Foreign Exchange Online :CFD Trading

Trading CFDs is the smart investor’s way to trade on the movement of shares without having to pay the full price of owning the underlying instrument. Originally developed as a trading vehicle for large institutional traders, CFDs are now accessible to the individual investor.

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:

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.

For example:
The minimum investment required in a silver futures contract is 1 oz. With FX Solutions CFDs, the minimum investment required in a silver futures contract is 100.
Trade CFDs with FX Solutions
FX Solutions is proud to have developed the Global Trading System (GTS), a trading platform that applies automated technologies to over-the-counter CFD trading. Our 24-hour customer service team, combined with our four-ways-to-trade GTS platform, ensures that you will be able to trade wherever and whenever you desire.
Tight spreads with no commission fee
FX Solutions seeks to ensure price certainty. Our proprietary price feed comes from a leading pricing engine and provides competitive and consistent pricing. FX Solutions is compensated through a portion of the bid / ask spread.
While we strive to display fixed price spreads at all times, there may be occasions, where a significant market or world event may force us to widen spreads without prior notice to our clients.

Risk management tools

FX Solutions' GTS Platform offers a range of risk management tools, including the ability to place multiple stops and limits as well as trailing stops to track and protect your profits. Our real-time margin calculator ensures that you always know how much margin you need to maintain your position.

Multiple markets within one platform

Trade both foreign exchange (Forex) and the movements of indices and commodities, all within the same GTS platform. FX Solutions' GTS platform allows you to trade anytime, anywhere by logging in with a single username and password.

Four ways to trade CFDs
FX Solutions provides a single platform with a single-minded value proposition: to provide all traders with the same professional standards and advantages demanded by professional interbank traders. Trade anytime, anywhere with GTS Web, GTS Pro, GTS Mobile (coming soon) and FX AccuCharts.

CFD Trading Spreads & Charges

FX Solutions offers you a cost-effective, flexible way to trade across a global marketplace. With every instrument available through our GTS Platform, FX Solutions offers fixed tight spreads and highly competitive charges.
Spreads
Our proprietary price feed provides competitive and consistent pricing. The spread is the difference between the bid and offer (ask) price of an instrument. For a complete list of our spreads per instrument, please visit our CFD Markets page.

Dividend Adjustments

Index CFDs have no fixed expiry date, giving you the opportunity to close your position when you choose. While your positions remain open, Index CFDs will be subject to a dividend adjustment at the close of business on the day before an ex-dividend date.

Financing Charges

Rollover or overnight finance charges will be applied to CFD positions that are held open at 17:00 Eastern Time (US). If the trader is "short" on the position, it will be credited finance of LIBOR - 3%. Similarly, if the trader is "long" on the position, it will be debited a financing charge of LIBOR +3%.