Often referred to as 'FX' or 'Forex' it is considered to be the most liquid market in the world. The Forex market is the platform for trading global currencies. With a daily turnover measured in trillions of US dollars, the Forex market beats the combined turnover of global stock and bond markets.

Why Trade Forex

Investors are drawn to Forex trading due to the huge trading volumes and the liquidity provided; representing the largest asset class in the world.

Other factors that make Forex trading popular are:

  • Geographical distribution of markets
  • Continuous operation (*Sunday 22:00 - Friday 22:00 GMT)
  • Huge number of market participants including banks, commercial companies, investment management firms, Forex brokers, hedge fund speculators and even individual traders.

Forex Trading

Forex traders speculate on the value of one currency compared to another in order to generate profits. FX trading is typically executed on margin accounts and the industry practice is to trade on relatively small margin amounts.

Currencies that are traded against the US Dollar (“USD”) are called Majors, and these constitute the highest volumes of Forex trades.

With TradersTFX you will enjoy some of the best forex trading conditions as you:

  • Get access to various major and exotic currency pairs
  • Trade all the major highly liquid currency pairs
  • Benefit from access to a pool of liquidity providers

Trading Conditions

The fixed fee applied to an interest-free online Forex, or CFD trading account is known as storage. An interest-free online trading account may maintain an open Forex position for a fixed grace period without being charged any storage charges. Any Forex positions that remain open beyond the fixed grace period are subject to the storage charge.

The client will pay to TradersTFX a fee as per the table below for each day the position is kept held after the first 15 days of opening the position.

CURRENCY CHARGES TABLE

CURRENCYCharge in US$/Day*CURRENCYCharge in US$/Day*
EURUSD 12 EURCHF 10
GBPUSD 10 GBPJPY 15
USDCHF 8 GBPCHF 12
USDJPY 10 CHFJPY 8
USDCAD 8 AUDJPY 15
AUDUSD 15 GBPCAD 8
NZDUSD 12 NZDJPY 15
EURGBP 8 GOLD 8
EURJPY 15 SILVER 15

What is Margin/Leverage?

The amount deposited with TradersTFX at the time of opening a trading account is known as the initial deposit and acts as the margin available to your trading account. The margin amount facilitates the level of gearing or ‘leverage’ allowed for trading.

TradersTFX reserves the right to liquidate the positions taken by you if the initial deposit and variation margin fails to cover the losses incurred.

What are Pips?

A Pip is the smallest increment of movement for a currency.

  • One pip in EUR/USD pair is a move of 0.0001 or 1/100th of a cent.
  • One pip in USD/JPY pair is a move of 0.01 or 1/10th of a cent.

For example if the value of GBP/EUR increases by a pip, the quoted rate will change from 1.2478 to 1.2479. The number of pips a currency pair moves determines the profit or loss for a trade.

What are Lots and Mini Lots?

A Forex lot is used to calculate the value of a deal. Each deal is valued at a certain number of lots, which is the standard unit size of the transaction.

One standard lot is typically equal to 100,000 units of the base currency and a mini lot is 10,000 units, whilst a micro lot is 1000 units. With TradersTFX, traders can choose the following lot sizes while trading currency:

  • Standard lot size = 100,000 units - USD 10 for every pip move- leverage of 100 to 1
  • Mini-lot size = 10,000 units - USD 1 for every pip move
  • Micro-lot size = 1,000 units - USD 0.10 for every pip move