FXOpen is known as a forex broker that pioneered the micro-account and exchange-free option. FXOpen minimum deposit is also set according to the trading account you choose and starts from $1, and they benefit from 1:500 and competitive spreads. A referral bonus of up to 25% is also offered by this Broker.
Read More To Learn About:
• Deposits & Withdrawals
• Rates, Fees, Commissions, and Spreads
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Deposits And Withdrawals
The most common options for depositing and withdrawing money will be offered by FXOpen to its customers. These options include debit/credit cards, UnionPay, worldwide bank transfers, local bank transfers, supported also in Latin America, major e-wallets WebMoney, Neteller, Skrill, and Qiwi minor wallets, and Perfect Money, among others. FXOpen also offers various currencies to trade such as USD, EUR, GBP, AUD, JPY, RUB, BTC, etc. Payments can also be managed via PaySafeCard or payment of newly created cryptocurrencies: Bitcoin, Litecoin, Ethereum, Tether, and Emercoin.
The company also offers a hassle-free funding option available with $25 to $10,000 Prepaid Cards that can be ordered from FXOpen authorized resellers. The FXOpen Prepaid Code allows the transfer of funds between FXOpen eWallets without commission. As with most brokers, some payment methods may incur transfer fees, each of which is charged by FXOpen according to different payment conditions and regions.
Rates, Fees, Commissions, And Spreads
Trading fees depend on various factors such as commissions, spreads, and margins. The currency pair spread is the difference between the bid and asks prices. One pip represents the smallest increase in an exchange rate movement. The commission rate will vary between different brokers and depends on the asset traded and the type of services offered by the broker.
Trading Contracts for Differences (CFD), a popular form of derivatives trading that allows traders to speculate on the rise or fall of prices in fast-moving global financial markets, will incur a commission. Due to FXOpen’s execution technology, variable spreads determined by the trading account and the instrument you choose, are offered. If you trade through an ECN account, the spreads are floating and start from 0 pips, while the STP execution spread is slightly different.
FXOpen offers several pricing options for commissions and fees. On ECN accounts, commission rates vary from $30 – $100 rounds per 1 million traded, which is equivalent to 0.3 – 1.0 pips, depending on the account balance and monthly activity. STP accounts have an equivalent commission that is included in the applicable spread.
The facility that allows a trader to gain much greater exposure to the market than the amount he deposited to open a trade, is called leverage. Such leveraged products enlarge the trader’s profit potential.
The amount of leverage is expressed as a ratio, Assuming that a trader has $1,000 in his trading account and his trading ticket size is 500,000 USD/JPY, the leverage will be equal to 500:1.
FXOpen follows the strict guidelines set by the European Financial Supervisory Authority (FCA) and the general rules of ESMA, as this is the company that regulates them. Recent updates from European regulators set limits on the maximum level of leverage offered, as ESMA recognizes the potential risk of very high leverage. Hence, clients can use leverage up to 1:30 for Forex products, 1:5 for CFDs, and 1:10 for Commodities.
Forex brokers tend to lure new traders with attractive deposit bonus offers. This can be useful, but it is important to understand what a proper bonus is. Such bonuses are just a way of compensating the trader for choosing a particular broker because once an account is opened, the trader will have the same fees like the others. The bonus is simply a reward for the trader’s choice which gives a part of these expenses back to the trader, after proving himself to be an active trader. In addition, since 1 August 2018, the European Securities and Markets Authority (ESMA) has put in place investor protection measures on the marketing, distribution, or sale of CFDs to retail clients.
This prevents the broker from directly or indirectly providing payments, excluded monetary or non-monetary benefits to retail clients in connection with the marketing, distribution, or sale of CFDs, other than the profits realized on any CFDs provided. This means the Deposit Bonus is not currently applicable to retail clients.
FXOpen supports its clients by providing various promotions and bonuses. All you have to do to meet these requirements is to register for the FXOpen eWallet and open a real trading account. A welcome bonus is offered when opening a Micro account and the earned bonus and profits can only be withdrawn from the account after the total volume of all closed transactions on the account reaches 1 lot.
FXOpen also offers a cashback program where traders receive additional refunds for any type of trade including losses. Cashback is added to your commission account which is opened automatically. It is available for any type of trading account. Apart from bonuses, FXOpen also offers ForexCup trading competitions. When participating, traders can get real money prizes and bonuses for live trading.