Do you enjoy the sense of competition? Is the feeling of being superior something that drives your achievements? If this is true and on top of that you are interested in the online trading, then Forex trading contests are definitely something you would like to make the use of. In this article we will highlight the best available contests in the year 2017 and will also supply you with the best available trading strategies for the contests. Keep reading this article to find out the best matching article for yourself.
Selecting the best Forex contest
It if often the case that the preparation is the key to success and this is definitely true when it comes to the trading contests. Hence, winning the tournament begins with selecting a proper one. Let’s take a detailed look on how you select the contest first.
Contest duration is what really matters
Currently there are hundreds of available contests, this is why taking a look at the contest duration is the primary step in selecting the best matching competition. In general, you can find contests that span between one day and one year, and this is where you have to make a little brainstorming. On the one hand, a short contest is a great idea, as you can gain quickly and be amongst the winners within just some hours. However, the shorter the contest is, the more significant the role of the luck gets. While you can wait for that perfect moment to enter the trade, someone can just open a large order expecting either to lose it all or gain a strong competitive advantage from the very moment.
There is no definite answer to the quest “What is the best Forex contest duration?” as this is something rather personal and depends on your trading style. If you enjoy gambling and do not want to spend a lot of time on the participation – a short contest can be a good idea. However, if you are an accurate trader that wants to open lots of positions with an expectancy to close at least 60% of them with profit – going for long FX contests may be a better idea. If we have to generalize, we would recommend you going for the contest that lasts around a week or two.
The contests that take up to 14 calendar days (or 10 trading days) are the best ones for one simple reason – you do not have to commit a lot of your time, while the chance of a lucky winner is significantly reduced. In other words, 1-2 week Forex contests are the best mix of your time investment and the chance of winning it without much luck.
Take a look at the prizes before you begin
Most of the brokers organise tournaments for one obvious reasons – get additional traders under their wing. Well, while these brokers are certainly expecting you to open an account with them after you have participated in the contest, they still want the Forex tournament to result in as low costs as possible. This is why brokers often add certain restrictions to the prize money that one can win. Sometimes traders participate in such contests where the prizes are simply unobtainable, and this is certainly something that we do not want to happen. Below we will examine the various available options of the prizes.
This type of prizes is given at the best Forex championships, yet this type is the rarest too. Cash prizes mean that a winner of the contest will be provided with the funds on his trading account, yet the winner is free to choose what to do with the money, trade or withdraw.
In the past, Forexball was providing cash prizes to each of the winners, but this is no longer the case. In fact, there is currently no well known competition that allows traders getting cash prizes. Such contests of course take place, but there are 2 main things you should consider:
- in many cases such contests are organised by the scams and winners never see their payouts
- when honest brokers organize such events, they usually do not repeat them.
In other words, you should be quite lucky to find a contest from a well-known Forex broker. The best way to do it is by keeping an eye at our Forex Contest section of the website, we publish the reviews of the current and upcoming trading events quite often.
More often brokers supply you with various prize accounts. These accounts are preloaded with real money, but you cannot withdraw the initial balance. Depending on the contest, with a prize account all of the profit is yours straight away or after fulfilling some trading requirements.
In general, this type of prizes is not that bad. If there are no strings attached to the prize account, you can trade carefully and aim to get profit. This is quite similar to regular trading, yet the broker covers the loss, if any.
If the withdrawals from a prize account are only allowed a certain trading volume has been reached, this is not that bad too. The main thing to look into is the document called terms and conditions of this particular FX tournament. If there is a time restriction for the completion of the trading volume, calculate the average volume you should be completing within a trading day to accomplish the target. If this seems like a realistic one – go for it, if it doesn’t – skip the participation.
In some cases, the brokers will not reward the winners with money, but they will rather provide some prizes, usually these prizes can be some MacBooks, iPhones or other gizmos, yet it was common to see such brokers as XTB giving away a real Porsche. These are quite good contests, yet they can be rare too. A quick look at the terms and conditions is still recommended, as sometimes your country may not be eligible, or you would be simply taxed on your winnings heavily.
In general, once you have shortlisted the contests based on their duration, it is then a good time to filter out the contests with unattractive prizes and remove them from your list. It makes no sense to participate in the FX championship if you are not motivated enough to win it. Now let’s take a look at the final step in selecting the best contest.
Finding the best available contest
Brokers may often cheat and create some “fake accounts”, so the winners never get paid. To avoid this, take a look at the Forex Contest Reviews at our site and see the go for the ones that get more positive feedback and have better ratings. You may also google such check on other websites what participants are saying about the contests and see if it is legitimate.
Note that you will always encounter negative feedback! Most of the brokers try to avoid cheaters in their contests, and trust us, these contests are full of cheaters. Once a cheater wins the contest and gets banned, he will be trying to comment negatively about the contest everywhere. Hence, if you found some complaints – do not worry to much. However, a scam Forex contest would hardly get any positive feedback, and positive feedback is what you should be looking for.
Even though you cannot cheat at the contests, unless you want to get banned of course, it is still possible to establish a certain “legal” way of cheating. What you need to do is to find the contests that start more or less on the same day. Once you have found such tournaments, register for both of them. So far there is no violation, right? Yes! What you are doing next is opening two orders, one short and another long at two different accounts. Try to pick up the most volatile instrument (hint: check the calendar for major macroeconomic data).
This way, within just a few days (or may be even hours), you will nearly deplete one of your accounts. Is that good? Not really. However, your second account will nearly be doubled. This can certainly give you an edge over the other participants and what’s the best – there is absolutely no violation of the contest rules, as you are simply participating with one account at each of the contests.
Summary of finding Forex championships
Participating in the contests is an amusing and educative process. You not only try to achieve profit, but you also try to get more profit than the other participants. This is certainly useful, yet it is quite risky, and this is why you should only do it on the demo account. If you see a contest being offered at the live accounts – better stay away from it, no matter how attractive the prizes look. This article has listed the most important items to look for when selecting the best Forex contests and even though we do not list their names, following the steps would certainly make you land at the great contest.
What to do now? Check our table with the most famous and most recent FX tournaments and select the one that matches your needs.