Opening a forex account

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djl

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Opening forex account

I'm considering opening an account with Oanda. I've noticed a few questions like annual income which I guess is ok, however they are asking for total net assets. Is it fairly standard for market makers / brokers to ask these sort of questions?

Also Trading Objectives - Hedge other Instruments / Risk Management / To achieve speculative gains - what the hell? lol

Basically I'm a novice who's done some trading on fxplayer.com and the oanda demo account. Looking to open an account with very little money to get my feet wet. Although Oanda is Canadian based I am a UK citizen are there any regulations against novices trading forex? Like do you require a certain level of experience before trading? Anyone who uses Oanda is more than welcome to comment!
 
Oanda operates on a compulsory stop's basis, if your trade brings your total money in that account below a certain level your open position will be automatically closed, similar to the spreadbet companies'.

The questions like annual income and total net assets are there probably to discourage those who don't understand the risks of margin trading and don't have the stomach to digest volatility from opening an account.
 
Won't apply to Oanda, bottom of the page: http://www.fxcm.co.uk/mini-account.htm

" Due to [UK] FSA regulation, please note that traders must have a minimum of 6 months of investment trading experience to open up a Mini account."

Retail fx in the US is regulated by the CFTC — Commodity Futures Trading Commission. Futures (derivatives) trading can go into 'overloss' — a loss greater than the amount of money on deposit with the broker. As Anonymous points out, most fx brokers have an auto 'close all trades' if a position/s drops to a certain percentage of the money in the account. The percentage varies from broker to broker so verify with your broker the percent amount. Follows that futures brokers and others want to know what a potential client's financial status is since they'd be extending credit in an overloss situation until the position were closed or additional margin deposited.

Also brokers don't want to be accused of being irresponsible by opening an account with a person who can't afford to trade.
 
" Due to [UK] FSA regulation, please note that traders must have a minimum of 6 months of investment trading experience to open up a Mini account."
Click to expand...

Isn't that weird? Does that mean traders don't need minimum of 6 months investment trading experience to open a normal size account?
 
djl said:
Opening forex account

I'm considering opening an account with Oanda. I've noticed a few questions like annual income which I guess is ok, however they are asking for total net assets. Is it fairly standard for market makers / brokers to ask these sort of questions?

Also Trading Objectives - Hedge other Instruments / Risk Management / To achieve speculative gains - what the hell? lol

Basically I'm a novice who's done some trading on fxplayer.com and the oanda demo account. Looking to open an account with very little money to get my feet wet. Although Oanda is Canadian based I am a UK citizen are there any regulations against novices trading forex? Like do you require a certain level of experience before trading? Anyone who uses Oanda is more than welcome to comment!
Click to expand...

I opened up a small account with OANDA several months back, and I looked at a number of other firms. Yes, these questions are standard across the application forms you'll see for all of them. Presumably regulatory requirements.
OANDA will let you trade with very small account sizes if you want. I doubt it's really an issue to them what your annual income actually is. They were very accommodating to me. The main thing they'll want to do is verify your ID somehow by an official document.
As to "overloss", this is just not an issue. In particular, always enter stop loss orders simultaneously with your trade to avoid any catastrophes. You're more likely to get hit by an asteroid than have a problem like that.
Being margin called, however, is eminently likely if you have a gambling frame of mind and don't know what you're doing :)
 
So, in regards to total net worth what did you say? I don't really want a company to know my net worth because it really is none of their business - although I can say I will have sufficient funds to cover my trading. Should I give a figure that would be deemed fair in their eyes even if it is not correct?
 
The bare minimum should be sufficient. They won't let you trade beyond the limit of the leverage allowed anyway.
 
there is a new forex dealer which i think the first one offering forex acount with very small funding requirement of $1 only, the trade is working like standard account with no compulsory stop as long as your account is still 1% above the margin

funding and withdrawal through paypal/egold is available

they also gives u free $5 to start trading live,so u lose nothing trying their platform

http://www.marketiva.com/?gid=182
 
I'm not sure if that means you can trade with $1 in your account or is that the contract size?

Can anyone understand what this means:

"With its industry-leading platform, Marketiva allows you to start trading in Forex market with as little as $1! Due to their strict lot specifications, most of other Forex brokers require at least $500 to start with. "

I can't find the jurisdiction clause, where is it incorporated?
 
They have scaling size of lots in quantity of 1 - 10000 which making it possible to trade even with only $1 in your account,currently i am trading with only $1.81+ in my account and still be able to trade

Marketiva's trading platform allows you to specify any quantity in your order form, including 10000 (mini) or 100000 (standard). If you specify quantity 1, your margin requirement will be 1 cent (1%).

Their contact office is located in lausanne switzerland
 
no contest

mahmode said:
there is a new forex dealer which i think the first one offering forex acount with very small funding requirement of $1 only, the trade is working like standard account with no compulsory stop as long as your account is still 1% above the margin

funding and withdrawal through paypal/egold is available

they also gives u free $5 to start trading live,so u lose nothing trying their platform

http://www.marketiva.com/?gid=182
Click to expand...

They cannot beat the OANDA forex spreads
 
I just found the jurisdiction clause of Marketiva:

British Virgin Islands.

See: http://www.marketiva.com/index.ncre?page=service-agreement

Look at clauses after

B. FACTORS CONCERNING TRADING
Disclaimers:

e) No Scalping: In the event of Trader employing the Scalping techniques, Trader agrees and acknowledges that Marketiva may in Marketiva's sole discretion take one or more, or any portion of, the following actions: (i) close Trader's account; (ii) suspend Trader's account for an indefinite period of time; (iii) carry out an investigation on Trader's account for an indefinite period of time; (iv) charge a penalty fee to Trader in the same or greater amount of money that resulted from Trader using Scalping techniques.
Click to expand...

I wonder if that is normal?
 
Anonymous said:
I just found the jurisdiction clause of Marketiva:

British Virgin Islands.

See: http://www.marketiva.com/index.ncre?page=service-agreement

Look at clauses after

B. FACTORS CONCERNING TRADING
Disclaimers:



I wonder if that is normal?
Click to expand...
LOL!! most bucket shops would just stop you from trading or at least make it difficult for you. This one tells you its going to take your money back of you.
"If you don't play by my rules, i'm taking my ball back"

pole a barge with touch don't.... couldn't make it any clearer..
....hang on i'll give it a try.
don't touch with a barge pole.

thats better.
 
stick to a regulated broker,
marketiva works like a mlm, and doesn't offer that much....guess it's a good place to start trading with real $ if that 5$ can be considered trading LIVE. and spreads are way bigger than oanda's for example.
 
Phoenixforex is right.

It is better to trade regulated broker.
Actually i found only one broker comperable with Oanda on spreads.
www.swissnetbroker.com
Others to far from Oanda.
It seems for beginners Oanda is only the choice.
 
Try the demo on Dukascopy. It looks like 1 pip for EUR/US$ but the commission is about 0.3 pips. Can't specify fixed entry or exit price.

Addendum: The PRO version has more userful features than the Base version.

If looks like Anti-Scalping is common-place.

See:

Trading Rules and Conditions
http://www.dukascopy.com/swiss/english/etrading/tcond/

8. Antiscalping Regulations

The low-spread policy and hedging technology used by Dukascopy are unable to eliminate effectively risks of trading strategies known as “scalping”. Taking into consideration this fact, Dukascopy does not provide its services to traders using such strategies. “Scalping” strategies can be used with special accounts opened under Dukascopy’s authorisation.

Should a trader use a “scalping” strategy with a standard live account, Dukascopy reserves the right to cancell all those client’s deals that have profit within 0 to 2 spread values with a particular trading instrument (and less than 6 pips with EUR/USD and USD/JPY). The Antiscalping Regulations are applicable if the profit gained with such deals exceeds 30% of the account total profit.
 
Last edited:
From what I understand scalping involves many fast trades within a short time frame where the trader is looking to make small pip gains, hence the name "scalping".
 
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