Frequently Asked Questions
Does trading the Forex Market involve more risk than trading stocks?
Trading in any financial market carries risk, especially if you don't fully understand the unique intricacies of that specific market. Many professional traders believe that the Forex Market is actually one of the safest ways to trade due to its size, liquidity, and market hours.
For a more detailed comparison of the Stock and Forex Markets, please see the last FAQ in our list titled "What are the major differences between the Forex Market and the Stock Market?"
Can you really make significant money trading the Forex Market?
YES…and we have the proof. All of our strategies are independently tracked and verified by MyFxBook.com. They have comprehensive metrics on all of our trading strategies so that you can see our average monthly and daily gains, win rates, drawdown, average trade length, best & worst trades, profit factor, expectancy, and much more.
How long does it take to set up the service before I can begin trading?
There are 3 steps that need to be completed after you become a RINDER TRADE member and before taking your first trade:
- Open an account with a Forex Broker that supports the MT4 trading platform - This usually takes less than an hour and we can provide you our thoughts on broker selection and walk you through the process.
- Fund your Broker Account - Depending on the process you choose, this can take a few days since larger amounts typically require a wire transfer from your bank.
- Sign up with the trade copier vendor - This is a 3rd party vendor and not associated with RINDER TRADE. This usually takes less than 30 minutes and we can walk you through the process.
Does RINDER TRADE have access to my money or my account information?
NO! RINDER TRADE will never have access to any or your accounts, your money, or you financial information. We trade our money in our own accounts and utilize a trade copier to deliver our trade ideas to you.
Is RINDER TRADE considered a Financial Advisor, Commodity Trading Advisor, or Money Manager?
NO. RINDER TRADE is considered a Forex Signal Provider. We simply provide trade ideas to our members. By signing with the 3rd party trade copier vendor, you are agreeing to allow the trade copier to automatically deliver those trade ideas. RINDER TRADE will never have access to any or your accounts, your money, or you financial information.
What happens if I withdraw/deposit money in my account after I'm following a RINDER TRADE strategy?
The trade copier that we utilize automatically calculates the size of new trades based on your account balance. If we risk 1% of our account, you'll risk 1% of your account balance at the time of the trade. If you make a deposit or withdrawal, any new trades will be calculated using the new account balance. If you withdraw a significant amount of money from your account when we have a number of open trades, you may run into margin issues if your free margin falls below your equity level. Please contact us if you have any questions as there are easy ways to work around this.
- Account Balance = value of closed trades
- Equity = Account Balance plus/minus value of open trades
- Margin = amount of capital that the broker holds in reserve for open trades (typically 3-5% of the trade value)
- Free Margin = difference between Equity and Margin
- If your Free Margin falls below $0, most brokers will automatically close some or all of your trades
If a number of investors are all trying to take the same trades at the exact same time, won't that impact our entry and exit prices (also known as slippage)?
No. The Forex Market is so large and so liquid, it would take millions of dollars to move any single currency pair. Unlike the stock market, you can almost always get in and out of a Forex trade near your planned price…fundamental news announcements are the only usual exception.
How quickly do I receive trades in my account after RINDER TRADE has executed them and will I get the same price?
The trade copier that we utilize is able to duplicate trade ideas within milliseconds of execution. The difference between the expected and actual price (known as slippage) is typically less than a few pips. A pip is a fraction of a cent of a currency pair.
What makes RINDER TRADE different from other investment options?
Automation via the trade copier service and active trading. RINDER TRADE opens up the word's largest market to many investors who otherwise wouldn't have the time to properly learn and be able to trade it on their own. Here's how we stack up against typical investment options:
- Buy and Hold the Stock Market - Unfortunately, this is the most common investment solution and the favorite strategy for most financial advisors. What's your plan when a stock market correction occurs? And it is a matter of when, not if a correction occurs. Most will hold the drawdown too long, lose years worth of gains, and wait too long to get back in. The losses could be substantial but the missed opportunities could be even more impactful to your long term gains.
- Learn to Trade on Your Own - You could quit your job, spend tens of thousands of dollars on education, and spend years trying to learn to trade professionally. Stats say that 90% of retail investors fail within the first few years.
- Join a Trading Room - You could spend thousands of dollars and follow a live trader (usually at inconvenient times of the day for most working adults) and "hope" that you can produce the same gains that they do…if they even make a profit.
- Follow a Signal Provider - Most signal providers send you a text or an email with their trade ideas once a day or a few times a week. It is your responsibility to enter the trade into your own account as quickly as possible and hope that the trade hasn't already moved. Since Signal Providers usually do not alter their trade ideas, they usually choose safer, long-term trades which results in smaller gains. If the market changes direction, they may not notify you that your original trade is no longer valid.
What account size do I need to be able to start following RINDER TRADE?
We recommend that traders start with an initial account balance of $25,000 or more. Smaller amounts may still be profitable but our fees would consume a larger amount of the gains and would impact your ability to achieve explosive growth through monthly compounded returns.
What is the cost of the service and do you charge commissions?
Since we are not a Financial Advisor or Money Manager, we are not allowed to collect commissions. We charge the same amount if you trade $25,000 or $1 Million. There are 3 fees associated with our service:
- 6-Month Membership Fee: $5,500
- Additional Strategies (Optional): $1500 for 6 months
- Trade Copier Fee: $28 per month paid directly to the trade copier service and not to RINDER TRADE
See the Membership page for more details. As we continue to grow, we expect to be able to greatly reduce our fees which will allow customers to start with smaller initial account balances.
Does RINDER TRADE offer any referral bonuses or special promotions?
YES! We have an outstanding referral bonus program since that is our primary source of new customers. Please check out our Offers page to see what other promotions may currently be available.
Can I trade with RINDER TRADE in a Retirement or Business Account?
Yes. In most cases, Forex Brokers allow Individual, Joint, and Business accounts as well as other types of accounts. Trading Forex in an IRA (retirement account) usually requires the use of an IRA Custodian. Contact your broker for more details.
What are the major differences between the Forex Market and the Stock Market?
When you purchase stocks, you are buying a small piece of a company, hoping that it will go up in value.
When you trade in the Forex Market, you are buying one currency and selling another against it.
Here are a few facts that we believe give Forex a significant advantage over stocks:
- Size
- The stock (equities) market has daily transactions worth roughly $200 Billion.
- The Forex Market is the largest market in the world with daily transactions worth nearly $5.3 Trillion … 25 times larger than the stock market.
- Max Loss
- If you trade stocks on margin, you can lose more than your initial investment and actually OWE your broker money.
- With most US Forex Brokers, they will close your trades automatically if your equity reaches zero.
- Trade Selection
- There are over 4000 stocks available for you to trade. Even if you pick the right market direction, the right industry, and the right sector, the individual stock you trade might have some unforeseen news event (merger/acquisition, earnings surprise, scandal) that can negatively impact your trade.
- In the forex market, you trade one currency against another. We focus on the largest 8 currencies which comprise 28 different currency pairs. Determining which of the 8 currencies are strongest and which are the weakest allows us to focus on the best currency pairs for each of our strategies.
- Market Hours & Price Gaps
- The US stock market is open for only 8 hours per day. Most stock news, such as earnings announcements, occur after market hours and usually results in a "gap" in the next days opening price.
- The Forex Market is open 24 hours per day, 5 days a week. Gaps in the Forex Market are uncommon since impactful news usually is planned and rarely occurs over the weekend.
- Technically Obedient
- Individual stocks can sometimes be easily moved and manipulated through fundamental announcements, rumors, and insider trading.
- The Forex Market is much more likely to adhere to technical patterns such as trend lines, support & resistance, Fibonacci levels, etc. Technical traders who trade off of the charts (price action) usually find Forex trading much easier.
- Price Slippage
- Due to price gaps and limited liquidity (buyers & sellers), your pending stock trade (or stop loss) may or may not get filled at the price you intended.
- Since the Forex Market has fewer price gaps, much higher liquidity, and is traded 24x5, you are much more likely to get filled at your expected price.
- Recession or Market Correction
-
The stock market is designed to go up through basic inflation and company valuations. So what happens when the stock market has a correction? It crashes and crashes hard, sometimes wiping out years worth of gains in the process. When the stock market crashes, investors move to cash…typically the US Dollar.
-
The Forex Market is usually somewhat range-bound due to trade agreements and interest rate decisions from the world's central banks. When one currency becomes less attractive, investors simply move to another currency.
-
What would happen to the Forex Market if there is a recession or stock market crash?
The Forex Market as a whole cannot crash like the stock market due to the fact that Forex trading involves buying one currency and selling another against it. Not all currencies can fall or crash at the same time since to sell one currency, you need to buy another.
If/when there is a stock market correction, specific currencies will strengthen and others will weaken. During that time, we simply focus our attention on the currency pairs that offer the greatest price movement in the expected direction.
In addition, due to the characteristics of certain currencies (such as the Japanese Yen), the Forex Market will typically move in a manner that can indicate a potential stock market correction before it happens.
What currencies or currency pairs do you trade and why?
RINDER TRADE focuses on the 8 largest currencies and each of them have their own characteristics.
RISK ON Currencies are typically in demand during strong world economies:
- AUD (Australian Dollar) - highly correlated to gold and other metals
- NZD (New Zealand Dollar) - highly correlated to the prices of dairy and expensive meats
- CAD (Canadian Dollar) - highly correlated to the price of oil
- GBP (Great British Pound) - somewhat correlated to the world financial markets
RISK OFF Currencies are typically in demand during weak world economies:
- USD (US Dollar) - considered the world's safe haven currency due to its strong economy
- EUR (European Euro) - considered a safe haven currency due to its size and influence within the European Union
- JPY (Japanese Yen) - considered the preferred lender to the world due to its low interest rates - when the economy falls, these loans need to be repaid in JPY which forces the currency higher
- CHF (Swiss Franc) - considered a safe haven currency similar to the EUR as well as their financial privacy laws (i.e. Swiss Bank Accounts)
These 8 currencies can be combined into 28 different currency pairs. Many of our RINDER TRADE strategies utilize a currency strength formula to gauge the strongest and weakest currencies, thus allowing us to focus on the best currency pairs for that specific strategies.
Do all of your strategies always make money?
Unfortunately, no. There is no Holy Grail of trading. All of our trading strategies will take losses and some will perform better than others in certain market conditions and during different market cycles. Our goal is to always be developing and offering the best strategies for the current market conditions. RINDER TRADE members always have the option to switch between strategies.