The following terms and conditions form an integral part of your agreement with fx honest Limited and shall be read carefully; fx honest LIMITED does not bear any liability for clients who fail to comply with them. For more information, please contact us.
fx honest strives to ensure that the market watch is accurate and prices are obtained from several major banks/liquidity providers/exchanges; in case of closure/failure of one or more price provider for any or all CFDs, quotes will be provided which will reflect what the company thinks to be the current Bid and Ask price for each CFD; we do not guarantee that our prices are the best prices available on the world market.
The Client agrees hereunder that our market watch is only an indicator of the current world market and any misunderstanding regarding this service must be returned to fx honest Operations data.
Moreover, charts for all traded instruments are drawn according to the default spreads, and may differ from the prices displayed on the market watch according to your account type because of differences in markups.
fx honest offers clients competitive spreads on all instruments, but may rarely make small increases on some or all instruments; ensuring that it provides the best available market conditions and tightest spreads, since one of our most important objectives is to ensure that your orders are executed at the best market price and that you get the tightest spreads available.
At order execution, we apply our markup on the best available market prices according to your account type.
fx honest allows clients to open positions in the opposite direction of previously opened positions in the trading account, to reduce loss and to decide later when to enter the market.
Hedging an instrument by its corresponding Future OTC contract is forbidden (for swap-free accounts), because this represents an attempt to take advantage of the swap free facility and gain profits from swaps, one direction of this kind of hedge must be closed immediately. If the client fails to take action to avoid such practices, fx honest will, unfortunately, be required to close or take other action (by deducting the swaps retroactively or any other means) on these accounts without further notice.
Hedged positions will be held in the trading account without affecting the required margin value, since the required margin is calculated for each instrument according to the net positions opened at a specific moment.
The following orders may be given by the client:
All future trades are classified as market orders, and will be executed according to the market prices provided from its corresponding exchange at the time of execution; in addition, exchange fees may apply.
Rollover: Futures-OTC contracts will not be rolled over automatically, neither accepting rollover requests from clients; in the case of any client need to rollover a future-otc position/s, open positions on the current contract can be closed and reopened at the next nearby future-otc contract before the last trading day for each contract. Available Futures instruments:
Where margin, contract size, and general contract specifications are displayed in the Markets Section of the website, and updated periodically.
Shall mean a ratio in respect of Transaction Size and Initial Margin, 1:100 ratio means that in order to open a position, the Initial Margin required is one percent of the original contract value.
The 1 (one) standard lot size is the measurement unit specified for each CFD contract. The minimum volume of the transaction is 0.01 Micro Lot but this may differ from one account type to another as published on the website under the Contract Specifications. The possible choice of a leverage rate ranges from 1:1 up to 1:500 depending on the type of the CFD and at the Company’s discretion. At the opening of the Client Account, the leverage rate is set at 1:100 by default and it is taken into consideration where applicable depending on the type of the CFD and account type. The Client may change the leverage of his Client Account by contacting the Company. The Company has the right to allow a change to the Client Account leverage at the Company’s discretion. In addition, the Company may, at its discretion, change the Client Account Leverage without any prior notice to the Client.
The leverage policy will be applied on all accounts according to announced values for each account type:
*Changes on the leverage for each account will be applied automatically and the client will be informed through an internal mail message.
**Professional accounts will be handled individually and may not follow the above leverage rules.
***In compliance with the regulatory requirements of Polish Financial Supervision Authority (KNF), the maximum leverage for clients from Poland is 1:100
Utilizing a high level of leverage may extend your trading possibilities and lead to larger gains as well as higher risks; risks might be reduced by following a strict trading strategy at the opening and closure of your transactions. For further information, please talk to a Live Support Representative, or view details in the Contact Us section on our corporate website.
The client must abide the rules as declared on the fx honest corporate website Contract Specification section for each CFD, including the margin requirements; and the Client shall provide and maintain the Initial Margin within such limits as the Company, at its sole discretion, may determine, set, or update.
It is the Client’s responsibility to ensure that he understands how a Margin is calculated.
fx honest has the right to amend any entry in the Contract Specifications section for each CFD including margin requirements, and these changes may take effect on both new and existing/open positions/trades; which may be declared through an internal mail message or on the company’s corporate website; unless a Force Majeure Event has occurred.
In case of a Force Majeure Event, fx honest has the right to change Margin requirements without prior written notice to the Client. In this situation, the Company has the right to apply new Margin requirements to new positions and to positions which are already open.
If the Equity to Margin (necessary margin) ratio falls below 5% at any time, fx honest has the right to close any or all of the Client’s open positions without the Client’s consent or any prior written notice. In order to determine if the Client has breached this clause, any sums referred to therein which are not denominated in the Currency of the Client Account shall be treated as if they were denominated in the currency of the Client Account by converting them into the currency of the Client Account at the relevant exchange rate for spot dealings in the foreign exchange market.
The Client is responsible for notifying the Company as soon as he believes that he will be unable to meet a Margin payment when due.
The Company has no obligation to make Margin Calls for the Client.
Where the Company effects or arranges a transaction involving an instrument, the Client should note that, depending upon the nature of the transaction, he may be liable to make further payments when the transaction fails to be completed or upon the earlier settlement or closing out of his position. He may be required to make further variable payments by way of Margin against the purchase price of the instrument, instead of paying (or receiving) the whole purchase (or sale) price immediately. A movement in the market price of the Client’s investment will affect the amount of margin payment he will be required to make. The Client agrees to pay the Company on demand such sums by way of margin as are required from time to time under the rules of any relevant Market (if applicable) or as the Company may, at its discretion reasonably require for the purpose of protecting itself against loss or risk of loss on present, future or contemplated transactions under this Agreement.
At 21:00 LONDON time every Friday or before a market holiday (when the market halts) the Client must have the following Margin:
Slippage involves executing any given trade on a specific price different from the expected price sent or preset by the client. This may take place during highly volatile market conditions such (but not limited to) economic or political news; the order will be filled at the next best available market price because, but not limited to – the desired/preset order price is not available, or because higher spread differences are applied in the corresponding exchanges of the traded instrument.
fx honest does not apply slippage under normal market conditions, and applies it on stop pending entry or liquidation orders during times when fx honest is closed or when – but not limited to – there is a weekend or bank holiday, international economic events or hectic market movements. In this case, stop orders will be filled on the opening price which fx honest finds suitable.
Clients acknowledge that slippage might occur as per the liquidity providers’ terms and conditions and that this is beyond the control of fx honest Limited and agrees to waive fx honest Limited from any liability that may arise subjective to any damage or expense or loss incurred by the Client, in relation to or directly or indirectly arising from but not limited to such terms and conditions.
Physical acquisition by the client of any traded CFD at a specific delivery point worldwide fx honest does not offer delivery for any position held, opened or closed at the trading platform
A trading strategy through which the trader (Scalper/Pip Hunter) attempts to take advantage of small price moves and narrow ranges by making many transactions on small price changes over a small time frame.
In the event that fx honest classifies a client as a scalper or a pip hunter – which the company does not currently allow except for ECN Accounts, the company may, at its sole discretion, and without a prior written notice, take one of the following actions:
Shall refer to the situation in which the Client opens a position and closes it in a very short time, usually trading incorrect spikes in the market, or taking advantage of feed indicative prices.
fx honest has the right to take any necessary actions similar to scalping clients, at its sole discretion, and without any prior written notice to protect itself since this action is prohibited.
Placing stop orders prior to the release of financial news is not permitted; such orders may be rejected, deleted or filled at the best available market prices at that time.
fx honest allows trading via phone in case of emergencies; all telephone calls placed through the Dealing Desk are recorded by our recording system; records are kept for 10 days. All conversations concerning price quote requests, order placement and execution, confirmations, and any other trading related issues, are also generally recorded to ensure fairness and accuracy for all parties involved in the delivery and execution of a trading order.
Instructions for placing an order with the dealing desk by phone:
The Expert Advisor and Trailing Stop facilities are activated by default. They must not violate any trading condition listed, and in addition, the following conditions apply:
Any account on Margin call needs to be cautious of equity as the account will be stopped out by closing all open positions as the equity reaches zero, or 0% equity to margin level (for ECN ACCOUNTS stop out is on 20% margin level) ; all pending orders for the stopped out account will be deleted, and any deficit that may result after liquidation will be handled and covered by client.
Swap Free/Islamic Accounts
fx honest offers Islamic (swap-free) accounts to comply with Islamic Shariah law; this is also an advantage for all traders who hold their positions for multiple days without being aware of swaps or overnight fees; thus, a trading account would not pay, or be paid for holding a position for more than one business day.
Any client who misuses this advantage by holding his floating positions for a long time period, taking advantage of the swap-free facility and gaining profits from swaps must close the floating positions immediately, bearing in mind that these fees are handled by fx honest and not paid by clients.
Furthermore, hedging a currency pair by its corresponding Future CFD and/or hedging positions on a swap based account against positions on a swap free account is forbidden, because these also represent attempts to take advantage of the swap free facility and gain profits from swaps; one direction of this kind of hedge must be closed immediately.
Moreover, certain instruments will be only be available swap freeon daily basis as explained below:
All other pairs swap would be charged on a regular basis
If the client fails to take action to avoid such practices, fx honest will unfortunately be required to close or take any necessary action on these accounts without prior written notice.
fx honest Clients can execute trades 24 hours a day from 00:00 on Monday until 22:00 on Friday (London Time), except for some instruments which halt at different times such as a break; the trading schedules and more specific information on each instrument is available through our website. Clients will be informed in advance of any change in trading hours due to market holidays or system maintenance requirements.
fx honest offers one type of order execution (Market execution) on all account types for corporate and individuals. All orders are filled according to the fair market value.
Market execution specifications are indicated in the table below :
* In Normal Market Conditions, otherwise, orders will be executed at the next best available market price
** Value may vary according to the account type
*** In Normal Market Conditions
Clients who wish to report a trading error are kindly requested to send an email to dealingdesk@fx honest or to call us directly.
Client must provide the following information so that we can assist in the event of a problem:
The client must inform fx honest of any trading error within 24-48 hours of the error time; otherwise, fx honest will not investigate the error.
Any trading error for which the company is responsible will be amended.
fx honest bank wiring instructions are only provided to clients along with the account details and confirmation letter.
The Company does not accept funds for any trading account via a third party. Restrictions on third-party payments are set by banks and their respective authorities, which have developed extensive procedures, regulations, and laws to stop the transfer of illegal funds, commonly known as money laundering. In addition, this agreement provides the client with the assurance that funds from his account are never paid out to another party.
The client’s trading account must be established for trading purposes only. The company is not a bank, nor does it keep deposits as a bank. The company keeps deposits only to maintain margins supporting the trading account and trading activities.
To make a deposit or to request a withdrawal, clients must complete the necessary forms and submit these to the company via the approved communication channels.
The company actively complies with all anti-money laundering laws and regulations under all applicable domestic laws. On an ongoing basis, the company shall review clients’ account activity for evidence of suspicious transactions that may be indicative of money laundering activities. This review may include surveillance of:
Money flows into and out of accounts.
The origin and destination of wire transfers.
Other activity outside the normal course of business.
Funding accounts by credit card is done directly from the company website.
Terms and conditions for credit card payments
The Deposit Form includes the company’s bank information, according to which wire transfers will be made. The Client’s Trading account balance will be adjusted accordingly once we receive the funds.
Clients must ensure that beneficiary of the transfer is The Company.
Clients should include the following information as a reference in the transfer:
Clients deposit and withdrawal transactions by wire transfer are subject to the following fees:
Bank fees vary from one transaction to another as each transaction is considered a different case. These variations are due to the following reasons:
No wire transfers are allowed before receipt of the official account opening confirmation letter.
In the event of any dispute arising regarding the customer account(s) and/or any open or closed positions within the customer account, fx honest has the right to internally investigate and audit the account(s) including all open and closed transactions. Simultaneously, the funds in the account(s) shall be frozen and no transactions shall be permitted until the dispute is fully resolved.
In case of system failure, which may result in a failure to execute an order according to client instructions or failure to execute an order at all; whether it was a scheduled routine system maintenance or server update, or an emergent disconnection by power or network failure or any other reason; clients are kindly advised to contact the dealing desk for any enquiries.
The client acknowledges that from time to time the Company might pay a fee, commission or non-monetary benefit to third parties, further details are to be disclosed at the request of the client.
fx honest has the right to amend, change, delete, add, and modify spreads, fees, commissions, leverage, account type, margin requirements, liquidation level (stop out level) and any offers for any accounts or any positions, at any time without a prior notice.
The latest published version of this policy on the English mirror of the company’s website shall prevail.
These terms are an essential part of the customer trading agreement. Should any clause in the trading policy conflict with a clause or clauses in the customer trading agreement, the clauses herein shall prevail.
Amendments in case of a force majeure event shall be applied without prior notice
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, the level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Risks of investing in CFDs
CFDs, especially when highly leveraged (the higher the leverage of the CFD, the riskier it becomes), carry a very high level of risk. They are not standardized products. Different CFD providers have their own terms, conditions, and costs. Therefore, generally, they are not suitable for most retail investors.
Liquidity risk affects your ability to trade. It is the risk that your CFD or asset cannot be traded at the Time you want to trade (to prevent a loss, or to make a profit).
time you want to trade (to prevent a loss, or to make a profit).
Execution risk is associated with the fact that trades may not take place immediately. For example, there might be a time lag between the moment you place your order and the moment it is executed.
There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since fx honest does not control signal power, its reception or routing via Internet, the configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet.
The client acknowledges and declares that he has read, understood and thus accepts without any reservation the following:
Following the implementation of the Investment Services and Activities and Regulated Markets Law of 2007 (Law 144(I)/2007), the Company has established a Conflicts of Interest Policy (the “Policy”) in an attempt to take all reasonable steps to identify conflicts of interest between itself, including its managers, employees and tied agents, or any person directly or indirectly linked to the Company by control and its clients or between one client and another that arise in the course of providing any investment and non-core services, or combinations thereof.
The Company maintains and operates effective organizational and administrative arrangements with a view of taking all reasonable steps designed to prevent conflicts of interest from adversely affecting the interests of its clients.
For the purposes of identifying the types of conflicts of interest that arise in the course of providing investment and non-core services or a combination thereof and whose existence may damage the interests of a client, the Company takes into account, by way of minimum criteria, the question of whether the Company or a relevant person, or a person directly or indirectly linked by control to the Company, is in any of the following situations, whether as a result of providing investment or ancillary services or investment activities:
The Company or a relevant person is likely to make a financial gain, or avoid a financial loss, at the expense of the client;
Definition of a relevant person: means any of the following:
The Company has established suitable and adequate internal procedures for minimizing any potential conflicts of interest. The Company maintains a compliance department that is an independent unit within the Company. Some of the duties of the compliance officer are to monitor any possible deviation from the Company’s internal policies and procedures as well as identifying and managing any possible conflicts of interest. In addition, the internal audit function is outsourced to an audit firm.
The procedures followed and measures adopted in the Policy include the following, as are necessary and appropriate for the Company to ensure the requisite degree of independence:
Below, the Company states some of the policies and procedures that it has implemented for managing possible conflicts of interest:
The Company has the right to amend the current Policy at its discretion and at any time it considers is suitable and appropriate. The Company shall review and amend the current policy at least on an annual basis.
Where organizational or administrative arrangements made by the Company to manage conflicts of interest are not sufficient to ensure, with reasonable confidence, that risks of damage to client interests will be prevented, it shall clearly disclose the general nature and/or sources of conflicts of interest to the client before undertaking business on its behalf.