FAQs

You are handing you’re funds to a fully regulated, European broker, which obviously brings with it many assurances and entitlements to you as a valued client.

The Company being a member of the Investor Compensation Fund provides the Client with the extra security of receiving compensation from the Fund, for any claims arising from the malfunction on behalf of the Company to fulfill its obligations despite whether that obligation arises from legislation, the agreement or from wrongdoing.

FxCoffee only operates with fully licensed and regulated European brokers, The brokers are required to hold on file supporting documentation to accompany each online application. Without these documents you may experience delays in administrative tasks such as withdrawals.

The FxCoffee team will be able to assist you with the requirements and liase personally with the broker speeding the process.

1. Identification

EU Citizens: Valid copy of Identity card / Passport

Non EU Citizens: Valid copy of Passport

In some countries there may be alternative acceptable forms of Identification, if you are unsure please contact us.

2. Proof of Address:

Recent utility bill dated in last six months, Bank or Credit Card statement, Tax bill.

Please note that electronic statements will not be accepted e.g; online bank statement.

Getting started is easy, register with FxCoffee by filling your details and get instant access.

If you are near one of our venues, come along and see Forex with one of our experts.

Register for a Free Demo account with FxCoffee and get your Forex Trading future started today!

Trading is 24/5 round the clock, meaning trading is always accessible as long as you have internet connection.

Definately! Trading is something that almost anyone can learn. However, becoming consistently profitable doesn’t happen over night.

You must go through the same processes of education and mentoring that all professionals go through.

Thats why FxCoffee provides all the resources you will need to get started

No. Forex Trading uses Leverage to trade CFD's, (Contracts for Difference) which give you the right to trade large volumes of a currency without the need for large deposits. Each lot equals a different amount of currency, depending on the currency being traded.

There are various advantages to trading Forex. Here are just some of the reasons to why so many people are trading Forex and to why the Forex market is continuing to grow to what it is today…

No Hidden Fees - In Forex there is no catch or hidden fees that you are unaware of as each currency pairing has a spread which compensates the broker for its services. Floating spreads available are as low as 0,5-5,0 (the best retail offer in the market).

24-hour market – The Forex market allows you to trade whenever and how often you choose to. From Sunday night to Friday evening GMT, the Forex market is continually open for traders to perform how/where/when they please.

Forex Participants - The Forex market is so vast and has so many participants that no sole entity can have power over the market value for any given trade for an extended period of time.

Market Liquidity – Being that the Forex Market is so huge and has so much money going through it, the liquidity of the market is enormous. With such high liquidity in the Forex market it means that with a click of a mouse you can instantly trade (buy or sell) at any given time without any problems. The market liquidity again allows the use and setting of Stop Losses or Take Profits without any headaches.

Demo Accounts – A Free $100,000 Demo Account is available from FxCoffee, giving you ample opportunity to develop your skills on the Forex market before trading for real. Our Demo Account provides traders with exactly the same advanced market conditions as a real account.

Low transaction costs - The costs for trading are minimal and are deducted automatically as you buy and sell your way to success.

Profit from Rising and Falling markets - Unlike traditional trading methodology,  in FX you don’t need to wait for the market to be ready to enter.

The FX Market is the largest money market in the world with $3 trillion changing hands between buyers and sellers across the globe every day, making it one of the most exciting and liquid markets for trading.

Why is this important?

Daily turnover in the world's currencies comes from two sources:

Foreign trade (5%).

Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.

Speculation for profit (95%).

An amazing 95% of all FX volume traded globally every day is done purely for the intention of making profit

Fx or Forex Trading is the exchange of one currency for another at a given rate (exchange rate) at any precise moment in time.

Trading is performed via a Trading Platform which shows the current prices and historical charts.

The FX market has more daily volume - both buyers and sellers - than any other market in the world.

Extra information is taken from sources such as News and Economic Calendars which is then used to judge the movements of the markets.

Lots are the standard unit used to measure the size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency or 10,000 units if it's a mini.

Standard Lot

Trading with a Standard Lot size (1.0) means you are trading 100,000 units of the base currency.  e.g. The pip value is $10 for EUR/USD.

Mini Lot

Trading with a Mini Lot size (0.1) means you are trading 10,000 units of the base currency.  e.g. The pip value is $1 for EUR/USD.

A Pip is a term used in the Forex market to indicate the smallest incremental move an exchange rate can make.

The Pip is how you measure your profit or loss as it has a specific value for each currency pair.

For example: The Bid and Ask prices above are 1.01014 and 1.01054 which makes the spread = 0.00040, which is 40 points or 4 Pips

For reference, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.

Trading platforms allow you to send your orders for execution. Moreover, the platform allows to control and manage open positions. For these purposes, several types of trading orders are used in the platform: Market order, Pending order, Stop Loss and Take Profit.

Market Order - Market order is a commitment to Buy or Sell at the current price. Execution of this order results in opening of a trade position immediately. Securities are bought at ASK price and sold at BID price. Stop Loss and Take Profit orders (described below) can be attached to a market order. A Market Order is often known as Instant Execution

Pending Order - Pending order is the client's commitment to buy or sell at a pre-defined price in the future. This type of orders is used for opening of a trade position when the prices reach the pre-defined level. There are four types of pending orders available in the terminal:

Buy Limit - buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the price, having fallen to a certain level, will increase;

Buy Stop - buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the price, having reached a certain level, will keep on increasing;

Sell Limit - sell provided the future "BID" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the price, having increased to a certain level, will fall;

Sell Stop - sell provided the future "BID" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the price, having reached a certain level, will keep on falling.

Orders of Stop Loss and Take Profit can be attached to a pending order. After a pending order has triggered, its Stop Loss and Take Profit levels will be attached to the open position automatically.

Stop Loss - This order is used for minimizing of losses if the price has started to move in an unprofitable direction. If the price reaches the Stop Loss level, the position will be closed automatically. Stop Loss orders are always connected to an open position or a pending order. The MT4 platform checks long positions with BID price for meeting of this order provisions, and the ASK price for short positions.

Take Profit - Take Profit order is intended for gaining the profit when the price has reached a certain level. Execution of this order results in closing of the position. It is always connected to an open position or a pending order. The order can be requested only together with a market or a pending order. platform checks long positions with BID price for meeting of this order provisions, and it does with ASK price for short positions.

Attention: Stop Loss and Take Profit orders can only be executed for an open position, but not for pending orders;

History charts are drawn only for BID prices in the platform. At that, a part of orders shown in charts is drawn for ASK prices. To enable displaying of the latest bar ASK price, one has to flag the "Show Ask line" in the terminal settings.

BAR CHART

Shows opening and closing prices as well as the highs and lows of that time period. (one "bar" is one period of time, minute, hour, day, etc.)

The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid.

So, the vertical bar indicates the currency pair's trading range as a whole.

The horizontal hash on the left side of the bar is the opening price, and the right-side horizontal hash is the closing price.

The base currency is the first currency shown in the pair (ie. GPB/USD the GPB is the base currency)

The Bid price is the price you can sell the base currency (at the same time buying the counter currency)

The Ask price is the price you can buy the base currency (at the same time selling the counter currency)
The Spread is the difference between the Bid price and the Ask price

Going long is when you stand to make money if the currency rate will rise (ie. buying first, as the market is low and when it rises you would sell)

Going short is when you stand to make money if the currency rate will fall (ie. selling first, as the market is high and as it drops you buy)
"If a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening"

Technical Analysis is forecasting price movements by looking solely at market-generated data from the charts on the platform.

Price data for a specific currency is most commonly the type of information analysed, though most will also keep a close watch on news releases and other factors.

Technical Analysis assumes that market fundamentals are already included in the market data.

A technical trader will search for patterns or trends in the chart data and how that pattern can be used to predict future prices to take advantage of the ups and downs along the  course of the trend.

Fundamental Analysis:

Fundamental Analysis is looking at the market from the angle of supply and demand, focusing on the forces that drive them (social, economic, political factors)

A currency is a gauge of how well an economy is doing. Strong economy equals strong currency and vice-versa, Whose economy is doing well? Whose economy is doing poorly?

Effects:

Interest Rate effect: As country's interest rates Increases, the strength of that country's currency also increases.

Gold effect: Inverse relationship between Gold price and USD, so as Gold price increases, USD will decrease or as Gold decreases, USD increases. This inverse relationship is due to Gold being seen as a solid, safe commodity. If there is instability in another commodity or currency, the amount of Gold purchased will rise because it is a strong commodity to have in times of instability

Oil effect: As Oil prices increase, price of currency of oil-dependent country more likely to decrease, due to the sensitivity of the country's market to Oil (ie. USD)

Economic Indicators:

Major economic indicators include: The Gross Domestic Product (GDP), Industrial Production, Purchasing Managers Index (PMI), Producer Price Index (PPI), Consumer Price Index (CPI), Durable Goods, Employment Cost Index (ECI), Retail Sales, Housing Starts.

Example: If the market for the USD is not moving and has been holding its position, but there is a key piece of economic data coming out at the end of the week, such as the Gross Domestic Product (GDP), it may have a positive effect on the market and drive the currency prices up, (if the GDP is better than predicted) or a negative effect, driving prices further down (if the GDP comes out lower than expected)

Support & Resistance:

When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance. As the market continues up again, the lowest point reached before it started back is now support. In this way resistance and support are continually formed as the market oscillates over time.

Trendlines:

An uptrend line is drawn along the bottom of easily identifiable support areas (valleys). In a downtrend, the trend line is drawn along the top of easily identifiable resistance areas (peaks)

Channels:

Add a parallel line to the upper and lower trend line indicators so that each trend direction now consists of two lines or a channel When prices hit the bottom trend line this may be used as a buying area. When prices hit the upper trend line this may be used as a selling area.