James Dicks Blog
 


How can FXDD offer smaller trading sizes?
What is the difference between the FXDD mini account and a regular account?
How does the margin call work?
Do you charge a commission on the mini account?
Can I send a personal check to fund my FXDD mini account?

Smaller trade sizes pose several challenges to foreign exchange firms. There are two primary issues that have prevented firms from offering smaller trade sizes: high labor costs and risk management. To offer smaller trade sizes, most firms would have to hire more dealers, which would make the cost exorbitant. The FXDD Mini account features automatic execution for most accounts. All trades are executed without human intervention (just like a demo account). This keeps labor costs low. The second issue is risk management. The smaller size trades offered on the FXDD Mini account are difficult to offset in the broader market. FXDD has developed a proprietary risk protocol for the FXDD Mini, which involves aggregating volume into sizes that can be offset in the broader market. (Top)

The FXDD Mini account is designed to introduce traders to the excitement of trading currencies online and for those with limited investment capital. With a Mini account, you trade using the same platform as our regular traders. With as little as $300, a trader can open a FXDD Mini account and begin trading foreign exchange with FXDD. On the Mini trading platform all trades are executed in standard sizes of 10,000 base currency per one lot, 1/10th the size of a regular account. The smaller trade sizes enable traders to take smaller size risks. The FXDD Mini account also serves to introduce clients to trading with FXDD. (Top)

If the equity balance in your account falls below the margin requirement, a margin call will be generated. In the event that an account exceeds its maximum allowable leverage, ALL open positions will be liquidated immediately, regardless of the size or the nature of positions held within the account. For example, a FXDD Mini account with 8 lots in open positions would need to have $400 in account equity. If the account equity falls below $400 due to trading losses, the entire 8 lots would be liquidated at market price. Clients are not notified prior to the liquidation of their positions. (Top)

No. FXDD charges no commission or transaction fees to trade an FXDD Mini account. As the leading player in online currency trading, FXDD receives and is able to pass on the benefits of size to our clients. FXDD is compensated for its services through the bid-ask spread. (Top)

No. FXDD does not accept personal checks for Mini accounts. Funds may be sent via wire, Certified, Official or Bank Check, ALL checks must be sent to the address and Name on the applications. (Top)



Premierefx™ is a trademark of Premierefx™, LLC and any related products, are analytical tools only and are not intended to replace individual research or licensed investment advice. Unique experiences and past performances do not guarantee future results! Testimonials are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading stocks, options and spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. No representation is being made that any software or training will guarantee profits or not result in losses from trading. Neither the software programs, any explanation or demonstration of their operation, nor any training held in conjunction therewith, including, without limitation, through online chat, radio programs, during in-person seminars or otherwise, should be construed as providing a trade recommendation or the giving of investment advice. All purchasers of software or other products owned by Premierefx™, LLC are encouraged to consult with a licensed representative of their choice regarding any particular investment or investment strategy. Prices and offers are subject to change without notice. All shipping & handling charges are non-refundable.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange 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 investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.


 

 

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