What is Forex Trading Online?

The foreign exchange market or currency market, known informally as Forex, is an over-the-counter trading instrument where one currency is traded for another. It is the most traded market in the world, with an average turnover of $3.2 trillion per day.
(Source: Bank for International Settlements, September 2007)

Simply put, Forex is the trading of currencies against one another. Each currency pair is traditionally noted XXX/YYY - for example, USD/JPY is the US Dollar paired with the Japanese Yen. Unlike stocks and futures exchanges, the Forex market operates 24 hours a day from Sunday 17:15 to Friday 16:30 Eastern Time (US). This allows traders to react to news when it breaks, rather than having to wait until the market is open.

Example of Foreign Currency Trading:

USD/JPY is trading at (sell/buy) 109.47/109.50 and you believe that the USD is trending downward. You may sell the pair at 109.47.

Opening Position:

Closing Position:

After two days the USD/JPY buy price decreases 100 pips to $108.47/108.50, at which point you decide to buy the currency pair back. If the buy price moves in the opposite direction, you will realize a gross loss.



Source - http://www.fxsol.co.uk/forex/what-is-forex.asp

Why Trade Forex Online?

Foreign exchange is the world's largest financial market. Available to retail traders since 1999, this exciting global market offers opportunities unavailable in other categories.

Unique Advantages not Found in Other Financial Markets

24-hour market

Trade on your own schedule, 24 hours a day, during normal market hours whenever the markets are open (Sunday 17:15 to Friday 16:30 Eastern Time (US)).

Low transaction costs

No commissions on trades. FX Solutions is compensated through a portion of the bid/ask spread.

High leverage

Up to 400:1 - much higher than equities and futures trading allows†

Market volume helps facilitate price stability

With an average turnover of $3.2 trillion per day, Forex is the most traded market in the world.

Source - http://www.fxsol.co.uk/forex/why-trade-forex.asp

Trade Forex with FX Solutions

FX Solutions was founded to provide individual foreign exchange traders with the same professional liquidity, execution, and trading functionality demanded by interbank traders. Our proprietary price discovery and risk management technologies offer individual traders liquidity, consistency, and execution stability in the fast-growing category of Forex.

Global Trading System (GTS)

Offers optimum flexibility and efficient execution

Cutting-edge technology

GTS features a multitude of trading tools using technology developed by foreign exchange veterans.

Comprehensive charting package

Includes more than 150 fully customizable visual indicators to help traders recognize potential trading opportunities

Price engine efficiency

Our proprietary price feed provides fixed spreads and consistently competitive pricing. Read more about our currency pairs and spreads.

Automated execution

More than 99.18% of our orders are automatically executed. † Read more about our automated execution.

Our support team is always available

Speak to an experienced professional 24 hours a day from Sunday 17:15 to Friday 16:30 Eastern Time (US).

Market News International news feed

Provides real-time information on global current events that can affect the Forex market.

Source - http://www.fxsol.co.uk/forex/why-choose-fx-solutions.asp

Forex Currency Pairs & Spreads

Currently, FX Solutions offers investors and traders 29 currency pairs. Below are the spreads that are offered to FX Solutions' customers during normal market conditions:

Forex Symbol	Currency Pairs	Spreads
AUD/CAD	Australian Dollar / Canadian Dollar	9 pips
AUD/CHF	Australian Dollar / Swiss Franc	10 pips
AUD/JPY	Australian Dollar / Japanese Yen	7 pips
AUD/NZD	Australian Dollar / New Zealand Dollar	20 pips
AUD/USD	Australian Dollar / U.S. Dollar	4 pips
CAD/CHF	Canadian Dollar / Swiss Franc	10 pips
CAD/JPY	Canadian Dollar / Japanese Yen	9 pips
CHF/JPY	Swiss Franc / Japanese Yen	8 pips
EUR/AUD	Euro / Australian Dollar	12 pips
EUR/GBP	Euro / British Pound	5 pips
EUR/CAD	Euro / Canadian Dollar	9 pips
EUR/JPY	Euro / Japanese Yen	4 pips
EUR/NZD	Euro / New Zealand Dollar	25 pips
EUR/CHF	Euro / Swiss Franc	5 pips
EUR/USD	Euro / U.S. Dollar	3 pips
GBP/AUD	British Pound / Australian Dollar	12 pips
GBP/CAD	British Pound / Canadian Dollar	15 pips
GBP/CHF	British Pound / Swiss Franc	12 pips
GBP/JPY	British Pound / Japanese Yen	9 pips
GBP/NZD	British Pound / New Zealand Dollar	30 pips
GBP/USD	British Pound / U.S. Dollar	5 pips
NZD/JPY	New Zealand Dollar / Japanese Yen	10 pips
NZD/USD	New Zealand Dollar / U.S. Dollar	7 pips
NZD/CAD	New Zealand Dollar / Canadian Dollar	20 pips
NZD/CHF	New Zealand Dollar / Swiss Franc	25 pips
USD/CAD	U.S. Dollar / Canadian Dollar	5 pips
USD/CHF	U.S. Dollar / Swiss Franc	4 pips
USD/HKD **	U.S. Dollar / Hong Kong Dollar	13 pips
USD/JPY	U.S. Dollar / Japanese Yen	3 pips

** Restricted Leverage

Source - http://www.fxsol.co.uk/forex/currency-pairs.asp

Foreign Exchange Spreads & Charges

FX Solutions strives to provide our clients with the utmost in transparency in order to maximize their foreign exchange (Forex) trading experience. To achieve this goal, we offer fixed tight spreads and competitive finance charges.

Spreads

FX Solutions provides competitive and consistent pricing through our proprietary price feed. A spread is calculated by taking the difference between the sell and buy price of the currency pair. For a complete list of our spreads by currency, please visit our Currency Pairs page.

Financing Charges:

Rollover or "cost-of-carry" is the daily debit or credit to a trading account with positions held open at 17:00 Eastern Time (US), based on the interest differential between the two currencies in the pair(s) being traded. Based on this automatic rollover, funds are subtracted (long or buy positions) or added (short or sell positions) accordingly to your accounts in respect to open positions. Please visit our Rollover and Interest Policy page for more details.

Source - http://www.fxsol.co.uk/forex/forex-spreads-charges.asp

What are CFDs?

A Contract for Difference (CFD) is an over-the-counter trading instrument that allows trading on markets such as indices and commodities without actually buying the underlying security, utilizing leverage in the spot market. FX Solutions offers 11 different CFDs for trading.

Simply put, a CFD is an agreement between two parties to settle, at the close of the contract, the difference between the opening and closing price, multiplied by the number of shares specified within the contract.

CFD example:

FX Solutions quotes the US SP 500 at 1270.7/1271.1 and you believe that the US SP 500 will rise. Below is an example of how your investment in CFD Indices might look:

Opening Position:

Closing Position:

After two days, the US SP 500 price rises to 1275.6, at which point you decide to sell the underlying contracts. If the sell price moves in the opposite direction you will realize a gross loss.



Source - http://www.fxsol.co.uk/cfd/what-are-cfds.asp

Why Trade CFDs Online?

CFDs have become an increasingly popular alternative instrument for speculating on the movements of indices or commodities. CFDs are a growing asset
class because they offer:

The ability to trade on the movement of financial markets around the globe

Trade global commodities like silver and gold easily or speculate on whole indices all from one FX Solutions account. This 24-hour a day instrument gives retail traders access to markets that would be otherwise unavailable to them. (Review our CFD markets page for more information.)

Limit your trading risk

Because CFDs trade on margin investors need a fraction of the total value of a position to trade. With the Global Trading System's (GTS) auto close-out feature your risk exposure is limited to the amount of capital invested. In the event the market turns and the position approaches a negative value, GTS' auto close-out will automatically close out the positions protecting you from achieving a negative balance.

The ability to long, short or hedge easily

Profit from a falling market as well as a rising market. With CFD trades, you can go long or short. If you believe that an asset’s price will fall, you can use CFDs to short (sell) it today, with the expectation that you can buy it back at a later date at a cheaper price. In some cases, the price of your trade may move against you, which will result in a loss.

Leverage

Leverage allows qualified traders to take a larger position than they would if they funded their trade in full. FX Solutions offers leverage up to 200:1 on a variety of CFDs †.

Low transaction costs

Trade commission-free. FX Solutions is compensated through a portion of the fixed bid/ask spread.

Flexible contract size

Trade the number of units that you choose. Unlike in other markets, CFD investors are not locked into predetermined contract sizes. Also, CFDs with FX Solutions allow investors to trade fractional units of the underlying indices or commodities.

Source - http://www.fxsol.co.uk/cfd/why-trade-cfds.asp