FAQ - About Opening and Using a Trading Account With ECN Capital
If you have any questions, or issues you feel you want to receive more information about, you are always welcome to contact our customer support department via email, telephone or live chat. We'll be happy to be of assistance any time, 24 hours a day, 365 days a year.
You may find the answer you're searching for among the ones given in the FAQ listed below:
How can I withdraw funds from my trading account?
At ECN Capital we guarantee that transferring of funds withdrawn from clients' trading accounts will be executed within 7 business days from the moment the withdrawal request was issued. Withdrawal requests are made from the "withdrawal" page which is accessible from the drop down menu under "My Account".
The transfer of the funds you have withdrawn from your account will be made in the same manner you've made deposits to your account, i.e. if you deposit through the use of a credit card, the same card will be credited upon processing the withdrawal request you've made. If you deposit money into your trading account by way of bank wire transfer the sum withdrawn will be transferred in a similar fashion into the same bank account from which deposits are made.
After the initial deposit, how do I make further deposits into my trading account?
The initial deposit is required in order to set up your user account, then opening a trading account in your name and allowing you to begin trading. If you want to make further deposits to your trading account just go to the "deposits" page which is accessible from the drop down menu under "My Account" in our website or app. "My Account" is only available after you've successfully logged into your user account.
How much is the fee for a trade I open?
The fee paid to the company is made in the spread, i.e. the difference between the buy and sell rates, except for ECN accounts where the fee is $15 per lot.
What is the ECN system and what is the difference between ECN and the fixed spreads?
The fee you will pay for a trade you open is determined by the "spread", i.e. the difference between the price you paid for the product you've decided to trade on and the price you get for it when you close the trading position. There are accounts (such as "Islamic accounts", and specific kinds of accounts where the fee is not calculated as a percentage of the spread, rather than that, it is a fixed sum, usually 15$ per lot.
How long is it recommended to keep a trade open?
There is no recommended length of time to keep a trade open. A trade can be opened for minutes, hours, days, weeks, or months until it reaches the take profit goal or closes due to a set stop loss. For a trade in which the take profit or stop loss were not defined, the deal can be manually closed by the trader or it will close when a margin call occurs (i.e. there is no available collateral to keep the trade open anymore).
What characterizes the ECN Capital trading system?
The ECN Capital trading system is one where rates are displayed with 5 digits after the decimal point, this makes the last digit a tenth of a pip. Buy and sell rates are calculated so that rates are minimal (only half a pip in accounts managed in Euros or U.S dollar). Market fees are also extremely low, only 15$ per lot.
Is there a recommended length of time to keeping a trade position open?
There is no such thing as a recommended period of time for a trade position to remain open. How long it takes before a position is closed may vary greatly, some trades last minutes, others hours and some days, weeks and even months. Trades may be closed manually (by issuing a "sell" order), they may close when "stop loss" or "take profit" limits are reached or due to a "margin call" (when funds left in the account are deemed insufficient. i.e. there is not enough collateral for ensuring that the possible costs of the trade will be covered).
How is profit made from currency interest differences?
When you trade on Forex (buying one currency while paying for it with another currency) the interest rates are calculated every day at 00:00 GMT +2 (12 midnight Cyprus time). You stand to make a profit each time the rates are calculated and turn out in your favor. It is important to remember that profits only materialize once you close the trading position and funds are transferred to your trading account.
Can a trade be closed manually even if profit goal is not reached?
You can close trading positions manually at any time, regardless of whether or not you've set "take profit" and/or stop loss limits. You can make a "sell order" to close a trading position from your user account in our website or app (under "my account"). You may also give orders, including ones to close trades, by telephone or live chat directly with representatives from the trading room.
Can I close a trade only partly, leaving some of it open?
You may place orders to sell any volume of the trade thus leaving the rest of it open.
What does "lock in profits" mean and how does it allow me to ensure collecting profits which have already accumulated?
If an open trade position is in profit but the price you can sell for has not yet reached the take profit limit you've set you may update the take profit limit and thus end the trade while locking in the profits.
How do I set up a future trade?
You can set up future trades by ordering that a certain product be bought when its price reaches a certain level and then sold when at another predetermined level. You may set an expiration date for any future trade.
Here's an example of a future trade: If the price of gold is currently 1350 you may begin a trade by buying it at this price and issuing an order to sell if the price reaches 1392 within the next four hours. If the price does not reach the limit you've set within the predetermined time frame the sell order expires.
What is hedging and what's to be gained from it?
Hedging is buying a certain amount of a certain product and then selling the whole amount at once. By hedging your account you're enabling yourself to trade while the margin set for your account (the minimum amount of funds required to be in your account in order for trading activities to go on) is zero. The fees you pay while hedging are similar to those paid when trading in any other fashion.
What is a margin call and when is one issued?
A margin call occurs when the funds left in a trading account are not enough to cover fees and losses which may materialize due to trades currently open. If the funds in your account amount to just 50% of the total sum invested in trades a margin call will be issued and all open positions will be closed automatically. In order to avoid a margin call you may need to deposit more funds into your account.