Frequently Asked Questions

The off-exchange retail foreign currency market, also referred to as the 'Forex' or 'FX' market, is the largest financial and investment market in the world. Forex is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen. Forex investors use various methods of analysis (both technical and fundamental) in an effort to predict future price movement and thus profit from well timed transactions. *Trading currencies is a very risky form of investing. Any funds used when speculating on the values of currency prices should be considered as risk capital.

FX Trading is not centralized on an exchange; rather it is a true network of global banks, FCMs (Futures Commissions Merchants, or brokers ) and private traders like yourself. As is the case with the stock and futures markets, the FX market is considered an Over the Counter (OTC) market. Transactions are conducted between two counterparts over the telephone or via an electronic network.

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 finally New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night. Most Forex brokerages allow clients to begin trading late in the day Sunday afternoon (US Sunday afternoon is Japan Monday market open) until late in the day Friday afternoon. Retail trading is typically suspended from the time of Friday close until Sunday open, creating a two day weekend. Each broker’s dealing hours may vary slightly. CMS FX LLC our clearing firm is open for trading from 6 PM EST on Sunday until 4 PM EST on Friday.

The most often traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low levels of inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.

In trading parlance, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the investor benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the investor benefits from a declining market. However, it is important to remember that every FX position requires an investor to go long in one currency and short the other.

Currency prices are affected by a variety of economic and political conditions, most importantly 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 impossible for any one entity to 'drive' the market for any length of time.

The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received when entering a position. A stop loss order is placed to close a position when a pre-determined price is reached. It is important to note that stop loss orders do not guarantee a particular closing price. The price specified in a stop loss order is merely a trigger point; if this price is met or exceeded the broker is instructed to close the position at market price. Stop loss orders attempt to limit potential losses should the market move against a trader’s position.

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities. Fundamentalists on the other hand, predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and additional margin is needed. There are essentially two categories of traders in the FX market, the ‘swing trader’ and the ‘day trader’. Swing traders are those who tend to hold long term positions and who are looking to slowing realize profits, perhaps over days, weeks, or even months. Day traders are just the opposite and are those who prefer to open and close a position in a 24 hour period or less. Often, day traders hold positions for as little as a few minutes.

BeamFX requires that you deposit a minimum of $300 in your live account. Accounts may be funded by wire transfer, credit card, debit card , bank check, money order, certified check, or personal check. Personal checks may take up to ten business days to clear depending on the bank, state of origin, and amount.

Forex and commodity trading is always conducted on 'margin'. This means that a cash deposit, usually much smaller than the underlying value of the currency or commodity contract, is required in order to trade. For example, a broker might require only $1,000 in the trader's account in order to trade a $100,000 currency position. The $1,000 is referred to as 'margin'. This amount is essentially collateral to cover any losses that you might incur. Since nothing is actually being purchased or sold for delivery, the only requirement, and indeed the only real purpose for having funds in your account, is for sufficient margin. *Leverage may increase gain or losses

A pip is the smallest increment in any currency pair. In EUR/USD, a movement from 1.0066 to 1.0067 is one pip, so a pip is .0001. In USD/JPY, a movement from 120.45 to 120.46 is one pip, so a pip is .01. How much in dollars is this movement worth, for example, per 100,000 Euros in EUR/USD? How much is one pip worth per 100,000 Dollars in USD/JPY? We will refer to the size, in this case 100,000 units of the base currency, as the 'Notional Amount'. The formula for calculating a pip value is therefore: (one pip, with proper decimal placement/currency exchange rate) x (Notional Amount). Using USD/JPY as an example, this yields: (.01/120.46) x USD100,000 = $8.30 or $8.30 cents per pip. Using EUR/USD as an example, we have: (.0001/1.0066) x EUR 100,000 = EUR 9.93. But we want the pip value in USD, so we then must multiply EUR 9.93 x (EUR/USD exchange rate): EUR 9.93 x 1.0066 = $10.00. This is in fact a phenomenon you will see with any currency in which the currency is quoted first (such as EUR/USD, GBP/USD, or AUD/USD): the pip value is always $10.00 per 100,000 currency units. This is why pip (or 'tick') values in currency futures, where the currency is quoted first, are always fixed. Approximate pip values for the major currencies are as follows, per 100,000 units of the base currency: USD/JPY: 1 pip = $8.30; In other words a change from 120.45 to 120.46 is worth about $8.30 per $100,000. EUR/USD: 1 pip = $10.00; 1.0066 to 1.0067 is worth $10.00 per 100,000 Euros. GBP/USD: 1 pip = $10.00; 1.5765 to 1.5766 is worth $10.00 per 100,000 Pounds. USD/CHF: 1 pip = $6.87; 1.4555 to 1.4556 is worth $6.87 per $100,000.

The FOREX currency market is an integral part of the rapidly expanding financial, business and political landscape. The FOREX market has three sessions of trading. The first begins Sunday at 7:00 P.M. NYT, which is the Asia session. The second is the European session, which begins at 3:00 A.M. The third and final is the New York, which begins at 8:00 A.M. The majority of the trading occurs between 3:00 a.m. and 1:00 p.m. EST.

Click on the following link: www.BeamFX.com/demo Open Demo Account

You may be logged off of any accounts you have running and all Expert Advisors will stop running until you are logged back into your account. If you have live trades running that will need adjusting, it is recommended that you contact our clearing agent CMS FX LLC right away and they can assist you over the phone.

There is not a margin requirement on the new position provided that it is the same number of lots and that it is against the first one (or in the opposite direction of the first one). *Leverage may increase gain or losses

Capital Market Services UK Lrd acts as the clearing agent and counterparty to customers introduced by "BeamFX.com" and customers managed by "BeamFX.com" for margined forex transactions. Capital Market Services UK Ltd is authorised and regulated by the Financial Services Authority, registration number 488900.

Yes , absolutely . You can apply for a Live Account online by going to www.BeamFX.com/live

Yes

The Mini’s smaller contract size allows for familiarization with the Metatrader 4 trading platform, assists with the learning curve when new to trading in the forex markets. The Mini account also leverages the same tight spreads as a Standard account. The initial required minimum deposit for a Mini account is $250 USD. With a Mini account a trader typically trades lots of 10,000 units of the base currency. Although, it is possible to trade bigger lots based on available margin.* Minimum Deposit – $300 USD Lot Size – 10K units Maximum Leverage – 400:1 *Leverage may increase gain or losses

Please note, that independent corporations will require different forms. For assistance with this process contact an BeamFX representative at 312-625-1411 or email our support department at support@BeamFX.com

Demo accounts allow you to test several different strategies and get a feel for the markets. Click Here to set up Free Demo Account

Demo accounts go inactive after 90 days, if your demo goes inactive please create a demo account. Below are instructions no how to open a demo account:

1. Open MetaTrader 4
2. Click on File
3. Then click on Open an Account
4. Fill out the information (if its not already filled out)
5. Click the button that says “I agree to subscribe to newsletters”
6. It will unlock the “Next” button keep clicking “Next” until you reach the finish screen.

The demo accounts for both platforms mirror exactly what you will see if you sign-up for a live account. The demo account uses play money and in a demo account you can choose whatever amount you would like to trade with. The pricing and spreads are the same in demo and in live account.

Expert Advisor is a scripting tool offered in the MetaTrader platform. The tool allows a user to program and implement their own trading algorithm

Yes, you can trade with Expert Advisors on all accounts, including mini accounts.

No. at this time the lowest possible trade size you can trade is mini (10K). Since BeamFX is a ECN/STP broker we do not allow any lot sizes below 10K

No. The demo account is only good for practicing trading using virtual funding. As this is only virtual play money, no real profts or losses are incurred

No, Demo trading is only available during regular trading hours (Sunday 5 p.m. thru Friday 4 p.m. EST).

Yes you can use Expert Advisors with the Metatrader 4 trading platform. We have no limitations on EA's or any Forex Robots. We welcome all types of trading strategies !

Yes, you can close partial positions with Metatrader 4 platform.

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities. Fundamentalists on the other hand, predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

Yes you may open short and long trades on the same pair simultaneously in the MetaTrader 4 platforms.

There is no time limit on opened positions. When a position is held past the close of the forex day (5pm EST or New York Time), however, the position is automatically rolled-over to the next available spot settlement date by our clearing agent . Since all trades transacted with our clearing agent are non-deliverable (there is no actual physical transfer of the notional currency amounts), all open positions must be rolled over for the next spot date.

Trailing stops in the MetaTrader platform are customized and are held in your computer, not in our servers. If the computer is turned off, the trading platform is closed, or if the computer is disconnect from the Internet, the trailing stop will not be executed. Therefore, it is important to remember to leave the computer on if you have trailing stops resting in the market using MetaTrader. Trailing stops on the Metatrader 4 platform are server based (held on CMS FX servers) and once set should not be affected by closing the platform or turning off the computer

GBP/USD, USD/JPY, EUR/USD, USD/CHF, EUR/GBP, USD/CAD, EUR/CHF, GBP/JPY, AUD/USD, CHF/JPY, EUR/AUD, GBP/CHF, EUR/CAD, AUD/CAD, AUD/JPY, NZD/USD, AUD/NZD, USD/MXN, CAD/JPY, USD/TRY.

The spread on most majors are some of the tightest in the industry. Spreads however, are variable and may change during times of low liquidity in the market.
For more information on our spreads please go to www.beamfx.com/spreads

Yes our clearing agent accepts Visa and MasterCard as credit/debit card funding options.

No funding through PayPal is not available, please visit our funding page for all options www.BeamFX.com/fund

Funds can only be transferred from the bank account listed on the form, or a matching name from a different banking account.

• Please enter your name and account number (write "New" for new accounts) in the Special Instructions field of your banks wire transfer form.
• Be sure to write "Deposit Funds in USD Currency" in the Special Instructions field of your banks wire transfer form. Please be aware, that the funds which will be received by our bank must match the base currency you specified in the Trading Account. Our clearing agent does not accept funds for any trading account via a third party. For more information on wire transfers and funding go to www.BeamFX.com/fund

Wire transfers take 24-48 hours to complete.

There is no charge for sending a wire transfer to but our clearing agent will charge $20 for withdrawals using bank wire.

Click Here to fill out the Withdrawal Form.