1. What is Foreign Exchange?
2. Is there an exchange for the Forex market, like the
New York Stock Exchange?
3. I am interested in learning about Foreign Exchange.
Where can I find more information?
4. When is the Forex market open for trading?
5. Are certain currencies traded more frequently than
others?
6. Who trades Forex?
7. Is Forex Trading Capital Intensive?
8. When do I receive my login info after registering
for my free practice trading account?
9. What's the difference between a Practice/Demo Account
and a Live Account?
10. Where are my funds?
11. Will my funds on deposit be safe?
12. How do I open a live account?
13. How do I know if my account has been opened?
14. I am a resident of a sanctioned country. Can I open
an account with FOREX SIGNS?
15. How do I fund my account?
16. How soon will my funds be posted to my account?
17. How do I withdraw funds and is there any cost to
do so? How long will it be before I get my funds?
18. How do I know there are enough funds in reserve
to fund my Proprietary Trading account?
19. Why do we use MetaTrader 3?
20. How do I download MetaTrader? How can I contact
Forex Signs if I'm having
problems with MetaTrader?
21. What are the minimum system requirements for running
MetaTrader?
22. How do I download and install the MetaTrader platform?
23. Can I use MetaTrader on my Apple Macintosh computer?
24. Do I need a broadband Internet connection to trade
with FOREX SIGNS?
25. Can I trade with FOREX SIGNS if I am not using my
home computer?
26. What happens if my computer is shut down for a few
seconds because of a power failure?
27. Is there a way to print reports without saving them?
28. I have 5 different accounts. Can I open all of them
at the same time?
29. What are your commissions and fees?
30. What is the maximum lot size per order?
31. Is FOREX SIGNS required to send a 1099 form?
32. Why is there a 20 point limit?
33. What about terms like 'bid/ask', 'spread', and 'rollover'?
34. What kind of Trading Strategy should I use?
35. How are currency prices determined?
36. How can I manage risk?
37. What is the Minimum Trade Size available at Forex
Signs?
38. What is a Margin Requirement?
39. How are Pip Values Calculated?
40. What is the minimum I can deposit in order to open
an account?
41. Can FOREX SIGNS advise me as to what a good trade
might be for a particular currency?
42. What is hedging and how is it done?
43. What is a “long” or “short” trade?
44. How long can a trade stay open?
45. Is there a margin requirement if I want to hedge
a position by shorting an opposing long position?
Foreign Exchange is the largest financial market in the world. Also referred to as “Forex” or the “FX market”, Foreign Exchange involves buying one currency and selling another often traded in pairs, such as GBP/USD (British Pound/US Dollar), at approximately $1.9 trillion US dollars.
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2. Is there an exchange for the Forex market, like the New York Stock Exchange?
Unlike stocks or futures, Forex is considered Over the Counter (OTC), and does not exist on an exchange. Two parties can conduct business electronically or via telephone.
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3. I am interested in learning about Foreign Exchange. Where can I find more information?
In our Education section, we explain foreign exchange in some detail. The best way to learn is hands-on by opening a demo account. By trading virtual capital, you do not lose any of your own capital, but you can experience the Forex market in real time.
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4. When is the Forex market open for trading?
Forex trading begins on Sunday evening Eastern Time, which is the opening of the business day in Sydney. The market remains open 24 hours a day during Tokyo's, Europe's, London's and New York's business hours. Trading wraps up for the week on early Friday evening, Eastern Time in New York. Economic data releases, or geo-political events may be traded at any time day or night.
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5. Are certain currencies traded more frequently than others?
The currencies of countries with stable governments, respected central banks, and low inflation tend to be the most liquid and frequently traded currencies. These are referred to as “major” currencies, and account for approximately 85% of all daily trades. These majors include the US Dollar, Canadian Dollar, Australian Dollar, Japanese Yen, Euro, British Pound, and Swiss Franc.
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6. Who trades Forex?
Banks, large corporations, money managers, registered dealers, brokers, futures and options traders, and private speculators all trade Forex. This lends to the exponential growth and size of the Forex market, especially in the past several years.
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7. Is Forex Trading Capital Intensive?
No. Forex Signs requires a minimum deposit of $2,500 for a standard account and a minimum deposit of $250 for a mini account. Forex Signs allows customers to execute margin trades at up to 100:1 leverage. This means that investors can execute trades up to $100,000 with an initial margin requirement of $1000.
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8. When do I receive my login info after registering for my free practice trading account?
As soon as you request the free 30 day demo trading account, you can download the MetaTrader platform and set up your login information.
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9. What's the difference between a Practice/Demo Account and a Live Account?
Demo and Live trading accounts are the same, except that in Demo accounts, you are not trading any real capital. Therefore, you may practice trading risk-free and test various trading strategies with the powerful META Trader software before trading with real currency.
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10. Where are my funds?
In light of an increase in concern over the security of funds
in the Forex industry, Forex Signs does not hold our client's
funds directly. Furthermore, operational funds are kept completely
separate from client funds. When opening an account with Forex
Signs, your funds are wired to your choice of clearinghouse, which
are either Private Scandinavian Sparkasse or HotSpot FX. The funds
are deposited in their custodian banks, which is HSBC for Private
Scandinavian Sparkasse, or Deutsche Bank AG for HotSpot FX.
In keeping with common practice among NFA registered institutions,
Forex Signs does not insure client funds. The company does, however,
strive to maintain an excellent reputation among clients for transparency,
integrity and investor assistance.
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11. Will my funds on deposit be safe?
FOREX SIGNS is a registered Commodity Trading Advisor (CTA), with
the National Futures Association (NFA ID # 0379446). As a CTA,
FOREX SIGNS must uphold the highest standards and business practices
and is subject to strict financial requirements and reporting
regulations. Our clearinghouse Private Scandinavian Sparkasse
is registered with the Ministry of Commerce and Industry and regulated
by the Panama Financial Services Act. Private Scandinavian Sparkasse
and Trust, EF, the custodian depository institution for Private
Scandinavian Sparkasse is registered with Bolagsveket (Reg.# 769613-9927),
and regulated by the Swedish Financial Supervisory Authority.
Barclays Bank PLC is the banking institution utilized by Private
Scandinavian Sparkasse.
Our clearinghouse HotSpotFX (NFA #0351580) is a member of the
National Futures Association (NFA) and is registered as a Futures
Commission Merchant with the Commodity Futures Trading Commission
(CFTC). The NFA is the industry-wide self-regulatory organization
for the U.S. futures industry. The NFA's mission is to provide
innovative regulatory programs and services that ensure futures
industry integrity, protect market participants and help its members
meet their regulatory responsibilities. The NFA's activities are
overseen by the CFTC, the government agency responsible for regulating
the U.S. futures industry.
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12. How do I open a live account?
Opening a live account with FOREX SIGNS is fast and easy:
- Complete the online application.
- Upon submission of the online application, opening and funding instructions with your personal Forex Signs account number will follow. Fund the account per the instructions.
- Receive email notification of receipt of funds and activation of account. Email includes the user name and password to begin live trading.
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13. How do I know if my account has been opened?
Once your account has been opened, you will receive an email from FOREX SIGNS with instructions for logging in, as well as instructions on how to fund your account.
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14. I am a resident of a sanctioned country. Can I open an account with FOREX SIGNS?
Please visit http://www.treas.gov/offices/enforcement/ofac/index.shtml for more information. The U.S. Treasury Office of Foreign Assets Control may prohibit Forex Signs from opening an account if you reside in a sanctioned country or territory.
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15. How do I fund my account?
After your Live Account has been approved, visit the Deposit Funds section of our website to immediately begin funding your account. We accept funds by wire transfer, and credit/debit card.
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16. How soon will my funds be posted to my account?
The table below shows the approximate number of business days required for each deposit method offered by Forex Signs.
Deposit Method Approximately Business Days
Wire Transfer 1-3
Credit/debit card 3-4
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17. How do I withdraw funds and is there any cost to do so? How long will it be before I get my funds?
Withdrawing funds from your account is easy. Funds may be withdrawn via wire. To withdraw funds simply fill out and submit a withdrawal request form. First download the withdrawal form then follow the instructions. Be sure to fill out the form completely, sign it, and fax it back to us at 646.530.8436; or scan the form and send via e-mail to admin@forexsigns.com. Once received, we are usually able to process your request within 2-3 business days.
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18. How do I know there are enough funds in reserve to fund my Proprietary Trading account?
If you're a good trader, there will always be investors to give you money.
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19. Why do we use MetaTrader 3?
Our company likes to use a trading platform that is proven to be reliable and accurate. We are aware of MetaTrader 4, However its quality has not been tested and proven yet. We believe the new system needs to be tested in the real market for at least 3 years before being used by our traders.
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20. How do I download MetaTrader? How can I contact Forex Signs if I'm having problems with MetaTrader?
Instructions for downloading MetaTrader can be found on the download page. If you are having a problem with the trading platform, contact us immediately by email or by phone. The telephone number is +1 800-779-5013.
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21. What are the minimum system requirements for running MetaTrader?
The MINIMUM system requirements are:
• Pentium class (or similar chip) running at 166Mhz or higher.
• 128MB RAM.
• Monitor Resolution should be set to 1024x768.
• Windows 98/NT/ME/2000.
• Internet Explorer 5.0 or Netscape v6.x. If you are using AOL, we recommend that you configure AOL to use Microsoft Internet Explorer for web browsing.
The RECOMMENDED system requirements are:
• Pentium II or Celeron class running at least 300Mhz or higher
• Monitor that supports 1024x768 with a color depth of 32 bits (16,777,216 colors) or higher resolution.
• 128MB RAM for Windows 98/2000, and 256MB of RAM for Windows NT.
• A fast Internet connection is vital for currency trading. We recommend that you install DSL or cable modem.
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22. How do I download and install the MetaTrader
platform?
Go to this page
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23. Can I use MetaTrader on my Apple Macintosh computer?
Unfortunately,MetaTrader does not work on computers running Apple
Macintosh operating systems.
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24. Do I need a broadband Internet connection to trade
with FOREX SIGNS?
Although FOREX SIGNS advises the use of a high speed internet
connection for best trading results, a dial-up connection will
work.
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25. Can I trade with FOREX SIGNS if I am not using my
home computer?
You may trade with FOREX SIGNS from any computer with an Internet
connection which has METATrader installed. You may easily download
and install METATrader on any computer running Windows.
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26. What happens if my computer is shut down for a few
seconds because of a power failure?
You will be required to log back into your account.
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27. Is there a way to print reports without saving them?
No. You must save them first and then print them.
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28. I have 5 different accounts. Can I trade all of them
at the same time?
Yes, you can. Double-click on the MetaTrader icon, and enter the
account number of the account you want to trade. You may open
each account in its own individual window.
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29. What are your commissions and fees?
FOREX SIGNS charges no commissions or bank fees on your trades;
we are compensated through the Bid/Ask spread
of a given currency pair. Please be advised that your individual
bank may charge fees on your deposits or withdrawals independent
of FOREX SIGNS. FOREX SIGNS does not charge clients for the use
of our revolutionary METATrader software which is available free
for anyone to download.
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30. What is the maximum lot size per order?
The METATrader platform will allow you to place an order up to
100 lots in size.
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31. Is FOREX SIGNS required to send a 1099 form?
FOREX SIGNS is not required to send a 1099 for tax purposes. Clients
can view their account statements by logging into MetaTrader and
printing out a report that includes your balance, equity, and
profit & loss for the year. Your own accountant or financial
planner can advise you further as to your individual needs.
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32. Why is there a 20 point limit?
Our clearinghouse is different from typical clearinghouses.
Other clearinghouses “guarantee” their pending orders
to go through without slippage, However they fail to do so during
volatile market times. Our clearing house is unique in the
fact that it guarantees all of our client's pending orders in
any market condition as long as the order is placed 20 pips away
from the market price. Our traders believe that they would
rather have a real, solid guarantee rather than a conditional
guarantee that other clearinghouses tend to promise.
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33. What about terms like 'bid/ask', 'spread', and 'rollover'?
Please visit our Education page for more information.
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34. What kind of Trading Strategy should I use?
Please visit our Education page.
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35. How are currency prices determined?
Please visit our Education page for additional information.
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36. How can I manage risk?
Limit orders and stop loss orders are useful risk management tools available
on the MetaTrader platform. Limit orders restrict the most a trader is
willing to pay, or the minimum price a trader expects to receive. A stop
loss order is set up so that a trade is automatically closed out at a
specific price if the trade moves in a direction that would incur heavy
losses for the trader. Our clearinghouse guarantees that limit and stop
loss orders are easily executed.
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37. What is the Minimum Trade Size available at Forex Signs?
Forex Signs offers a minimum transaction size of 0.10 lot, or 10,000 units
of the base currency, with a minimum margin deposit of 1%. For example,
a US $10,000 position would require an initial margin deposit of US $100.
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38. What is a Margin Requirement?
Forex trading is always required to be conducted on 'margin'. This is
a cash deposit that is smaller than the value of the currency, but which
realizes the potential risk involved in a particular trade. Typically,
a more volatile currency requires a higher margin to be available if one
were to trade it. Margin is based on your equity balance, as opposed to
your actual account balance, taking unrealized gains or losses into consideration.
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39. How are Pip Values Calculated?
Please visit our Education page for additional information.
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40. What is the minimum I can deposit in order to open an account?
A minimum margin deposit of $3000 for a standard account
or $500 for a mini account is required by wire transfer, or credit/debit
card. Personal checks may take up to 25 business days to clear
depending on the bank, state of origin, and amount. All checks
must have a US or Hong Kong correspondent and be drawn on a USD
or HKD bank account.
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41. Can FOREX SIGNS advise me as to what a good trade might be
for a particular currency?
No, it is not the policy of FOREX SIGNS to offer opinions or advise traders
individually about their accounts. Forex Signs does, however, offer news,
commentaries, fundamental data, and information about technical indicators
to assist traders. A wealth of information and resources are available
on our Education page.
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42. What is hedging and how is it done?
Hedging an open position involves opening a second position of the same
currency pair and amount in the opposite direction. For example, if you
buy GBP/USD, you can hedge it by selling GBP/USD. This can be viewed as
a wash, however since they are individual positions, you can take profit
or losses on each. For additional information, please visit our Education
page.
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43. What is a “long” or “short” trade?
A long position occurs when a trader buys a currency at one price and
aims to sell it later at a higher price. A short position is the opposite,
in that a trader sells a currency because he or she thinks it will depreciate.
Always remember that every position is long one currency and short another.
For additional information, please visit our Education page.
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44. How long can a trade stay open?
Unless your stop-loss has been triggered, or you have realized enough
profits and close your trade; the position will remain open.
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45. Is there a margin requirement if I want to hedge a position
by shorting an opposing long position?
There will not be a margin requirement if the new position has the same
amount of lots, and is opposite the same currency.
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