CFD's Overview

CFD FAQs Stock Indices CFDs Gold CFDs Oil CFDs CFD Product Details

"With our CFD's and FOREX Trading you do not lose more than your initial deposit."

Why Trade Global Indices through FXCM?

  • No Re-Quotes** on all index products, giving you fast, efficient trade execution without expensive re-quotes.
  • Competitive Pricing: Competitive spreads enable you to gain exposure to global markets.
  • No Commission: Trade commission free on all index products at FXCM unlike other markets. *
  • Generous Leverage: Generous leverage on all products that are clearly detailed on the FXCM Trade Station II.
  • Benefit from Dividends: Hold a long position overnight and receive dividend payments
  • Hedging Capability: You can go long or short in a single index trade.

WARNING: Without proper risk management, currency and CFD trading has a high degree of leverage that can lead to large losses as well as gains.

Can I lose more money than I deposit? Not with FXCM.

Not with FXCM. It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading. One of the greatest concerns traders have about leverage* is that a sizable loss could result in owing money to their broker. At FXCM, your maximum risk of loss is limited by the amount in your account. All accounts are tracked by our "Margin Watcher" feature. With the Margin Watcher feature, if account equity falls below margin requirements, the FXCM Trading Station will trigger a margin call closing all open positions.

"FXCM does not take a market position—eliminating a major conflict of interest."

What are CFDs?

Clients of FXCM LTD. can trade Stock Indices, Oil, and Precious Metals from their FXCM Trading Station using CFDs. CFD stands for Contract for Difference. CFDs are specialised and popular Over The Counter (OTC) financial products thatallow traders to easily take broad market positions in a variety of different financial markets.

What are the costs and fees involved with trading CFDs?

FXCM is compensated through the Spread, and the Spread is most traders' main cost of trading. The Spread is the difference between the Buy Price and the Sell Price for any instrument, and is displayed in pips. FXCM quotes tight spreads, which you can view at any time in the Dealing Rates window of your Trading Station. There are also nightly financing debits and credits that are applicable. These debits and credits apply to all positions held at 5 pm Eastern US Time (generally 10 pm UK time), just like on a Forex position. You can see how much you will pay or earn for every contract held at 5 pm in the RollS and RollB fields in your Trading Station's Dealing Rates window. You can read more about how Finance Charges are calculated in the CFD Product Guide.

What are CFDs?

FXCM uses a "lot-based" trading system. This allows our platform to aggregate all client positions into standardized trade sizes, simplifying the process of trading in several different markets on one account. It also allows the platform to track profits and losses, as well as account balances such as margin and equity, all in one currency. This greatly simplifies a trader's profit, loss, and risk calculations.

For all equity indices except the SPX500, when trading 1 contract you will have 1 pip of profit or loss for every 1 point that the CFD price moves. For the SPX500, you will have 1 pip for every 0.1 point move in the CFD price.

Irish Low Cost Share Online and Telephone Trading provided by Sharewatch Ireland