What is FOREX?
Forex is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree.
Account Funding (10)
1. What are the different options to fund my new account?
You can use the method below to fund your account:
Bank Wire transfer
Yuucollect local bank wire Manual
DinPay China UnionPay Manual
Please note that your account must be approved before you can fund it.
2. How long does it take to credit my account after I deposit funds?
Assuming that all required information is entered correctly:
Bank Wire transfer – 2-6 business days
Credit Card – Within 24 hours
Neteller – Within 24 hours
I-Account – Within 24 hours
Fasapay – Within 24 hours
Yuucollect local bank wire – 2-6 business days
DinPay China UnionPay – Within 24 hours
Belfrics Bitcoin – 1-3 business days
We’ll notify you via email as soon as your account gets funded. Please note that your account must be approved before you can fund it.
3. What base currency will my account have?
We offer USD and SGD based accounts.
4. What are the charges for funding my account?
Bank Wire transfer : We do not charge you for wire transfers. However, bear in mind that your local bank may charge a fee for wire transfers. Make sure that you check with your bank before making your transaction. Also, there may be a correspondent bank charges incurred.
Credit Card via SorexPay : 2% of the funding amount
Neteller : 2% of the funding amount.
I-Account : Free of charges. However, I-Account may charge a fee of 3 USD upon every funding transaction.
Fasapay : Free of charges.
Yuucollect local bank wire : 1.5% of the funding amount.
DinPay China UnionPay: 0.6% of the funding amount.
Belfrics Bitcoin: 1% of the funding amount.
5. Are there any charges to transfer funds from one of my profile to another?
There are no charges to transfer funds between your profiles.
6. How can I access my account funding history?
7. Can I change the leverage in my account?
Yes. First make sure that you close all your positions. Then email us at support@TF Capital.com. Make sure that you include your username and account number. We will be happy to change the leverage in your account within one business day.
8. Can I change the spread in my account?
No, because TF Capital ECN spreads is already one of the most competitive spread in the market.
9. How does TF Capital ensure the safety of my funds?
We have taken exhaustive, but necessary measures to provide comfort to our clients that we treat their funds in a legal, ethical and secure manner.
10. How is your account protected?
We understand the concerns you have with respect to the safety of your funds. As a result, all client funds at TF Capital are held in segregated accounts. The main purpose of a Forex segregated account is to shield your investments from possible company risks by keeping such investments “unavailable” for the company to be used in the course of their business when facilitating its own risks, expenses and obligations. Should the company account become overdrawn, the company or its bank CANNOT use your funds.
Account Username and Password (5)
1. What is my username and password?
You have two types of username and passwords.
- You create your username and password when opening a new account. You will use this set to access the TF Capital Member Area.
- TF Capital will create an MT4 ID and password for you upon account approval. You will use these login details to access their MT4 trading platform. We will email this MT4 ID and password to you.
2. I forgot my MT4 username (called MT4 ID) or password. What should I do?
If you have forgotten your MT4 username, please send an email to support@TF Capital.com.
3. I forgot my Member Area password or username. What should i do?
Click here to retrieve your lost password or username. Simply follow the instructions on the page.
4. How can I change my MT4 password?
For security purposes, we recommend changing your MT4 password after logging in for the first time. You can do this in your MT4 platform by choosing Tools > Options > Change.
5. What if I need to change my email address after my account is approved?
Please send an email from your original email address to support@TF Capital.com. In the email content, you will need to include as follows:
Client Profile (3)
1. Power of Attorney (POA)
You will need to send an email to support@TF Capital.com, attach the POA document and state which client you are representing.
2. Can I use a passport as Proof of Residence?
No, you may not use a passport as a Proof of Residence. Accepted documents have to include your name, current address and must be dated within the last 6 months. Examples of a valid Proof of Residence document include a utility bill such as water or electric bill, phone bill, cable TV bill or a bank statement or credit card statement.
3. How can I change my address?
Please email to support@TF Capital.com with your old and new address. Make sure to include your MT4 ID number and your username. An updated proof of residence document must also be accompanied with the email. This will again require approval from our Compliance Department.
MT4 Trading Platform (7)
1. What is the MetaTrader 4 Trading Platform?
The Metatrader 4 trading platform provides technical analysis, charting and Expert Advisors to help clients develop their own trading strategies. The MetaTrader 4 terminal is a perfectly equipped trader’s workplace that allows clients to trade in the financial markets (Forex, CFDs and Futures). It provides the necessary tools and resources to analyse price dynamics of financial instruments, make trade transactions as well as create and use automated trading programs (Expert Advisors). It is a convenient, all-in-one solution and is by far the most popular trading terminal platform in the world.
2. What are the market cut-off hours?
Forex market opens on Sunday 5pm EST (10:00 pm GMT), closes on Friday 5pm EST (10:00 pm GMT).
3. Can I install The MT4 Trading Platform in my mobile device?
Please visit the Download section in your Member Area.
4. What is the time zone for the MT4 charts?
The time zone for MT4 Trading Platform is set to GMT+3 from March to November and GMT+2 from November to March.
5. I would like to view two platforms at the same time (i.e., one Live and one Demo Account). Is that possible?
The MT4 Trading Platform only allows one instance running at one time per CPU. You’ll either need to partition your CPU or run the second instance on a virtual PC.
6. I cannot see any currency pairs in the MT4.
Please remember to right click any pair on the Market Watch panel and select “Show All” to make sure you have all the currency pairs we offer.
7. How can I download the MT4 Trading Platform?
After you register with us, we’ll provide you a link where you can download your MT4. You can also download the platform from the Download section of your TF Capital Member Area.
Performing Withdrawals (5)
1. What are the options to withdraw funds?
2. How long does it take for account withdrawal?
3. Are there any charges on withdrawals?
4. I want to cash out my account. What do I do?
Please fill out a withdrawal request in your Member Area.
5. Are there any limits on account withdrawals?
There is a minimum of USD50 or equivalent for withdrawals. An exception is made for clients cashing out of an account. You may withdraw as much as you need whenever you need it.
Performing Trading (25)
1. What is leverage?
Leverage is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. Prior to exploring leverage and how it is used in trading with TF Capital, please carefully read the following Risk Warning on Leverage:
LEVERAGE AMPLIFIES POTENTIAL LOSSES OR GAINS. WITHOUT PROPER USE OF RISK MANAGEMENT, THE HIGH DEGREE OF LEVERAGE MAY LEAD TO LARGE LOSSES.
TF Capital offers variable levels of leverage depending upon account type and account balance. The amount of leverage offered is as low as 1:1 and as high as 500:1. The following table is used in defining the different levels of margin available with TF Capital:
As noted above, the leverage available will differ depending upon account type and account balance.
2. Does leverage affect pip value?
The pip value does not change based on the leverage. It’s all based on the contract size.
3. What is the difference between commission and swap?
Commission is what money managers charge on a per trade basis. Swap is the amount that is credited or debited to an account due to positions held overnight.
4. Where do I find current swap rates?
To check for swap rates open your MT4 platform. Then right click on the currencies in the market watch panel. Then click on Symbols. Then click the currency pair in question. Then click Properties. You will see the swap short and long rate.
5. What kind of spreads do you offer?
TF Capital is offering an ECN spread.
6. What is the minimum trade size?
The minimum trade size is 0.01 lot.
7. What is a TF Capital ECN Spread?
Our TF Capital ECN Spreads are the most suitable for traders of all types. These are our absolute tightest spreads available and rival many institutional level price feeds offered to traders with multi-million dollar accounts:
This is essential for customers that need to get in and out of trades quickly and don’t mind sacrificing a small fraction of a pip to do so in a fast moving market. To enjoy the benefit of such tight spreads, we charge a commission of only USD20 per standard lot round trip and USD2 for mini lot.
8. What are the broker hours used by your server?
Our servers are set up on GMT+3 from March to November, then are on GMT+2 from November until March. Please check this link for detailed information on Forex hours: http://www.forex-internet.com/forexhours.htm
9. Do you run a dealing desk?
No. TF Capital is a 100% straight through processing brokerage firm with no dealer intervention whatsoever.
10. What constitutes Micro, Mini and Standard lots?
At TF Capital, you can trade Micro, Mini and Standard lots all under a single account. Open a Live Account or register for a FREE DEMO Account today.
11. How can I hedge my trade?
12. What is maximum deviation?
13. Is there a guarantee for a stop level?
14. Do you have a minimum margin percentage before you close a position due to a margin call?
15. What is a market order?
16. What is a Stop Loss order?
17. What is a Trailing Stop?
18. How can I put Trailing Stops in my trades?
19. What is a Limit Order (Take Profit)?
20. What is a pending order?
21. What is your Margin Call Policy?
22. How can I protect myself from triggering a Margin Call?
23. Can I trade CFDs?
24. Why am I getting an “Invalid Account” message when I try to login to my trading account in the MT4 platform?
25. Why do I see duplicate trading symbols in my market watch panel?
TF Capital Account (19)
1. Where can I find information about accounts in your website?
2. What type of accounts do you offer?
3. Why is my Country not listed?
4. What’s the minimum deposit to open an account?
All of our accounts have the same minimum funding requirement of USD100.00 or equivalent.
5. How long does it take to approve a new account?
New account approval process usually takes about one business day, provided that the KYC (Know Your Customer) documents are in compliance.
6. Can I choose any username I like?
Usernames must have 3 to 32 characters. Usernames can only accept a to z, A to Z, numbers (0 – 9), and underscore (_). No spaces. No symbols. No special characters.
7. What are the criteria allowed to create my password?
The password needs to be 4-32 characters, A-Z, a-z, 0-9 and underscore (_) only and must include at least one letter and one number. Password is also case sensitive.
8. How many accounts can I open under one username?
Username must be unique to your account. You can only have one account per username. You can have as many accounts as you want but they must be under different usernames.
9. Is hedging allowed?
Yes, hedging is allowed.
10. Are scalpers allowed?
Yes, scalpers are allowed.
11. How long is a DEMO Account valid for?
Each DEMO Account is valid as long as there are active trades*. Click here to open a free DEMO account.
12. What are the necessary steps to open a LIVE Account?
To open a live account, click here. It is then just a few simple steps to follow:
13. What is KYC and how do I upload it?
KYC is an acronym for “Know your Customer”, a term used for customer identification process. You will need to provide two sets of documents as Proof of Identification and Proof of Residence.
They are as per below:
Once the document has been approved, you are well on your way to provide funding and start trading. Click here to upload your KYC documents.
14. What are the necessary steps to open a DEMO Account?
Click here to open a DEMO account and our registration form will prompt you to enter the required information. Upon submitting your DEMO Account registration, you will receive a welcome email providing you with a link to download our trading software (MT4 Platform). Once you have downloaded the application, you will need to supply some additional information, and you will then be ready to start trading.
15. How similar are the spreads and execution in a DEMO Account compared to a Live Account?
The spreads should be identical in both DEMO and Live Accounts. It is impossible, however, to make execution for both the DEMO and Live Accounts identical. The reason for this is that a DEMO Account assumes that all markets are 100% liquid at all times. This is not how the live market works. During volatile market periods, i.e. US Non-Farm Payrolls, etc., there are times when the interbank is illiquid. This means that if you’re trying to execute a trade at 1.3001, and there is no bank that is willing to deal at that price, you will receive the next best possible price. This is the true definition of slippage or re-quotes.
TF Capital differentiates itself from its competitors by offering superior liquidity, thus offering you the best opportunity to be executed at the price you are seeking. A TF Capital client should expect instant execution of his / her order majority of the time, but should also expect the occasional slippage or re-quote during volatile market conditions. The true litmus test of a brokerage firm’s execution, though, is not only how often the client experiences slippage, but how severe the slippage is. We cordially invite you to experience trading with us to see how we excel in both of these facets.
16. Are the DEMO Account platform and the Live Account platform hosted on the same server?
We host DEMO Accounts and Live Accounts on different servers so that clients can test out trading methods and EAs on DEMO servers without affecting the performance and integrity of our Live servers.
18. What is the trading commission for the TF Capital ECN account?
By registering for our TF Capital ECN Account you AGREE to have a USD10 commission deducted from your account in real-time for the equivalent of every standard lot traded and a mini lot (0.10) will be charged approximately USD1. This commission is deducted at the time you exit the trade and is non-refundable.
17. How do I surrender from a Managed Account?
You must first contact your manager and request them to stop trading your account and to liquidate all positions. Once this is done, either you or the manager will need to contact us. It is important to remember that we can only remove your account from the manager’s Power of Attorney (POA) and turn it into a self-directed account only after the manager has liquidated all positions.
a currency is said to “appreciate” when it’s price increases against a specific currency or group of currencies in response to market demand.
the purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
jargon used by dealers in quoting when the forward premium/discount is near parity. For example, “two-two around” would translate into 2 points to either side of the present spot price.
the rate at which a financial instrument if offered for sale (as in bid/ask spread).
division of funds among different markets, instruments or investments to diversify risk and/or create exposure to areas considered attractive, consistent with an investor’s objectives.
the departments and processes related to the settlement of financial transactions.
Balance of Trade
the value of a country’s exports minus its imports.
the base currency is usually the currency in which an investor or issuer maintains its book of accounts. In the Forex markets, the US Dollar is normally considered the “base” currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The main exceptions to this rule are the Sterling, the Euro and the Australian Dollar.
a market in which prices decline.
the rate at which a trader is willing to buy a currency.
the difference between the bid and offer price, and the most widely used measure of liquidity.
the first few digits of an exchange rate, as referred to by dealers for simplicity. These digits change relatively slowly, and are omitted in dealer quotes, especially in times of high market activity when time is tight. For example, a USD/JPY rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. “30/35”.
in a professional trading environment, the “book” is the net positions of a dealing desk.
an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a “dealer” commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade
Bretton Woods Agreement of 1944
the agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US$35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.
a market in which prices rise.
trader slang referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800s.
a chart indicating the trading range for the period as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.
a government or quasi-governmental organization that manages a country’s monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank.
someone who uses charts and graphs and interprets historical data to find trends to predict future movements. Also referred to as Technical Trader.
unethical practice employed by some brokers to increase their commissions by excessively trading in a client’s account. It is also referred to as “churn and burn”, “twisting” and “overtrading”.
the process of settling a trade.
the tendency of an economic situation to spread from one market to another.
something given to secure a loan or as a guarantee of performance.
a transaction fee charged by a broker.
a document exchanged by the parties to a transaction that states the terms of said transaction.
the standard unit of trading.
participant in a financial transaction.
risk associated with an international transaction, including but not limited to legal and political conditions.
the exchange rate between any two currencies that are considered non-standard in the country where the currency pair is quoted. For example, in the US, a GBP/JPY quote would be considered a cross rate, whereas in UK or Japan it would be one of the primary currency pairs traded.
form of money issued by a government or central bank and used as legal tender and a basis for trade.
the likelihood of an adverse change in exchange rates.
refers to taking positions which are opened and closed on the same trading day.
someone who acts as a principal or counterparty to a transaction, hoping to earn a spread (profit) by closing out the position in a subsequent trade. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
a Forex trade where both sides make and take actual delivery of the currencies traded.
fall in the value of a currency against another currency or group of currencies.
a contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.
deliberate downward adjustment of a currency’s price, normally by official announcement.
a government-issued statistic on the state of an economy, which might affect market prices. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.
End Of Day Order (EOD)
an order to buy or sell at a specified price. This order remains open until the end of the trading day.
in a margin account, it’s an accounting equation, which defines the amount currently held in a customer’s account calculated as if all the opened positions will be closed at the current market quotes. It’s usually calculated as the account balance plus unrealized gains and minus unrealized losses.
European Monetary Union (EMU)
EMU created the single European currency called the Euro, which replaced the national currencies of the member EU countries in 2002. The current members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU).
European Central Bank (ECB)
the Central Bank for the new European Monetary Union.
Federal Deposit Insurance Corporation (FDIC)
the regulatory agency responsible for administering bank depository insurance in the US.
Federal Reserve (Fed)
the Central Bank for the United States.
dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.
Foreign Exchange (Forex, FX)
simultaneous buying of one currency and selling of another.
the pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.
the pips added to or subtracted from the current exchange rate to calculate a forward price.
analysis of economic and political information with the objective of determining future movements in a financial market.
an obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange Traded Contacts – ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
Good Till Cancelled Order (GTC)
an order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
a position or combination of positions that reduces the risk of your primary position.
an economic condition whereby prices for consumer goods rise, eroding purchasing power.
the initial deposit of collateral required to enter into a position as a guarantee on future performance.
the Foreign Exchange rates at which large international banks quote other large international banks.
statistics that are considered to predict future economic activity.
London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.
Limit Order ― an order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/JPY is 102.00/05, then a limit order to buy USD would be at a price below 102. (i.e. 101.50)
the ability of a market to accept large transaction with minimal to no impact on price stability.
the closing of an existing position through the execution of an offsetting transaction.
a position that appreciates in value if market prices increase.
the required equity that an investor must deposit to collateralize a position.
a request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.
a dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.
exposure to changes in market prices.
process of re-evaluating all open positions with the current market prices. These new values then determine margin requirements.
the date for settlement or expiry of a financial instrument.
the rate at which a dealer is willing to sell a currency.
a trade with which serves to cancel or offset some or all of the market risk of an open position.
One Cancels the Other Order (OCO)
a designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
an order that will be executed when a market moves to its designated price. Normally associated with Good Till Cancelled Orders.
a deal not yet reversed or settled with a physical payment.
Over the Counter (OTC)
asked to describe any transaction that is not conducted over an exchange.
a trade that remains open until the next business day.
digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
exposure to changes in governmental policy which will have an adverse effect on an investor’s position.
the netted total holdings of a given currency.
in the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price Transparency ― describes quotes to which every market participant has equal access.
Quote ― an indicative market price, normally used for information purposes only.
the price of one currency in terms of another, typically used for dealing purposes.
a term used in technical analysis indicating a specific price level at which analysis concludes people will sell.
an increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.
exposure to uncertain change, most often used with a negative connotation of adverse change.
the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.
process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
the process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.
an investment position that benefits from a decline in market price.
the current market price. Settlement of spot transactions usually occurs within two business days.
the difference between the bid and offer prices.
slang for British Pound.
Stop Loss Order
type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor’s position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.
a technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of Resistance.
The forex swap is an investment strategy that is a combination purchase and sale of the same amount of one currency, while purchasing a different currency that carries two different value dates. This essentially creates a situation in which the investor offsets the sale with the purchase, and also positions the investor to earn a return in both a short and a long position. A forex swap is not the same as a currency trade, which is a simple exchange of currencies based on the current performance of one currency against the other.
an effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.
Tomorrow Next (Tom/Next)
simultaneous buying and selling of a currency for delivery the following day.
the cost of buying or selling a financial instrument
the date on which a trade occurs.
the total money value of all executed transactions in a given time period; volume.
when both a bid and offer rate is quoted for a Forex transaction.
new price quote at a price higher than the preceding quote.
in the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.
US Prime Rate
the interest rate at which US banks will lend to their prime corporate customers.
the date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements.
Volatility (Vol) ― a statistical measure of a market’s price movements over time.
slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
slang for a billion.