How can Trade Center Inc. 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 labor costs and risk management. Executing smaller size trades takes the same effort as executing larger trades. To offer smaller trade sizes, most firms would have to hire more dealers, which would make the cost exorbitant. The Refco FX Mini account features automatic execution for most accounts. All trades are executed without human intervention (just like a demo account). This keeps labor costs low. The second issue is risk management. The smaller size trades offered on the Refco FX Mini account are difficult to offset in the broader market. Trade Center Inc. has developed a proprietary risk protocol for the Mini, which involves aggregating volume into sizes that can be offset in the broader market.

What is the difference between the Refco FX Mini account and a regular account?
The Refco FX 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 Refco FX Mini account and begin trading foreign exchange with Trade Center Inc.. 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. The Refco FX Mini account also serves to introduce clients to trading with Refco FX.

How does the Margin Call work?
If the equity balance in your account falls below the margin requirement, a margin call will be generated. In the event that an account exceeds its maximum allowable leverage, ALL open positions will be liquidated immediately, regardless of the size or the nature of positions held within the account. For example, a Refco FX Mini account with 8 lots in open positions would need to have $400 in account equity. If the account equity falls below $400 due to 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?
Refco FX charges no commission or transaction fees to trade a Refco FX Mini account. As the leading player in online currency trading, Refco FX receives and is able to pass on the benefits of size to our clients.