FxPro Discussion

[FxPro Group]

UK education seminar

Dear Members,

We would just like to bring your attention to our free education seminar which we are holding in our UK office, heart of the City of London. This will be at 18h00 UK time on Wednesday 25th March.

If you would like to attend please click on this link to register or see further details http://www.fxpro.co.uk/trading/academy/events

Kind Regards,

FxPro Team

 

[NVP]

welcome to T2win ...enjoy the ride.....seems you are getting it easy so far ......

 

[moka2]

Lets get to the fact
You talk about segregation and safety of client funds etc.
1) Coverage in case of Broker failure
Exchange traded products ( Stocks and Option) CLient funds are completely covered by SIPC in US, FSCS in UK and by NSG in Australia
OTC FX and similar :
USA = NO coverage
Australia = No coverage
UK: FSCS coverage! but the Alpari test will prove if it realy does cover it Lets assume it does!

2) Conflict of Interest
Exchange traded Products: Normally NO unless broker has prop trading activity
OTC FX and Similar
Market maker model exists in many countries and only when consumer got more informed then only OTC started asking about this possible conflict forcing OTC brokers to start advertising DMA ECN etc
3) Counter party Risk
Exchange Traded:
THE EXCHANGE ASSURES THE COUNTER PARTY ( Because they are a true exchange not a pseudo exchange like and OTC "broker"
OTC FX and similar:
Even if it is a DMA the ultimate counter party ( Banks as you mention at top tier) could default!

4) Entry barrier:
Exchange Traded = Highe
OTC = Lower ( may be only now the US govt has made it higher)

This is a futile debate because no matter what since Centralized markets are your direct competition you will never concede a point against OTC
I have seen an OTC broker go burst with 47 M in fraud in SEG a/c
It was mix bag business only the shares held under the HEN identification were saved
If it was a Equity broker the Clients had a much better chance.
SO from that point of view atleast Exchange traded is beter for a consumer than OTC but sure you wil never agree to that!
Perhaps the only safety net is UK FSCS covered 100% UK based OTC (which you are)
(Disclaimer: I am not from the industry I am just a trader/ user consumer my interest is Consumer protection that is all)
End of story

 

[moka2]

http://www.asx.com.au/products/shares/compensation-funds.htm
http://www.sipc.org/about-sipc/sipc-mission
http://www.fscs.org.uk/what-we-cover/

 

[moka2]

Dear Spinola,
the big discussion in the wake of Black Thursday has centred on leverage, quite erroneously in my opinion. I personally don’t see this as a situation that could’ve been managed any better with lower gearing. For example, even with a book composed solely of 1:100 orders, with 100,000,000 exposure (i.e. 1,000,000 margin) a 30% move would’ve caused a loss of 29,000,000. With 1:50 leverage the loss would’ve just been 28,000,000 rather than 29.

How?

Pair goes down by 30%

Case 1 leverage 1:100 , My 1000, position 100,000
I loose 30,000

Case 2 Leverage 1:50 My 1000, Position size = 50000
I loose 30% of 50000 = 15000

More the leverage more you loose ( or gain) is it not
Or am I missing something!😱

 

[FxPro Group]

Dear Spinola,
the big discussion in the wake of Black Thursday has centred on leverage, quite erroneously in my opinion. I personally don’t see this as a situation that could’ve been managed any better with lower gearing. For example, even with a book composed solely of 1:100 orders, with 100,000,000 exposure (i.e. 1,000,000 margin) a 30% move would’ve caused a loss of 29,000,000. With 1:50 leverage the loss would’ve just been 28,000,000 rather than 29.

How?

Pair goes down by 30%

Case 1 leverage 1:100 , My 1000, position 100,000
I loose 30,000

Case 2 Leverage 1:50 My 1000, Position size = 50000
I loose 30% of 50000 = 15000

More the leverage more you loose ( or gain) is it not
Or am I missing something!😱

Dear Moka2,

The extract you take from this article is written from a broker’s point of view. In each instance note that the total notional exposure is the same i.e. 100,000,000, but the margin posted with a prime broker is different (1,000,000 on 1:100 and 2,000,000 on 1:50). A 30% move against you is 30,000,000 but the extra loss on 1:100 is 29m and 28m on 1:50.

In the example you provide you are looking at it from a client’s point of view and this does not equate to the example given by our CEO in the article. In both cases you have only specified your deposit size and leverage, which will determine the maximum lot size you can open. So, with 1,000 deposit on a 1:100 account you could open a maximum of 1 lot, whereas with a 1,000 deposit on a 1:50 account you could open a maximum of 0.5 lots (if you are not using stop losses). As you can see both are totally different trades and as your example shows, different losses incurred on a 30% move.

The premise of our CEO’s comments are that lower leverage wouldn’t necessarily have caused brokers to lose any less than they did on the SNB move. This of course is subject to opinion and a point that is being debated within our industry.

Kind Regards,

FxPro Team

 

[moka2]

Leverage is innocent!

Dear Moka2,

The extract you take from this article is written from a broker’s point of view.

How would we know that! as a trader of course what make seance is more the leverage more the loss (gain)
And in a event like this the trader ( if the broker demands recovery of negative balance, which I guess you have a legal right to call upon) the person using more leverage is going to get heart more.. simple logic is it not?

No wonder Equity markets do not have such ridiculous leverage!

It is the promise of Huge gains due to high leverage that sucks people in to this.
They conveniently don;t look at the flip side of the coin and as a industry participant OTC brokers don;t want them to look at it either
It seems you are not ready to accept any criticism about OTC
Why don't you look at at what I said before about Client Money protection
HOW exactly is Client money "better protected" with OTC broker than a SIPC covered Equity and Options broker?
How? show the legal proof!

 

[FxPro Group]

Dear Moka2,

The extract you take from this article is written from a broker’s point of view.

How would we know that! as a trader of course what make seance is more the leverage more the loss (gain)
And in a event like this the trader ( if the broker demands recovery of negative balance, which I guess you have a legal right to call upon) the person using more leverage is going to get heart more.. simple logic is it not?

No wonder Equity markets do not have such ridiculous leverage!

It is the promise of Huge gains due to high leverage that sucks people in to this.
They conveniently don;t look at the flip side of the coin and as a industry participant OTC brokers don;t want them to look at it either
It seems you are not ready to accept any criticism about OTC
Why don't you look at at what I said before about Client Money protection
HOW exactly is Client money "better protected" with OTC broker than a SIPC covered Equity and Options broker?
How? show the legal proof!

Dear Moka2,

If you were to attend our seminar in London you would hear first-hand that we are very clear about how higher leverage can mean greater risk and we also have a full Risk Disclosure Statement on our website that addresses leverage in detail. We take this very seriously as it is in our interests to protect our clients. This is why we honoured our Negative Balance Protection policy following SNB, a policy that is not a regulatory requirement, to offer as part of our service.

In respect of retail client money rules these are very strict under both FCA and CySEC and we follow them to the letter. If we did not we would not be allowed to operate as a firm and offer our award winning services. As mentioned before, all retail client funds deposited with FxPro are totally ring-fenced and segregated in investment grade banks.

Kind Regards,

FxPro Team

 

[Pat494]

Hi team,
I have just downloaded the MT4 demo from FX Pro specifically to use your new quant system. However where is it exactly ? Can't seem to spot it in the indicators etc.

thanks

 

[moka2]

As mentioned before, all retail client funds deposited with FxPro are totally ring-fenced and segregated in investment grade banks.

Yes and I am not implying that you are not doing that!
And all traders/ investor wish that Broker's don;t go down
but the fact remains that if a a OTC broker goes down ( due to any reason) and if there is a shortfall in the Client Seg account .
Then unless the broker is in UK under FCA as of today there is no compensation mechanism .

Nothing in USA
Nothing in Australia
Don;t know about Canada and other EU countries

 

[FxPro Group]

Hi team,
I have just downloaded the MT4 demo from FX Pro specifically to use your new quant system. However where is it exactly ? Can't seem to spot it in the indicators etc.

thanks

Dear Pat494, you should be able to build your strategy from the FxPro Quant url which is http://quant.fxpro.co.uk/. From here you can launch the strategy builder and get under way.

Kind Regards,

FxPro Team

Trading CFDs involves a high risk of loss.

 

[Pat494]

Dear Pat494, you should be able to build your strategy from the FxPro Quant url which is http://quant.fxpro.co.uk/. From here you can launch the strategy builder and get under way.

Kind Regards,

FxPro Team

Trading CFDs involves a high risk of loss.

thanks
The page doesn't recognise that I already have a demo account with you, nor my email address ?
So I opened another one
um getting into a muddle here I think

 

[FxPro Group]

thanks
The page doesn't recognise that I already have a demo account with you, nor my email address ?
So I opened another one
um getting into a muddle here I think

Dear Pat494,

You don't have to be registered in the FxPro Direct in order to be able to use the FxPro Quant.

If you have opened the Demo account in the platform itself, it will not recognise your credentials.

Kind Regards,

FxPro Team

 

[FxPro Group]

Dear Members,

Please see below the Press Release announcing the slippage and re-quotes statistics for the month of March:


FxPro Committed to Fairness and Transparency

7 April 2015, London. A strong proponent of transparency and fair trading services, FxPro remains committed to providing its clients with not only full trade reporting and support, but also with advanced order-matching and execution technologies that are continuously upgraded. As a trusted broker for a growing number of clients worldwide, FxPro is pleased to announce its slippage statistics for the month of March:

• Positive = 36%
• At Quote = 36%
• Negative = 28%

As FX is an OTC (Over-the-Counter) product, clients may experience trades executed at a different price to the one displayed at the time. Operating as a Hybrid broker, using a non dealing agency model execution technology, FxPro allows its clients to access top-tier liquidity and to benefit from both its execution technology and its Negative Balance Protection guarantee, while also mitigating operational risk.
In conjunction with its slippage statistics, FxPro is also announcing the percentage of re-quotes that clients received during March:

• Re-quotes = 4.32%
• Positive = 2%
• Negative = 2.32%

FxPro CEO, Charalambos Psimolophitis, commented on these encouraging statistics:
“At FxPro we have long been supporters of transparency and fairness in the Forex industry, and have worked hard to eradicate all conflicts of interest between broker and client. Having adopted a Hybrid Agency Model, we provide our clients with not only superior educational resources and trading tools but also with a guarantee of their funds’ safety. In an industry where it is taken for granted that slippage almost always goes against the client, we are pleased to demonstrate that this is not in fact the case. As the topic of slippage symmetry comes into greater focus, we encourage other brokers to be as forthcoming with their own execution statistics.”

 

[FxPro Group]

Dear Members,

We are pleased to announce the following changes and additions:

New Instruments:

- MT4: Gold by grams and Ounces. Brent Oil Futures

- MT5: Brent Oil Futures

Trade Related Updates:

- Margin requirements for all Swiss Franc (CHF) pairs will be decreased to 1%. In other words you will be able to trade all CHF pairs with a leverage of up to 1:100.

- MT5 will be employing Dynamic Leverage. As a result of this change, MT5 account holders will be able to increase their account leverage up to 1:500 in line with the MT4 and cTrader.

All of the changes and additions are available now.

Shall you have any questions, please do not hesitate to contact us.

Kind regards,

FxPro Team

 

[Alpha Moorhen]

Hi there,

I would like to ask if your demo trader accounts truly are free and time unlimited? I just wanted to double check before setting one up as I am concerned that there may be hidden obligations to sign up to a live account or something else which I have missed, or even hidden costs involved if I don't then go on to open a live account later on?

I am looking to set up a demo trading account to learn the ropes in forex on MT4 and so far FX Pro are high on my list.

I am going to email your team as well as have a few questions to ask. Hope that is alright.

Thanks in advance.

 

[FxPro Group]

Dear Alpha Moorhen,

Our demo accounts are free and unlimited, with no costs or obligations whatsoever.

Please do email or contact our support on chat for whatever question you might have, or just post here. We will be very happy to assist you.

Kind regards,

FxPro Team

 

[Alpha Moorhen]

Dear FX Pro,

I have been testing out MT4 on your demo account for about a week. I am becoming more familiar with the settings and trading procedure that the software offers.

I have a few very basic questions about the trading process in MT4:

1) You deposit your capital with FXPro e.g. 1000 pounds which goes in to the vault on your account, and you can allocate money to your trading account in MT4, say for example 500 pounds - and this shows as your balance. When you withdraw funds, are they taken from MT4 or from the vault in the FXPro online account?

2) When you place a trade in MT4 you enter a value in to the volume counter which represents lot sizes of borrowed currency, depending on the volume you enter for the trade for example 0.05 = 5,000 units of the currency to trade with.

The value of a single pip is calculated and will obviously change with different volumes and prices at trade entry, this calculates the value of 1 pip and each movement in price provides a profit or loss which is then added or deducted from you 500 pound deposited balance.

It is not the 5000 units of currency that you can lose from your balance, rather the impact this volume of currency has on a single pip's value - meaning that 5000 units of currency given in this example will only represent a few pence approximately per pip which is very small, so you are quite unlikely to wipe out your 500 pounds in one trade.

3) Having a balance of 500 ponds for example and trading with a volume of 0.05 = 5000 units of currency - is this understood to be a 10:1 leverage in the MT4 platform?

4) If you loose all of the money in the MT4 account balance, is the money in your vault still safe? In MT4 does the balance stop at zero, or can it go in to negative numbers? What happens if it is negative, can you end up owing money to the MT4 account?

I would be grateful if you could summarise the above in your own words. Thank you in advance.

 

[FxPro Group]

Dear FX Pro,

I have been testing out MT4 on your demo account for about a week. I am becoming more familiar with the settings and trading procedure that the software offers.

I have a few very basic questions about the trading process in MT4:

1) You deposit your capital with FXPro e.g. 1000 pounds which goes in to the vault on your account, and you can allocate money to your trading account in MT4, say for example 500 pounds - and this shows as your balance. When you withdraw funds, are they taken from MT4 or from the vault in the FXPro online account?

2) When you place a trade in MT4 you enter a value in to the volume counter which represents lot sizes of borrowed currency, depending on the volume you enter for the trade for example 0.05 = 5,000 units of the currency to trade with.

The value of a single pip is calculated and will obviously change with different volumes and prices at trade entry, this calculates the value of 1 pip and each movement in price provides a profit or loss which is then added or deducted from you 500 pound deposited balance.

It is not the 5000 units of currency that you can lose from your balance, rather the impact this volume of currency has on a single pip's value - meaning that 5000 units of currency given in this example will only represent a few pence approximately per pip which is very small, so you are quite unlikely to wipe out your 500 pounds in one trade.

3) Having a balance of 500 ponds for example and trading with a volume of 0.05 = 5000 units of currency - is this understood to be a 10:1 leverage in the MT4 platform?

4) If you loose all of the money in the MT4 account balance, is the money in your vault still safe? In MT4 does the balance stop at zero, or can it go in to negative numbers? What happens if it is negative, can you end up owing money to the MT4 account?

I would be grateful if you could summarise the above in your own words. Thank you in advance.

Dear Alpha Moorhen,

Please see the answers below:

1) The deposits and withdrawals are directly to and from the Vault. So, you allocate your deposit or part of your deposit to a trading account, and when you want to withdraw, you would transfer funds back to your Vault, and make the withdrawal directly from your Vault. This makes it easier to allocate funds to multiple accounts, and to withdraw profits to your vault as you wish.

3) There is a bit of confusion here because you can choose the leverage yourself. So for example, if you want to trade 0.05 (5000 units) and if you have a leverage of 1:10 then yes it would indeed require exactly 500 of the base currency of the pair traded, in order to place that trade.
On the other hand, if you had a leverage 1:50 for example, that same trade would only require 100 margin, leaving the rest of your balance as free margin.

4) You can only lose as much as you have in your account, and this is because we have a stop out in place to protect against your account going negative. We also offer negative balance protection, so even if the account were to fall into a negative balance, we would correct this for our clients.

Hope this was helpful and if you have any more questions, please do not hesitate to contact our support via live chat, or you can alternatively post here and we'll be happy to assist you further.

Kind Regards,

FxPro Team

 

[FxPro Group]

Dear members,

It is my pleasure to announce that we have increased our newest product offering, effective from today.

Please see below the Press Release on this matter:


FxPro Increases it’s Product Offering

01 June 2015, London. Award winning FX broker FxPro is pleased to announce it has expanded its product range offering to encapsulate numerous additional Contract for Difference (CFDs) including numerous additional shares*, indices, commodity and energy futures. More particularly, the broker shall be offering some of the most popular and liquid shares listed on the French, British, German and US markets, new spot indices such as the China 50 and USD index, enhanced energy and agricultural futures including cocoa and coffee, thereby enabling clients to further diversify their trading activity while taking advantage of FxPro’s award-winning services. These new products can be traded on the FxPro MT4 platform and are available as of June 01, 2015.

Known for operating as a No-Dealing-Desk broker, offering top-tier liquidity and superior execution technology, FxPro is ever expanding and improving its services. The broker has therefore introduced these much-anticipated additions to its product range with the aim of meeting its clients’ needs and investment objectives.

FxPro CEO, Charalambos Psimolophitis, commented on this development:
“Every new service we offer is driven by our ongoing attempts to secure better trading conditions for our clients. Having observed an increasing demand for CFDs on more products, we have responded with these new additions in effort to provide our clients with the opportunity to expand their trading activities, while also enjoying the benefits of our platforms and high standards of execution.”

*Shares are only available to clients of FxPro Financial Services Limited


The list of new products is as follows:

Indexes
Agricultural Commodities
Energies
Spot Indicies
Most traded and liquid shares from the US, UK, France and Germany


Shall you have any questions, please do not hesitate to contact us.

Kind regards,

FxPro Team