LegacyFx Questions and Answers

Academy

Accounts:

How do I open a trading account?

You are eligible If you are 18 or over and have your own bank account, you may open an online trading account with Legacy FX by clicking on the New User link above our top menu or open an account on our home page.

How long does it take to open a trading account?

Opening an online trading account is immediate. Once you have filled in your details, you will receive an email with your user name and password, and you can start trading.  

What supporting documents are required in order to open a trading account and why?

To open a trading account, you must supply:

  • Identification clear photocopy of a valid ID ( i.e driver’s license , passport..)
  • Proof of address – example copy of a utility bill showing your full name and address,
  • If funding via Credit Card -a photocopy of the front and back of the credit card showing the last 4 digits on the front and 1st 4 digits on the back These can either be emailed to your account manager or uploaded through the member login page on the site (desktop or mobile versions).  

What trading account types does Legacy FX offer?

Legacy FX offers three types of live trading accounts and one demo trading account. Our live accounts include the Silver Account for newcomers and beginners, the Gold Account for traders who are familiar with foreign exchange and the Platinum Account for advanced/experienced foreign exchange traders. Our free trial Demo account, with balance of $10,000 provides total access to all trading platforms (web, PC-based & mobile) under real-time market conditions.

Can I open multiple trading accounts?

Yes. A live account and a demo account. You can easily switch between accounts by selecting that account on the file tab.

Do you accept U.S. clients?

Legacy FX is regulated under the Cyprus Securities & Exchange Commission and is therefore compliant with all E.U. regulations governing financial market transactions. Clients applications from from the U.S., Yemen, N. Korea and Iran will be denied.  

Are Demo Trading Accounts time-limited?

Yes. Demo Trading Accounts are limited to 1-month. Following this period the demo account will be deactivated.. Please contact Legacy FX for further information.  

Does opening a Demo Account involve any payment?

No. A Demo Account is absolutely free and entails no deposits, fees or commissions.    

Do you offer Islamic trading accounts?

Legacy FX provides Islamic trading accounts that enable clients of Muslim faith to trade global financial markets without compromising Sharia laws. These accounts are administered in accordance with the provisions and principles of Islamic Sharia laws in all matters relating to banking, for example, no interest, bonuses or usury. Islamic trading accounts holders enjoy all the benefits available in all other accounts, including a personal account manager who speaks the language of their choice, offers comprehensive support, as well as providing daily recommendations, market analysis and personal training. Traders utilizing Islamic accounts also receive specially adapted promotional offers and other benefits. Islamic account calculations are based on a comprehensive and accurate study of the provisions of Sharia law by specialists to provide traders with a lucrative and legitimate trading experience. Legacy FX does not charge fees, commissions or rollover on Islamic Accounts. As with regular accounts, sale and purchase transactions are implemented immediately in the market; all transactions are closed before 5:00 PM Eastern Standard Time and then reopened, so as to avoid interest on swap transactions. Legacy FX encourages clients to consult with their religious authority regarding the compatibility of their trading account with their observance.  

How can I open or switch to an Islamic trading account?

If you open an account from an Islamic country, your account will automatically be registered as an Islamic account. Should you wish to change your status, or should you wish to transfer an account opened in a non-Islamic state, please contact your account manager, who will execute the change for you.

Platforms:

Trading:

Do you provide forex and CFD trading training? 1-on-1? Videos?

Legacy FX offers one of the most comprehensive online trading academies in the foreign exchange industry. A wealth of articles, eBooks and videos targets every level of forex trader – from the novice and through to the more experienced investors interested in deepening their understanding of forex in particular and financial markets in general. In addition, our webinars enable traders to pool experience and information, and our in-house staff of account managers, economists and seasoned brokers is always on standby to help you tackle even the most complex topics and challenges.  

What is Forex trading?

Foreign exchange trading, also referred to as Forex, FX, and Spot FX trading entails the purchase of one currency and sale of another, and it represents the largest financial trading market in the world. The Forex market is open 24-hours a day, 5-days a week and its liquidity is estimated at greater than $4 Trillion in daily turnover – more than the total volume of the global stock markets on any given day. Find out more in our trading academy

What is the difference between Forex and traditional stock or mutual fund trading?

Forex (Foreign exchange) trading and conventional stocks are different types of trading. When trading currencies, most traders' objectives are to predict short-term movement in the currency exchange values. Much foreign exchange trading is done in day-trading style where traders will buy and sell on the same day. In contrast, stocks and mutual funds trading are more of a medium-to-long term style holding where trades may last for years.  

How many currency pairs can I trade?

Legacy FX offers over 140 currency pairs, indices, commodities and stocks. At any moment, depending on which markets are open in any specific location on the globe, you may trade on most of these products.  

When Can Currencies Be Traded?

The spot FX (foreign exchange) market is unique among world markets as it is open 24-hours a day. Forex is the market that never sleeps , somewhere around the world, a financial center is open for business, meaning banks and other institutions exchange currencies every hour of the day and night, with relatively short gaps on the weekend. This provides maximum flexibility for traders

Time Zone

EST

GMT

Tokyo Open

19:00

0:00

Tokyo Close

04:00

9:00

London Open

03:00

8:00

London Close

12:00

17:00

New York Open

08:00

13:00

New York Close

17:00

22:00

Can I trade on Bitcoins?

Legacy FX investors can trade on

What is Spread?

Spread is the difference between the sell (bid) and buy (ask) price of a currency pair. In order to break even on a trade, a position must move in the direction of the trade by an amount equal to the spread.  

What is a Lot?

Forex positions are measured in lots. A standard lot equals 100,000 units of the traded currency pair; a mini lot equals 10,000 units; and a micro lot equals 1,000 units.  

What is a Pip?

Also known as a point, PIP stands for Percentage In Point. A pip is the basic unit of measurement that denotes changes in price in foreign exchange instruments.  For most currencies the pip is the equivalent of 1/100 of 1%, but there are certain exceptions, namely pairs that include the Japanese Yen for which the pip is the second point after the decimal.

USD/JPY at a rate of 119.80 (.01 / 119.80) x 100,000 = $8.34 per pip USD/CHF at a rate of 1.4555 (.0001 / 1.4555) x 100,000 = $6.87 per pip in cases where the US Dollar is quoted second, the formula is slightly different. EUR/USD at a rate of 1.1930 (.0001 / 1.1930) X 100,000 = 8.38 x 1.1930 = $9.99734 rounded up to $10 per pip GBP/USD at a rate of 1.8040 (.0001 / 1.8040) x 100,000 = 5.54 x 1.8040 = $9.99416rounded up to $10 per pip

What are 'long' or 'short' positions?

A Long Position is one in which the trader will profit from an increase in price; i.e. buys low, sells high. A Short Position is one in which the trader will profit from a decrease in price; i.e. sells high, buys back low.  

What is Leverage?

Leverage is the ratio between a trader’s investment (margin deposit) in a position and the broker’s contribution. Thus, using a small investment, the trader invests in a much larger total contract value – enabling him or her to magnify gains and losses. Leverage of 200 to 1 enables investment of $50 in a contract worth (50 x 200=) $10,000. Leverage, however, can lead to large losses as well.  

What is Margin?

Margin is the amount of collateral in a trading account required to open or maintain a position. If an open positions worsen and the account does not have enough usable margin that can cover potential losses, the system will initiate a margin call. The customer must then deposit funds to maintain the positions or else the system will close the position. The system automatically calculates margin requirements for current positions and checks for available margin at all times.  

What is a Margin Call?

In the event that usable margin falls below required margin, the broker’s system will begin to close positions. This protects the client from falling into negative balance.  

What are stop loss, take profit and trailing stops?

A “stop loss” order is an instruction to close a position when it reaches a certain level. It is applied to prevent losses beyond a certain level. A “take profit” order is also an instruction to close a position when it reaches a certain level. It is applied to ensure profiting at a point beyond which you fear a favorable trend may reverse. A “trailing stop” will determine a margin of safety below a stop-loss order or above a take-profit order, enabling the system to automatically keep a profitable position open or close a losing one at a predetermined percentage distance from your entered order.  

What is Rollover?

Foreign exchange transactions, as a rule, are usually settled within two business days (the value date). Rolling over a transaction is chargeable, based on the interest rate differential between the currency pair constituents. If you purchased a pair with a higher rate of interest, you will earn interest. If you sold the pair with a higher rate of interest, you will pay interest. Most positions are rolled over automatically.  

What is a Swap?

Currency swap is the concurrent sale and purchase of the same amount of a specific currency at a forward exchange rate.  

What is the difference between an intra-day and an overnight trading position?

Positions opened within a 24-hour period after the close of a broker’s normal trading hours are intraday trading positions. Overnight trading positions are those positions that are still open at the end of trading hours. These are automatically rolled over by the broker. 

When is it best to trade Forex ?

It is assumed that the best time to trade the Forex market is when the London and New York markets overlap. This is when the most amount of traders, and biggest banks, are active. It is widely considered the most profitable time to trade.  

What happens to my positions during the weekends?

Positions left open at the end of the trading week will remain open and readjust as markets open at the start of the following week. You should be aware, though, that rollover fees apply and are debited on the preceding Wednesday.  

Will my trading positions and orders be closed when I am offline?

No. Positions left open will remain open and adjust according to the market, even when you are offline. You should be aware, though, that rollover fees apply to positions left open overnight.  

How do you calculate swaps?

Legacy FX does NOT charge any swap fees in none of the three account types. The company reserves the right to alter these at any time and the table will then be immediately updated accordingly.  Accounts Page

How do I change my leverage?

Default leverage for Forex transactions is 50:1. For more information in regards changing the Leverage, please refer to our Leverage Policy at Leverage Policy

 

 

Are there limitations on withdrawing ?

The terms for withdrawing  is subject to the the terms of promotion under which was received. For general guidelines, please refer to our Terms & Conditions

Support:

What should I do if I have forgotten my password?

Contact our support department for any problems you may have. For details, please visit our Contact Page.

How can I contact you?

You can contact Legacy FX by mail, email, live chat or by using the online contact form. Please visit our Contact Page for further information.

I'm having difficulties registering for a trading account. What Should I Do?

After checking the details you have filled in, please contact Legacy FX using our live chat, email, phone or online form. Further information can be found on our Contact Page.  

I can’t trade!

If you cannot login, clear all cookies from your browser; otherwise, attempt using another browser . If you are still unable to trade, please contact us using our live chat, email, phone or via the online form on our contact information page.  

Some options are marked “disabled”.

An option may be marked “disabled” if its online platform is disabled or its market is closed.  

List of common WebTrader errors

"Invalid Trade Parameters"

One or more of your most recently entered trade parameters is invalid – most probably your lot size, stop-loss or take-profit values.

"No connection with trade server"

If all of your internet connection elements are operating, the WebTrader server may be temporarily down.

"Too Frequent Requests"

Your account may be limited in the number of expert advisor requests, or else faulty MQL programming.

"Invalid Account"

If using a demo account, it may have expired. If a real account, please contact your Legacy FX account manager.

"Invalid Price"

With expert advisors, possible faulty MQL programming or high volatility.

"Invalid Stops"

Incorrectly placed stop-loss &/or take-profit orders.

"Trade is disabled"

Expert advisors &scripts have been disabled and must be enabled.

"Not enough money"

Insufficient funds to open a new position at the requested size.

"Too Many Orders"

You have more orders open than permitted (including pending). Contact your Legacy FXaccount manager

Funds:

How can I deposit funds to my trading account with Legacy FX?

You may deposit funds into your account by clicking on the payment button at the top of the WebTrader platform or the Trader Toolbar sidebar on the Legacy FX web page. You may also click on Deposit on your Personal Account main page menu.  

How do I withdraw funds from my trading account?

You may withdraw funds from your trading account by clicking on Withdrawal on your Personal Account main page menu. Funds deposited by credit card can only be refunded to the credit card up to the amount originally deposited via that card. The remaining balance of that request will be wired to your bank account. Reminder, before processing your withdrawal request, Legacy FX requires you submit all compliance material (photocopy ID, a utility bill showing your full address, and – if using a credit card to fund and withdraw from your account – a photocopy of its front and back with the last 4 digits visible). For more details, please see our Terms & Conditions.

How long does it take to process a withdrawal?

Withdrawals take a minimum of 3-5 business days upon completion of compliance requirements. For wire transfers, please allow for extra time, which is subject to the conditions governing banking services in your particular location.

What deposit/withdrawal options can I use and in which currencies?

You may deposit and withdraw using credit cards (VISA, MasterCard), debit cards (VISA Electron, Maestro), or wire transfer. At present, Legacy FX only enables transactions in U.S. Dollars, Euro's and GBP.

What is the minimum initial deposit?

TThe minimum first deposit depends on your account type – the equivalent of $500 for a Silver Account, $5,000 for a Gold and $25,000 for a Platinum Account.

Is there a deposit/withdrawal fee?

Legacy FX does not charge any deposit or withdrawal fees.  

Can I change my account’s base currency?

No. Once an account has been opened, using a specific currency you may not change your account’s base currency.  

Can I transfer funds from my trading account to someone else?

No. You cannot transfer funds to a trading account that is in another person’s name.

If I make a mistake when depositing, can you cancel the deposit and return my funds?

A transaction cannot be canceled; you can, however, immediately request a withdrawal for the full amount of your deposit. This will be processed almost immediately upon being credited to your account.  

Can I lose more money than I deposited?

No. You cannot lose more money than you deposited on your trading account. Once you open a position, your margin will automatically update with every change in value. As your usable margin approaches zero, the system will generate a margin warning, and then a margin call – closing your position so that any loss you accumulate will be coverable by your balance.

Regulation:

How safe is my money?

Legacy FX takes all necessary measures to secure client funds and ensure a safe trading environment. Client funds are insured and held in company-managed, segregated fiduciary bank accounts, which cannot be used for internal company purposes. Transactions are executed by Level-1 PCI-Certified international service providers, and servers are all located in data centers that are SAS-70 certified. Investor activities are secured by 256-bit RapidSSL encryption and our entire trading system is meticulously fire-walled. Our regulatory requirements include constant comptroller supervision and monthly submission of financial reports to an external accounting firm. We are required by law to maintain sufficient liquid capital to cover all client deposits and expenses. Legacy FX continuously reevaluates policies, standards and procedures, and continuously updates its techniques and technologies.

Where are your offices situated?

Legacy FX’s main offices are situated at Q Tower, 5th floor, Ioanni Kondylaki 47, 6042, Larnaca, Cyprus​.

 

 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  Analysts Insights