Thread: upgrading to a standard account, some questions.

I have a micro account and I am thinking to upgrade to a standard account, but I have some questions as they are the major deciding factor for this move, baring in mind that I am NOT a resident of the united states.

1. What is the leverage on the standard account?

2. Can I still use the hedging functionality?

3. I am NOT a U.S resident can I withdraw the amount deposited with the credit card back to the same card (lets say the 2000$ initial deposit to open the account), and is there any time frame for this procedure, is the withdrawal to the same card valid for a month or two or ANYTIME?

4. What if the account drops to 500$ or less, what is the minimum amount required to fund the account(in the micro account the minimum deposit amount is 25$)

5. Is there a minimum amount that should be left in the account to make it active?

Thank you.

Hello egtrader, and thank you for your post!


What is the leverage for FXCM Standard accounts?

The maximum leverage for a standard FXCM LLC (US) account is 50:1. The maximum leverage for both standard FXCM LTD (UK) and FXCM AU (Australia) accounts is 200:1. Please click on one of the links below for more information:

FXCM LLC (US) | FXCM LTD (UK) | FXCM AU (Australia)

Why Is lower leverage important?

One of the main reasons that new traders lose money is because they over-leverage their account by opening too large of a position, too many positions, or a combination of both. When you use excessive leverage, a few losing trades can quickly offset many winning trades. To clearly see how this can happen, consider the following example:


Scenario: We have four different traders trading on different levels of effective leverage.

Question: What happens to Trader A account equity when the USD/JPY price falls 100 pips against him?

Answer: Trader A loses 41.5% of his / her account equity.

By using lower leverage, Traders B, C, and D drastically reduce the dollar drawdown of a 100 pip loss. Please keep in mind that it is not uncommon for currency pairs to range at least 100 pips a day. By over-leveraging his account, Trader A has lost almost half of his equity with just one trade. We believe that using 10:1 effective leverage on an account is a good general rule of thumb, or never having more than 1K of open exposure for every $100 of equity in the account.

Does lower leverage really work?

FXCM’s experience in Hong Kong, where significantly lower leverage levels are mandated by law, suggests lower leverage results in more successful trading. As another example, many professional traders use up to 8:1 leverage and typically much less. The reason to use low leverage is to make sure that that a losing position does not make a significant negative impact on the overall account.


How can I use lower leverage?

The DailyFX.com Research and Education team has created a variety of trading videos to help you identify trading opportunities using lower leverage. To learn more about money management and the benefits of trading with lower leverage, log into the DailyFX+ Trading Course. Once you are logged in simply click on "Money Management" on the left.

Where can I find more information about Margin and Leverage?

For more information please visit our Margin and Leverage FAQs (Margin Trading and Leverage FAQ).


How do I open an FXCM account that allows me to hedge?

Clients with any FXCM LTD (UK) or any FXCM AU (Australia) account can hedge their positions. If you do not reside in the United States then yes you will be able to open an account with hedging enabled.

Please click on the link below that corresponds to what type of account you have if you have an FXCM LLC (US) that you would like to convert into an FXCM LTD (UK) account.

FXCM Standard | FXCM Micro

Please Note: Proof of residency will be requested upon submitting your application or your transfer request.


I reside in the United States. Can I open an FXCM LTD (UK) account so that I can hedge my positions?

New CFTC rules (as per Dodd Frank Act) require all US and overseas brokers to register with the CFTC in order to be able to accept US residents as clients, and will prohibit US clients from trading Forex with any broker that is not regulated in the US. For that reason it is required for clients residing in the United States that would like to trade forex and do business with us to open an account with our FXCM LLC (US) entity. Please click here for more information.

If you can provide proof of residency outside of the United States then you can open an account with our FXCM LTD (UK) entity.


With an FXCM Standard account can I make a withdrawal back to the debit card or credit card that I deposited with?

Yes you absolutely can egtrader! There is no time limit for this type of withdrawal. As long as your debit card or credit card is still valid you can make a withdrawal to the card you deposited with at anytime.

Standard accounts also have the functionality of trading micro lots (increments of 1K) available and offer many advantages over micro accounts. One of the benefits of having a standard account is having multiple methods of withdrawing funds for free (Withdrawal FAQ). Some more of the advantages to holding a standard account include but are not limited to:

• 24/7 technical support via chat, email, or phone

• FXCM LTD (UK) accounts can trade CFDs and Stock Indices

• Free mobile trading.

• Different account denominations.

• Different account types and platforms.

• Plus much more!

Please click here (Benefits of Upgrading to an FXCM Standard Account) for more information on the advantages of having a standard account.


What is the smallest deposit I can make after I bring the standard account up to the minimum starting balance of $2000?

In order to open a standard account the minimum starting balance is $2000. Once you have brought the account up to $2000, you can deposit as little as $100 at a time.


Is there a minimum amount that should be left in the account so that it remains active?

In order to open a standard account the minimum starting balance is $2000. Once you have brought the account up to $2000, the minimum balance to keep the account open is $50. If you have at least $50 in your account, then your account will stay open for trading and you will continue to have unlimited, free access to DailyFX+.


Please let me know if a standard account would be something of interest to you, and I would be more than happy to put you in touch with a specialist that can go over all your options. Thank you in advance for your time and I look forward to hearing from you soon.


Thank you again for your post egtrader! Please feel free to post with additional questions or contact me directly at julius@fxcm.com

Originally Posted by egtrader

I have a micro account and I am thinking to upgrade to a standard account, but I have some questions as they are the major deciding factor for this move, baring in mind that I am NOT a resident of the united states.

1. What is the leverage on the standard account?

2. Can I still use the hedging functionality?

3. I am NOT a U.S resident can I withdraw the amount deposited with the credit card back to the same card (lets say the 2000$ initial deposit to open the account), and is there any time frame for this procedure, is the withdrawal to the same card valid for a month or two or ANYTIME?

4. What if the account drops to 500$ or less, what is the minimum amount required to fund the account(in the micro account the minimum deposit amount is 25$)

5. Is there a minimum amount that should be left in the account to make it active?

Thank you.

Hi,
I currently have a micro account.
If I upgrade to standard account, is it possible to leave some cash on micro, and leave it open for testing purposes or I have to close it down.
thanks

Hello szali923, and thank you for your post! On behalf of myself and everyone here at FXCM, welcome to the forum community!


If I upgrade to a standard account can I leave some money in my micro account to leave it active?

Yes absolutely! As long as you leave at least 2.50 USD in a micro account, then the account will stay open for future trading. As for standard accounts, as long as you leave at least 50.00 USD in a standard account, then the account will stay open for future trading.

The minimum starting balance for a standard account is $2000. Please let me know if a standard account would be something of interest to you, and I will be more than happy to put you in touch with a specialist that can go over all your options. Thank you in advance for your time, and I look forward to hearing from you soon!


Thank you again for your post szali923! Please feel free to post with additional questions or contact me directly at julius@fxcm.com

Originally Posted by szali923

Hi,
I currently have a micro account.
If I upgrade to standard account, is it possible to leave some cash on micro, and leave it open for testing purposes or I have to close it down.
thanks

Hi,

I have a question regarding this statement below:

QUOTE
We believe that using 10:1 effective leverage on an account is a good general rule of thumb, or never having more than 1K of open exposure for every $100 of equity in the account.
UNQUOTE
1. When you said 1k of open exposures above, you meant 1k in $? ie. $1,000?
2. How I trade is I try not to risk more than 5% of my equity on open positions. For example, if my equity is $1,000, and I have two trades. For these 2 trades, I will have stop loss for these two trades, that will not exceed $100 (assuming all the stop losses levels are correct) because I'm trading on the worst case scenario that I would lose both trades. Is this correct?

No need to reply. Just watched the Money Management Video and got my answer. Thanks!

Originally Posted by johnny1

Hi,

I have a question regarding this statement below:

QUOTE
We believe that using 10:1 effective leverage on an account is a good general rule of thumb, or never having more than 1K of open exposure for every $100 of equity in the account.
UNQUOTE
1. When you said 1k of open exposures above, you meant 1k in $? ie. $1,000?
2. How I trade is I try not to risk more than 5% of my equity on open positions. For example, if my equity is $1,000, and I have two trades. For these 2 trades, I will have stop loss for these two trades, that will not exceed $100 (assuming all the stop losses levels are correct) because I'm trading on the worst case scenario that I would lose both trades. Is this correct?