Getting ready to open an account (FXCM)

Beginner Questions
1

Hi everyone,

So I’ve completed the school of pips on the site and have been browsing over the boards and reading up on different indicators/strategies and such. I’ve been trading my demo account for 4 months and have noticed a positive return and I feel as if I’m ready to open a real account.
In my 4 months I used their 50k and moved up to 54k, so a 4k increase (1000 per month), which I am more than satisfied with.

I’ve tried many demo accounts and so far I like FXCM the best, but the main reason is the software included, is this a justifiable reason to use them?

I’ve also been wondering about taxes as I have never had any other investments, are investments taxed just as if it were taxes/gambling income?

Also, everything on the practice account is the same as the real right? Just that it’s now real money and real emotions (that don’t get to me of course!).
Are there any fee’s that go along with opening an account with fxcm? Like monthly due or any small writing I may have missed?

2

I started with a micro account with FXCM and they were pretty good, I didn’t have any complaints with them aside from not using MT4 (they support MT4, but not on a micro account).

Start with a small amount of money and go from there, don’t risk more than 2% of your account and slowly build up.

Personally I’m a fan of IBFX, they are pretty solid (although they don’t have the most competitive spreads) but you can trade as little $.01 a pip and use MT4, also their indicators such as the partial close EA is pretty useful tool.

If you’re a USA resident then taxes would be filled under capitol gains tax, there are plenty of resources online to help you figure out how to pay for them.

Yes, everything in practice is the same for the most part but you’ll notice that emotions play the biggest part.

3

Hi,
What will be your initial capital? Because if you think you are going to keep making US$ 1000 per month with an initial capital of US$ 500 or US$ 1000…then think again. You would need to use too much leverage, and you will end blowing your account.

The reason to demo trade is to elaborate a plan to use it on a real account. If you are planing to open a live account with US$ 1,000 then first demo trade with a US$ 1000 demo account. If you are planing to open a live account with US$ 20,000, then demo trade with a US$ 20,000 demo account. get it?

My advice: never risk more than 2 or 3% on each trade. But dont start risking 2% o 3%, is your first time, so start risking 0.1%, next day increase to 0.2% and keep going until you get used to live trading. That way you can survive losses, trust me losses will come and you have to secure your capital, dont waste it.

hope that helps!
happy trading! :smiley:

4

I thought Id ask this here instead of creating a new thread…

I just opened a demo account with fxcm aswell, and as you know they give you 50k demo money…My question is, when I buy 10k of a currency, am I technically just puting $100 from the $50k down? assuming a 100:1 leverage ratio?..I dont even know how to see or adjust the leverage on the fxcm platform…Im just trying to get a better idea of gains/losses would replicate If/when I open a live account with a mini account…

thanks

5

Open a different thread to post your questions.

6

[B]Hi, LIUser[/B]

Some of your questions have already been answered by other forum members.

Here’s my take on the questions that remain unanswered:

No. If fancy software was the only thing a broker had going for them, it wouldn’t be a very good reason to choose them.

But, there are tons of good reasons to choose FXCM (beside their charting software), including: excellent trade execution, excellent customer service, a very stable trading platform, competitive spreads, a variety of account types to serve different customer needs, a huge family of satisfied customers — and they are on their way to becoming the largest retail forex broker in the world.

Also, if you are concerned about over-regulation of retail forex in the U.S. (such as the possibility of CFTC-mandated 10:1 leverage limits, or other regulatory atrocities), FXCM makes it super-easy to domicile your account in the U.K., where you will be out of the reach of the CFTC. My FXCM account is in the U.K., and I’m totally satisfied with the arrangement.

There are no fees associated with opening, or funding, a live account with FXCM. And there are no fees associated with ordering and receiving a cash withdrawal from your account.

There are fees associated with certain account irregularities, or payment irregularities, which probably won’t affect you.
(One example is a dormant account fee, if your account remains open but you don’t trade for a year.)

Not sure I understand your next question — are you asking about monthly dues? If so, there are no such dues.

Regarding fine print, brace yourself. As part of opening a live trading account with any forex broker, including FXCM, you will be required to sign a contract which can run 20 or 30 pages. I just pulled up the .pdf file of the document which I signed with FXCM-UK. It’s titled “FXCM Terms of Business” and it’s 33 pages in length.

With any broker, including FXCM, the contract you will be required to sign was written by the broker’s lawyers, to protect the broker, and to favor the broker in every conceivable circumstance — and, when you read the damn thing, you will hate it.

Your signature on this contract will certify that you have read it, and agree to it. So, read it. Then, hold your nose and sign it. You can’t trade real money without a live account, and you can’t have a live account without signing the papers.

As for opening a live trading account, reading the contract is the worst part. After that, it’s a piece of cake.

7

Hi everyone thanks for all your comments.

I started with the normal 50k so ya I suppose I probably won’t make the same amount of money, but it gives me a good idea. My money management was based off 2% with my practice account and I intend to keep teh same trading plan for my live account. I intend to put in an initial deposit of 15k.
Perhaps I’ll start with a micro account and then turn it into a standard account just to see how I handle winning/losing real money. I don’t forsee it being a big problem as I’m a pretty proficient card counter and I see money come and go in the physical and have learned to control that.

I dread contracts… but if it must be done it must be done, I’ll read it.

Wish me luck in the real world!