FOREX.com Active Trader – A Quick Overview
Active trading is a concept in the Forex market, characterized by a large number of transactions in a relatively short period of time. Active trading is rather a lack of a strategy than a strategy for working with the market. And most often this method of trading is preferred by beginners who are just starting to get acquainted with the exchange. Active Trader Program is a thing that you can find on the Forex.com website.
With active trading, the trader does not set himself the task of analyzing any market factors, opening and closing a large number of positions. If a trader uses strategies, then only short-term, intraday, or intended for even shorter trading periods. As soon as beginners progress, they learn more about the FX market in general and how it works, resulting in high volume traders. Let’s find out more about Forex.com’s active trading and what advantages it offers to customers.
How Does Forex.com Active Trading Works?
On Forex.com you will see the Active Trader Program, which grants you numerous advantages. In order to start using this feature, all you need to do is to open an account with a minimum of $10,000 or trade $25 in a calendar month. After that, you will automatically qualify for the title of Active Trader.
Active Trading works the same way as traditional trading with the difference that you are more actively involved in the process. With Forex.com Active Trader Program you will get access to numerous advantages such as reduced trading cost by cash rebates, direct support from an experienced Market Strategist, and reimbursement on various transactions. VIP access is also provided. Considering levels you will reach, the rebate will also grow alongside them.
Active Trader program is not present on Managed accounts and the ones referred by an Introducing broker. Receiving rebates usually happens within 5 days of the following month but sometimes can take longer depending on the situation. At the same time, Forex.com broker has the right to alter the conditions regarding the rebate scheme without prior notice. Keep in mind that rebates are not transferable between clients.
Distinctive Features of Forex.com Active Trading
As we have already mentioned above, with active trading you can realize your full potential and the exclusive benefits will accompany you. First of all, trading costs are reduced significantly. For example for every trader of $1 million, you will get a $6 rebate and the rate is only going upwards as you level up. You will also get personal support from a Market Strategist that will provide a comprehensive plan.
After becoming an active trader another incredible feature is the VIP experience. You will get invited to exclusive events and get the chance to preview the products of the company.
Forex.com Active Trader Program – Pros and Cons
Active Trading on Forex.com is decent, but nothing is only sunshine and rainbows. Sometimes traders do not know what to do, which only results in loss of personal funds. Below we will have a look at some of the interesting aspects of Active Trading.
Pro – Profitability
It is quite easy to calculate who will earn more, imagine that the trend has passed 100 points from the opening price to the closing price in a day. At the same time, the rate went up and down more than ten times within the price corridor. As a result, if you measure the entire length of the curve, you will get a result that is at least 3-4 times greater than 100 points.
It is clear that not all opportunities are used, but in any case, you will earn twice as much only on the trend curve.
Pro – Leverage
When making transactions lasting from one minute to an hour, it is quite possible to use a leverage of 1: 100, and sometimes even more. At the same time, with passive trading, you will hardly be able to survive a correction with a leverage of more than 1:10, theoretically, it is possible, but in practice, the stop loss will work and your trade will close with a loss.
That is, taking into account the dynamics of the trend and leverage, we can say that active trading is at least 20 times more profitable than passive trading.
Con – Complexity of Trading
Active trading requires a lot of time and effort, it is much easier to open one deal per day or even a week and only occasionally check the market situation. Active trading requires a constant presence at the trading platform, at least a cursory analysis is carried out before each entry into the market.
Comparison to Passive Trading
Risks are everywhere – especially in trading. At first glance, it seems that passive trading is less risky, but if you do not take into account such a concept as a gap when it appears, no stop loss will help, the deal will be closed at the nearest quote. It is this parameter that increases the risk of long-term transactions since in short-term trading you can not risk the entire deposit but replace it with leverage.
For example, if you have a deposit of $ 1000 and leverage of 1:10, you open a long-term trade of 0.1 lots. At the same time, to open a deal with the same volume with leverage of 1:100, $ 100 is quite enough. That is, with a gap, you will lose several times less amount.
If you do not want to be constantly tied to a computer, and at the same time are not sure about the profitability of passive trading, an alternative choice can be trust management with guaranteed profitability.
Forex.com Active Trader Program – Is It Really Beneficial?
In our review, we have gone through the important aspects of the Forex.com Active Trading program. It is clear that the broker offers numerous advantages to clients with this opportunity. Trading is a science, a profession that opens up to anyone who is ready to delve into fundamental analysis and patiently wait for the market to move in the right direction. Profitable trading based on fundamental analysis is:
- Comparison of markets;
- Trading strategies stretched over several days, weeks, or months;
- Reducing risks to a minimum level;
Active trading will help you to get rebates, get VIP access, and personal managers. In every way the program is beneficial for every kind of trader, seeking to succeed in Forex trading.
What is Forex.com Active Trading?
Active Trading on Forex.com is designed for traders, who have a monthly $25 trading volume or open an account with $10,000. Basically, after meeting these criteria you automatically qualify for Active Trader. Active Trading guarantees cash rebates, one-on-one support from trading specialists, and reimbursements on bank fees.
When is the Cash Rebate Awarded?
After the conditions have been met, a cash rebate will be awarded within 5 business days in the following month. However, there could be moments when it could take longer depending on the situation. At any point, Forex.com reserves the right to alter the conditions of the program.