CFDS

Sharewatch Ltd is regulated by the Financial Regulator. All Trading will be executed, cleared and administered byForex Capital Markets Limited (FXCM) a company authorised and regulated by the Financial Services Authority. Registration number 217689.. FXCM Inc. is a publicly traded company listed on the New York Stock Exchange (NYSE: FXCM). Risk Warning. Execution Risks.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.

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

“With our CFD’s and FOREX Trading you do not lose more than your initial deposit.”

Gold CFD’s

Oil CFD’s

CFD Product Details

CFD Q&A

Stock Indices CFD’s

* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader.
† Without proper risk management, currency and CFD trading has a high degree of leverage that can lead to large losses as well as gains.
** Re-quotes occur when a trader makes an order at a specific price, but the order is rejected by a trading desk, and the trader is given a new price to accept or reject. Re-quotes can slow down your trading. FXCM cannot re-quote forex orders because those orders operate on straight through processing. FXCM also maintains a no re-quote policy for indices, metals, and oil, although those orders do not operate on straight through processing. Orders are executed at the best price available within the trader's parameters, subject to market liquidity at the time.

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 that allow 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.

When I trade a CFD, how much am I trading?

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.

For Oil, Gold, and Silver, you will have 1 pip of profit or loss for every cent the CFD price moves.

You will notice that for all CFD products, the last digit quoted in the price is the "pip".

What is the margin/leverage?

Under most circumstances, initial margin will be roughly 1 percent of the full contract amount, (providing a leverage of about 100:1). You can see the margin requirements for all CFDs in the CFD Product Guide.

Margin can be thought of as a good faith deposit that is required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. Margin requirements are determined by taking a percentage of the notional trade size plus a small cushion. A cushion is added to help alleviate daily/weekly fluctuations. You can read more about margin and how it works at

http://www.fxcm.co.uk/forex-margin-rollover-leverage.jsp.

Please be advised that trading on margin carries a significant risk of loss and is not suitable for all investors.

Are there requotes?

No, FXCM offers CFDs with no requotes.

Re-quotes occur when a trader makes an order at a specific price, but the order is rejected by a trading desk, and the trader is given a new price to accept or reject. Re-quotes can slow down your trading. FXCM cannot re-quote forex orders because those orders operate on straight through processing. FXCM also maintains a no re-quote policy for indices, metals, and oil, although those orders do not operate on straight through processing. Orders are executed at the best price available within the trader's parameters, subject to market liquidity at the time.

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.

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.

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.

FACTS ABOUT FXCM, INC.

Due to the average notional trading volume that FXCM generates; FXCM has obtained close banking relationships with some of the most aggressive price providers. Having multiple price providers is especially important in volatile markets, when one or two banks may post wide spreads, or simply avoid quoting any price at all. With so many major banks quoting prices to FXCM, there are competitive spreads, even during market-moving news events.

FXCM does not take a market position—eliminating a major conflict of interest. A dealing desk broker, which acts as a market maker, may be trading against your position. However, with our No Dealing Desk Forex Execution, we fill your orders from the best prices available to us from the banks. While an individual bank may try to skew its prices off the market, the unattractive price on the bid or ask side will lose the price competition and as a result, not factor into the prices streamed to