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Trading Conditions

Experience all the perks that a tier-1 brokerage offers. FXT grants novice traders access to exclusive advantages generally reserved for the institutional client while rewarding pro traders with the best trading conditions they deserve. Take your trading experience to the next level with the industry-leading execution, spreads, margin and leverage and swap rates

Spreads

At FXTRADING.com, we offer deep and reliable pools of liquidity across multiple liquidity providers. We achieve market leading spreads via our strong relationship with BNP

Swap Rates

FXTRADING com offers both long and short swap rates for all our currency pairs and CFDs

Margin & Leverage

Discover the margin and leverage conditions offered by FXTRADING.com. We provide clients with the flexibility of trading with leverage ratios of up to 500:1. This empowers traders to amplify the scope of what's at stake.

Execution

The average execution speed at FXTRADING.com is under 80ms. Trades are executed at lightning speed with FXTRADING.com, backed by institutional level market depth in a robust trading environment

Swap Rates

FXT offers both long and short swap rates for all our currency pairs and CFDs. Swap rates can be either positive or negative to your trading profits, and are determined by the overnight interest rate differential between the two instruments

Trading Hours

Clients can view the trading hours here or from our MetaTrader Platform by right-clicking on an instrument in the ‘Market Watch’ section, then clicking ‘Specification’. The opened window will show the Trading Hours for any specific trading instruments.

Please be aware that FXTRADING.com's server time and charts are GMT+2 or GMT+3, (During daylight savings time)

Spreads

Many brokerages lost their Tier-1 Prime Brokerage Accounts after the Great Financial Crisis. FXT has retained its Tier-1 status, and offers deep and reliable pools of liquidity from multiple providers with market leading spreads. Spreads on majors can go as low as 0.0 pips on our platforms

Margin and Leverage

Leverage means that you can effectively trade larger positions with your available capital. The use of leverage is a double-edged sword however, as it can magnify losses as well as profits

What are Spreads?

Spreads

The spread is the nominal transaction cost for entering a trade and is simply the difference between the best bid and the best ask price. Spreads are variable but can be as little as 0.0 pips with FXT accounts

Enjoy Market Leading Ultra-Low Spreads with FXTRADING.com

FXTRADING com offers variable spreads on our MT4, MT5 and IRESS trading platforms, We are able to offer the market-leading spreads on all trading instruments, due to strong prime brokerage relationship, with deep and reliable pools of liquidity, across multiple liquiclty providers, at a low cost

Fractional Pip Pricing

Pips are priced at FXTRADING.com with 5-digits rather than 4-digit, allowing clients to benefit from the smallest price movements, more accurate quotes and even tighter spreads

How Spreads Play Out

The spread is a nominal transaction cost to enter a trade and is simply the difference between the best bid and the best ask price.
The spread is variable but can be as little as 0.0 pips on an Alpha or Pro account.

Best Bid - Best Ask Price = Spread

The amount of liquidity available dictates how tight the spread is, so typically one would expect spreads to be tighter during active trading sessions such as New York or London. However, spreads are also sensitive around economic news releases. If traders are waiting for an important release such as nonfarm payroll or a Fed meeting, liquidity dries up and spreads can get wider until liquidity returns after the release.

Long (bullish) trades:

Enter at the ask price (what the seller is asking for)
Exit at the ‘bid’ price (for both take profit or stop-loss orders)

Short (bearish) trades:

Enter short at the ‘bid’ price
Exit at the ‘ask’ price (for both take profit or stop-loss orders)

View Live Spreads on the MetaQuotes Trader Platforms

Bid and ask prices are visible in several locations within MetaQuotes' trading platforms, such as the “Market Watch’ window and deal ticket

What Are Forex Swap Rates?

Swaps are holding a rebate or cost on overnight open trades calculated daily and derived from the relevant interbank differentials. Swaps can be either a positive (debit) or negative (credit) to your trade's daily profit and loss depending on where you are long or short and what the interest rates are between the relevant currency pair

Swaps can be either a positive (debit) or negative (credit) to your trade's daily profit and loss

With FXT's Swap Rates, Please Note:

  • Trading spot forex takes two business days to settle from the date of entry with each market convention.
  • The settlement date of cash indices and commodities occur at the end of each business day.
  • With open positions of spot forex. cash indices and commodities. there will be a triple swap credit (or debit) for trades held overnight from Wednesday to Thursday (as per server time). to account for markets being closed over the weekend.

What You Should Know about Forex Swap Rates

Swap rates are only applied to positions held overnight

Swap rates are applied at 00:00 server time

Currency pairs could have negative swap rates on both long and short positions

Whilst swap rates are calculated in points. MT4 and MT5 will automatically convert them into your base currency amount

Each forex currency pair has its own rollover fee, which is measured in the standard size of 1 lot (or 100.000 units)

Triple swap rates are calculated on Wednesday night. to account for the weekend when markets are closed

What are Margin & Leverage?

M&L

Similar to collateral, the margin is the amount of money required to be deposited into a trading account to open a trade, which is usually a fraction of the underlying market cost. Leverage results from using borrowed capital as the source of funds, allowing traders to gain access to larger sums of capital. However, the use of leverage is a double-edged sword, heightening profits and losses at the same time.

Amplify Trades with Margin and Leverage at FXTRADING.com

FXT offers flexible leverage of up to 500:1, as well as live risk exposure management. We have a mandatory 50% margin close-out rule, a margin call level as low as 100%, and provide our clients with negative balance protection. FXT clients can enjoy the opportunity to magnify the potential of their trades.

Trade Instruments with FXTRADING.com

Trade a variety of popular instruments within the ultimate trading environment. Join FXT today and empower your trading journey with world-class trading tools —trade better and smarter with FXT

What is Carry Trade and How Does it Work?

Currency carry trades are a very popular trading strategy used by forex traders which utilises swap rates. The carry trade involves selling or borrowing a forex currency pair with a low-interest rate and using the proceeds to fund the purchase of another forex currency pair with a higher interest rate. By paying a low-interest rate on one currency pair and collecting the higher interest rate earned against another currency pair, the trader aims to profit from the interest rate difference.

In forex currency trading, a carry trade is a simultaneous action taken by traders who borrow one currency while using it to buy another currency. Collecting higher interest rates on the currency that traders bought while paying a low interest rate on sold currency and the interest rate differential between the two currencies is the traders profit.

The carry trade strategy allows traders to buy low sell high when forex swap rates are in play. However, due to the recent trend of global real interest rate dropping significantly over the past three decades, risk-adjusted returns on carry trades have become less lucrative and difficult to implement

How to Calculate Forex Swap Rates?

Swap rates are calculated automatically by FXTRADING.com's MetaTrader platforms. but traders can calculate forex swap rates themselves using the following formula:

Swap Rate Lots (Volume) Number of Nights = Swap (in base currency)

For instance, let’s say you are trading 5x lots of GBP/USD at FXTRADING.com with a base currency of AUD. The swap long is at −2.19 and swap short is at 0.13. (Please be aware that on Wednesday night the charges are tripled due to weekend holding). Using the following formula shows we should expect a daily swap debit of $10.95 Swap Rate × Lots (Volume) × Number of Nights = Swap (in base currency) The long swap at −2.19 multiplied by 5 lots: −2.19 × 5 lots = −AUD 10.95 However, because the trade was held between Wednesday and Thursday, a triple swap charge is incurred, taking the total days to be charged to five. −10.95 × 5 nights = −AUD 54.75 This is the monetary value of the swap rate on your trade for 5 nights, and because it is a negative number, it means that a total of AUD $54.75 will be credited to your open trade. Exchange Rate Of course, these charges will change depending on which currency your account is in. The above example used an Australian dollar account, but if the same trade was placed using a US dollar account, the swap credit would be as follows. Assuming AUD/USD exchange rate is at 0.7623, when it is converted to USD, the swap profit would be AUD 54.75 × AUD/USD 0.76 = USD 43.61

What is Margin and How is it Calculated?

Similar to collateral, the margin is the amount of money required to be deposited into a trading account to open a trade, which is usually a fraction of the underlying market cost.

Long example: Buying GBP/USD

A trader buys 1 contract of GBP/USD (one contracts equals 100,000 GBP) at $1.2650

  • If GBP/USD rises to $1.2800 (+150 pips) the trader could exit for a profit around $1,500
    • (# contracts x contract size) x exit price - entry)
    • (1x 100,000) x (12800 ~ 1.2650) - $1,500
  • If the price falls to 12600 the trader could exit for a loss around -$500
    • (#8 contracts x contract x (exit price - entry)
    • (1x 100,000) x (61.2600 - $1.2650)
  • At 40011 leverage, just 0.25% of margin ($316.25) is required to open the trade
    • (# contracts x contract size x price) / leverage
    • 1x 100,000 x 1.2650) / 400

Short example: Selling USD/JPY

A trader sells 5 contracts of USD/JPY (one contracts equals 100,000 USD) at ¥10725

  • IF USD/JPY falls to ¥106 50 (-75 pips) the trader could ‘exit for a profit around $3.500
    • (# contracts x contract size) x (entry ~ exit price)
    • (5 x 100,000) x (106 50 ~ 10725) - ¥375k ($3,500)
  • If the price rises to ¥107.70 the trader could exit for a loss around -S2,100
    • (# contracts x contract) x (entry - exit price)
    • (5 x 100,000) x ($12600 - $12650) « -¥225k ($2.100)
  • At 400 leverage, just 0.25% of margin ($316.25) is required to open the trade
    • (# contracts x contract size x price) / leverage
    • (1x 100,000 x 10728) / 400 » ¥134 01k ($316 25)

What is Leverage and How is it Calculated?

Leverage results from using borrowed capital as the source of funds, allowing traders to gain access to larger sums of capital. However, the use of leverage is a double-edged sword heightening profits and losses at the same time

Take as an example a $5000 forex trading account with 100:1 leverage. If $2,000 is used to trade forex on margin with 100:1 leverage, the trader will have exposure of $200,000 in base currency. To calculate exposure use the following equation: Margin × Leverage = Exposure Consequently: $2,000 margin × 100 leverage = $200,000 of exposure in base currency

Margin Call

FXTRADING.com offers clients a margin call level of 100%. This means that when a client's margin level (equity/margin falls to 100%, the client will receive an email to notify them that they do not have sufficient funds to support their open positions

Stop-out Level

FXTRADING.com's stop-out level for clients is 50% This means that when the margin level falls to 50% (equity/ margin), open positions would be automatically closed until the margin level goes above 100%, Trades will be closed in order of largest to smallest, until the margin level (maintenance margin) is at 100% or greater

Dynamic Leverage Function

The dynamic leverage function will be operational on all trades opened on forex and gold CFDs.

Leverage Levels at FXTRADING.com

Starting from 22nd of March 2021, the dynamic leverage function has been utilized at FXTRADING.com for both FX and gold products. The default leverage levels and the corresponding account balances can be seen in the table below:

FX and Gold Dynamic Leverage Function
Account Balance Tiers Leverage
$0-$19,999.99 500:1
$20,000-$49,999.99 300:1
$50,000-$99,999.99 200:1
$100,000 and above 100:1

With FX and Gold products, the dynamic leverage function works as follows:

The default leverage level starts at 500:1.

Leverage levels will be automatically reduced if the realized account balance rises to a higher account balance tier.

However, leverage levels will not automatically increase if the realized account balance falls to a lower account balance tier.

To increase leverage levels, clients need to apply directly within the FXTRADING.com client portal.

With other asset classes, leverage levels are fixed at

Other Asset Classes Leverage Levels at FXTRADING.com
Asset Classes Leverage
Silver and Energies 100:1
Share Indices 100:1
Commodities 50:1
Cryptocurrencies 5:1

* Please note that FXTRADING.com reserves the right to adjust leverage at any time.
* Please take into consideration the impact of leverage levels on your trading.

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