast execution & no slippage.
  • No commissions, no management fees.
  • Portfolio with 40 different automatic strategies.
  • No MT4/MT5 or other platforms required.
  • Test with a risk-free practice account.
  • Trading results directly on our dashboard.

Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker Oanda. Click here to open an account.

2. Manually with AI forex signals.

Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.

There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.

Each AI forex signal alert consists of the following five data points:

  • Symbol (forex pair)
  • Direction (long or short)
  • Position size (number of units or lots)
  • Take profit (price level to exit with maximum gain)
  • Stop loss (price level to exit with maximum loss)

Check out how to trade with our AI forex signals.

  1. Subscribe to a Wise-Plan.
  2. Open a Brokerage account. Check this article about the best forex Brokers.
  3. Set an amount and a position size on our Wiseinvest dashboard.
  4. Our AI will send you real-time trading alerts by email and Telegram.
  5. Copy the signals and paste into your Brokerage account.

All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.

Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.

You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.

When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.

What is the AI performance in forex trading?

The Win Rate of our AI varies according to the period and can reach up to 95%. The performance is based on the efficient frontier measurement metric, which means that our model is profitable whenever the Win Rate is greater than 60%. All strategies of our AI trading system seek stable returns and sufficient results to achieve an average return of 40% per year (APY), without the use of high leverages.

We understand that what matters in forex trading is the final result. Thus, the investor needs to consider that Win Rate is not always the best metric to measure performance in forex, as other signal providers disclose. For instance, out of 100 trades, only 1 trade may be enough loss to make the 99 trades not profitable. In this case, the Win Rate would be 99%, but the final result would be unfeasible (negative).

We focus on the return of 40% of APY and not just on Win Rate.

It is essential to observe that forex brokers may charge spreads, commissions, and overnight fees in your trading account, and these factors can affect the AI performance. You can check our forex trading track record to understand more about AI trading performance by clicking here.

How much do I need to trade forex with AI?

You can start in forex trading with free AI signals or an AI trading account and deposit just $1 in the broker. It is also possible to test using a risk-free practice account with our AI trading system. However, to do efficient risk management in real accounts, we suggest you start from at least $100. Notice that some forex brokers require different initial deposits to trade forex.

What is the trading strategy of our AI?

Our AI strategy is the combination of different AI trading systems, with more than 100 features, that define 40 different strategies which simultaneously consider: Quotes of the 28 forex pairs, Supports & Resistances in different time frames, Trends and Counter-trends, Cross-indicators, Index of each pair, Economic Calendar, Investors Sentiment.

Our AI analyzes those fundamental, technical, and sentiment factors that affect forex trading, and all criteria are evaluated in real-time using different weights. After completing the analysis, the choice of the signal emission strategy is made considering the increased likelihood of short-term profit and the amount available for investment.

Using technical analysis, our algorithm considers not only the patterns of various trends, including support and resistance levels and cross-indicators, but our AI is also able to create its own real-time index for each currency pair, that is used to identify what is the best direction and target.

In relation to fundamental analysis in forex, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs.

Takeaways

  • Banks can exercise their strong position in the economy to influence the forex market.
  • Central banks act on behalf of governments to enact monetary policy, through changes to interest rates and the money supply, which affect forex market prices.

Our goal is for traders to not need to follow every bank news updates or central bank announcement, by focusing on the signals and not the noise. Wise Signals allows our members to receive real-time trading signals through our direct subscription model, powered by Artificial Intelligence (AI).

How banks interfere with forex: Did you like our content? Read more at Wiseinves.ai/education.

Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.

The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.

The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.