cfd AND ffd traDING FAQs

What are the advantages of CFD and FFD trading?

With stocks, commodities, indices and bonds you can trade CFDs and FFDs on rising and on falling prices. CFD stands for "Contact for Difference" and refers to an agreement to exchange the difference between the opening and closing price of the position. CFDs are derivative financial instruments. Margin trading enables the investor to speculate with a high multiple of his or her actual capital. CFDs reflect the changes in the rate of the underlying to 100%. No stock exchange charges or external fees are incurred.

How much does CFD and FFD trading cost with FXdirekt?

The FXdirekt Bank charges no fees for CFD and FFD trading and there are no external stock exchange charges. The account opening and management, telephone orders, all order types, as well as the deletion and changing of orders, are free of charge. Even phone calls to the FXdirekt Bank are also absolutely free of charge. The FXdirekt Bank merely earns the spread, i.e. the difference between the bid and the ask price. Only positions with a leveraged value of less than 50,000 Euros are subject to a ticket fee for a small-volume order. The ticket fee varies with the type of account; EASYaccount, SMARTaccount or PREMIUMaccount. Our account matrix provides you with a detailed overview.

Please see also our Schedule of Prices and Services.

Which stocks and commodities can I trade?

The universe of the FXdirekt Bank ranges from A for Adidas to V for Volkswagen. With FXdirekt you can of course trade DAX and TECDAX FFDs.

How much is the minimum tradable amount for precious metals?

The minimum tradable amount for gold is 100 fine ounces. For silver, the minimum tradable amount is 1,000 fine ounces.

How much is the margin when trading precious metals?

The required margin when trading precious metals is 3% of the total transaction volume. At weekends and on non-trading days etc. the margin is 5%. Therefore, when trading precious metals it is possible to utilise a leverage of up to 33 (=3% Margin).

What are the trading times for precious metals?

You can trade precious metals on weekdays from 01:00 to 23:00 MEZ.

How much money do I need to get started?

With FXdirekt Bank you can open an account with just 4.000 EUR.

What is the margin and how does the leverage function?

The margin is the amount of security that you must deposit for a transaction. The FXdirekt Bank enables you to utilise a leverage of up to 100 (1% margin). The required margin when trading stocks, commodities, indices and bonds is determined by the FXdirekt Bank and generally lies between 3% and 50%. For example: to trade 400.000 EUR/USD with a margin of 5% you merely require 20.000 EUR.

How great are the risks and opportunities when trading CFDs and FFDs?

The attraction lies in the leverage, and with the FXdirekt Bank it is possible to earn far more profit than the amount of capital invested. As a rule, the most you can lose is the invested capital. CFD and FFD trading belong to the highest risk group of speculative investments and we therefore advise all clients to always pursue of a stop-loss strategy.

How do I get started?

The demo account allows you to learn the application of the FEXtrader.  Which allows you to become acquainted with all the platform's functions. Our competent team will support you at all times. Furthermore, as a live trader, you have the opportunity of calling us 24 hours a day and consulting our customer support. There is a big difference between demo account trading and live account trading:  the emotions. Emotions, unfortunately, cannot be simulated.  The demo account is, otherwise, almost identical to the live account. With foreign currency trade, the following applies - as in many other areas in life:  One can only learn to ride a bicycle by getting on; our experienced team will show you how to apply the "stabilising wheels" (stop-loss strategy).

Do you inform me if the rates go up or down?

When trading foreign currency, CFDs or FFDs it is essential to make your own trading decisions. The FXdirekt Bank will support you in the best possible manner. We offer you comprehensive information via FXresearch, you receive intraday trading analyses, substantial daily and weekly commentaries, as well as a news feed, which provides you with realtime foreign currency news. As a live customer of the FXdirekt Bank, you can contact our customer service advisors 24 hours a day, who will be happy to help and advise you. And the best thing is; this service package is completely free of charge.

Why does the spread sometimes widen?

Due to the fact that the FXdirekt Bank cooperates with some of the biggest banks and stock markets in the world, you have the guarantee that the prices displayed in the FEXtrader Pro® are tradable. Under certain circumstances, e.g. an extremely volatile market, this can lead to a minimal widening of the spread. Contrary to other brokers, who always provide you with the same spread, which you often cannot trade, the FXdirekt Bank has decided to always show you the price which is ad hoc tradable. An advantage of the potential widening of the spread, is that with the FXdirekt Bank, you are in nearly all situations in a position to place your orders.

What is the rollover?

The rollover is the extension of a foreign currency, CFD or FFD transaction which is due to expire, through the completion of a swap transaction (e.g. tom-next-swap). As a rule, foreign currency and CFDs are traded with a valuta of two days, i.e. the transaction becomes due in two days. But, as you are not interested in having the foreign currency, stock or commodity physically delivered, the FXdirekt Bank carries out this service for you and, on a daily basis, rolls your open positions one day further. With this procedure, the interest is also taken into account. For example: You have sold EUR/USD. This means, that you owe EUR and have bought USD. Currently, the credit balance interest for USD is higher than the debit balance interest for EUR - with the rollover you thus receive a more favourable rate when opening the position (ROP) than you will when closing the position (RCL) - in this case, you profit from the rollover.

Is my money safe with the FXdirekt Bank?

The FXdirekt Bank belongs to the "Entschädigungseinrichtung der Wertpapierhandelsunternehmen" (EdW, Organisation for Compensation for Securities Trading Firms). The EdW is an organisation created in response to the "Einlagensicherungs- und Anlegerentschädigungsgesetz" (law regarding deposit guarantee and investor compensation) of 16 July 1998, to secure investor claims. Please see also our General Terms and Conditions.

Do I have to pay for the trading software or the chart tool?

The award winning trading platform FEXtrader Pro and the realtime rate information for forex, stocks, commodities, indices and bonds are completely free of charge. The chart tool is also free.