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Forex FAQ - Frequently Asked Questions

Feel free to browse our Frequently Asked Questions section, containing forex trading related questions and answers.

Why would I trade the FOREX?

Forex is a true 24-hour market. Whether it's 6pm or 6am, somewhere in the world there are buyers and sellers actively trading foreign currencies. Traders can always respond to breaking news immediately, and P&L is not affected by after hours earning reports or analyst conference calls.

After hours trading for U.S. stocks and futures brings with it several limitations. Electronic Communication Networks exist to bring together buyers and sellers - when possible. However, there is no guarantee that every trade will be executed, nor at a fair market price. Quite frequently, traders must wait until the market opens the following day in order to receive a tighter spread.

What's the difference between a demo and live trading account?

The only difference is that there is no capital at risk when trading on the demo system. Most online forex demo system are fully functional and, more importantly, the bid/ask rates available in the demo system are the exact rates available to live trading clients. The demo allows you to see the consistent Interbank dealing spreads and sample the ability to deal instantly from live, streaming quotes.

What are common Forex commissions and fees?

The various online Forex brokers do not charge commissions in the usual manner. Prices quoted are inclusive of our normal dealing spreads, which are Interbank dealing spreads or less on all major currencies, including US Dollar, British Pound (Sterling), Japanese Yen, Euro, Swiss Franc, Canadian Dollar, and Australian Dollar.

How do I fund my account?

When trading the Forex online there are usually a few different ways to fund your account:

  • Credit Card - The fastest way to fund your account
  • Bank or Cashier's Check
  • Personal or Business Check
  • Wire Transfer

  • What happens to my open positions at the end of the trading day?

    Most online forex brokers will automatically roll forward all open positions to the next day's value date at the end of each business day.

    How much money do I need to open an account?

    The minimum deposit to open a trading forex account online with most trading companies is around 20 USD using a credit card. You might require to wire at least 2500 USD with most online forex brokers when wiring the funds straight from your bank account.

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