CMS Forex UK

Frequently Asked Questions

1. What’s the difference between a Practice/Demo Account and a Live Account?
Demo and Live trading accounts are the same, except that in Demo accounts, you are not trading any real capital. Therefore, you may practice trading risk-free and test various trading strategies with the powerful VT Trader software before trading with real currency. In Demo Account trading, orders are automatically confirmed but in Live Account trading, all orders are handled by our Auto Dealer System or dealing desk. Unlike in Demo Account trading, should the price change during the process of opening a new position, the Live Account trader will receive a new price and will be asked to confirm the price or cancel the order. Additionally, Live accounts are connected to dedicated and more robust servers, separate from the ones used by Demo Accounts. Dow Jones News is available exclusively to Live accounts.

2. What are your commissions and fees?
CMS Forex UK charges no commission on your trades; we are compensated through the Bid/Ask spread of a given currency pair. CMS Forex UK may charge a fee for fund withdrawals, however, this fee is reflective of the costs incurred when processing your transaction through banks and intermediary institutions. You should also be aware that your bank may charge fees on your deposits or withdrawals independent of CMS Forex UK. CMS Forex UK does not charge clients for the use of our revolutionary VT Trader software which is available free for anyone to download.

3. How does CMS Forex UK determine its prices?
Forex is not a centralized, exchange based market. Therefore, the prices you receive from individual forex brokers and major banks may differ slightly from one another. As a market maker, CMS Forex UK can quote any price on a given currency pair. It is CMS Forex UK's objective to provide clients with what we believe to be the most accurate market price.

At CMS Forex UK we run several data feeds from our counterparties, predominantly major banks, through algorithms to extract what we believe are the most accurate prices. Furthermore, our dealing desk monitors our price feeds for any erroneous price data and corrects them accordingly.

4. What is the maximum lot size per order?
The VT Trader platform will allow you to place an order up to 200 lots in size. If you want to place an order larger than 200 lots, you may do so via phone by contacting our dealing desk directly.

5. Will my funds on deposit be safe?
CMS Forex UK must uphold the highest standards and business practices and is subject to strict financial requirements and reporting regulations. Clients' funds are held by CMS Forex UK in accordance with the Financial Services Authority (FSA) client money rules. Click here to learn more information.

6. How much money do I need to open an account?
The minimum amount to open an account is only $200 USD. For clients wishing to open accounts in alternate currencies the minimum deposit amounts are as follows:
200 EUR, 300 AUD, 300 CHF, 300 NZD, 300 CAD, 150 GBP, or 25,000 JPY.

7. What is hedging, and how do I place a hedge order?
Hedging is a very useful tool for those traders that know how to use it properly. Hedging an open position involves opening a second position of the same currency pair and amount in the opposite direction. Normally, the opposing trades cancel each other out, closing the original position. However, with hedging, both will remain separate active positions and lock in a profit or a loss. For example, let’s say you bought GBP/USD. You can hedge your position by selling GBP/USD.
It is important that you fully understand how hedging works and how to properly use it before placing any hedge orders. Hedging is an additional feature we have added for the benefit of our clients, and is by no means a required action. No additional margin is required for hedging positions. Once a position is already established, you have the ability to take the opposite side by clicking the “Hedge Box” in VT Trader. For additional information on hedging, please visit Trading Terms – Hedging.

8. How do I open a Live Account?
Opening a live account with CMS Forex UK is relatively fast and easy! First, take a few minutes to fill out and submit an application. Once your application has been approved, use one of our convenient deposit methods to fund your account. Then, simply login and trade!

10. How do I fund my account?
After your Live Account has been approved, visit the Deposit Funds section of our website to immediately begin funding your account. We accept funds by check, wire transfer, PayPal, BPS, as well as Online Check.

11. How soon will my funds be posted to my account?
Since CMS Forex UK offers several funding options, each has its own varying length of time before posting. The table below shows the approximate number of business days needed for each deposit method.

Deposit Method	Approx. Business Days
Cheque	8-10
Wire Transfer	1-2
PayPal	3-4
BPS	1-2
Online Check	4-5

12. How do I withdraw money from my account?
Withdrawing funds from your account is easy. Funds may be withdrawn via Check (for residents of U.S. and Canada only,) Wire Transfer, or BPS. To withdraw funds simply fill out and submit a withdrawal request form. Once received, we will process your request within 2-3 business days. For more information, please visit Withdraw Funds.

13. What happens to my open positions at the end of the trading day?
When you open a position with CMS Forex UK, you are actually initiating a contract to simultaneously purchase one currency while selling another in a currency pair. This contract has a settlement date 2 days following the day the position was opened, at 5pm EST. In order for a position to remain open after the settlement date, CMS Forex UK automatically renews the contract; this procedure is known in the industry as a rollover. Client intervention is unnecessary if you wish to keep a position opened indefinitely.

CMS Forex UK clients can earn or pay interest on rollovers, depending on the direction of their positions and the interest rate differential between the two currencies involved. For instance, the primary interest rates in Great Britain are much higher than in Japan, so if you buy GBP and sell JPY, you will earn interest at 5 PM EST time. On the other hand, if you sell GBP in this currency pair, you will pay interest at 5 PM EST time. The rates at which you are credited or debited can be located by selecting the Advanced tab from the Dealing Rates window in VT Trader. Positions held overnight on Wednesday incur or earn an extra two days of interest. To get more information please visit Trading Terms – Rollover Interest.

14. What are your trading hours?
Dealing services are offered from 5:15 p.m. EST Sunday, until 4 p.m. EST Friday with no exception for country-specific holidays unless a special notice is given in advance to our customers.

CMS Forex UK is closed on December 24, 2009 from 2 p.m. EST and will reopen on December 27 at 5:15 p.m.

CMS Forex UK is closed on December 31, 2009 from 2 p.m. EST and will reopen on January 3, 2010 at 5:15 p.m.

15. Can I place orders over the phone?
Yes, you can place trades over the phone. Please read Emergency Procedures to learn how.

16. Can I place a trade via email?
No, we do not allow our customers to place trades via email. In the case of an emergency, you may place trades over the phone. Please read Emergency Procedures to learn how.

17. How do I change my money manager? May I revoke an old power of attorney?
You may change your money manager at any time by revoking your outstanding Power-of-Attorney and completing a new Limited Power-of-Attorney. The new Limited Power-of-Attorney must be signed by your new trading agent and sent to us via mail, email or fax. To revoke your old Power-of-Attorney please contact account@cmsfx.co.uk.

18. Can CMS Forex UK tell me when to buy or sell a currency?
CMS Forex UK does not make recommendations, offer opinions or advise customers on their individual trading accounts. However, CMS Forex UK does provide news, commentaries, a calendar of fundamental announcements, webcasts, and various educational resources to keep you well informed during your trading. CMS Forex UK also provides detailed articles explaining the ins and outs of using technical indicators. Please visit Forex Resources for these and other helpful Forex trading resources.

19. Do I need a broadband Internet connection to trade with CMS Forex UK?
You are not required to have a broadband connection; a dialup connection may be used. However, CMS Forex UK and Visual Trading Systems strongly recommend using a high speed internet connection for optimal performance.

20. Can I trade with CMS Forex UK if I am not using my home computer?
You may trade with CMS Forex UK from any computer with an Internet connection which has VT Trader installed. You may easily download and install VT Trader on any computer runnning Windows.

21. Can I use VT Trader on my Apple Macintosh computer?
Unfortunately, VT Trader does not work on computers running Apple Macintosh operating systems.

22. What are the minimum system requirements for running VT Trader?
The MINIMUM system requirements are:
• Pentium class (or similar chip) running at 166Mhz or higher.
• 128MB RAM.
• Monitor Resolution should be set to 1024x768.
• Windows 98/NT/ME/2000.
• Internet Explorer 5.0 or Netscape v6.x. If you are using AOL, we recommend that you configure AOL to use Microsoft Internet Explorer for web browsing.

The RECOMMENDED system requirements are:
• Pentium II or Celeron class running at least 300Mhz or higher
• Monitor that supports 1024x768 with a color depth of 32 bits (16,777,216 colors) or higher resolution.
• 128MB RAM for Windows 98/2000, and 256MB of RAM for Windows NT.
• A fast Internet connection is vital for currency trading. We recommend that you install DSL or cable modem.

23. How can I revoke my money manager's trading authority over my forex account?
To revoke your money manager’s trading authority, you must fill out a Revocation of Limited Power of Attorney Form. Please submit completed form by fax to 020 3070 0400, or scan and e-mail to . If you require any assistance in this process please contact customer service online or by phone at 0800 845 6997.

Simulated conditions may differ from real conditions, and traders should not necessarily expect the same results from live trading.