Forex Facts
The forex market trades 24 hours a day, 5.5 days a week
Forex is able to trade 24 hours because it isn't traded on an exchange; rather by banks around the globe. Even though it may be 9:00 pm on a Wednesday, there is a market open somewhere in which the world's currencies are available for trading.
Forex is a true 24-hour market, starting in Australia and Tokyo, moving to Europe, and ending in New York, repeating the next night - only pausing while the world takes a break over the weekend. Such 24-hour trading allows investors to trade on their own schedule - and not on the schedule of an exchange.
Traders can open trade accounts with less than $100
With the advantages of 400:1* leverage and flexible contract sizes, it doesn't take much to get started trading forex. With IBFX Australia, a trader can easily get started with less than $100.
IBFX Australia also offers fast and convenient methods to deposit and withdraw your funds.
*An increase in leverage increases risk.
Deposit Options:
Credit / Debit Card
Bank Wire
Mail a check
Withdrawal Options:
Mail a check
Interbank FX Debit Card
(Zions Bank)
Check
(US & Canada)Forex offers flexible contract sizes – from $100 to $5,000,000
IBFX Australia offers two different account types: standard and mini. A mini account allows a trader to trade smaller contract sizes. On top of that, with IBFX Australia you have the ability to place fractional lot sizes - down to 0.01 of a contract.There are many reasons a trader would be interested in trading a fraction of a contract. For example, a trader trying out a new trading strategy could trade 0.01 of a mini contract - effectively trading cents - and limit the exposure during the testing phase. Or, another trader can zero in on a desired risk level by trading the amount that is just right for him or her.
In other markets, this would be akin to trading 38/100th of a bushel of corn; or 5/100th of a share. As you may see, the opportunities abound!
Forex offers up to 400:1 leverage
Leverage can be a useful tool in the world of forex because it allows traders to control more in the market with less margin from their account. Without leverage a trader would need to put up $100,000 in margin to trade 1 standard lot in forex! But with 50:1 leverage, only $2,000 is needed to control that same contract.
Two-Edge Sword
Keep in mind, more leverage can be beneficial, but it also means more risk. For example, assume a trader is holding a 1 standard lot contract (100,000) with $2,000 in margin. If this trade increases by 100 points (which a daily 100+ point move is not uncommon for many currency pairs), at $20 per point the trader sees a 100% return on investment. Likewise, if the trade decreases by 100 points, the entire investment could be lost. It is important that forex traders carefully manage their risk exposure.
By default, IBFX Australia traders are given 400:1 leverage; but for those risk-conscious traders, IBFX Australia can dial in on just about any leverage amount from 1:1 to 400:1. After all, we want to put you in control of your account.
You can trade in both a rising and falling market
Forex differs from other markets in that prices are quoted in pairs: Euros to US Dollars, US Dollars to Japanese Yen, etc. Because of this pairing, a "buying" opportunity is always available. Imagine if you will a teeter-totter, with Euros on one side and Dollars on the other: for Euros to be up, Dollars must be down; and for Euros to be down, Dollars must be up.
This market dynamic is what allows a trader to sell-short with the same margin requirements as buying long, effectively removing the added cost and hassle of selling short.
Keep in mind that this dynamic doesn't necessarily make it
easier to be profitable in forex, but it helps make for some excellent
trading opportunities. Forex trading with IBFX Australia is commission-free*
Many other markets have advertized pricing that is often riddled with fine print and added fees. There can be fees for not trading your account; and fees if you do trade your account. There can be regulatory fees, contract fees, transaction fees, processing fees... the list goes on.
When trading with IBFX Australia, not only are there no commissions, the entire cost of the trade with IBFX Australia is in the spread, which is the difference between the bid and ask price. We advertise low spreads - and we back them up by allowing anyone to view our historical spreads.
*The entire cost of the trade with Interbank FX is in the spread, which is the difference between the bid and ask price. We advertise low spreads - and we back them up by allowing anyone to view our historical spreads.
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