OpenTradeFX does charge a nominal commission of $10 per $100,000 (standard lot) for each round trip lot traded. Prices quoted are inclusive of our normal dealing spreads, which are derived from Interbank dealing spreads on all major currencies, including US Dollar, British Pound (Sterling), Japanese Yen, Euro, Swiss Franc, Canadian Dollar, and Australian Dollar.
2) Can I trade on fixed spreads?
NO, OpenTradeFX's spread pricing includes spreads as low as 0.5 pips and is always variable and generally very low for clients.
3) What are your trading hours?
FX trades are available 24 hours daily from 5:00pm EST Sundays through 5:00pm EST on Fridays, including most U.S. Holidays.
4) What are OpenTradeFX's margin requirements?
OpenTradeFX's initial margin requirement for a standard account is US $2,500 on our minimum trade size of US $100,000. OpenTradeFX's initial margin requirement for a mini account is US $250 on our minimum trade size of US $10,000. OpenTradeFX will only execute trades on margin if the client has sufficient funds in his or her account.
5) Can I hold positions over the weekend and major holidays?
Yes, you may hold positions over the weekend and major holidays, but make sure you review your margin balance to cover any negative move against your open positions. It's not uncommon for currencies to "gap" - trade at prices considerably away from previous levels - when they re-open for trading after a holiday or weekend. This may negatively impact your excess margin.
We suggest you keep a cash "cushion" in your account of at least 1% against your open positions; to help protect against automatic liquidations of your positions to meet margin requirements. For example, if open positions equaled $400,000 then, margin balance should equal at least $4,000 (400,000 x .01).
Account Information
6) What's the difference between a practice and live trading account?
The only difference is that there is no capital at risk when trading in a practice account. OpenTradeFX's practice account is fully functional and, more importantly, the bid/ask rates available in a practice account are the EXACT rates available to our live trading clients. The practice account allows you to see firsthand the consistent dealing spreads offered by OpenTradeFX and sample the ability to deal instantly from live, streaming quotes.
7) How much money do I need to open an account?
The minimum deposit to open a Quant Advantage Account with OpenTradeFX is US$2,500. OpenTradeFX's minimum transaction size for a standard account is US$1,000 (or the equivalent), with a minimum margin deposit of $10 (at 100:1 leverage).
The minimum deposit to open a mini account with OpenTradeFX is US$250. OpenTradeFX's minimum transaction size for a mini account is US$10,000 (or the equivalent), with a minimum margin deposit of $250 (at 200:1 leverage).
8) How do I open an account with OpenTradeFX ?
Opening an account is easy. Simply complete the following three steps.
1. Complete Application You can download the necessary forms from our website.
2. Verify Personal Information Please submit two (2) forms of identification, including one (1) photo ID (i.e. drivers license, passport or any other government issued document bearing a photograph), AND one (1) proof of address as represented on this application (i.e. utility bill, bank statement, etc).This is required of all authorized signers of this account.
New account paperwork may be emailed to:
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3. Fund Your Account Once your account is open, there are two convenient ways to fund your new trading account:
Wire Transfer Personal or Business Check
9) What is the best way to send new account paperwork?
The fastest method to send new account paperwork is by e-mail to
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. Scanning and then e-mailing the image is often times a simple way to send documents.
10) How do I know if my account has been opened?
Once your account is opened, you will receive an email with your username and instructions for accessing your account. Please note that username's are only assigned after your account paperwork has been approved.
11) How do I fund my account by personal or business check?
Provident Capital Corp accepts paper checks drawn on US dollar accounts only. Funds sent via personal or business check take 5-10 business days (from date of receipt) to clear and be credited to client's trading account, according to our banking partner's posted schedule. This can vary depending on the bank and state of issue.
12) When will my funds be posted to my account?
The time it takes for a deposit to post to your account will depend on the method in which it is sent:
Personal Checks - 5 to 7 business days Wire - 1 to 2 business days of receipt
13) What happens to my open positions at the end of the trading day?
Unless specific settlement instructions are provided, OpenTradeFX will automatically roll forward all open positions to the next day's value date at the end of each business day, 5:00 pm EST. All rolls will be done at competitive rollover rates, and depending on the currency pairs involved, trades will be executed where the trader will either earn or pay away points, depending on the interest rate differential between the two currencies and the margin employed on the trade.
For details see the Swap Rates
14) How do I withdraw money from my account?
Go to the Download Center on the website, fill out a Withdrawal Request Form and email to:
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. If you funded your account with US Dollars: There is no fee for withdrawal requests via check. Withdrawal requests via wire transfer will incur a $30 fee for wires within the United States, and $50 fee for international wires (including Canada).
If you funded your account with a non-USD deposit: OpenTradeFX will convert your US dollar account balance back to the currency you initially deposited and wire your funds back to the originating bank account. A fee of US$50 will be assessed.
Withdrawal requests are processed within two (2) business days of receipt.
15) What is considered a 3rd party?
OpenTradeFX will not accept third party deposits or withdrawal requests. The name(s) on the OpenTradeFX trading account must be an exact match with the name(s) on the account of the other financial institution. This includes (but is not limited to) instances where the name on the bank account is not a OpenTradeFX account holder, business accounts and endorsements to OpenTradeFX.
16) Is it possible to have customization?
Absolutely. Please contact us for any request. OpenTradeFX is willing to suit your trading needs.
Market FAQs
16) What is Foreign Exchange?
The Foreign Exchange market, also referred to as the "Forex or "FX" market, is the most traded financial market in the world, with a daily average turnover of approximately US$3.2 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.
17) Where is the central location of the FX Market?
FX Trading is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
18) Who are the participants in the FX Market?
The FX market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and individual investors.
19) When is the FX market open for trading?
A true 24-hour market from Sunday 5:00 PM ET to Friday 5:00 PM ET, FX trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
20) What are the most commonly traded currencies in the FX markets?
The most often traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar (USD), Japanese Yen (JPY), Euro (EUR) , British Pound (GBP), Swiss Franc (CHF) , Canadian Dollar (CAD) and the Australian Dollar (AUD).
21) Is OpenTradeFX trading expensive?
OpenTradeFX requires a minimum deposit of $250. OpenTradeFX allows customers to execute margin trades at up to 200:1 leverage. This means that investors can execute trades of $10,000 with an initial margin requirement of $50. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. A more pragmatic margin trade for someone new to the FX markets would be 10:1 but ultimately depends on the investor's appetite for risk.
22) What is Margin?
Margin is essentially collateral for a position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50% which means an investor has double the buying power. In the OpenTradeFX market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively. Of course, trading on margin can increase your risk.
23) What does it mean have a 'long' or 'short' position?
In trading parlance, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the trader benefits from a declining market. However, it is important to remember that every FX position requires a trader to go long in one currency and short the other.
24) What about terms like "bid/ask", "spread", and "rollover"?
What is the difference between an "intraday" and "overnight position"?
Intraday positions are all positions opened anytime during the 24 hour period AFTER the close of OpenTradeFX's normal trading hours at 5:00 PM ET. Overnight positions are positions that are still on at the end of normal trading hours (5:00 PM ET), which are automatically rolled by OpenTradeFX at competitive rates (based on the currencies interest rate differentials) to the next day's price.
25) How are currency prices determined?
Currency prices are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the FX market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the FX market makes it virtually impossible for any one entity to "drive" the market for any length of time.
26) How do I manage risk?
The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against a trader's position. Contingent orders may not necessarily limit your risk for losses.
27) What kind of trading strategy should I use?
Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.
