of Forex vs. Futures
You pay zero commissions and exchange fees!
With Trade Center Inc. you pay zero commissions or exchange fees. How
can Trade Center Inc. we do that? Simple. Because you deal directly with
the market maker via a purely electronic online exchange, you eliminate
both ticket costs and brokerage fees. There is still a cost to initiating
any trade, but that cost is reflected in the typical bid/ask spread that
all exchanges offer. However, Refco FX offers tight and competitive spreads.
To try out the Refco FX trading station FREE demo click
up to 46 times the leveraging capabilities of the futures market - but
with strictly limited risk!
sheer size of the forex market (46 times greater than all futures markets
combined) and the greater price stability allow you to trade with a much
higher degree of leverage than is typical with futures contracts -- up
to 100 to 1. Plus, you are able to select the degree of
leverage that you wish to employ in trading. Unless you specify otherwise,
Refco FX sets your leverage level at Trade Center Inc.'s most lenient
requirement. The actual margin requirements for leverage vary with account
size. For example if your account has $30,000 in it, then the margin requirement
is $1,000 for every position (approximately equal to $100,000 worth of
currencies). Thus, the margin requirement is just 1% of the total value
of the currencies traded - a 100 to 1 ratio. Click
here for a demo.
peace of mind knowing you'll never be liable for a debit balance.
With Refco FX, you can NEVER have a debit balance! In the event that funds
in your account fall below margin requirements, the Refco FX dealing desk
will simply close all open positions. That means that, even if you are
dead wrong and there is a catastrophic market move against you, you can
never lose more than the amount of money you have in your account. That
provides you with tremendous peace of mind. See for yourself by making
a few risk-free virtual trades in your Trading Station demo account.
You get maximum
Due to its enormous size (46 times bigger than all futures markets combined),
the forex market is the most liquid market in the world. The spot forex
market is a $1.4 trillion daily market, making it the largest and most
liquid market in the world. This market can absorb trading volume and
transaction sizes that dwarf the capacity of any other market. This means
that positions can be liquidated and stop orders executed without slippage.
easily trade 24 hours a day.
The forex market is a seamless, 24-hour market. At 5 PM Sunday, New York
time, trading begins as markets open in Sydney and Singapore. At 7 PM
the Tokyo market opens, followed by London at 2 AM, and finally New York
at 8 AM. As a trader, this allows you to react to favorable or unfavorable
news by trading immediately. It also gives you the added flexibility of
determining your trading day. You get instantaneous execution and firm
With Refco FX forex trading you
get instantaneous execution and price certainty on all orders up to $1
million. On the Refco FX trading station, you trade directly off real
time streaming prices. There is no discrepancy between the displayed price
and the execution price. This holds true even during volatile times and
fast moving markets. Real time streaming prices ensure that market orders,
stops, and limits are executed without slippage and/or partial fills.
have to worry about rolling over your positions!
With Refco FX, open positions are rolled over automatically every two
days. As a service to you, at 5:00 PM New York time Refco FX automatically
rolls over all your open positions (swaps the trade forward) to the next
settlement date two business days in the future. As is true with futures,
there is often a carrying cost associated with rolling over a position.
Moreover, forex positions sometimes can actually make you money on the
roll-over. That is because your profit/cost is determined by the difference
in interest rates between the two currencies. Thus, if you are long the
currency with the higher interest rate in the pair, you will actually
gain on the spot rollover through the premium relationship of that currency
relative to the short currency. The amount of the gain is determined by
the interest rate differential between the two currencies, and fluctuates
day to day with the movement of prices. For instance, on any given day,
the rollover can be $2 per lot for USD/JPY and $15 for GBP/JPY. Rollover
fees are shown in dollars, and are posted in the "interest column"
on the Refco FX trading station every day at 3:00 pm New York time. For
day traders that never hold a position overnight, there are no carrying
costs whatsoever. Try out the Refco FX Trade Station with a virtual account.