Vantage FX Announces New 8.88% Interest Rate Policy on all Trading Accounts

The Australian-based ECN Forex broker Vantage FX has announced an 8.88% interest rate policy on the free balance of all active forex traders’ accounts.

■ Interest is Paid Monthly

■ Applies to all New and Existing Clients

THE NEW INTEREST RATE POLICY

David Bily, Head of Sales at Vantage FX, commented: "Current global financial conditions continue to push central bank interest rates down, with many economies such as Japan and Europe even experiencing negative rates. Our 8.88% interest rate initiative helps offset this downward pressure for our active traders, providing a positive buffer and return on their forex trading accounts."

Vantage FX believes this will be a game-changer for active forex traders by strengthening their trading accounts and adding a positive buffer to their profit and loss.

"By launching our 8.88% interest rate account feature, we are demonstrating our ongoing commitment to offering industry-leading benefits and real value to our forex traders. While this feature applies to all existing Vantage FX clients who opt in, we welcome all forex traders to join and experience trading with an additional 8.88% in their favor," Bily added.

Read more: Vantage FX Announces New Interest Rate Policy

📚 Why It Is Crucial to Get a Forex Trading Education

Often, Forex trading is marketed as a get-rich-quick scheme. However, trading is a skill that requires knowledge and preparation. Like any profitable business, you need to understand what you’re doing before you can make money. This is why a Forex trading education is essential.

Now that Forex tutorials are widely available online, it’s easier than ever to learn, offering huge advantages.

Understanding the Basics

When you start trading Forex, you’ll encounter concepts and terminology that may be unfamiliar. Even experienced traders might not know terms like pips, drawdown, stop-loss orders, Forex spread, and margin call. Online tutorials can help make these terms part of your vocabulary quickly.

Create Your Plan

A solid Forex trading plan can be a game-changer, helping you earn consistently. It also keeps you disciplined and prevents emotions from controlling your decisions.

Mentoring

A good Forex education goes beyond reading articles. Video tutorials, webinars, and expert mentors provide step-by-step guidance for becoming a successful trader. Trying to succeed alone is difficult; mentorship is key.

Learn Macroeconomics and Global News

Understanding a currency’s context means knowing the country’s history and keeping up with global news that might impact it now or in the future. A thorough education equips you to follow these important factors.

Balancing Leverage

Leverage can amplify profits but also magnify losses. While high leverage can lead to quick gains, it can also cause rapid losses. Learning how to balance risk and reward is a vital part of Forex education.

Trading Psychology

Trading psychology plays a critical role in your success. Understanding how trading affects your mindset—and vice versa—helps prevent emotional decisions that can lead to losses. A strong education teaches you how to manage your emotions effectively.

Getting a Forex Trading Education

Although it may have been difficult in the past, today it’s easy to access quality Forex education through articles, webinars, video tutorials, and more—all available online.

Oil Talks Fail in Doha, Qatar

The top oil producers in the world were supposed to find an agreement that would stabilize the oil prices, but the Doha meeting failed. A steep fall in oil prices is now expected, and who knows where they will end up?

After a six-hour delay and six more hours of discussion, the world’s most powerful oil producers (except the USA) didn’t succeed in reaching an agreement regarding freezing the production of the 'black gold'.

The oil price (Brent) has fallen from 115 US dollars (summer 2014) to approximately 40 US dollars today. In January 2016, the price of oil even reached 27 US dollars, and this is the lowest level in the past 12 years. This imbalance between demand and supply is the reason why the oil prices are falling so sharply. Any movement in the oil prices can strongly affect many other financial sectors, such as the Forex markets, and you can read more about that on this page.

🔗 More: » Crude Oil Trading

Read more: Oil Talks Fail in Doha, Qatar

⚡What Scalping Means in Forex Trading And How To Use It

If you’ve never heard the term “scalping” used in Forex before, it might sound unfamiliar. But when you understand the context, it starts to make a lot of sense. For more advanced traders, this is exactly how to scalp in the Forex market. 🔗 More » The Forex Market

What is scalping?

Forex is the most liquid and volatile market out there. Many traders endure minor fluctuations to gain large pips on their trades, but others choose to “scalp.” Scalping aims to extract every small opportunity from the tiniest price movements. You scalp profits from minor changes within a very short timeframe.

Thus, scalping creates many opportunities throughout a single day. You’ll almost always get an entry signal, making it quite popular.

Traders who scalp Forex don’t expect gains above 10 pips or losses exceeding 7 pips per trade. Scalping is done with high volumes, and most scalpers do not follow the common 2% risk management rule.

Scalping in practice

Traders typically scalp currency pairs using a 1- to 15-minute timeframe, with 1 and 5 minutes being the most common. Small gains are expected on these trades — 1 minute may yield 5 pips, and 5 minutes up to 10 pips.

Because you’re working with frequent fluctuations, you need to choose highly volatile currency pairs. Trading pairs with low volatility means waiting minutes or even hours for price changes, which defeats the purpose of scalping.

Another important rule when selecting pairs is to find those with low trading costs, offering the smallest possible spread. The spread usually accounts for 10% to 30% of your profit, so you want to keep it as low as possible.

You need to develop a trading strategy based on technical indicators, then pick the right currency pair considering the above factors. When you see an entry signal, enter the trade immediately, and close it once you see an exit signal or have achieved a sufficient profit.

Managing Stop Loss (SL) and Take Profit (TP) is also important.

Using SL and TP with scalping may not always be ideal. Time management is crucial, and you can’t afford to waste time executing trades. After opening a trade, you might set an SL and TP, but most scalpers don’t. If you’re fast enough, it’s a good idea to use them.

Spread size is critical — the higher the spread, the more you lose when opening a position. This cost rises disproportionately and works against you, so always aim for low spreads.

Execution is key as well. Dealing desks can make scalping difficult because brokers might refuse your order. It’s even worse if the broker prevents you from closing your account when needed, which can ruin your trade. Choose a broker offering STP or ECN execution that supports scalping.

These are the basics of how to scalp Forex, but there are many more details to learn. See Admiral Markets’ page for a comprehensive explanation.