eWeb-Forex Mini FAQ's

Smaller trading sizes pose several challenges to foreign exchange firms. There are two primary issues that have prevented firms from offering smaller trading sizes:

Executing smaller size trades for a dealing desk takes the same amount of effort as executing larger trades. To offer smaller trading sizes, most firms would have to hire more dealers, which would make the cost prohibitive. The eWeb-Forex MINI has automatic execution. All trades are executed without human intervention (just like a demo account). This keeps labor costs low. The second issue is risk management. The sizes offered by eWeb-Forex MINI Account are difficult to offset in the broader market. eWeb-Forex has developed a proprietary risk protocol for The eWeb-Forex Mini, which involves aggregating volume into sizes that can be offset in the broader market. The $12 billion per month in trading volume generated from regular eWeb-Forex accounts insures that all eWeb-Forex’s offset business receives excellent rates from banks, which eWeb-Forex passes along to traders.

The eWeb-Forex MINI is designed for those new to online foreign exchange trading or not familiar with eWeb-Forex. With as little as $300, a trader can open an eWeb-Forex MINI ACCOUNT and begin trading foreign exchange with eWeb-Forex. There is a smaller deposit required to open an eWeb-Forex MINI ACCOUNT than a regular account because trading sizes are 1/10 the size of a regular account. The smaller trading sizes enable traders to take smaller size risks. THE eWeb-Forex MINI is there only to introduce clients to trading with eWeb-Forex. Once the client's account balance moves above $5,000, the trader will be directed to open a regular account.

The total cost (in and out) for trade is $4.90 per lot. In addition, there is $1 overnight interest charge for positions held at 5:00 PM New York Time. This is different than a regular account where there are no commission charges and different overnight charges. The eWeb-Forex MINI has higher transaction costs than a regular account, because smaller trade sizes are more difficult to execute. The smaller trades sizes are not inter-bank trading sizes and require greater effort on eWeb-Forex’s behalf to properly offset.

Yes, all open positions are liquidated if the account equity for an eWeb-Forex MINI falls below the minimum margin requirements. For example, an eWeb-Forex MINI ACCOUNT with 8 lots in open position would need to have $400 in account equity. If the account equity falls below $400, the entire 8 lots would be liquidated at market prices. Clients are not notified prior to the liquidation of their positions.