FX is the shortened term used for ‘Foreign Exchange’, the buying and selling currencies. The foreign exchange market is the biggest and most liquid financial market in the world, and operates 24/5. Almost every financial service deal across the global includes an FX transaction. On the exchange market you can trade the most popular FX pairs such as the euro/dollar, or opt for a more specialist currency. Trading reacts to both fundamentals (market news) and technical (trends), making this a dynamic asset class.
A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. CFDs are derivatives products which allow you to trade on live market price movements without actually owning the underlying asset(shares, indices, single stock, or commodity) on which your contract is based. CFDs allow you to trade on the future movement of market prices regardless of whether the underlying markets are rising or falling. They allow traders access to markets which they would not normally be able to invest in.
Leverage is used to significantly increase your investment potential. It is a multiplier of your trading deposit. This allows you to take more or larger positions, which can lead to greater profits or losses. You must always be aware of the leverage you are trading and the margin (deposited funds) required to maintain these positions.
(Price x Quantity) / Leverage
Malfex Investment uses a ‘Floating Leverage’ system which automatically applies the maximum leverage available on a trade by a trade basis depending on the client’s trade volume in USD.
| Nominal value of open position in USD | Maximum leverage offered |
|---|---|
| First USD 3 Million | 1:500 |
| Next USD 3 Million | 1:400 |
| Next USD 2 Million | 1:300 |
| Next USD 2 Million | 1:100 |
| Next USD 5 Million | 1:50 |
| Remaining | 1:33 |
Nominal Value of open position = Number of lots x Contract size
Example: Open positions over 15 Million USD nominal value will carry the following leverage:
The spread is the difference between the BUY price and the SELL price of two instruments. For example, if the EURUSD is trading at 1.1167 (buy) and 1.1166 (sell), then the spread is 1 pip.
(Price x Quantity) x Margin percentage
Yes. You can hedge your positions on your Malfex Investment trading account.
Hedging is when you buy and sell the same amount of an instrument and is used to protect your positions from an adverse move or event in the market.
The result of hedging positions is not always fixed, as it varies together with the spread. Sudden spread widening (during news releases for example) can lead to a margin call or stop out as the widening negatively affects both positions and thus cause overall losses.
The basic contract unit of the Retail Foreign Exchange is the lot.
The standard lot size is 100,000 units of the base currency (1st currency in the currency pair), however you can also trade either multiples of, or fractions of, lots. The minimum at Malfex Investment is 0.01 lots.
Therefore 1 lot on the GBP/USD market is the equivalent of buying / selling ￡100,000 and either buying / selling X amount of USD at the current rate.
| Lot Size | Units of base currency (First currency) |
|---|---|
| 1 | 100,000 |
| 0.1 | 10,000 |
| 0.01 | 1,000 |
The minimum lot size that you can trade with, is 0.01 lot on Forex and Metals.
The Forex market is open 24 hours a day, 5 days a week.
The time on MT5 is shown as Eastern European Time (EET). During Daylight-Saving Time, EET is 3 hours ahead of Greenwich Mean Time (GMT +3). During Standard (Winter) Time, EET is 2 hours ahead of GMT (GMT +2).
The end of our trading day always aligns with the close in New York.
No, unfortunately, not. Trades can only be placed during market hours
Each currency pair, is represented by a three-letter code. The first currency represents the base currency and the second currency represents the quote currency. The value provided in an exchange rate refers to the amount required in the quote currency to buy 1 unit of the base currency. For example: EURUSD is currently trading at 1.23584 means that you need 1.24 USD to buy 1 Euro.
PIP stands for Point in Percentage. A pip measures the amount of change in the exchange rate for a currency pair. A fractional pip is equivalent to 1/10 of a pip. There are 10 points to every 1 pip. Each pip is worth roughly one unit of the currency in which your account is denominated.
The spread is the difference between the BID and the ASK price. The BID price is the rate at which you can sell a currency pair, and the ASK price the rate at which you can buy a currency pair.
The base currency is the first currency in a currency pair. The quote currency is the second currency in a currency pair also known as Term currency. For example, the EURUSD currency pair, EUR is the base currency and USD is the quote currency.
Swap-free accounts are an option for customers who have the preference to use trading without adjustments to swaps on selected products. However, swaps are charged on Swap Free accounts for CFD Indices and Exotic pairs. You will not be charged Swaps on Forex Majors, Minors and Metals.
To apply for a swap free account, you need to apply for a live account and agree to the Swap-free terms and conditions. If you wish to convert your existing account to a swap free account, please contact our Client Support team at info@malfex.com.
Yes you can. However, major news and announcements can often cause volatility or uncertainty in the Forex market and this can affect all products. Orders are sometimes filled away from the requested opening price due to gaps in the market. When you place an order, you may experience slippage.
If an account was funded via a credit/debit card and a withdrawal request is submitted within 60 days from the date of the deposit, funds will be credited back to the same card that was used for depositing. Up to 100% of the initial deposit can be withdrawn back to the card. The amount over the initial deposit (profit) can be withdrawn entirely or partially via bank wire to a Client’s personal bank account only.
Your personal information is highly secured, we do not pass your personal information to any third party, and we do not sell your personal information for any purposes.
Within one working day your account will be approved if you have submitted the required documents.
You would need to contact us at info@malfex.com and our team will be happy to assist and make the changes you wish.
You would need to contact us at info@malfex.com and our team will be happy to assist and make the changes you wish.
You would need to contact us at info@malfex.com and our team will be happy to assist and make the changes you wish.
Please note that we can only accept deposits into your account from a bank account or Debit/Credit card which is in your own name.
The Payment systems are Neteller, Skrill, Webmoney and Perfect money.
There is no deposit fees on Neteller and skrill. For Webmoney is 2.5% + 0.8% and for Perfect money is 0% + 0.5%
We will require a bank letter from you confirming the account closure. We will then require a bank statement from you for the alternative account which you would like your funds returned to.
If you send us funds in a different currency from your account base currency, we will convert them at the current spot rate. Please note that if this process is required, your deposit will take longer to be credited to your trading account. We will not be liable to you for any exchange rate loss suffered by you as a result of any such conversion.
You would need to contact us at info@malfex.com and our team will be happy to assist and make the changes you wish.
We have a variety of methods to add a deposit to fulfil the clients wishes, you can add a deposit using:
All retail clients’ deposits are held in segregated accounts in our bank accounts.
All retail clients’ deposits are held in segregated accounts in our bank accounts.
Please bear in mind the standard trading rules:
In order for your ASK (BUY) order to have been executed, it would have needed to have reached the ASK price which includes the spread and this is not shown in the candlestick on the chart.
You can add the ASK line to the chart by right clicking on main body of the chart, click on ‘Properties’ > ‘Show ASK line. The ASK line will then appear showing you the BUY (ASK) price which includes the spread.
You can also see both the BID and the ASK price in the Market Watch which displays the symbols, prices and spread depending on what you choose to add to the columns.
The MetaTrader4 order window is used to place trades. The order window can be opened using any of the following methods:
The MetaTrader4 order window is used to place trades. The order window can be opened using any of the following methods:
Once the Order window has been opened, traders can enter information into fields and make selections from drop-down lists to prepare the trade order.
You must specify the following:
After these fields have been specified:
If a Pending Order is selected, select the type of order from the drop-down menu. Available order types include:
You must specify the following:
Then specify the price at which the order will be triggered at by entering the value next to the ‘at price’ field. To avoid manually entering the price, click on the up or down arrow next to the price field to fill in the current price, and adjust as necessary.
If your Malfex Investment falls to less than 30% of the required margin, your trade(s) will be closed out by our Automated Risk Management System starting with the position with the greatest loss. You need to make sure that you fund your account well in advance to make sure you can support your margin requirements. To calculate the margin level (%), apply the following: (Malfex Investment / Margin held on open trades) x 100
You must specify the following:
You must have your own asset manager, we cannot recommend any asset manager to manage your account.
Open positions will not be closed if you logout of MT5 until an existing stop loss, take profit or stop out level is reached.
Market execution enters you into a trade at the current market price. A pending order can be used to specify a price and if the market reaches that value, the order will be triggered and a trade will be opened at the next available price. Please refer to the Execution Policy for the specific product and entity with whom you are trading.
Malfex Investment can not guarantee a stop loss. All orders will be filled at the first available price and this can have a negative or positive impact. There are some instances where your stop will have been triggered even though the chart does not show that the price was reached. This can be attributed to either (a) the charts displaying raw interbank prices and therefore do not account for the spread, (b) the charts displaying only one side of the market, or (c) the charts displaying indicative movement which may not be capturing all price updates immediately.
Buy Stop – Above Market Price; Sell Stop – Below Market Price; Sell Limit – Above Market Price; Buy Limit – Below Market Price
Positions remain open until they are either closed manually, or by an order, or when a contract expires.
We offer Introducing Broker (IB) partnership programs.
Once you open a partner account, you will receive an IB link that you can give your leads. When clients sign up for a demo/live account, they will be automatically linked to your IB profile.
If a client gets stopped out or decides to leave, their share of the positions will be automatically closed and they will be automatically detached from the MAM program. The open positions of the remaining clients will remain open at the same price, but might have different ticket numbers.
In the case where the positions of the client being stopped out is less than the minimum trade of 0.01, then the remaining client’s positions might be affected by the combined volume of 0.01 lot for all.
Rebates & commission schemes may vary depending on the individual IB . Typically, half the payment is received when a position is opened and the other half will be paid when the position is closed. Rebates/Commissions are normally reflected onto your rebate account at the end of the trading session (00:00 platform timing).
We offer tiered payment structures bespoke to individual partners and their needs. Please speak to one of our dedicated account managers for more detail.
Legal: Malfex Group is licensed and regulated by Central Bank of Azerbaijan with the registered name MFX Investisiya Sirkati license number IS-06 as stock joint company and member of Baku Stock Exchange in Azerbaijan.
Malfex Group is licensed and regulated by FSCA(Financial Sector Conduct Authority) under registered name MALFEX GROUP (PTY) LTD FSP No 51598
Malfex is part of Rubin Overseas AG which is regulated by the Securities and Exchange Commission SEC in Washington DC, USA under the license number 801-78986.
Rubin is further directly regulated by the Swiss Financial Market Supervisory Authority FINMA in Switzerland and registered under the license number CHE-392.194.540.
The group is also licensed and regulated by the Malta Financial Services Authority MFSA under license number C-71261 in Malta.
Rubin is also licensed and regulated by Banca D‘Italia (Central Bank of Italy) in Italy.
Malfex Group Limited is authorized and Licensed by the Financial Services Authority(Registration Number. 25343 BC 2019), with its company registered address at First St. Vincent Bank Building, James Street, Kingstown, St. Vincent and The Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendment and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines, 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well as to provide brokerage, training and managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.
RISK WARNING: Forex and CFDs are leveraged financial instruments that carry a high degree of risk and may expose you to significant losses. Trading in CFDs may not be suitable for all investors. Before trading, you should ensure you fully understand the risks involved and consider your level of experience. If necessary, you should seek independent advice. Please read the full Risk Disclosure Statement for further details.
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