A Division of
Commodity Futures & Options Service, Inc.
FOREX BROKER / COMMODITY FUTURES BROKER
/ OTC METALS BROKER
Investment
Opportunities in Global Commodity Markets Since 1988
Live Chat M-F 7am-4pm CST
or
Contact Us offline
24hrs/day
| GETTING STARTED |
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| NEW AT CFOS/FX |
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| OTHER SERVICES |
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| CONTACT CFOS/FX |
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Telephone: |
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Toll-Free: 877-423-6739 |
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(U.S. & Canada) |
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International: 713-622-7774 |
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Mailing Address: |
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CFOS/FX |
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2425 W. Loop South, Ste 601 |
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Houston, TX 77027 USA. |
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Fax: 713-439-0045 |
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Email: info@cfosfx.com |
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.
IKON PLATINUM - Spot Forex/Metals Platform Details
$1,000 USD Minimum Deposit (Trade standard and mini contracts in same account)
Please note: You may trade vanilla forex options from the Core Options platform and from the Ikon Platinum platform trade underlying spot forex - all in the same account. To clarify: you only need to open one account (the Core Options and Ikon Platinum trading platforms will both be linked to the same trading account).
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Click on the links below for more IKON PLATINUM info: |
FREE SPOT & OPTIONS DEMO |
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OPEN ACCOUNT |
Risk Mgmt & Hedging |
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* TRADE SPOT & VANILLA OPTIONS | ||
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* 3-5 Pip Spread on Spot Majors | ||
| * Cross-Margin Spot & Options | ||
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* Live Streaming Quotes | ||
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* Free News, Charts & Research | ||
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* No Commissions or Fees** | ||
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**CFOS/FX is compensated through the bid/ask spread for otc forex/metals trading | ||
"Forex" and "FX" are simply abbreviations of "foreign exchange" and refer to over-the-counter currency markets. Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that's over 30 times the daily volume of NASDAQ and NYSE combined). The forex market is a cash interbank/interdealer market. In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide. CFOS/FX clients can trade through online forex trading platforms and/or over the telephone directly with a forex broker on our trading desk.
Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs, also known as crosses, in the forex spot market. For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar. Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar.
Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated. New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies. Today, supply and demand for a particular currency is the driving factor in determining exchange rates. Many factors such as regularly reported economic figures and unexpected news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency.
Please note: daily trading volumes of NASDAQ and NYSE were obtained from Bloomberg.com; daily trading volume of forex was obtained from the Bank of International Settlements (BIS) survey released in September 2004.
FOREIGN EXCHANGE TRADING HOURS
The forex spot market is open 24 hours a day from Sunday 4:00 pm CST through Friday 3:00 pm CST, except on scheduled holidays (hours may vary by dealer). There may be a brief period of time during daily rollover when trading is stopped to properly rollover all open spot positions.
The minimum account deposit is $1,000 USD
Please note: once the FX trading account is open and
funded, it is acceptable if the FX trading account balance drops below the minimum initial
account size, provided the balance of the account does NOT fall below the margin
level requirements.
If you are unsure how margins work in the FX
market, please click here
FOREIGN CURRENCY CONTRACT DESCRIPTIONS
- Typically $100,000 (standard) notional
contract size
- Typical tick
size (one pip) = $10 per $100,000 notional contract value for currency pairs
with USD as quote currency (actual tick values will vary depending on the base
and quote currency)
- Mini contracts are only available for the
most liquid currency pairs such as the EUR/USD and USD/JPY. Currency pairs
available for mini trading and the respective minimum notional contract size
depends on liquidity.
- Rollover occurs at 5pm ET and the trading platform may not be accessible for 15 or 20 minutes.
- XAU/USD and XAG/USD, at times of illiquidity such as at
the daily close of the London Metals Exchange, may not be available for trading
for short periods of time.
- XAG/USD trading available only by calling the dealing
desk directly. *The 24-hour phone dealing desk is only available for live
clients, and not demo clients.
***If you are trading both spot and options in this
account, only the Core Options platform provides a complete snapshot of
both forex spot and option
P/L, margin requirement and account values.
FOREIGN CURRENCY PAIRS & TARGET DEALING SPREADS
| CURRENCY PAIR |
SPREAD |
CURRENCY PAIR |
SPREAD |
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| EUR/USD | 3 pips | CAD/JPY | 5 pips | |
| USD/JPY | 3 pips | CHF/JPY | 6 pips | |
| GBP/USD | 5 pips | CAD/CHF | 5 pips | |
| USD/CAD | 5 pips | AUD/GBP | 7 pips | |
| AUD/USD | 5 pips | EUR/CAD | 7 pips | |
| USD/CHF | 5 pips | AUD/CAD | 10 pips | |
| EUR/JPY | 5 pips | EUR/AUD | 10 pips | |
| EUR/GBP | 5 pips | NZD/JPY | 8 pips | |
| EUR/CHF | 5 pips | NZD/CHF | 8 pips | |
| GBP/JPY | 10 pips | EUR/NZD | 15 pips | |
| GBP/CHF | 10 pips | NZD/CAD | 12 pips | |
| AUD/JPY | 10 pips | AUD/NZD | 15 pips | |
| NZD/USD | 5 pips | GBP/NZD | 25 pips | |
| XAU/USD | .40 | AUD/CHF | 7 pips | |
| XAG/USD | .02 |
**Spreads may widen during volatile market conditions
- Mini contracts are only available for the most liquid currency pairs such as the EUR/USD and USD/JPY. Currency pairs available for mini trading and the respective minimum notional contract size depends on liquidity.
- XAU/USD and XAG/USD, at times of illiquidity such as at the daily close of the London Metals Exchange, may not be available for trading for short periods of time.
*The 24-hour phone dealing desk is only available for live clients, and not demo clients.
*The 24-hour phone dealing desk is only available for
live clients, and not demo clients.
There is no addition cost to to execute a
trade through a live broker.
For phone trading procedure, please click on the following
link: Phone Etiquette
The online currency trading platforms offered through CFOS/FX allow you the flexibility to enter a wide variety of order types including:
- Market Orders. A market order is an order to buy or sell a specific currency, which is to be filled immediately at the online current exchange rate quoted on the screen. Please note that fills may be much better or much worse if you attempt to trade during fast, volatile markets (such as around economic report releases, etc.)
Each of the online currency trading platforms offered through CFOS/FX offers our clients real-time streaming prices with fast, easy and efficient one-touch order execution. The market order allows the online currency trading client to follow the real-time bids and offers on the screen that can be executed with a click of the mouse. The most advantageous aspect of the market order is the ability for the trader to capture better fills. In simplest terms, CFOS/FX online currency trading clients will be offered a better price if the bid or offer improves while you are executing. However, if your price becomes worse, the foreign currency trading platform will warn you of the change (via an instant online requote) and confirm your desire to execute your transaction prior to providing a confirmation.
- Limit Orders. An order to buy or sell a currency pair, which is executed when the forex trading price is breached. For example, you place an order to buy 100,000 euro at 1.0950. The online forex trading platform will automatically fill your order when the offer reaches 1.0950. Limit orders can be placed to both buy and sell foreign exchange contracts.
- Stop Orders. A stop order is a type of limit order that is placed to attempt to "lock in" a specified gain or loss, closing the position. Typically a risk management order used by online forex trading clients to help manage their market exposure, this type of order can also be used to enter into a new position. Stop orders can be used to both buy and sell foreign exchange contracts.
Please note: A stop loss is designed to protect traders from excessive losses in the event that a market's price dramatically changes in one direction or another. As a general rule of thumb, even professional traders with years of experience should utilize stop losses. Traders should establish a threshold of pain before entering into a trade and set a stop loss at said level. When and if the price moves to the stop loss the trade will be closed. Stop losses do not guarantee that the trader will be protected from loss. In certain market conditions the stop loss will be filled at the next available price which may be at a different price than the trader has specified, and could potentially be significantly higher or lower than the desired price.
The traditional "stop-loss" order is used by online forex trading clients to prevent losses in excess of pre-determined acceptable risk levels. Virtually all professional online foreign currency traders determine both their profit targets and risk levels prior to entering each and every trade. For example, if you bought GBP/USD at 1.7480 you could enter a stop-loss order to sell at, say, 1.7460. This would effectively limit your potential loss on the position to 20 pips if the price fell.
The "trailing stop" is used by online currency trading clients to lock in profits. For example, if you bought GBP/USD at 1.7480 and the online forex trading price has risen to 1.7520, giving you a profit of 40 pips, you may want to attempt to lock in a certain amount of that profit in case the price falls back down. On the online forex trading platform, you would simply place a stop order to sell at, say, 1.7510. This assures that if the forex trading price does drop, your position will be closed automatically with a profit of 30 pips. If the forex trading price keeps increasing and the position becomes even more profitable, the trader may move his or her trailing stop up yet again, thereby "locking in" more profits.
The stop order can also be used to enter into a new position. For example, if the EUR/USD is currently trading at 1.3200 and you believe if the market breaches an expected support-level of 1.3185 that the EUR/USD will continue to fall in price until it reaches a lower support level around, say 1.3150, then you could place a "sell-stop" order at 1.3180. The sell-stop order will trigger an automatic order to sell at market price once the EUR/USD is 1.3180 bid, allowing you to potentially capture currency trading profits from the expected downward price movement. Conversely, if the EUR/USD is currently trading at 1.3200 and you believe if the market breaches an expected resistance-level of 1.3225 that the EUR/USD will continue to rise in price until it reaches a higher resistance level around, say 1.3260, then you could place a "buy-stop" order at 1.3230. The buy-stop order will trigger an automatic order to buy at the market once the EUR/USD is 1.3230 offered, allowing you to potentially capture profits from the expected upward price movement.
It is important to note that, by convention, buy limit and sell stop orders are entered in below the current market price. Sell limit and buy stop orders are entered in above the current market price.
- GTC or GTM Orders. "GTC" simply stands for "good-til-cancelled" and is fairly self-explanatory. When a GTC order is placed, the order will remain in effect ("good") until it is cancelled by the trader. For example, if you place an order to buy 3 EUR/USD at 1.2700 "GTC," then the order will remain in effect until you cancel it. "GTM" stands for "good-til-market close," meaning the order placed will only be good until the close of daily trading (4 p.m. CST rollover) and will be automatically cancelled at that time.
- "OCO" Orders. "OCO" stands for "one-cancels-the-other" or "order-cancels-order." An OCO order is used when two separate orders are placed but only one fill is required by the trader. For example, if you bought EUR/USD at 1.3240 you could then simultaneously place a sell limit order at 1.3270 and a sell-stop at 1.3220 "OCO." You would then effectively have your profit target order in place while simultaneously protecting yourself with a stop-loss if the market moved against your position. If one order or the other order was to get filled, then the remaining order would immediately and automatically be cancelled. Please be aware that in fast markets, due to extreme price volatility, you may be unable to place an OCO order where one or both of your orders are too close to the market (the current price).
- "If Done" Orders. An "if done" order is placed to automatically enter a new order "if" the original order gets "done" (gets filled). This order allows our online forex trading clients freedom to work on other strategies or other business rather than having to constantly monitor the markets waiting for his or her original position to get filled before placing a new order. You could use an "if done" order in the following instance: you want to sell and you believe the current price of GBP/USD at 1.9270 is too low, but you would like to sell if the price rises to 1.9290. Further, you also want to protect yourself with a stop-loss believing in case the price continued to rise above and beyond your projected sell at 1.9290. You could place a sell-limit order at 1.9290 to effectively enter the market at your price, and you could also state "if done" place a buy-stop at 1.9305 to protect yourself from prices continuing to rise and move against your position. The net effect of your order is that "if" and when your order gets "done," then the buy-stop order would immediately and automatically be placed as protection.
*Please note: All of the above trade examples are not actual trading recommendations. The above examples are for informative and educational purposes only.
*CROSS-MARGINING: Spot and Options on Spot positions are cross-margined (the margins are combined to account for decreased risk exposure) in this account.
**Leveraged trading can lead to potentially large losses as well as gains. Please read our Risk Disclosure for detailed information.
Since each online forex trading platform offered through CFOS/FX is based on leveraged products, each forex spot transaction requires a margin deposit that ensures credit-worthiness. Minimum allowable margin levels are set by the National Futures Association. The actual margin levels and policies are outlined in the account opening documentation and are the decisions of each forex FCM's credit committee. CFOS/FX clients can utilize leverage of up to 50:1 in the forex spot market. This simply means that an investor can leverage a forex contract worth $100,000 with an initial margin requirement of only $1,000.
Initial margin requirement is based on the standard leverage available (50:1). Maintenance Margin level is considered the "safety level" whereby a client has adequate funds in the account to hold open positions. Margin Call level is reached when the FCM feels the client no longer has adequate funds in the account to appropriately margin open positions, and the account is in jeopardy of falling to a zero balance. A Margin Call is a request by the FCM for a client to deposit additional funds into his or her trading account to adequately margin open positions. Margin Calls should immediately be satisfied with a wire transfer. If a Margin Call is not immediately met by a client, then either a portion or all open positions may be closed at the FCM's discretion. At IKON Global Markets, the Initial Margin requirement is also the Maintenance Margin requirement (there is only one margin level, and it should not be breached).
At the discretion of the foreign currency FCMs, 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 forex markets are closed.
***If you are trading both spot and options in this account, only the Core Options platform provides a complete snapshot of both forex spot and option P/L, margin requirement and account values.
If you are unsure how margins work in the forex market, please click here. Also, please feel free to contact us to discuss the nature of leverage and margins to ensure your complete understanding of the leveraged nature of forex trading and/or view our forex risk disclosures.
Each spot foreign exchange transaction executed through CFOS/FX is basis the standard two day value date confirmation. Upon reaching the value date, each transaction is automatically rolled over to the next value date. Rollover occurs at 5pm EST and the trading platform may not be accessible for 15 or 20 minutes. When a currency pair is rolled over to the next value date, there is either a cost or a credit to such a transaction. Wednesday rollover is used to compensate for Saturday and Sunday interest that is unaccounted for while the markets are closed on those two days. Any open spot positions held at rollover on Wednesday will experience three days worth of credits or debits in the account. For additional information, please click on the following link: How to Calculate Rollover Interest
Foreign exchange option trading is not appropriate for every investor. Please carefully read our risk disclosures page for an explanation of risks involved in forex trading, including a detailed explanation of leverage.
*Disclaimer: Foreign exchange trading, foreign exchange investments and commodity futures trading and investments are not suitable for everyone. Forex trading and commodity futures trading carry a high level of risk and the possibility exists that you could sustain a loss of all or more of your currency trading or commodity futures trading investment. Before you decide to trade foreign currency options, trade foreign currency spot markets or trade commodity futures you should be aware of all risks associated with currency trading and futures trading. If you would like more information about the risks of forex trading, commodity futures trading and of online forex trading and online futures trading, please contact a CFOS/FX futures and forex broker to discuss online foreign currency trading risks and/or commodity futures trading risks in detail.
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.