How to open FXCM Forex and CFD Trading Account? Table of Contents
How to open FXCM CFD trading account?
With FXCM, you can open a Forex and CFD account for free from FXCM Official Website.
By opening a trading account with FXCM, you can start trading various markets in CFDs.
The available financial instruments include Forex pairs, Commodities, Precious Metals, Energies, Cryptocurrency, and more.
Why CFD trading with FXCM
CFD trading allows you to take advantage of the price movements of currencies, stock indices, and commodities such as gold and oil without buying the underlying product.
When you trade CFDs (Contracts for Difference) with FXCM, you reap the benefits that only a global leader can provide.
- Reduced Spread Costs
Lower spread costs can help your strategy execute more trades. - High Leverage Trading
The leverage limits on opening a position between 30: 1 and 2: 1 depending on the currency pair and the price volatility of the underlying asset. - Multi-Asset Platform
Trade forex, indices, and commodities from one simple and powerful platform. - Trade both on rising and falling trends
CFD trading is flexible, allowing you to take advantage of both rising and falling markets.
Why trade CFDs first of all?
A CFD, or Contract for Difference, is a financial instrument that allows two parties to exchange the difference between the opening and closing price of a contract.
These agreements allow the two parties to liquidate the final contract using cash instead of the physical asset.
This approach makes liquidation easier.
By trading CFDs, investors can receive the benefits associated with owning a stock without holding it.
Investors can hold these contracts to take long or short positions, speculating on future price movements of the underlying asset.
Alternatively, they can use these contracts to hedge their portfolios, helping to manage different types of risk such as the risk of falling prices.
1. Leverage
These contracts are also characterized by leverage, allowing investors to potentially generate more robust returns.
Investors who trade these contracts using leverage can only deposit a small fraction of the cost of the contract, so they can potentially generate a greater return on their investment.
Using leverage can also allow investors to trade CFDs with a much lower capital outlay.
The leverage limits on opening positions are set between 30: 1 and 2: 1, depending on the currency pairs and the price volatility of the underlying asset.
Investors should keep in mind that leverage is a double-edged sword.
Just as it can greatly amplify your profits, it can also greatly amplify your losses.
Trading CFDs with any leverage may not be appropriate for all investors.
2. Reduced Fees
CFD trading is characterized by low commissions. At the time of purchase, the trader pays the ask price.
When selling or taking a short position, the trader pays the bid price.
The spread between these two is generally fixed and its size depends on the volatility of the underlying.
FXCM also offers a Cashback Rebate Program.
What is spread, bid price and ask price?
3. Market open for 24 hours a day and 5 days a week
CFDs are traded 24 hours a day, 5 days a week.
Even if an underlying market is closed – the stock market, for example – an investor can still trade CFDs based on the major stock market indices.
Why trade with FXCM?
While CFDs offer investors all the benefits associated with owning a stock without actually having to own it, they also come with all the risks associated with owning that stock.
CFDs offer traders the ability to use significant amounts of leverage, but leverage can greatly amplify losses.
FXCM is a leading provider of not only forex but also CFDs, which means that trading with us will provide you with access to the benefits that only a top broker can provide. These include:
- Acclaimed Execution
- FXCM offers low spreads and anonymous execution, for most CFD transactions.
- Free level training
- With on-demand lectures, webinars, and real-time instruction, you have all the training you need at your fingertips.
Furthermore, it is possible to trade on our Trading Station, one of the most innovative trading platforms on the market.
Open a free demo account to start practicing forex trading today.
While we are proud to offer access to our proprietary Trading Station, we remind clients to consider whether they understand how CFDs work and whether they can afford to take the high risk of losing their money.
Please click "Introduction of FXCM", if you want to know the details and the company information of FXCM.
IronFX
Comment by Diletta
March 26, 2024
Awesome bonuses, good leverage. A few hiccups, but support rocks!