What
is the difference between the Mini account and a regular 100K account?
The
Mini account is designed to introduce
traders to the excitement of trading currencies
online and for those with limited investment
capital. With a Mini account, you trade
using the same platform as our regular traders.
With as little as $300, a trader can open
a Mini account and begin trading Forex. On the Mini trading platform
all trades are executed in standard sizes
of 10,000 base currency per one lot, 1/10th
the size of a regular account. The smaller trade sizes enables the traders to have less financial exposure to the market.
How
does the Margin Call work?
If the equity balance
in your account falls below the margin requirement
of 1/2% per lot, a margin call will be generated. In the event that an account exceeds its maximum allowable margin, some or all open positions will be liquidated, regardless
of the size or the nature of positions held
within the account.
For example, a Mini account with 8 lots in open positions
would need to have 1/2% of the total position
value in account equity. If the account
equity falls below 1/2% of the position
value due to floating trading losses, the
entire 8 lots would be liquidated at market
price. Clients are not notified prior to
the liquidation of their positions.
Do
you Charge a Commission on the Mini
account?
No. FXCM charges no commission
or transaction fees to trade a Mini Forex Trading account.
FXCM is compensated for its services through the spread between the bid/ask.
Note: FXCM acts as the clearing agent and counterparty to all FXTSP’s clients forex transactions. FXCM is a registered Futures Commission Merchant (FCM), regulated by the Commodity Futures Trading Commission (CFTC), and a member of the National Futures Association (NFA).
