# Can I trade forex without leverage/margin?



## Slyme92 (8 April 2016)

I'm very sceptical about trading especially when 'costs may exceed the deposit in your account' and wanted to know if I can use my own money to trade positions in fx Markets without having gearing applied onto my account.  Cheers in advance if anyone can clarify this for me,

Matt


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## CanOz (8 April 2016)

Slyme92 said:


> I'm very sceptical about trading especially when 'costs may exceed the deposit in your account' and wanted to know if I can use my own money to trade positions in fx Markets without having gearing applied onto my account.  Cheers in advance if anyone can clarify this for me,
> 
> Matt




You can, by trading at or below your account balance is effectively trading without margin. For example, if you have 100k in your account, and you take positions of size less than or equal to that account size, then effectively you are trading with margin. Otherwise, the only way to do this is to open an HSBC currency account and buy and sell the currencies directly.


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## myfxpt (3 May 2016)

Slyme92 said:


> I'm very sceptical about trading especially when 'costs may exceed the deposit in your account' and wanted to know if I can use my own money to trade positions in fx Markets without having gearing applied onto my account.  Cheers in advance if anyone can clarify this for me,
> 
> Matt




If you want to be safe, check your brokers' Negative Balance Policy to ensure your liability does not exceed your account balance.


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## ryan11 (28 September 2016)

_There is _*no such compulsion *_to get the Leverage for trading_ . You can also trade without Leverage. But it requires a lot of funds which can't be managed by everyone. This is the reason people prefer to trade with high leverage as leverage allows them to trade huge with small investment._But in case of no leverage also, you are required to maintain a margin(could be some % of equity) for trade._


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## mjim (29 September 2016)

Slyme92 said:


> I'm very sceptical about trading especially when 'costs may exceed the deposit in your account' and wanted to know if I can use my own money to trade positions in fx Markets without having gearing applied onto my account.  Cheers in advance if anyone can clarify this for me,
> 
> Matt



Yes you can for sure ( irrespective of what FX you are referring ie. FX OTC or FX futures)
If a contract is $10000. and if you have 10K in account "clear" and no other positions then you are not using margin
so Negative balance can't come in to picture also.
If currency pair goes down to Zero! you loose 10K! max ( if that happens you have other things to worry)
Same as buying shares with your own money without a margin loan.

Another way to trade FX without fear of margin call is "Buy to Open" Call or Put  Option ( Fx futures has option traded on exchanges) but that is another can of worms! or buy Option spreads etc


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## cynic (29 September 2016)

When a forex position is opened, it involves the sale of units in one currency and the purchase of units in another. 

So in effect the forex trade actually creates two positions, a long position in one currency with a corresponding short position in the other. One position wiĺl be a set number of units, and the exchange rate offered, at the time the position was opened, will determine the number of units (or part/s thereof) for the other.

In order for the position to be truly unleveraged, the trader would need to hold the currency cash equivalent of the short position in their account.


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## Ina amran (7 October 2016)

I just found a Forex Broker that is giving me Forex instruments to trade with 5 decimals. 

I haven't seen any broker with 5 decimals yet.. 
This should be interesting..
Anyone seen this before??


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## Ina amran (7 October 2016)

Anyone know of any EA strategies that i can buy and use for trading Forex instruments with 5 decimals???


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## cynic (7 October 2016)

Ina amran said:


> I just found a Forex Broker that is giving me Forex instruments to trade with 5 decimals.
> 
> I haven't seen any broker with 5 decimals yet..
> This should be interesting..
> Anyone seen this before??




I know that FXCM does, but, based upon my experiences of them over the past two years I am somewhat reluctant to recommend them.


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## Wysiwyg (7 October 2016)

Ina amran said:


> I just found a Forex Broker that is giving me Forex instruments to trade with 5 decimals.
> 
> I haven't seen any broker with 5 decimals yet..
> This should be interesting..
> Anyone seen this before??



5 decimal place FX quotes have been around since pre 2010.


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## Wysiwyg (7 October 2016)

Ina amran said:


> Anyone know of any EA strategies that i can buy and use for trading Forex instruments with 5 decimals???



Think about it. Would anyone in this game sell a strategy that worked? Been there, done that. It's B.S.


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## Ina amran (13 October 2016)

cynic said:


> I know that FXCM does, but, based upon my experiences of them over the past two years I am somewhat reluctant to recommend them.





Somehow lately i am coming across a lot negative reports based on experiences about FXCM, would you recommend to go forward with a broker other than FXCM using 5 decimals instead of 4.
I am liking this other broker (seems relatively unheard of) their offers and services till now but haven't started serious trading with them yet.


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## Ina amran (13 October 2016)

Wysiwyg said:


> Think about it. Would anyone in this game sell a strategy that worked? Been there, done that. It's B.S.





 yes kind of True.

But i am in touch with a trader i found on a traders group who uses multiple EA's at the same time and looking at his account he has been making consistent profits with them.
I am inclined towards using them myself but not sure yet.


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## cynic (13 October 2016)

Ina amran said:


> Somehow lately i am coming across a lot negative reports based on experiences about FXCM, would you recommend to go forward with a broker other than FXCM using 5 decimals instead of 4.
> I am liking this other broker (seems relatively unheard of) their offers and services till now but haven't started serious trading with them yet.




If a forex broker is "relatively unheard of" then I would exercise extreme caution. They could be white labelling for another broker, or perhaps have reinvented themselves to dispel an unsavoury reputation under a former trading name/brand.

On the other hand the broker could be just new to the business and prove to be worthwhile in time, but how does one determine this before the broker has been in the game long enough to establish credentials? 

Would you care to disclose the name of the broker you are considering?


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## cynic (13 October 2016)

Ina amran said:


> yes kind of True.
> 
> But i am in touch with a trader i found on a traders group who uses multiple EA's at the same time and looking at his account he has been making consistent profits with them.
> I am inclined towards using them myself but not sure yet.




Just how well do you know that particular trader?


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## ryan11 (13 October 2016)

Ina amran said:


> I just found a Forex Broker that is giving me Forex instruments to trade with 5 decimals.
> 
> I haven't seen any broker with 5 decimals yet..
> This should be interesting..
> Anyone seen this before??




I think_ 5 decimal spread is better_. More are the decimal, Better will be the price efficiency. Price fluctuation represents the actual market condition. Brokers who provide 4 digits are mostly price makers. And I have heard about_ FxPro, FinPro Trading_ for 5 decimal spread. They do provide EA's.


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## cynic (14 October 2016)

ryan11 said:


> I think_ 5 decimal spread is better_. More are the decimal, Better will be the price efficiency. Price fluctuation represents the actual market condition. Brokers who provide 4 digits are mostly price makers. And I have heard about_ FxPro, FinPro Trading_ for 5 decimal spread. They do provide EA's.




Have you been using those two brokers, and if so have you been able to withdraw any of your money from those accounts?


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## Ina amran (17 October 2016)

cynic said:


> Just how well do you know that particular trader?




I don't really 'KNOW' the trader as such, i have been in touch with him on other forum discussion groups like this one.
He seems like a veteran trader.


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## Ina amran (17 October 2016)

ryan11 said:


> I think_ 5 decimal spread is better_. More are the decimal, Better will be the price efficiency. Price fluctuation represents the actual market condition. Brokers who provide 4 digits are mostly price makers. And I have heard about_ FxPro, FinPro Trading_ for 5 decimal spread. They do provide EA's.




Have you used Finpro trading for broker services?
Are they safe in terms of your deposit with them?
They seemed new to me but i am liking the offers they are giving me.


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## Ina amran (18 October 2016)

cynic said:


> If a forex broker is "relatively unheard of" then I would exercise extreme caution. They could be white labelling for another broker, or perhaps have reinvented themselves to dispel an unsavoury reputation under a former trading name/brand.
> 
> On the other hand the broker could be just new to the business and prove to be worthwhile in time, but how does one determine this before the broker has been in the game long enough to establish credentials?
> 
> Would you care to disclose the name of the broker you are considering?





I am using a Demo account with this broker Finpro trading and considering to open a real account with them, i am really liking the offers and services they are willing to give me upon conversion to a real account.
But they are relatively new(2012) compared to other popular brokers like FXCM and others.
Hence the apprehension or rather delay.


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## Wysiwyg (18 October 2016)

Ina amran said:


> I am using a Demo account with this broker Finpro trading and considering to open a real account with them, i am really liking the offers and services they are willing to give me upon conversion to a real account.
> But they are relatively new(2012) compared to other popular brokers like FXCM and others.
> Hence the apprehension or rather delay.




Why start? It's not the bells n whistles and brokers and peripheral b.s. Forgive me. I know it is tough being a newbie with little experience.


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## ryan11 (18 October 2016)

cynic said:


> Have you been using those two brokers, and if so have you been able to withdraw any of your money from those accounts?




I have only used FinPro Trading till now and yes, I did withdraw some funds from them a couple of times. I received them without any hassles.
I am yet to use FxPro but I know that even they do provide 5 decimal spread.


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## cynic (18 October 2016)

ryan11 said:


> I have only used FinPro Trading till now and yes, I did withdraw some funds from them a couple of times. I received them without any hassles.
> I am yet to use FxPro but I know that even they do provide 5 decimal spread.




I don't seem to be able to locate an ASFL number for FinPro!

Do they have one?


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## minwa (18 October 2016)

cynic said:


> I don't seem to be able to locate an ASFL number for FinPro!
> 
> Do they have one?




Looks like UK company so they don't need it as you are opening in UK jurisdiction as far as I understand. Had a quick look major concern is the bonuses part. http://finprotrading.com/bonus-offerings/ 

Nothing comes for free in this dirty industry. On the surface a bonus is good but what it's really saying is the house is confident you will lose so they're willing to front you bonuses you to entice you to deposit funds.


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## mjim (18 October 2016)

minwa said:


> Looks like UK company so they don't need it as you are opening in UK jurisdiction as far as I understand. Had a quick look major concern is the bonuses part. http://finprotrading.com/bonus-offerings/
> 
> Nothing comes for free in this dirty industry. On the surface a bonus is good but what it's really saying is the house is confident you will lose so they're willing to front you bonuses you to entice you to deposit funds.




Really are they UK regulated?
Have a look at this  at the end
I would be worried if a company say sit is HQ in UK and does not have UK regulations oversight !

Hello. How may I help you?
CLIENT
which country are you regulated?
SUZAN
hi there
FinPro Trading is owned and operated by Finvasia Group which is registered with Securities and Exchange Commission of America (Finvasia IARD/CRD Number: 154602 and SEC file number: 801-71707)).
CLIENT
you mean USA or some other north american country?
SUZAN
also we are in process of getting FCA regulations which will turn into reality by early 2017
USA
CLIENT
so you are not UK regulated? but there is a UK HQ address
SUZAN
2:46 pm
yes we are headquartered in UK and also we are in process of getting FCA regulations which will turn into reality by early 2017


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## Ina amran (19 October 2016)

Wysiwyg said:


> Why start? It's not the bells n whistles and brokers and peripheral b.s. Forgive me. I know it is tough being a newbie with little experience.





I started trading on a Live account now with Finpro trading after using the demo account with them for some time now.
I am really liking their execution speed, it is very fast in my view.
Also quite surprisingly they put me on a special commission structure of $1 per $100k per side.


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## ryan11 (20 October 2016)

mjim said:


> Really are they UK regulated?
> Have a look at this  at the end
> I would be worried if a company say sit is HQ in UK and does not have UK regulations oversight !
> 
> ...




Yes mjim you are absolutely right. Currently, they are unregulated. I joined with them few months back after seeing the positive talks about this broker services on internet. Initially, I just started with small amount of $500 to check their trading services and I can say this from my experience that you might not find any reasons to complain about their services. 
Regarding their regulation, even I also came to know about it few weeks back when my friend opened an account with them. I checked with my account manager at FinPro and he confirmed me that they are in process of getting regulation within next few months so I was ok with that. But frankly saying, I am not concerned about their regulation status as I am quite satisfied with my trading with them. Even my friends and I traded with regulated broker but we had issues in trading with them. Undoubtedly regulation plays a role, but I will give more priority to broker services. If your major concern is regulation then you need to look for some other broker. However, if you are looking for a good ECN broker, you can start with small amount to check their services and credibility.


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