ForexCT: Leading Brokerage Firm in Forex and CFD Trading Services in Australia

Forex CTForexCT has come a long way. Established in 2006, more than 13 years ago, the company has since expanded into a multiservice brokerage firm. Currently, it provides more than 60 currency pairs, various contracts for differences (CFDs), spot metals, and other similar assets for trading.

The firm is licensed by the Australian Securities and Investments Commission (ASIC). Based in Melbourne, Australia, it operates as a brand of Forex Capital Trading Pty Ltd. It is, therefore, a strictly regulated company that complies with specific rules.

ForexCT is a leading provider of Forex and CFD brokerage services. Whether you are a market expert or a newbie, with the firm’s standard trading platforms and analysis tools, you will find trading easy and fun. Especially popular among Australian investors, it lowers barriers to starting to trade.

One of the benefits of using the broker is its easy accessibility, no matter the experience level of the investor. Also, it provides educational resources to enable traders to hone their skills. Moreover, it offers high leverage, guaranteed stop loss on every trade, and fixed spreads.

Why You Should Use ForexCT

·         License And Regulation

As hinted earlier, there are many advantages to using ForexCT. Perhaps, the most important is its reliability. The company is duly licensed and regulated by the Australian Securities and Investments Commission (ASIC). As a result, the company complies with certain specific industry rules. Among those is the direction that customers’ funds should be kept in separate trust accounts. Therefore, your investments are safe to a reasonable extent.

·         Fixed Spread Policy

Another advantage of using the brokerage firm is its fixed spread policy. Although this policy can make trades a bit expensive, it precludes commissions on trades. Therefore, no matter how volatile markets are, spread stays relatively constant, thereby giving traders some measure of predictability and control.

Furthermore, the broker has a guaranteed stop loss policy on every trade. This policy is affected at no cost. Stop losses are essential to managing risk by, as the name implies, minimizing losses. Their use is especially recommended for beginner traders who may be tempted to keep losing trades.

Even though this guaranteed stop-loss policy may be most beneficial to beginners, veteran traders also can incorporate it into their trading strategies. Stop losses make their users smarter and certain about their trades.

Although in some situations of high market volatility, slippage could occur. In those situations, stop-loss orders may close positions at rates different than those set in the orders. Still, trading strategies with a stop-loss policy are safer than those without it.

·         High Leverage Ratios

ForexCT also has as one of its benefits its provision of high leverage. This enables traders to enjoy a potentially high return on their investments. The high leverage advantage allows traders to control positions that are many times bigger than their trading accounts. With this service, they can easily place trades with low margin requirements and enjoy leverage ratio levels up to 1:400.

·         Ease Of Deposit And Withdrawal

ForexCT avails its clients the opportunity to use a broad range of methods to deposit funds. Those deposit methods include International Telegraphic Transfer, bank wire transfer/Electronic Funds Transfer(EFT), credit/debit cards via MasterCard, Visa, and JCB, and BPay. Deposits usually appear in the funded accounts within 2-3 business days.

Withdrawals are just a click away. You just have to log in to the trading platform, click the “More” icon, select the “Withdrawal” option, and supply your withdrawal information. Also, withdrawals are generally processed within 3-4 business days.

·         Customizable Trading Platforms

A list of this broker’s good sides won’t be complete if a review of its trading platforms isn’t included also. The broker offers self-owned WebProfit in three forms which are the desktop, web, and mobile versions.

WebPROfit, the in-house trading platform for ForexCT, is fully furnished with customizable real-time charts, a wide range of technical indicators, and various research, learning, and news feed resources. Traders can do their analyses anytime and can also place their trades with a click. The company’s Tendency web-based Mirror Trader Platform made available only to its Australian clients enables social/copying trading.

The Downsides

·         High Minimum Trading Capital Requirement

Notable among the drawbacks of ForexCT is its high minimum trading capital requirement. To be able to start trading with this broker, you would need at least a minimum deposit of $500. This may be a high barrier to attracting new investors.

·         Slow Speed Of Execution of Trades

Also, when compared to other online forex brokerage service providers, speed of execution of trades using this broker is slow. As stated earlier, slippage is possible, but its risk, however, with this broker is low because of their fixed spread policy. The slow speed of execution of trades can be of damaging consequences for traders.

·         Mixed Reviews From Clients

A glance at some Forex review platforms may reveal significant negative sentiments about this broker. However, there are positive reviews from some users, too. This situation of striking disparity in opinions about the broker may be a result of differences in expectations of the respective users.

Finally, if you are moved more by the advantages of using this broker and you are less affected by the downsides, you can easily open an account with them.

What are Stock Warrants and Stock Options?

FXGM reviewStock options are benefits provided to the employees in an option of buying shares in the company at a discount or a stated fixed price.

The employee stock option is a label that refers to a compensation contract and has some characteristics of financial options. It gives the investor the right but not an obligation to buy or sell a stock at an agreed upon price and date.

A warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. Most stock warrants provide the investor the right but not an obligation to buy shares of the company at a specified price before the warrant expires. They are the companies that raise capital since the company is limited to the number of shares it can issue so the companies issue warrants instead to balance out.

What is the difference between Stock warrants and stock options?

The first and foremost difference between stock warrants and stock options is how they originate. Stock options are listed on exchanges while stock warrants are issued by the company itself. When a stock option is exercised the shares are exchanged from one investor to another but in the case of stock warrants the stocks are not received from the investor but the company itself. Stock options do not allow the company to make money for itself when exchange that’s why stock warrants are issued because they help the company to raise capital through equity. It allows investors to own shares of a company at a lower price than that of a stock option.

The stock warrants last for long terms that are up to 15 years, while stock options are short-termed usually a month or at the most 2-3 years. That is why stock warrants become a better investment option for longer terms than stock options.

Unlike stock options, new shares are issued by the company when the stock warrant is created. Warrants are created based on the issuer of the warrant and is always fluctuated in such a way that it meets the interest of the issuer whereas there is no such variable is seen in stock options, because they are one one-sided option gives you the right to purchase an existing share of a company’s stock at a specific price, whereas warrant offers the right to buy a share that will be created in future.

Another specific difference is the pricing model; both warrants and options have different pricing strategies. The model for pricing a warrant is a customized version of the model used for pricing an option. It makes use of both dilution and gearing, representing their leverage offered by the warrant and it’s directly or proportional to its gearing. Other than a warrant cannot be exercised unless you have registered it with the SEC while an option doesn’t require a registration for the exempt. The option contracts are standardized and comply with specific rules by exchanges, while warrants are more flexible; as a result of this different warrants have different maturity times, exercise prices, contract sizes and parities.