If the US President Donald Trump had a toolbox, it probably wouldn’t contain a spanner, a screwdriver, or even a tape measure. No, the only tool in there would be a big shiny hammer labelled “TARIFFS”, and man, does he like to swing it around.
To the average American voter, tariffs might sound like a patriotic plan to “Make America Buy Local Again.” To businesses, they’re more like an extra cost that no one anticipated. And to forex traders? Well, tariffs are a gift that keeps on giving, a bit like a movie with unpredictable plot twists and occasional laugh out loud moments.
But before we get ahead of ourselves, let’s make this clear: tariffs are not just about protecting American steel mills or making the latest Nike’s cost twice as much. They ripple through the entire global economy, jolt investor confidence, stir inflation, and, most importantly for us, send currencies bouncing around like popcorn in a hot frying pan.
Think about it. Every time Trump announces a new tariff (usually with the dramatic flair of a late-night TV salesman), forex traders everywhere suddenly lean closer to their screens, whispering: “Here we go again.” Because when tariffs hit, the U.S. dollar might spike as a safe-haven or collapse under inflation worries. Emerging market currencies either get walloped, or, if they’re lucky, dodge the tariff bullets and rally. In short: Trump’s trade wars are a currency trader’s worst nightmare or adrenaline rush.
In this article, we’re going to unpack Trump’s tariff obsession, look at who pays the price, and, most importantly, explore how these policies affect the currency markets. We’ll keep things light (because trade wars are stressful enough), occasionally make fun at the chaos, and help forex traders see both the risks and the opportunities hiding inside the tariff drama.
Donald Trump talks about tariffs the way some people talk about their favourite Tomato sauce, with passion, confidence, and the absolute certainty that it goes well with everything. Steel? Tariff it. Cars? Tariff them. Pharmaceuticals? Hell, why not, slap a tariff on those too. If it can cross a border, Trump believes it can (and probably should) carry a nice big, fat import tax.
Now, to be fair, Trump does have his reasons, and to him, they’re completely airtight. The official line goes something like this: tariffs will encourage Americans to buy more “Made in the USA” products, raise money for Uncle Sam through extra tax revenue, and shrink that pesky trade deficit (the gap between what the U.S. imports and what it sells abroad). In Trump’s words, America has been “pillaged” by foreigners for decades, so tariffs are his way of sending the bill back across the US border.
But here’s where things get interesting (and at times confusing). Tariffs aren’t just about trade. Trump often ties them to… well, almost anything. One week it’s about protecting U.S. jobs. The next week it’s about pressuring Mexico to do more on border security. Another time, tariffs were threatened against countries trading with Russia unless peace magically broke out in Ukraine within 50 days. In other words: tariffs are not just a tool; they’re also a bargaining chip, a pressure point, and occasionally, a megaphone for whatever’s on Trump’s mind that day.
For forex traders, this is where the fun begins. Because every time Trump opens his mouth about tariffs, whether it’s a carefully planned policy or a “let’s see what happens” kind of announcement, markets react. Sometimes the U.S. dollar flexes its muscles as investors pile into it as a safe haven. Other times the dollar slumps, as traders worry that higher import costs will mean more inflation, slower growth, and a grumpier Federal Reserve.
And the foreign currencies on the receiving end? They often get dragged into the ring whether they like it or not. The Mexican peso, Chinese yuan, Canadian dollar, and Japanese yen have all taken rollercoaster rides during Trump’s tariff crusades. One day they’re down because of higher U.S. duties, the next they’re up because a “deal” is supposedly around the corner. It’s exhausting for governments, but for traders who thrive on volatility, it’s pure gold.
So why should forex traders care about Trump’s love affair with tariffs? Because tariffs are like caffeine shots for the markets: they jolt everything awake, send currencies racing, and keep you glued to your trading screen. Love him or hate him, Trump has turned tariffs into one of the most market-moving forces out there, and in forex, that’s exactly where opportunity lies for you, the savvy currency trader.
If politics is theatre, then Trump’s tariff policies are pure Broadway. What started as a few duties here and there has turned into a full-blown world tour of economic slap downs.
Let’s look at the highlights from the Tariff Greatest Hits collection:
And then there are the country-specific punishments. Trump announced a “baseline” 10% tariff on almost all imports, then dialled it up depending on how much he felt each country had wronged the U.S.:
And in the middle of all this chaos, Trump struck a deal with the EU: 15% tariffs on European goods in exchange for zero duties on some U.S. products. Trump called it “the biggest deal ever made.” Traders called it “slightly less terrible.”
Now, if you’re a forex trader, here’s why this circus matters: tariffs hit countries unevenly. A 50% tariff on Indian or Brazilian goods makes investors nervous about those economies, which can weaken the INR or BRL. Meanwhile, currencies from countries that cut deals with the U.S. like the euro or the GBP might get a short-term boost.
And the U.S. dollar? It sits in the middle of the action, either climbing as a safe-haven currency or wobbling as inflation fears creep in. Every tariff headline is like a drumroll; you don’t know if the dollar is about to take a bow or trip over its shoelaces.
Tariffs may look like a boring tax policy on paper, but in practice they’re a never-ending rollercoaster for forex markets. Or as traders might put it: “Thanks for the volatility, Mr. President. Can we play the game again?”
Tariffs may seem like simple taxes on imported goods, but in the financial world, they’re more like tipping over the first domino in a very long, very wobbly chain. And the last domino? Yes, you guessed it, the currency markets.
Here’s how the cascade usually works:
Take a real example: when Trump raised tariffs on Vietnam and Indonesia, suddenly Nike and Adidas were looking at billions in extra costs. Both companies announced price hikes for American customers. That fed straight into U.S. inflation numbers, which in turn fuelled speculation about what the Fed would do next. And for traders? It meant volatility in USD/JPY, EUR/USD, and even emerging market pairs like USD/VND.
This is why forex traders don’t just watch tariff news, they obsess over it. Tariffs create uncertainty, and uncertainty is the rocket fuel of the currency market. Each new announcement can flip sentiment in a heartbeat. One minute the dollar looks bulletproof, the next it’s wobbling like a Penguin.
Of course, while businesses and consumers groan about higher prices and disrupted supply chains, forex traders often see opportunity. Volatility means wider trading ranges, sharper moves, and more setups for both day traders and swing traders. It can be stressful for sure, but if you’ve ever whispered a quiet “thank you” to Donald Trump after catching a perfect breakout on USD/CAD, you are not alone!
So, when tariffs hit, don’t just think about factories and shipping containers. Think about the ripple effect, inflation, interest rates, central bank reactions, because that’s where currencies really start to dance. And in forex, that dance floor is where the money’s made.
Like any good reality TV show, Trump’s tariff saga has its fair share of winners and losers, though “winning” often means “losing slightly less than everyone else.” And just like in forex, one country’s misery is often another countries opportunity.
Let’s start with the losers.
Top of the list: U.S. consumers**.** Tariffs might be aimed at foreign producers, but the reality is that Americans end up footing the bill when companies raise prices to cover higher import costs. Clothes, coffee, electronics, toys, even your favourite Air Fryer, all a little pricier thanks to the tariff train. Inflation creeps higher, household budgets stretch thinner, and forex traders perk up, wondering if the Fed will swoop in with a policy response.
Next up: countries directly hit by tariffs. If you’re Brazil, India, or Canada, a 35–50% tax slapped on your exports to the U.S. is a serious blow. Your economy slows, investor confidence wobbles, and here’s the forex angle; your currency usually takes the hit. The Brazilian real, Indian rupee, and Canadian dollar have all had their fair share of sleepless nights under Trump’s tariff hammer.
And of course, U.S. manufacturers also lose out. A modern car, for example, doesn’t just roll off one production line, its parts often cross borders multiple times. With every crossing now more expensive, costs spiral. This dents profits and slows business investment.
Now, onto the winners.
Strangely enough, countries that avoid tariffs or strike favourable deals with the U.S. can sometimes benefit. The EU’s deal to secure 15% tariffs instead of 50%? That’s like haggling down the price of a luxury handbag, you’re still paying a fortune, but you feel like a genius for saving you have made. Their currencies (like the euro) might even get a short-term lift as markets cheer the “deal.”
Another winner? Forex traders. Yes, really. While everyone else grumbles about higher prices and slower growth, traders rub their hands together at the juicy volatility. Tariffs trigger swings in major pairs (EUR/USD, USD/JPY), emerging market currencies (USD/MXN, USD/BRL), and even safe havens like the Japanese yen and Swiss franc. If you like volatility, and let’s be honest, most traders secretly do, then Trump’s tariffs are like Christmas morning.
Finally, there’s gold. Every time tariffs spook the markets, investors often flee into safe-haven assets. Gold rallies, the dollar wobbles, and forex traders find themselves dusting off their XAU/USD charts. Tariffs might not have been designed to boost precious metals, but they’ve certainly helped gold stay at all-time highs recently.
So yes, tariffs reshuffle the deck of winners and losers on a near-weekly basis. And for forex traders, that means plenty of rollercoaster moments. One day your chosen currency is soaring, the next it’s in freefall. But hey, without a little chaos, trading would be boring, wouldn’t it?
The U.S. dollar has a very complicated relationship with tariffs, the kind of on-again, off-again drama that would put a daytime soap opera to shame. Sometimes tariffs make the dollar look strong and dependable, other times they turn it into a jittery mess. It all depends on how investors read their tea leaves.
On one side of the love story, tariffs can strengthen the dollar. Why? Because when global markets get spooked, say, when Trump slaps a 50% tariff on Canadian maple syrup or threatens 200% duties on medicines, investors go running for safe-haven assets. And at the top of that list, alongside gold and the Japanese yen, sits the good old greenback. Fear makes people cling to the dollar like it’s a financial life raft.
But then there’s the hate part. Tariffs can also hurt the dollar by raising import costs, pushing up inflation, and slowing economic growth. Higher prices mean the average American spends more on basics and less on extras, dragging on GDP. If growth takes a dive, the dollar tends to follow. In some cases, traders even start betting that the Federal Reserve will cut rates to soften the blow, which puts further downward pressure on the currency.
The result? A dollar acting like a rebellious teen. One minute it’s storming out of the room in protest (weakening on growth fears), the next it’s back to being the centre of attention (rallying on safe-haven demand). For forex traders, this makes USD pairs, especially EUR/USD, USD/JPY, and GBP/USD, some of the most exciting and unpredictable to trade during tariff drama.
And here’s the kicker: the same tariff headline can trigger opposite reactions depending on market sentiment at the time. A new round of tariffs might send the dollar up if investors panic, or down if they decide it’s bad for the U.S. economy. It’s less about the actual numbers and more about the story the market chooses to believe.
So, if you’re trading during the tariff saga, don’t expect the dollar to give you straight answers. It’s not a loyal partner; it’s a wildcard. But in forex, unpredictability isn’t always a bad thing, it just means more opportunities to profit (or lose, if you’re on the wrong side of the move).
If history has taught us anything, it’s that trade wars rarely stay in their own lane. Slap tariffs on your neighbour’s goods, and sooner or later somebody starts fiddling with exchange rates. Welcome to the world of currency wars, the financial version of throwing spaghetti at the wall to see what sticks.
Take the U.S. and China, for example. When Trump ramped up tariffs on Chinese imports, Beijing didn’t just shrug and accept the bill. Oh no, instead, the Chinese yuan was allowed to weaken. A cheaper yuan makes Chinese exports more competitive, which helps offset the pain of higher tariffs. To Trump, this was “currency manipulation.” To traders, it was just another Tuesday.
And China isn’t alone. Other countries facing heavy tariffs often consider letting their currencies slide just enough to stay attractive in global markets. Brazil, India and even Canada have all seen their currencies take a hit during tariff disputes. Sometimes it’s deliberate policy, sometimes it’s just nervous investors pulling money out; but the result is the same: forex markets light up with activity.
Of course, Trump being Trump, he didn’t just complain about other countries playing with exchange rates. He also hinted (more than once) that the U.S. should weaken the dollar too. The idea was simple: if tariffs make U.S. goods more expensive abroad, then a weaker dollar could help American exporters stay more competitive. Whether or not Washington ever acts on this, the mere suggestion is enough to send forex traders scrambling.
This is why tariffs and forex are joined at the hip. A tariff is never “just” a tax on imports, it’s also a trigger for central banks, currency interventions, and market psychology. In fact, some traders argue that every major trade war in history eventually becomes a currency war. After all, if you can’t win by raising prices, you try to win by lowering the value of your money.
For traders, this means keeping one eye on tariffs and the other on central bank talking heads. Because the second tariffs bite, the currency chess game begins. Will China weaken the yuan further? Will the Fed intervene? Will smaller economies like South Africa or Vietnam let their currencies sink to stay competitive?
In short: when tariffs show up, currency wars aren’t far behind. And for forex traders, that means even more volatility, more opportunity, and more caffeine.
Tariffs may give politicians migraines and company CEOs sleepless nights, but for forex traders they’re just another part of the crazy game. The trick isn’t avoiding the chaos, it’s learning how to surf without getting wiped out. So, how do you navigate tariff turbulence without losing the shirt off your back shirt (or your trading account)? Let’s break it down.
In other words: don’t panic when tariff headlines hit. Get curious, stay nimble, and remember that every tariff is just another chapter in the world’s longest-running financial soap opera. And if your stop-loss gets blown up by a sudden Trump tweet? Well, you’re not alone, half the trading world is right there with you.
So where do Trump’s tariffs go from here? If history (and Truth Social) is any guide, the only predictable thing about Trump’s trade policy is its unpredictability. One day he’s threatening a 200% tariff on pharmaceuticals, the next he’s striking “the biggest deal ever made” with the EU. Traders who try to guess his next move often feel like they’re spinning a roulette wheel in your local Casino.
There are a few possible scenarios:
For forex traders, the real takeaway is this: whatever direction tariffs go, they’ll keep currencies busy. Volatility isn’t going away, and neither are the opportunities that come with it.
So, big deal or big mess? Maybe a bit of both. But one thing’s for certain, as long as Trump is swinging his tariff hammer, forex traders won’t be complaining about being bored.
If there’s one thing we’ve learned from Trump’s tariff adventures, it’s that nothing in global trade is ever simple, or quiet. Tariffs ripple through factories, boardrooms, and grocery stores, but for forex traders, the real action happens on your trading screens.
Every new tariff announcement has the potential to shake currencies, move gold, rattle emerging markets, and test the patience of even the most seasoned traders. The U.S. dollar is as moody as ever. And the other currencies? They’re doing their own dance, twisting and turning as they respond to both economic realities and market speculation.
Yet despite the chaos, there’s a silver lining for traders: opportunity. Volatility is the lifeblood of forex, and Trump’s tariffs provide it in spades. With careful risk management, a keen eye on news, and a sense of humour about the absurdity of it all, traders can navigate this turbulent landscape and even profit from it.
Whether tariffs escalate, deals are struck, or markets continue to swing like a rollercoaster in a hurricane, one thing is certain: trading in the era of Trump’s tariffs is never dull. And for those who thrive on action, unpredictability, and the occasional eyebrow-raising tweet, it’s the ultimate playground.
Remember: tariffs might raise prices, slow growth, and frustrate CEOs, but in the forex world, they’re just another chapter in the never-ending story of global markets. Strap in, stay alert, and maybe keep your sense of humour handy , because in this game, the tweets are fast, the tariffs are heavy, and the opportunities wait for no one.
October 14, 2025
And there we have it. Gold has officially crossed $4,000 for the first time in history, after hitting $3,000 just seven short months ago. The question asks itself: how long until the precious metal adds another $1k to its tally? The current macroeconomic environment remains good for gold. The Fed will continue to lower rates on the Dollar, forcing market participants to seek returns elsewhere, while investors around the world flock to safe-haven assets. Uncertainty persists around a number of geographic markers, including France, the Middle East and Ukraine, while central banks around the world continue to shun treasuries in favour of stockpiling more precious metals. Gold ETFs also reported record inflows in the third quarter of the year and trading volumes are exploding across the board. Even industrial demand is playing its part, although more so in silver, platinum and palladium than gold. Speaking of silver, the white metal remains perilously close to striking a record high of its own, but for the time being everyone is understandably focused on gold.
We finally have something to talk about in currency markets. The Dollar has regained some measure of strength in recent days and the DXY is now fast approaching 99. The situation unfolding in France has resulted in a loss of confidence in the Euro due to budget concerns. With the latest resignation of Sebastien Lecornu, the French parliament has now gone through three Prime Ministers in less than a year, and a total of seven during Macron’s combined presidencies. The Euro is down to $1.162 as of this morning.
In Japan, the recent leadership victory of Sanae Takaichi has prompted a significant flight out of the Yen. The new Prime Minister is expected to engage in much more aggressive economic policies in a bid to stimulate the Japanese economy and has been critical of the Bank of Japan’s recent rate hikes. The prospect of slower rate hikes has punished the Yen, leading to a 3% loss against the Dollar so far this week and driving USDJPY past 152 this morning.
October 08, 2025
Cryptocurrencies have gone from being a niche obsession of tech geeks and libertarians to a mainstream asset class, that even your neighbour Dave brags about owning (usually right before the market tanks). From Bitcoin pizza purchases to billion-dollar funds, the digital asset rollercoaster shows no signs of slowing down.
But here’s where things get interesting: not everyone buys or trades crypto the same way. Some people use crypto exchanges, those digital marketplaces where you can swap your hard-earned dollars for Bitcoin, Ethereum, or a coin with a name that sounds like a Pokémon character. Others, however, are quietly doing something different: they’re trading crypto through their good old forex broker.
Wait, what? The same broker you use to trade EUR/USD or GBP/JPY also lets you trade Bitcoin? Yes. In fact, many forex brokers now offer crypto trading right alongside currencies, commodities, and indices. And for some traders, this feels as natural as ordering fries with your burger.
But here’s the million-dollar (or one-Bitcoin) question: why would anyone choose to trade crypto through a forex broker instead of a crypto exchange? Isn’t that like buying sushi from a petrol station? Maybe… but as it turns out, there are some pretty solid reasons people do it. Of course, there are also some major downsides, which we’ll explore later.
So, grab your digital wallet (or at least your sense of humour), because in this article we’re going to explore:
By the end, you’ll know exactly whether trading Bitcoin via your forex broker is a stroke of genius, or the financial equivalent of paying extra for bottled water when the tap’s just fine.
Before we start throwing shade at either side, let’s get clear on what we’re actually comparing.
A forex broker is like your financial middleman, the person who makes it possible for you to buy and sell currencies, and increasingly, other instruments, without having to fly to Wall Street and start waving your hands around in a pit full of sweaty traders. Brokers usually give you access to slick platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), where you can click, drag, and chart your way to trading glory (or financial ruin, depending on how your last gold trade went).
They make money mostly from spreads, commissions, and sometimes sneaky overnight financing fees. But the key point? Forex brokers are usually the adult in the room, financial authorities that make sure the broker doesn’t just run off with your cash.
Crypto exchanges, on the other hand, are like bustling digital bazaars where people swap Bitcoin, Ethereum, and thousands of other coins you’ve probably never heard of. Some exchanges are highly professional (think Coinbase or Binance), while others look like they were built in a spare room above a Kebab shop in a rundown area of town way back in 2009 and they still haven’t updated their customer support line.
Here, you are often trading “real” crypto. You buy it, you own it, and if you want, you can transfer it to a private wallet where you hold the keys (and nervously triple check you didn’t send your life savings to the wrong address).
Exchanges aren’t always regulated in the same way brokers are. Some have licenses, others are still trying to figure out how to explain themselves to governments. And of course, some have collapsed spectacularly (cough FTX cough), reminding traders that “not your keys, not your coins” is more than just a catchy slogan.
What is the overlap? Both let you trade cryptocurrencies. Both give you platforms to click “buy” and “sell” with frightening ease. But the philosophy is different:
In short, forex brokers are like the controlled environment of a gym treadmill, while crypto exchanges are more like trail running in the wilderness. One is predictable and regulated; the other has more freedom, but you might twist your ankle.
If you’re wondering why someone would trade Bitcoin through a forex broker when shiny crypto exchanges are a click away, don’t worry, you’re not alone. But as with most things in finance (and life), convenience and comfort often win out. Let’s explore the main reasons traders cosy up to their forex brokers for crypto action.
Imagine logging into one platform and being able to trade EUR/USD, gold, the WS30, and Bitcoin, all without juggling multiple logins or trying to remember which two-factor authentication app you used. That’s the magic of forex brokers. Everything’s under one roof.
For traders who already spend their days glued to MT4 or MT5, adding a Bitcoin chart to the mix feels natural. Why learn a brand-new exchange interface when you can just slap another chart on to your screen?
Let’s face it: most crypto exchanges have interfaces that feel like you’re piloting a spaceship. Order books, charts, liquidity depth, and a hundred different order types, it’s enough to make a newbie’s head spin, not to mention an old sweat like me!
Forex brokers, on the other hand, stick to what traders already know. MetaTrader might not win awards for beauty, but it’s simple, reliable, and lets you run all your favourite EAs (Expert Advisors) while pretending you’re not over-leveraging again.
This is a big one. Most forex brokers let you trade crypto CFDs with leverage, sometimes up to 1:10 or 1:20. That means you can control a much larger position than your actual deposit would normally allow.
For some traders, the idea of wiring money to an offshore crypto exchange feels about as safe as sending your wallet to a stranger on Instagram. Forex brokers, at least the trusted ones, have to follow strict rules about client funds and reporting. That extra layer of oversight can give traders peace of mind.
Sure, not every forex broker is squeaky clean, but compared to the Wild West of unregulated exchanges, it feels a bit like moving from a dodgy back street casino into a proper Las Vegas venue. The house still wins most of the time, but at least the drinks are free.
If you’ve been trading forex for years, switching to crypto on your broker’s platform doesn’t require you to learn anything new. It’s like ordering your usual coffee from your favourite café; no need to explain yourself, no surprises, it just feels familiar and right.
For traders who just want exposure to Bitcoin or Ethereum without diving into the deep end of blockchain technology, forex brokers are the easy button.
Of course, trading crypto through your forex broker isn’t all sunshine and Lamborghinis. In fact, for every shiny perk, there’s usually a catch hiding in the small print. Let’s dig into the not-so-glamorous side.
Most forex brokers only bother listing the “A-list celebrities” of crypto, Bitcoin, Ethereum, maybe Litecoin if they’re feeling generous. Don’t expect to find meme coins, obscure tokens, or that weird project your mate in your local bar swears will be “the next big thing.”
If you’re the type who likes browsing the full crypto buffet with thousands of coins to choose from, a forex broker will feel more like a sad hotel breakfast.
On exchanges, fees are usually clear and upfront: a small percentage per trade. With forex brokers, the cost often hides inside the spread (the difference between the buy and sell price).
Add to that the potential overnight financing charges (a.k.a. “swap fees”), and suddenly your “cheap” trade isn’t looking so cheap. Brokers know you’re here for convenience, and convenience rarely comes free.
Here’s the biggie: in most cases, when you trade crypto with a forex broker, you’re not actually buying Bitcoin. You’re trading CFDs (Contracts for Difference) or another type of derivative. That means you’re just speculating on the price, not owning the underlying asset.
So, forget about transferring your coins to a private wallet, staking them in decentralized finance, or bragging about “hodling” (long-term investment strategy) through the next bull run. With a forex broker, you can’t send Bitcoin to your hardware wallet, because you don’t actually own any. It’s like betting on horse racing without ever seeing the horse.
On a crypto exchange, if you want to move your coins, you can send them directly to your wallet. With a forex broker? Nope. You deposit in fiat, you trade in fiat, and you withdraw in fiat, although many brokers are looking to add crypto withdrawals in the future.
If your dream was to stack sats and live off crypto someday, you’ll be disappointed. Forex brokers keep things old-school: dollars, euros, pounds. Digital coins stay on the screen only, for the moment.
Planning to hold Bitcoin for months at your forex broker? Brace yourself. Many brokers charge daily overnight fees for holding leveraged positions. Over time, these fees can quietly chew through your account like termites in wooden furniture.
Crypto purists laugh at this, since on an exchange you can buy and hold Bitcoin for years without paying a cent in “overnight financing.” But with a broker, it’s more like paying rent to keep your coins parked there.
Here’s the million-dollar question (or 9-Bitcoin question, depending on which way the market’s swinging): are crypto prices the same whether you trade on a forex broker’s platform or a crypto exchange? The short answer: not quite. Let’s explore why this is the case.
On a crypto exchange, prices come straight from the order book, a live record of buy and sell orders placed by real people (and lots of bots pretending to be real people). The price you see is the result of supply and demand in that particular marketplace. More buyers push the price up; more sellers push it down. Pretty simple.
Liquidity is key here. The bigger the exchange, the deeper the liquidity pool, and the closer the price will track the global market average. That’s why the big names like Binance or Coinbase usually stay in line with each other, while smaller exchanges might look a bit… off.
Forex brokers don’t usually have order books for crypto. Instead, they get their prices from liquidity providers, essentially, big banks, market makers, or other exchanges. The broker takes this feed, adds a spread (their cut), and serves it up to you on MT4, MT5, or whatever platform you’re using.
While prices on a forex broker’s platform generally follow the broader market, they’re not identical to exchange prices. Think of it like buying a Coke at the airport: it’s still Coke, but you’re paying airport prices.
On top of that, brokers often bake wider spreads into their quotes. For example, Bitcoin might be $50,000 on Binance but show up as $50,100 / $50,300 on your broker’s platform. That $200 gap is your cost of convenience.
There’s also slippage, the difference between the price you click on and the price you actually get. Fast-moving crypto markets love to play this game, and spreads plus slippage can add up to a nasty surprise if you’re not careful.
At this point, the clever traders might be thinking: “Aha! I’ll just buy on the exchange at $50,000 and sell on my broker at $50,200, free money right!” Unfortunately, brokers have already thought of that, and the mechanics of arbitrage between a CFD platform and a real exchange are messy (not to mention, brokers tend to close loopholes faster than you can say ‘risk-free profit’).
Prices on forex brokers and crypto exchanges are usually similar but not identical. For long-term traders, the small differences may not matter much. But for short-term scalpers and day traders, those extra spreads and tiny gaps can be costly.
Not all traders are created equal. Some like fast-paced scalping, some like long-term investing, and some just like to tell everyone at parties they “trade crypto” without ever opening a chart. So, who actually benefits from trading through a forex broker, and who’s better off sticking to exchanges?
For traders who live on 5-minute charts and survive on coffee and adrenaline, forex brokers have a few perks:
But there’s a catch: wide spreads and slippage can quickly eat into the razor-thin profits scalpers chase. It’s like running a marathon while someone keeps moving the finish line a few steps further.
If your idea of trading is buying Bitcoin and forgetting about it until the next halving cycle, a forex broker is basically useless to you. Why?
Exchanges (or better yet, private wallets) are the clear winners for hodlers. Brokers are for speculating, not storing.
Some traders don’t trust crypto exchanges after seeing headlines like “Major Exchange Collapses, Billions Lost”. For them, a regulated forex broker feels safer. At least there’s someone to complain to if things go south, even if that someone is a regulator who politely tells you, “We’re looking into it.”
If you’re the type who likes dabbling in meme coins, DeFi tokens, or anything Elon Musk tweets about, forex brokers will disappoint. You’ll find Bitcoin, Ethereum, maybe Ripple if you’re lucky, but that’s it. Exchanges win hands-down here, offering thousands of tradable assets, from serious projects to coins that sound suspiciously like recipe ingredients.
Then there’s the smart middle ground: traders who use both. They trade short-term crypto moves on their forex broker (for the convenience and leverage) but buy and hold real crypto assets on exchanges or private wallets.
Question: - Should you trade cryptocurrencies through your forex broker or stick with a dedicated crypto exchange? The answer, like most things in trading, is, it depends: -
Forex brokers bring convenience, familiarity, leverage, and regulation to the table. If you’re already trading forex, adding Bitcoin or Ethereum into the mix on the same platform is as easy as ordering dessert after dinner, no need to change restaurants. For short-term traders who just want to speculate on price moves, brokers can be a comfortable, streamlined choice.
But the downsides are hard to ignore. Limited coin selection, higher spreads, hidden fees, and, most importantly, the fact that you don’t actually own any crypto. If your dream is to hodl coins, keeping them long-term, transfer them to a cold wallet, or dive into the weird and wonderful world of altcoins and blockchains, forex brokers cannot provide you with this.
As for prices? They’re usually close enough between brokers and exchanges to not cause chaos, but small differences (plus those wider spreads) can nibble at your profits faster than you’d like. Arbitrage fantasies aside, the “cheap and cheerful” trade is rarely as cheap as it looks.
In the end, it comes down to your style.
The key is knowing what you’re really getting into. Trading crypto through a forex broker isn’t “wrong”, it’s just a different flavour of trading. Some prefer vanilla, some prefer Caramel Chew Chew. As long as you know what’s in the tub before you dive in, you won’t get any nasty surprises.
Personally, being old school, I like the Forex broker angle, it is convenient and simple. Crypto trading is just another asset that I can make money from, and I don’t have to deal in complicated wallet numbers and blockchains. If the price of Bitcoin tanks I am out of the trade and not worrying that I am going to lose my pants if it keeps dropping as I don’t actually own anything.
October 07, 2025
US stock markets continued to hit record highs last Friday, despite the ongoing shutdown of the federal government. So far, negotiations between both sides have yielded very little and by all accounts, it may take a while longer to reach a resolution. US government shutdowns are nothing new and typically last no more than a week or so, but the timing of the current gridlock means that central bankers, investors and traders alike are lacking crucial economic updates. NFPs failed to materialise on Friday and if the shutdown continues, so too will Thursday’s jobless claims. Despite the disruption, it is business as usual as far as Wall Street is concerned. The Dow Jones Industrial Average and S&P 500 both hit record highs on Friday, as did the FTSE 100 index in the UK.
Precious metals ended the week on a high note, with gold edging up to $3,886 and silver closing Friday’s session a hair’s breadth under $48 per ounce. The low liquidity environment helped to push precious metals even higher this morning as the Asian session opened for the day, with gold and silver rising from the opening bell. Gold has broken its own record so many times this year that most people stopped counting long ago. For silver however, things are different. Silver is now inches away from breaking its record high established all the way back in 1980 and matched in 2011. The moment silver crosses $50 an ounce, the white metal will be in uncharted territory for the first time in decades.
The excitement in precious metals has also spread to Bitcoin, which tapped $125,000 per coin over the weekend, beating its previous record high established back in August. Cryptocurrencies have traditionally over performed in October, and while traders have a long way to go until the end of the month, so far this year is no exception.
Rather difficult to lay out the economic calendar when the government bodies responsible for collating and publishing the data are closed. When the US government finally does agree to a funding plan and reopens for business, markets will be granted an overdue NFP report, but as of this moment, it is impossible to say when. A surprise NFP drop sounds terrifying for unprepared traders, so with any luck, markets will get some warning beforehand. Absent any unforeseen releases, Wednesday will provide the minutes from the last FOMC meeting, which resulted in the first rate cut of the year. The absence of economic data certainly makes the Fed’s job more difficult, but given historical trends, it is very unlikely that the shutdown will last until the next meeting on the 29th of October. Chairman Powell is scheduled to deliver a speech the following day, which should shed light on the Fed’s perspective on the ongoing situation on Capitol Hill.
October 06, 2025
I’m often asked the same question: What are the best trading strategies used by the best traders in the world? People want the ones that make the most money, are easy to understand, and can be applied right away. The truth is, there isn’t a one-size-fits-all answer. The best trading strategies are the ones that fit your personality, your risk tolerance, and the way you see the market.
Trading is a skill that takes time to develop. Many traders spend thousands on courses or attend seminars where top professionals share their methods. But here’s the catch: everyone’s brain is wired differently. A strategy that works brilliantly for one trader might feel completely unnatural for another.
Markets themselves also change shape. Sometimes they trend strongly, sometimes they fall apart, and sometimes they just go sideways. Each environment calls for a different approach:
In this article, we’ll explore the most popular trading styles used by successful traders. By the end, you’ll have a much clearer idea of which trading style, and ultimately, which strategy could be the best fit for you.
Trend trading is one of the most widely used and time-tested strategies. The principle is simple: “The trend is your friend - until it ends.” Traders identify a market that is moving consistently in one direction (up or down) and ride that movement for as long as possible.
Trend trading works best in markets with strong, sustained momentum, such as currencies during monetary policy shifts, or commodities like oil and gold during geopolitical tensions.
Day trading is a strategy where traders enter and exit positions within the same trading day, avoiding overnight exposure. The goal is to profit from intraday price movements, taking advantage of volatility and liquidity in active markets such as forex, stocks, and futures.
Day trading works best in highly liquid, volatile markets, where prices move frequently and spreads are tight.
News trading is a strategy built around economic releases, central bank announcements, and geopolitical events. These events often trigger sharp volatility, which traders try to capture. The core idea is simple: markets move fastest when surprised, and traders who position themselves correctly can make quick profits.
Examples include:
Read more: FOREX NEWS
Read more: ECONOMIC CALENDAR
End-of-Day trading (EOD) is a strategy where traders enter or exit trades based on daily closing prices, analysing charts at the end of each trading day rather than continuously during the day. This approach allows traders to avoid intraday noise and reduces the need for constant monitoring.
EOD trading works best in moderate volatility markets and is often used by swing traders, position traders, and part-time traders.
Swing trading is a medium-term strategy where traders aim to capture price swings within a trend or range, typically holding positions from a few days to several weeks. It sits between day trading and position trading, blending technical analysis with some fundamental insight.
Swing trading works best in markets with moderate volatility and identifiable patterns, such as stocks, forex, and commodities.
Captures Bigger Moves than Day Trading: Allows more profit per trade.
Less Stressful than Intraday Trading: No need to monitor markets constantly.
Flexible Time Commitment: Suitable for part-time traders.
Scalping is a very short-term trading strategy that seeks to profit from small price movements. Trades are typically held for seconds to minutes, and traders aim for frequent, small gains throughout the trading session. It is very popular with newbie traders as it is quick fire action and can be exciting.
Scalping works best in highly liquid and volatile markets, such as major forex pairs, popular stocks, or futures contracts with tight spreads.
Position trading is a long-term strategy where traders hold positions for weeks, months, or even years to capitalise on major market trends. Unlike day or swing trading, position traders focus on fundamental and macroeconomic factors as well as technical analysis.
This strategy works best in trending markets and for assets with strong underlying fundamentals, such as major stocks, forex pairs, or commodities.
Gap trading is a strategy that focuses on price gaps; areas on a chart where the price moves sharply up or down with no trading in between. These gaps often occur at market open, caused by news, earnings reports, or after-hours events. Traders aim to exploit the inefficiency created by these gaps.
Gap trading works best in volatile markets like stocks, forex, and commodities, where overnight or between-session movements are significant.
Price action trading is a strategy that relies purely on the price movements themselves, without heavy reliance on indicators. Traders read candlestick patterns, support/resistance levels, and chart formations to make decisions. This approach is popular among traders who prefer clean charts and direct market signals.
Price action trading works well in all market types, but it is especially effective in trending and range-bound markets where patterns can be clearly identified.
Algorithmic trading (or algo trading) is a strategy where computer programs automatically execute trades using expert advisors based on predefined rules and conditions. These rules can include price, volume, timing, and complex mathematical models.
Algorithmic trading works across all market types and timeframes, from high-frequency trading (HFT) in seconds to long-term automated strategies spanning weeks or months.
Breakout trading is a strategy where traders enter a position when the price breaks through a key support or resistance level. The idea is to capture the momentum that follows a breakout, as prices often continue strongly in the breakout direction.
Breakout trading works best in markets poised for volatility, such as stocks around earnings, forex pairs near key levels, or commodities after consolidation.
Mean reversion is a strategy based on the idea that prices tend to return to their average or mean over time. Traders look for assets that have moved significantly away from their historical average and take positions anticipating a reversal toward the mean.
Mean reversion works best in range-bound or stable markets, where prices oscillate around a consistent average rather than trending strongly.
Fibonacci retracement is a technical analysis strategy that identifies potential support and resistance levels based on the Fibonacci sequence (commonly 23.6%, 38.2%, 50%, 61.8%, and 78.6%). Traders use these levels to anticipate price reversals, pullbacks, or continuation points.
This strategy works best in trending markets, helping traders enter on retracements within the trend rather than chasing the market.
Arbitrage trading is a strategy where traders exploit price differences for the same asset across different markets or instruments. By simultaneously buying low in one market and selling high in another, traders aim to lock in risk-free profits.
Arbitrage works best in highly liquid markets, such as forex, stocks, futures, and cryptocurrencies, where small price discrepancies exist.
Pairs trading is a market-neutral strategy where traders identify two correlated assets and take opposite positions: long on the underperforming asset and short on the outperforming one. The idea is that the spread between the two will eventually converge, generating profit regardless of market direction.
Pairs trading works best in correlated markets, such as stocks within the same sector, ETFs, or forex pairs.
Strategy Type
|
Benefits
|
Tricks
|
Risks
|
Applicable Scenarios
|
|---|---|---|---|---|
| News Trading | Quick profits, frequent opportunities, short holding periods | Know your economic calendar, pre-plan levels, formulate hypotheses, use stop-loss orders | Unpredictability, stressful, poor trade execution | High-impact news events, forex, stocks, commodities |
| Trend Trading | Captures long-term trends, clear direction, easier planning | Confirm trends with indicators, follow moving averages, align with market momentum | False trends, delayed entries, whipsaws | Trending markets, forex, stocks, crypto |
| Day Trading | Quick profits, avoids overnight risk, frequent setups | Focus on high-volume assets, use intraday charts, set tight stops | High stress, overtrading, transaction costs | Liquid intraday markets, forex, stocks, futures |
| End-of-Day (EOD) Trading | Simplifies execution, reduces stress, avoids intraday noise | Use daily charts, pre-plan orders, confirm trends | Overnight gaps, missed opportunities, delayed reactions | Part-time traders, daily chart strategies |
| Swing Trading | Captures bigger moves than day trading, flexible time, lower stress | Identify key levels, combine indicators, trade with trend | Trend reversals, overnight gaps, requires patience | Trending or moderately volatile markets, stocks, forex |
| Scalping | Frequent profits, short holding periods, precise risk | Trade liquid markets, use short charts, plan entries/exits, leverage tech | High stress, execution risk, transaction costs | High-liquidity markets, forex, futures, major stocks |
| Position Trading | Captures large trends, low stress, low transaction cost | Focus on fundamentals, wide stops, patience, diversify | Overnight gaps, capital tie-up, trend reversals | Long-term trends, major stocks, forex, commodities |
| Gap Trading | Profit from overnight moves, clear entries, quick gains | Identify gap types, analyse volume, plan stops | Gap reversals, high volatility, limited opportunities | Stocks, forex, commodities with frequent gaps |
| Price Action Trading | Simple, versatile, teaches market reading | Master candlestick patterns, use support/resistance, focus on higher timeframes | Subjectivity, false signals, requires experience | All markets, trending or range-bound, multiple timeframes |
| Algorithmic Trading | Speed, eliminates emotion, back testing | Back test thoroughly, monitor live performance, diversify strategies | Technical failures, overfitting, market impact | All markets, high-frequency and systematic strategies |
| Breakout Trading | Captures trend initiation, clear entry signals | Confirm breakouts, wait for retests, use stops, align with trend | False breakouts, high volatility, requires discipline | Trending or volatile markets, stocks, forex, commodities |
| Momentum Trading | High profit potential, clear signals, short-term | Follow trend, use momentum indicators, watch divergence | Trend reversals, overbought/oversold, fast decision-making | Trending markets, forex, stocks, crypto |
| Mean Reversion | Predictable entries, effective in sideways markets, clear stops | Use Bollinger Bands, RSI, confirm with volume | Trend breakouts, timing, false signals | Range-bound markets, forex, stocks, commodities |
| Fibonacci Retracement | Predictive levels, improved timing, widely followed | Combine with trend, use confluence, focus on key levels | Not always accurate, subjective, needs confirmation | Trending markets, stocks, forex, commodities |
| Arbitrage Trading | Low risk, predictable returns, exploits inefficiencies | Monitor multiple markets, act quickly, account for costs | Execution risk, transaction costs, capital intensive | High-liquidity markets, forex, stocks, crypto |
| Pairs Trading | Market neutral, lower risk, statistical edge | Identify correlated pairs, monitor correlation, use statistical models | Correlation breakdown, execution risk, active monitoring | Correlated stocks, ETFs, forex pairs |
The most suitable trading strategy varies by individual. What works for one trader may fail for another. Finding your own approach involves understanding your personality, objectives, and lifestyle. Here are the key factors to consider:
Determine whether you are patient or impatient, aggressive or conservative. Your personality will guide whether you prefer long-term strategies like position trading or fast-paced strategies like scalping.
Clarify your goals. Are you trading for extra income, wealth growth, or full-time career? Your objectives influence risk tolerance, strategy complexity, and the markets you focus on.
Your available time affects the strategy choice. Full-time traders can monitor intraday markets, while part-time traders may prefer swing or end-of-day trading that doesn’t require constant attention.
Read more:How to start forex trading: A beginner’s guide with 7 key tips
Back testing is a critical step in developing a trading strategy. It involves testing your rules against historical data to see how the strategy would have performed in the past. This process helps traders identify strengths, weaknesses, and potential improvements before risking real money.
Risk management is one of the most critical components of successful trading. Even the best trading strategies can fail without proper risk controls. Top traders implement structured rules to protect capital, minimize losses, and maximize their gains.
Key Risk Management Techniques
Read more:Effective risk management in FOREX
Even the best strategies can fail if common mistakes are made. Understanding these pitfalls helps traders protect capital and improve long-term results.
By avoiding these mistakes, traders can improve consistency and performance, making their trading strategies far more effective.
Selecting the right trading platform is essential for executing your strategy effectively and efficiently. A suitable platform enhances your trading experience, provides necessary tools, and supports risk management.
Key Factors to Consider
RADEX is a platform suitable for all trading strategies, offering:
Traders are encouraged to open a RADEX MARKETS account to access these tools and start trading efficiently.
Read more:Top forex brokers to trade with in 2025
The best trading strategy depends on your personality, goals, and market conditions. No single strategy works for everyone. Experiment with different approaches to find what suits you best.
For beginners, trend trading, swing trading, or end-of-day trading are often recommended due to their simplicity, clear rules, and manageable risk.
Yes, but ensure they don’t conflict. Using complementary strategies on different markets or timeframes can diversify risk.
A guideline for trade duration or position sizing, depending on the context. It emphasizes discipline in entries, exits, and risk management.
No strategy guarantees a profit. Profitability depends on discipline, risk management, market conditions, and your trading skill.
Not necessarily. The best traders often use a few effective indicators and focus on price action, patterns, and risk management.
Additional tip: Copy trading
If you are unsure how to structure your own trading strategy, you can consider copy trading on RM SOCIAL, which allows you to follow experienced traders’ strategies.
October 03, 2025
The US government remains closed for business, but that did not stop the Dow, S&P 500 and Nasdaq from all hitting record highs yesterday. Artificial Intelligence was once again the driving force behind the rise in stock prices. OpenAI, the company behind ChatGPT, reached a valuation of $500 billion yesterday following an employee share sale, making it the most valuable startup in the world. Expectations are sky-high for the nascent industry, despite the fact that OpenAI, and many other companies like it, have never turned a profit. The government closure means we are unlikely to get our beloved NFP release later today, nor any time soon for that matter. With the prospect of mass layoffs and sweeping cuts on the table, talks between both sides remain icy.
Gold tried and failed to breach $3,900 per ounce over the last two days. Silver attempted a brief foray above $48 yesterday before thinking better of it. Platinum and palladium peaked earlier in the week but failed to sustain any momentum. All four metals are down so far this morning. Small signs of weakness perhaps, but not enough to call an end to the rally in precious metals just yet. Expectations surrounding the next FOMC meeting continue to favour another rate cut on the 29th of October, with FedWatch now pointing towards a 97% chance of a 25-bps adjustment.
October has historically been a good month for cryptocurrencies and so far, 2025 is proving no exception. Bitcoin reclaimed $120k yesterday and is up 5% already this month. Bitcoin dominance meanwhile is slightly down, meaning the wider alt market is faring even better. Cryptocurrencies have been somewhat stagnant over the past couple of months, not capturing any of the flows pouring into precious metals and even failing to match the performance of major stock markets. “Uptober” may just be the excuse some investors have been looking for.
October 03, 2025
Risk Warning : Trading derivatives and leveraged products carries a high level of risk.
OPEN ACCOUNT
