Mini Trading Account
FAQs
Answers to Frequently Asked Questions
How can FXCM offer smaller trading sizes?
Smaller trade sizes pose several challenges to foreign exchange firms. There are two primary issues that have prevented firms from offering smaller trade sizes: high labour costs and risk management. To offer smaller trade sizes, most firms would have to hire more dealers, which would make the cost exorbitant. The FXCM Mini account features rapid execution for most accounts. All trades are executed without human intervention (just like a demo account). This keeps labour costs low. The second issue is risk management. The smaller size trades offered on the FXCM Mini account are difficult to offset in the broader market. FXCM has developed a proprietary risk protocol for the FXCM Mini, which involves aggregating volume into sizes that can be offset in the broader market.
What is the difference between the FXCM Mini account and a regular account?
The FXCM 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 FXCM Mini account and begin trading foreign exchange with FXCM. 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 enable traders to take smaller size risks.
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 leverage, ALL open positions may be liquidated immediately, regardless of the size or the nature of positions held within the account. For example, a FXCM 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 an FXCM Mini account. As a leading player in online currency trading, FXCM receives and is able to pass on the benefits of size to our clients. FXCM is compensated for its services through the bid-ask spread.
How Do I Switch from a Regular Account to a Mini account?
In order to change from a regular account to a Mini account, or a Mini account to a Regular Account, please complete the Transfer Request Form. |
