A Division of Commodity Futures & Options Service, Inc.
   FOREX BROKER  /  COMMODITY FUTURES BROKER  /  OTC METALS BROKER
    Investment Opportunities in Global Commodity Markets Since 1988

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We broker commodity futures, broker forex spot, broker forex options and broker OTC metals. For all of your online forex broker, online forex options broker, online OTC spot gold broker, online OTC spot silver broker and online commodity futures broker needs you only need one broker - CFOS/FX.  All of the professional brokers at CFOS/FX are licensed by the National Futures Association and are qualified to provide you with the following services: forex broker, forex options broker, commodity futures broker, commodity options on futures broker, OTC spot metals broker, OTC spot metals options broker and forex and futures consulting.  Commodity Futures and Options Service, Inc. is located in Houston, Texas. CFOS/FX provides both online and telephone brokerage services to retail and commercial clients.  Customer satisfaction is our top priority and we look forward to having you as our client.

FOREX FREQUENTLY ASKED QUESTIONS (FAQ's)

1.  What is foreign exchange?
2.  Where is the central location of the forex market?
3.  Who are the participants in the forex market?
4.  What are the most commonly traded currencies in the forex market?
5.  How are currency prices determined?
6.  When is the FX market open for trading?
7.  What is the difference between an "intraday" and "overnight position"?
8.  How is risk managed?
9.  What margin rates are required to open (purchase/sale) and hold (maintain) a position?
10.  Will I be assigned a broker to work with or can I choose one that I prefer?
11.  How much money do I have to keep in my account once it is open?
12.  Are there any monthly or annual account fees that I must pay?  Does CFOS/FX charge commissions for self-traders?
13.  How quickly can I open an account and how soon can I begin trading?
14.  How fast can I expect my fills to be returned to me?
15.  Where are my funds held?
16.  How do I deposit or withdraw money from my account?
17.  Can I transfer an account from another firm to CFOS/FX?
18.  Can I assign my CFOS/FX broker the right to trade a system on my behalf for my account?
19.  Does CFOS/FX offer assistance for traders who want to invest in regulated futures markets?
20.  Is Commodity Futures and Options Service, Inc. registered and regulated?
21.  What is CFOS/FX's policy regarding the privacy (non-disclosure) of client information?

1. What is Foreign Exchange?

   The foreign exchange market, also referred to as the "foreign currency," "forex" or "fx" market, is the largest financial market in the world with daily average transactions of approximately U.S. $2 trillion (according to 2004 BIS Survey).  The world's currencies are on a floating exchange rate and are traded in pairs, for example Euro/U.S. Dollar or U.S. Dollar/Yen.  Foreign Exchange is simply the simultaneous purchase of one currency and selling of another. 

2. Where is the central location of the forex market?

Forex trading is not centralized on an exchange, as with the stock and futures markets.  The forex market is considered an over-the-counter (OTC) market, due to the fact that transactions are conducted directly between two counterparties over an online trading platform, electronic network or via the telephone.

 

3. Who are the participants in the forex market?

   The forex market is referred to as an "interbank" market due to the fact that it has historically been dominated by various government central banks, commercial banks and investment banks.  However, the percentage of other market participants is rapidly growing and now includes large multinational corporations, global money managers, registered dealers, futures traders, options traders and private speculators.

    

4. What are the most commonly traded currencies in the forex market?

   The most often traded or "liquid" currencies are those of countries with stable governments, respected central banks and low inflation.  Most forex transactions involve trading of the "major" currencies which include the US Dollar, Japanese Yen, Eurocurrency, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.

    

5. How are currency prices determined?

   Currency prices are affected by a variety of economic and political conditions, the most important of which are interest rates, inflation and political stability.  Moreover, governments sometimes participate in the forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price.  This is known as central bank intervention.  Any of these factors, as well as large market orders, can cause high volatility in currency prices.  However, the size and volume of the forex market makes it virtually impossible for any one entity to "drive" the market for any length of time.

    

6. When is the forex market open for trading?

   A true 24-hour market, forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York.  The forex market is typically open 24 hours a day from Sunday until Friday 4:00pm ET, except on scheduled holidays (exact times may vary by FCM or Dealer).

    

7. What is the difference between an "intraday" and "overnight" position?

   Intraday positions are all positions opened anytime during the 24 hour trading period.  Overnight positions are positions that are still on at the end of normal trading hours (typically around 4:00 pm CST), which are automatically rolled-over at competitive rates (based on the currencies interest rate differentials) to the next day's price.

    

8. How is risk managed?

   The most common risk management tools in forex trading are the limit order and the stop-loss order. Please see "Types of Orders" webpage.  Forex options are also commonly used to help manage and/or hedge risk exposure.

    

9. What margin rates are required to open and maintain a position?

   CFOS allows customers to execute margin trades at up to 100:1 leverage in the spot market (depending on what type of account you open and the particular FCM/Dealer), and much greater leverage for options contracts.*  This means that investors can execute trades worth $100,000 with an "initial margin" requirement of $1,000.  However, if an account balance breaches the "maintenance margin" requirement the open position may automatically be closed (offset) at the current rate.  At the discretion of the FCM/Dealer, maintenance margin rates may be increased from time to time, especially before a weekend or holiday, to account for unexpected price volatility that can occur while the markets are closed.  If you are unsure how forex spot and options margins work, please click here.

    

10. Will I be assigned a broker to work with or can I choose one that I prefer?

    You are free to choose your own broker or have one assigned to you - we simply want you to be comfortable with your broker.  Feel free to check out our Staff Profiles page for more information about our brokers.

     

11. How much money do I have to keep in my account once it is open?

    Once your account is open, there is no minimum balance requirement beyond the margin rates for any positions held in your account.

     

12. Are there any monthly or annual account fees?  Does CFOS/FX charge commissions for self-traders?

    None.  CFOS/FX and the respective forex FCM are compensated through the bid/ask spread.

     

13. How quickly can I open an account and how soon can I begin trading?

    Depending on the FCM or dealer, new accounts can be opened and ready to trade in as little as 24-72 hours (with funds wired into the account).

     

14. How fast can I expect my fills to be returned to me?

    For online accounts, market order fills are returned to you instantaneously.  If you are placing a market order via telephone with a CFOS/FX broker, often you can have your fill back while you hold.  Fill reporting times may vary depending on the type of order placed and the condition of the market when your price is hit.

     

15. Where are my funds held?

    Self-directed over-the-counter forex accounts are held in the name of the respective FCM/Dealer.  Unlike commodity futures markets, forex account funds are not required to be maintained in a customer segregated account and, therefore, otc forex customer funds may not receive such protections afforded to customer-segragated accounts.

     

16. How do I deposit or withdraw money from my account?

    Withdrawals or deposits can be made by check or wire transfer (this may vary by FCM/Dealer).

     

17. Can I transfer an account from another firm to CFOS/FX?

    Yes, you can. Simply complete a transfer request form and complete the new account form.

     

18. Can I assign my CFOS/FX broker the right to trade a particular system on my behalf for my account?

    Yes. However, each trading system has different requirements and CFOS/FX reserves the right to accept or refuse to trade a system on behalf of a client.  Each system will be reviewed on a case-by-case basis.

     

19. Does CFOS/FX offer assistance for traders who want to invest in regulated futures markets?

    Yes.  CFOS/FX is a division of Commodity Futures and Options Service, Inc., an independent Introducing Broker in the commodity futures markets.  CFOS has long-standing clearing relationships with the following FCMs (FCM's): Man Financial and R.J. O'Brien.  If you would like to trade futures or options on futures, simply contact us and we will be more than happy to discuss the opportunities available in the futures and options on futures markets through CFOS/FX.

     

20. Is Commodity Futures and Options Service, Inc. registered and regulated?

    Yes, Commodity Futures and Options Service, Inc. is registered with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).  We are proud of our regulatory record and, if you would like, you can view our regulatory record and regulatory history on the NFA website; simply click here.

     

21. What is CFOS/FX's policy regarding the privacy (non-disclosure) of client information?

    The confidentiality of client information is strictly enforced at all times and we will never exchange, sell or give away any of your personal information.  Please review our Privacy Policy for more details.

     

CFOS/FX is a futures and forex broker offering online forex trading platforms in both spot forex and forex option trading markets as wells as OTC spot gold, OTC spot silver and commodity futures.  The professionals at CFOS/FX broker forex spot contracts and broker forex option trading for both individual and commercial futures and forex clientele.  CFOS/FX, as an entity, acts only as a futures and forex brokerage and does not actively manage futures or foreign currency trading accounts for clients.  Regarding forex markets, CFOS/FX is a forex option broker and a spot forex broker acting an the Introducing Broker; CFOS/FX does not act as counter-party for client forex trading or forex option trading.