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 vs. STOCKS AND FUTURES

*Leverage can not only lead to exponentially large profits, it can also lead to exponentially large losses.  Please see the "Special note about leverage" below.

**CFOS/FX and the respective FCM are compensated through the bid/ask spread.

24-hour Liquidity.  The forex market is open 24 hours a day compared to the stock and futures markets offering only a limited number of issues or contracts that can become thinly traded and illiquid during the overnight trading sessions.  (depending on the forex FCM, forex platforms may temporarily close to allow for open positions to be rolled over).  If important data or news is released while certain U.S. markets are closed or somewhat illiquid, the market openings the next day could be extremely volatile.

Up to 100:1 Spot Leverage (much greater leverage available for options).  Stock margin requirements don't even come close to 200:1 leverage.  And neither stocks nor futures can compare to the extremely large leverage available in the forex options market.  In simplest terms, this means you don't need nearly as much money initially to leverage a larger position.  Spot forex leverage will vary depending on the account type and FDM. 

*Special note about leverage: The definition of leverage is as follows: "the use of credit or borrowed funds to improve one's speculative capacity and increase the rate of return of an investment, as in buying and/or selling forex contracts on margin." 

 

In simplest terms, this means you can choose to use a relatively small amount of initial capital (margin) to leverage a much larger forex contract.  For example, 50:1 leverage can be explained like this: for every $200 a client has in his or her trading account, that client can effectively "leverage" a foreign currency contract worth $10,000.  CFOS/FX clients can choose to either buy or sell foreign currency contracts and can choose to utilize leverage up to 50:1 (much greater leverage is available for options contracts).  If you are unsure how margins for spot and options contracts work, please click here.   

 

However, leverage is a double-edged sword because leverage can not only lead to exponentially large profits, it can also lead to exponentially large losses as well.  The professionals at CFOS/FX want to make sure each and every investor, whether or not he or she chooses to open an account, is aware of both the potential benefits and downside risks of leverage.

Commission-free Trading.  You pay NO commissions and NO exchange fees for self-directed forex trading accounts.  The only actual "cost" to initiate a forex trade is already reflected in the bid/ask spread.  CFOS/FX and the respective FCM are compensated through the bid/ask spread.

Bid/Ask Spreads.  The tight forex bid/ask spreads offered through CFOS/FX are available 24 hours a day, 5 days a week.  The stock are futures markets can become thinly traded and illiquid during overnight trading sessions, and the bid/ask spread can widen considerably.

Short-selling Restrictions.  There are no short-selling restrictions in the forex spot and forex options markets, allowing forex investors to profit in all market conditions.  The margins to sell short in the stock and stock options markets can be very high, and some smaller investors are not even allowed to short the markets at all - the only way for the investor to make money is if the market is going "up."  The futures market has no restrictions to sell short, but investors who want to short (write) naked options on futures must first qualify and are not always allowed.

*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.