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Forex:
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| General informations about FOREX |
The FOREX market (FOReign EXchange)is the inter-bank market for trading currencies. It came into existence in the 1970's when the move towards a free-floating or flexible currency system was completed. In a free-floating system the exchange rate between two currencies, e.g. the Euro and the US-Dollar, is determined by the market forces, i.e. by supply and demand.
The volume traded on the FOREX market vastly exceeds the volumes traded on all other financial markets. The daily volume traded on the FOREX market is estimated at 3 to 4 trillion US Dollar. The daily volume traded on the stock markets are, for comparison, around 500 billion US Dollar. 90 - 95 per cent of the traded volume on the FOREX market is carried out by the largest international banks, either as own trading or as trading carried out for customers. The continued advance in Information Technology makes this sphere also available for individual investors. An increasing number of brokers and banks provide individual investors direct access to the FOREX market via the Internet.
Generation of financial results (profits as well as losses) on the foreign exchange market rests on the simple fact, that every national currency is a product like wheat, sugar, gold or silver. The fact that the world changes at an accelarating pace and that the economy (national product, inflation, unemployment, etc.) of each individual country is increasingly entwined with the development and economy of other countries and that this affects the value of one currency relative to another is the main reason for ever-fluctuating exchange rates .
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10 reasons to trade the FOREX market with NEUIMEX®
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| 1.
No commissions
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| Reason 1: No commissions |
The FOREX market traditionally does not charge any commissions or fees, except for natural trade margins (spread) between bid and ask prices.
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| 2. State of the art trading technology
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| Reason 2: State of the art trading technology |
With the online trading platform NEXTT, NEUIMEX® offers you the most advanced technology for your FOREX trading. You obtain access to thousands of real-time quotes and can trade worldwide around-the-clock. NEXTT is successfully used by banks all over the world. NEXTT combines the most modern technology with the most recent features to live up to all customer requirements. NEXTT is conceived for the needs of a beginner as well as for the highest requirements of a professional trader and distinguishes itself especially by:
- Real time quotes of all instruments traded worldwide,
- Order book with realtime position actualization ,
- Multiple order types including market-, stop-, limit- and OCO-orders.
- Mobile trading
- Charting function
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| 3.
Liquidity
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| Reason 3: Liquidity
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The market offers the highest form of liquidity, as money is the only commodity in the market in form of different high volume currencies. The daily trading volume exceeds even the trading volume of the New York Stock Exchange by a factor of more than fifty. The liquidity of the market allows immediate opening and closing of positions at fair market prices. Because of the lower trading volume in a stock or futures exchange market, participants are subject to stronger liquidity risk, which leads to wide bid and ask quotes and sometimes to enormous price fluctuations.
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| 4.
Unambiguity of quotations
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| Reason 4: Unambiguity of quotations
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Because of the high market liquidity, practically unlimited amounts can be traded on a put market price. This prevents the problem of instability which other markets (e.g., futures and stocks) are subject to, in which only certain amounts can be traded at the quoted price.
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| 5.
Margin
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| Reason 5: Margin
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The amount of margin within the FOREX market is fixed by an agreement between the customer and his bank or broker. Ordinarily, this is in the ratio of 1:33, 1:50 or 1:100 to the investment sum. We are operating with a ratio of 1:100, i.e. with a payment of, for instance, USD 1,000 into his/her account, the customer can execute transactions for the amount of USD 100,000. The application of such leverage, together with the strong changeability of quotations of currencies, makes this market highly profitable and risky.
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| 6.
Margin trading
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| Reason 6: Margin trading
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Trading on the foreign exchange market on the basis of deposits into one's customer accounts (margin) have a very high leverage factor.
The principle behind this trading is the fact, that the customer is doing business in the FOREX market, which is executed with the help of security deposits (margin) in his account. This is called creating a leverage factor. Depositing only a relatively small amount as security, the customer is enabled to act with incomparably larger sums in the market. Such a possibility is granted to him by brokers who offer to relinquish different informative services concerning the market, trading etc., also offering credit lines. This enables the customer to appear on the market with accordingly large sums, against the deposition of securities. This system of crediting against the donation of low securities is called leverage; the security is called margin; the system is called margin trading.
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| 7.
Trading around-the-clock
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| Reason 7: Trading around-the-clock
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The FOREX market is no "market" in the traditional sense of this word. There is no specific trading place, as for example, a stock exchange. Trading is executed using phones and/or computer terminals simultaneously in hundreds of banks all over the world. Since there are traders in practically every time zones (Sydney, Tokyo, Hongkong, Frankfurt, London, New York, etc) who wish to buy or sell currencies, the foreign exchange market is virtually active 24 hours a day and trading is continuous and rarely interrupted.
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| 8.
Worldwide trading
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| Reason 8: Worldwide trading
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The international FOREX market is a system of regional FOREX markets, communicating and cooperating with the help of the newest computer technologies. The most significant ones are Asia (Tokyo, Singapore, Hongkong), Europe (London, Frankfurt, Zurich) and America (New York, Chicago, Los Angeles). There are also national FOREX markets (e.g., the foreign exchange market of UK) with a wide variety of transactions. Because of the cooperation of the regional FOREX markets in the different time zones , the international FOREX market is active around-the-clock. Its activities on any calender date begins in the Far East, in New Zealand (Wellington), passing into the time zones of Sydney, Tokyo, Hongkong, Singapore, Moscow, Frankfurt, London and finishing the day in New York and Los Angeles. The activity times in the single time zones are overlapping. The approximate trading hours of the regional markets are as follows (all information in central European time "CET"):
Asia |
01:00-07:30 CET |
Continental Europe |
07:30-14:00 CET |
Great Britain |
09:30-16:30 CET |
USA |
15:30-22:30 CET |
Today, the worldwide foreign exchange market (FOREX) is one of the most profitable spheres of investment.
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| 9.
Leverage
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| Reason 9: Leverage
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Leveraged trading enables the investor to move a large quantity of capital using only a relatively small amount of own capital. Trading in the FOREX market starts from a margin of 1%. A volume of 100,000 $ can be traded with own capital of merely 1,000 $. While investors can maximize their profit potential doing this, they also increase the risk of loss of their position accordingly. Of course, every investor can reduce his risk using a lower, more pragmatic leverage. Any investor can confine himself to investing only 30% of the available capital into one currency. In the end, every trader has to decide for himself how much risk he is prepared to take within the scope of his investment objective.
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| 10.
Transparency
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| Reason 10: Transparency
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Non-universally accessible information about economic developments and publicly accessible statistics allow a better transparency about forecasted developments and trends. Professional traders and analysts hold a competitive edge with their insights on business developments, profit predictions and and instant access to press releases.
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| FOREX Conditions |
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FOREX Conditions:
NEUIMEX offers FOREX trading without any fees or additional provisions. Only spread will be present. This is the difference in price between ask and bid. Dependant of your account type (FOREX, Mini-Forex, Micro-FOREX) you may trade currencies with us starting with 1 pip spread. For more information please contact your personal account manager at NEUIMEX.
| FOREX Conditions |
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Minimum Account Size: | 2.500 Euro |
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Leverage: | 1:100 |
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Margin: | Depends on account type and size |
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Account opening fee: | n/a |
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Account management fee: | n/a |
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Trading platform fee: | n/a
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Calculation cost of overnight positions:
Holding of overnight positions may have a positive or negative effect on your trading account. Reasons for this are different prime interest rates of currencies.
Example: In Euro countries interest rate is about 2.5% and in US 1.75%. You have an active short position at 1.2250 (FOREX) on EUR/USD. This means that you sell 100,000 EUR for USD. To hold this position over night you have to pay 2.5% interest rate per year in Euro countries. As you buy USD for this 100,000 EUR you get 1.75% interest per year on USD. For this 100,000 EUR you get 122,500 USD, this means that you have to pay 0.75% per year (2.5% - 1,75%). Therefore you have to pay 918.75 USD interest per year or 2.52 USD per day. For opening of a credit line you have to pay 0.5% up to 2%. This cost or earning for an overnight position will be calculated automatically and entered into your trading account.
Margin Calls:
If a customer reaches less than 50% margin per open lot on his account then he is in danger to damage his account. We will inform him if this happens and ask him to add money to his account immediately. If the Margin Level reaches 30% the open position will be closed automatically. If there is more than one open position the position with highest loss is closed first.
Example:
You buy 1 lot EUR/USD at 1.2500. Therefore you need 1,250 USD on your account as margin. If you have exactly 1,250 USD on your account our trading platform will show you a margin level of 100%. If your trade is going into the wrong direction and margin level down to 50% (625 USD loss) we will contact you by email or phone (Margin Call) and ask you to close the position or transfer money to the account until it reaches again 100% margin level. At margin level 30% (875 USD loss) we will automatically close the position.
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Forex Contract Specification |
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| Ticker | Description | Size of 1.0 lot | Margin |
| USD/CHF | US Dollar / Swiss Franc | USD 100 000 | USD 1 000 |
| GBP/USD | Great Britain Pound / US Dollar | GBP 70 000 | GBP 700 |
| USD/JPY | US Dollar / Japanese Yen | USD 100 000 | USD 1 000 |
| EUR/USD | Euro / US Dollar | EUR 100 000 |
EUR 1 000 |
| AUD/USD | Australian Dollar / US Dollar | AUD 100 000 | AUD 1 000 |
| USD/CAD | US Dollar / Canadian Dollar | USD 100 000 | USD 1 000 |
| EUR/CHF | Euro / Swiss Franc | EUR 100 000 | EUR 1 000 |
| EUR/JPY | Euro / Japanese Yen | EUR 100 000 | EUR 1 000 |
| EUR/GBP | Euro / Great Britain Pound | EUR 100 000 | EUR 1 000 |
| GBP/JPY | Great Britain Pound / Japanese Yen | GBP 70 000 | GBP 700 |
| GBP/CHF | Great Britain Pound / Swiss Franc | GBP 70 000 | GBP 700 |
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Trading Platform
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Trading derivatives/CFD's/FOREX/Futures on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in derivatives/CFD's/FOREX/Futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with derivatives/CFD's/FOREX/Futures trading, and seek advice from an independent financial advisor if you have any doubts.
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Our ranking has gone up from 3rd to 2nd best forex broker in Central Europe
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