The following are some benefits of trading in FX:
a) The foreign exchange market offers 24-hours trading opportunities to a trader who would like to take advantage of this market.
b) Profit or loss from Leveraged FX trading can be realised quickly and a trader can take advantage of the realised profit for further trading. This is unlike share trading, where profit or loss can only be realised in as long as two weeks, depending on the country.
c) You can enjoy daily interest should the currency you are holding attract a higher interest rate over the other currency. However, interest may be due from you if you are selling the other currency.
For example, if you buy AUD/USD and the Australian Dollar (AUD) interest is higher than the U.S. Dollar (USD) interest, you would be effectively receiving interest. However, it is not a certainty that the buyer of a currency pair that yields a higher interest rate over the other will be credited interest.
d) Generally, there is liquidity in the FX market and it is easy to get in and out of the market under normal market conditions.
Transactions in leveraged FX carry a high degree of risk. The amount of initial margin is small relative to the value of the leveraged FX transaction. As such, the transaction is highly 'leveraged' or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work both against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position.
If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss, without prior notice to you, and you will be liable for any resulting deficit in your account.
Are iOCBCfx prices different from those on Reuters or Bloomberg?
The prices on iOCBCfx are “live” and “dealable” for your over-the-counter trades with OCBC Securities Pte Ltd. Prices provided by data providers such as Reuters or Bloomberg are indicative and are subject to confirmation with our dealers.
A pip is the last decimal quotation and the minimal movement of a currency. For example, when the EUR/USD moves from 1.5600 to 1.5601, it is said to move 1 pip (0.0001). The pip for most currency pairs is the 4th decimal place. Yen-based currency pairs are displayed to only 2 decimal places where 1 pip is equal to 0.01. For example, when the USD/JPY moves from 95.60 to 95.61, it is said to move 1 pip. The pip is also how traders measure profit or loss. We offer fractional pip pricing in iOCBCfx.
Is my order confirmed if I accept the displayed bid or offer (ask) price?
Every order you enter is subject to acceptance and there is a time limit for the prices quoted. In a volatile market, the prices may change rapidly. In such cases, your order status will be “New” if it is not executed.
We will issue you with an iOCBCfx login ID and password after your application has been approved. You will receive the password by post in a sealed mailer.
To ensure the integrity of the password, the trading platform will prompt you to change it upon your first login. The password should be kept secret. Should you forget your password, it will generally take 5 business days before you receive a new password mailer.
For additional security, you will also be sent a two-factor authentication (2FA) token by post. You need the login ID, password as well as a One-Time-Password (OTP) generated by the 2FA token to login.
After logging in to the trading platform, you will enter the trading interface.
As a first time user, you would have to click and select your individual currency pairs for trading under the Tools > Instrument Browser. This will become your watch list.
In a few moments, you will start receiving your prices. If you wish to “buy” at the market, just click on the currency pair that you have set up and you will be provided a “live” price to trade. To buy a currency pair for example USD/JPY, please click on the “BUY” icon. Similarly, if you want to sell a currency pair, just click on the “SELL” icon.
iOCBCfx accepts the following order types:
• Market Order
• Limit Order
• *Stop Order
• *If Done Orders with an added Stop
• If Done Orders with an added Take Profit
• *If Done Orders with added Stop and a Take Profit
The available order expiry types are:
• Good Till Cancel
• Good Till Date
• Good Till Day
Please refer to your user guide for more information.
* NOTE : Execution of Stop Orders may run the risk of slippage and liquidity under certain market conditions.
iOCBCfx will accept order sizes ranging from 10,000 to 1,000,000 per quote. Any contract size out of this range is subject to acceptance by the trading platform.
Is there a demo system where I can view and perform transactions?
Yes. We offer a free 1-month demo account with USD 100,000 virtual funds. If you would like a free demo account, please submit your request to us at: iocbcfx@ocbcsec.com
Where can I retrieve my statements and monitor my transactions?
If you have opted for electronic statements, your daily and month end statements will be sent to the email address provided in the account opening documents. Alternatively, your statements will be sent to your mailing address.
Note that if you have no open positions, you will not receive any statements.
You can also refer to your Account Information Monitor for your orders and trades done under the Order and Done tab respectively.
What are the requirements to open a iOCBCfx/Leveraged Forex trading account?
You must be deemed as competent and suitable by OSPL to open a Leveraged Forex trading account.
You must complete the relevant FX and Futures product Agreement forms and assessed to have the relevant knowledge or experience for Customer Knowledge Assessment (CKA). Taking effect on 1 January 2012, the CKA is a new measure implemented by our regulator, the Monetary Authority of Singapore, to safeguard the interests of retail investors in Singapore. The CKA assesses a retail customer’s investment knowledge and experience in products which may have structures, features and risks that may be more complex in nature and may not be as widely understood as other investment products.
You only need to satisfy just ONE of the 3 criteria set for the CKA assessment in order to be deemed as competent.
You should be aware of your local laws relating to restrictions on internet trading. It is your responsibility to know and comply with your country’s laws as well as familiarize yourself with the inherent risks of trading in such instruments.
Please click here for Guide and Cautionary Notes in Applying for a Futures and Leveraged FX Account.
It takes about 5 business days to process an application.
If you are residing in Singapore, you can mail us the account opening application and supporting documents or visit us at the address below:
Re: iOCBCfx Account Opening
Customer Service
OCBC Securities Pte Ltd
18 Church Street #01-00
OCBC Centre South
Singapore 049479
If you are an overseas client, please approach a notary public or legal counsel (of which we can contact and verify) with your identification documents for verification. Please ensure that the notary public completes the Client Identification Form.
For enquiry on the status of your account application, you may contact our customer service via email: cs@ocbcsec.com or contact us at Telephone number: 1800 338 8688.
You are opening an account with OCBC Securities Pte Ltd (OSPL), a company incorporated in the Republic of Singapore and a wholly owned subsidiary of the OCBC Bank. We are a member of the Singapore Exchange Securities Trading Limited (SGX-ST) and the Singapore Exchange Derivatives Trading Limited (SGX-DT).
Can I open an account even if I am not residing in Singapore?
Yes, you can open a trading account with OCBC Securities Pte Ltd (OSPL) even if you are not residing in Singapore. However, you should be aware of the local laws relating to restrictions on internet trading in your country of residence.
You can choose to deposit funds by cash, cheque, Telegraphic Transfer (TT), bank transfer or instruct your Trading Representative to transfer funds from your other accounts with OCBC Securities Pte. Ltd. It is important that you inform us by email at GP_ffops@ocbcsec.com whenever you place a deposit so that we can monitor the receipt of the funds.
To obtain the remittance instruction, you may contact our customer service via email: cs@ocbcsec.com or contact us at Telephone number: 1800 338 8688.
Yes, profits can be withdrawn from your account after taking into consideration your outstanding positions. You may withdraw some of your profits without liquidating your other positions provided you maintain sufficient margins for your outstanding positions.
If I want to withdraw my funds, how can I withdraw the money?
The funds you have with us can be withdrawn any time by completing a withdrawal form and providing us with your remittance instruction.
You may send the withdrawal form via fax to fax number: (65) 6534 0009 or email the withdrawal form to: GP_FFOPS@ocbcsec.com by 1200hrs for same day withdrawal.
To obtain the withdrawal form, you may contact our customer service via email: cs@ocbcsec.com or contact us at Telephone number: 1800 338 8688 (Local Toll free number); (65) 6338 8688 (Overseas).
What do I do if I have deficit balance on currencies in my trading account?
We do not automatically convert your deficit currency in your trading account. You need to call our dealers to quote you the conversion rate and only if you are agreeable to the rate, the conversion will proceed with your consent. Deficit balances in the client’s account with OSPL shall carry daily interest at 2% above prime lending rate at OSPL’s sole discretion.
All overnight positions will be automatically rolled over. Your account will be credited or debited daily based on the prevailing differential interbank interest rate. The interest differential between the two currencies involved is referred to or calculated as swap points.
For example, when the AUD interest rate is higher than that of the USD
• If you long AUD/USD, interest will be credited
• If you short AUD/USD, interest will be debited
However, it is not a certainty that the buyer of a currency pair that yields a higher interest rate over the other will be credited interest.
Note: There is no interest credited or debited if position is closed within the same business day, before New York close (Singapore time, 5am).
Will I lose more than my deposit with OCBC Securities Pte Ltd.?
Transactions in leveraged FX carry a high degree of risk. The amount of initial margin is small relative to the value of the leveraged FX transaction. As such, the transaction is highly 'leveraged or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position.
If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss, without prior notice to you, and you will be liable for any resulting deficit in your account.
This is the minimum amount of money that is required to maintain open positions before a margin call is activated and the trader is required to bring his/her total net equity back to the IM level.
A margin call is activated when the trader’s total net equity (TNE) balance falls below the maintenance margin level.
MC if TNE < MM
No new trades can be initiated. Upon margin call, the trader needs to top up the account to IM level to maintain the positions. The new funds must reach OCBC Securities before 5pm, next trading day (which is known as MC+1).
The minimum required top up amount is IM – TNE
Alternatively, the trader can liquidate some or all of the positions to meet the margin call.
If the margin call is not met, the trading account will be locked or changed into liquidate-only mode after 5pm Singapore time, MC+1.
For more information on margin call, please refer here.
iOCBCfx will institute liquidation on part or all of the trader’s positions in order to meet margin requirements when the trader fails to meet the margin call by 5pm Singapore time, MC+2.
Due to the volatility of the FX market, the iOCBCfx platform has an automatic liquidation mechanism that will kick in and liquidate all the positions if the IM in the trader’s account drops to 30% level or lower. Please note that the automatic liquidation mechanism may kick in without any margin call.
If my funds are en route, will my positions be forced liquidated?
Our platform will institute liquidation on part or all of the trader’s positions in order to meet margin requirements when the trader fails to meet the margin call by 5pm Singapore time, MC+2.
Funds are deemed good only if received and cleared by 5pm Singapore time, MC+2.
Due to the volatility of the FX market, the iOCBCfx platform has an automatic liquidation mechanism that will kick in and liquidate all the positions if the IM in the trader’s account drops to 30% level or lower. Please note that the automatic liquidation mechanism may kick in without any margin call.
