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.

CFOS/FX TRADER - FXDD - Spot Forex Platform Details

$5,000 USD (Standard) or $500 USD (Mini) Minimum Initial Deposit

FOREX SPOT MARKET OVERVIEW

"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.

Until recently the forex market has not been available to the small speculator.  The large minimum foreign currency transaction sizes and financial requirements left this market in the hands of banks, major foreign currency dealers and the occasional large fx speculator.  Now, with the ability to leverage large positions with a relatively small amount of capital (margin), the forex market is now more liquid than ever and available to most investors.  

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.  Official figures show the U.S. Dollar is on one side of 83% of all spot foreign exchange transactions.  The "spot" market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days.

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.

CURRENCY TRADING MINIMUMS

Minimum forex trading account amounts are as follows: 

- Standard 100K Account:  $5,000 USD minimum initial investment

- Mini 10K Account:  $500 USD minimum initial investment

Please note: once the forex trading account is open and funded, it is acceptable if the account balance drops below the minimum initial account size, provided the balance of the account does NOT fall below the maintenance margin requirements.  If you are unsure how margins work for this forex account, please click here.

FOREIGN CURRENCY CONTRACT DESCRIPTIONS

- Standard 100K Account:  Standard $100K contract size and traded in increments of $100K.  Rollover occurs at 5pm EST and the trading platform may not be accessible for 15 or 20 minutes. 

- Mini 10K Account:  Standard $10K contract size and traded in increments of $10K.  There is a maximum 20 contracts ($200K notional contract value) allowed per currency pair.  Rollover occurs at 5pm EST and the trading platform may not be accessible for 15 or 20 minutes. 

FOREIGN CURRENCY PAIRS & TARGET DEALING SPREADS

PHONE DEALING

If at any time you require the services of a forex broker on the CFOS/FX forex trading desk, we are available 24 hours a day for your convenience.  Should you wish to engage in phone executions rather than online foreign exchange trading, clients are given telephone numbers directly to the forex FCM's foreign exchange trading/dealing desk.  Professional online forex brokers are available 24 hours a day to assist you.

For proper phone trading procedure, please click on the following link:  Phone Etiquette

ORDER TYPES

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.

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.  To be clear, CFOS/FX online currency clients will automatically receive a better price if the bid or offer improves while you are executing, and if the price becomes worse, then your market order may be automatically executed at a less desirable price.

(1)  Market Orders to Buy are executed at the Ask or Offered side of the market

(2)  Market Orders to Sell are executed at the Bid side of the market

(3)  When the Order is Placed and Confirmed, the order will be executed at the current quoted foreign exchange rate regardless of where the level was when the order was placed

An example of a market order is shown below:

- 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.

(1)  Buy Limit orders are placed below the current market price

(2)  Sell Limit orders are placed above the current market price

(3)  It is possible that Limit Orders may not be executed at the specified market price even if it trades at the level.    Execution depends on market liquidity at the time the order is to be executed.  If the market is gapping, the executed price may be different than the Limit Order

An example of a limit order is shown below:

- Stop Orders.  A stop order is a type of limit order that is placed 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.

MARGINS

** 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 100:1 in the "Standard 100K Account" and up to 200:1 leverage in the "Mini 10K Account."  This simply means that an investor can leverage a forex contract worth $100,000 with an initial margin requirement of only $1,000 in the "Standard 100K Account, and can leverage a forex contract worth $10,000 with an initial margin requirement of only $50 in the "Mini 10K Account."

Initial margin requirement is based on the standard leverage available (either 200:1 or 100:1 depending on the type of account).  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 by the client via 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 the discretion of the foreign currency FCMs, margin rates may be increased from time to time to account for unexpected price volatility that can occur in the forex markets.

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.

ROLLOVER TRANSACTIONS

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 

RISK DISCLOSURES

Forex trading is not appropriate for every investor.  Please click on the "forex risk disclosures" link at the bottom of the page for an explanation of risks involved in forex trading and trading online forex, 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.