LotsFX.com Review Is LotsFX A Safe Forex Broker

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What is a Lot in Forex?

In the past, spot forex was only traded in specific amounts called lots, or basically the number of currency units you will buy or sell.

The standard size for a lot is 100,000 units of currency, and now, there are also mini, micro, and nano lot sizes that are 10,000, 1,000, and 100 units.

Lot Number of Units
Standard 100,000
Mini 10,000
Micro 1,000
Nano 100

Some brokers show quantity in “lots”, while other brokers show the actual currency units.

To take advantage of this minute change in value, you need to trade large amounts of a particular currency in order to see any significant profit or loss.

Let’s assume we will be using a 100,000 unit (standard) lot size. We will now recalculate some examples to see how it affects the pip value.

  1. USD/JPY at an exchange rate of 119.80: (.01 / 119.80) x 100,000 = $8.34 per pip
  2. USD/CHF at an exchange rate of 1.4555: (.0001 / 1.4555) x 100,000 = $6.87 per pip

In cases where the U.S. dollar is not quoted first, the formula is slightly different.

  1. EUR/USD at an exchange rate of 1.1930: (.0001 / 1.1930) X 100,000 = 8.38 x 1.1930 = $9.99734 rounded up will be $10 per pip
  2. GBP/USD at an exchange rate of 1.8040: (.0001 / 1.8040) x 100,000 = 5.54 x 1.8040 = 9.99416 rounded up will be $10 per pip.
Pair Close Price Pip value per:
Unit Standard lot Mini lot Micro lot Nano lot
EUR/USD Any $0.0001 $10 $1 $0.1 $0.01
USD/JPY 1 USD = 80 JPY $0.000125 $12.5 $1.25 $0.125 $0.0125

Your broker may have a different convention for calculating pip values relative to lot size but whatever way they do it, they’ll be able to tell you what the pip value is for the currency you are trading at that particular time.

In other words, they do all the match calculations for you!

As the market moves, so will the pip value depending on what currency you are currently trading.

What the heck is leverage?

You are probably wondering how a small investor like yourself can trade such large amounts of money.

Think of your broker as a bank who basically fronts you $100,000 to buy currencies.

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All the bank asks from you is that you give it $1,000 as a good faith deposit, which it will hold for you but not necessarily keep.

Sounds too good to be true? This is how forex trading using leverage works.

The amount of leverage you use will depend on your broker and what you feel comfortable with.

Typically the broker will require a deposit, also known as “margin“.

Once you have deposited your money, you will then be able to trade. The broker will also specify how much margin is required per position (lot) traded.

No problem as your broker would set aside $1,000 as a deposit and let you “borrow” the rest.

Of course, any losses or gains will be deducted or added to the remaining cash balance in your account.

The minimum security (margin) for each lot will vary from broker to broker.

In the example above, the broker required a one percent margin. This means that for every $100,000 traded, the broker wants $1,000 as a deposit on the position.

Let’s say you want to buy 1 standard lot (100,000) of USD/JPY. If your account is allowed 100:1 leverage, you will have to put up $1,000 as margin.

The $1,000 is NOT a fee, it’s a deposit.

You get it back when you close your trade.

The reason the broker requires the deposit is that while the trade is open, there’s the risk that you could lose money on the position!

Assuming that this USD/JPY trade is the only position you have open in your account, you would have to maintain your account’s equity (absolute value of your trading account) of at least $1,000 at all times in order to be allowed to keep the trade open.

If USD/JPY plummets and your trading losses cause your account equity to fall below $1,000, the broker’s system would automatically close out your trade to prevent further losses.

This is a safety mechanism to prevent your account balance from going negative.

How the heck do I calculate profit and loss?

So now that you know how to calculate pip value and leverage, let’s look at how you calculate your profit or loss.

Let’s buy U.S. dollars and sell Swiss francs.

  1. The rate you are quoted is 1.4525 / 1.4530. Because you are buying U.S. dollars you will be working on the “ASK” price of 1.4530, the rate at which traders are prepared to sell.
  2. So you buy 1 standard lot (100,000 units) at 1.4530.
  3. A few hours later, the price moves to 1.4550 and you decide to close your trade.
  4. The new quote for USD/CHF is 1.4550 / 1.4555. Since you initially bought to open the trade, to close the trade, you now must sell in order to close the trade so you must take the “BID” price of 1.4550. The price which traders are prepared to buy at.
  5. The difference between 1.4530 and 1.4550 is .0020 or 20 pips.
  6. Using our formula from before, we now have (.0001/1.4550) x 100,000 = $6.87 per pip x 20 pips = $137.40

Bid-Ask Spread

Remember, when you enter or exit a trade, you are subject to the spread in the bid/ask quote.

When you buy a currency, you will use the offer or ASK price.

When you sell, you will use the BID price.

Next up, we’ll give you a roundup of the freshest forex lingos you’ve learned!

Safe forex broker

Safe Forex brokers are those Forex brokers who by review, have been identified as the safest Forex brokers in the world in terms of regulation, account type provided, customer care support and a host of other factors relating to the Forex market. These Forex brokers provide top notch services to their customers and make them feel safe and secured without having to worry about anything concerning their investment.

For a Forex broker to be regarded as safe by any trader in the market, it must have received good reviews from top traders and clients and must have proven its worth in the aspect of the services they provide. Some of these recommended Forex brokers have in one way or the other fulfilled some obligations or must have met certain requirements by the clients. These obligations are the factors which define and place them as safe Forex brokers among the best in the market and also give them the ability to be the pacesetters.

Once any other Forex broker can be able to adequately understand these secrets, it will in no distant time be ranked among the best in the world and also become a safe Forex broker in the world.

Data from research has shown that most of the safe Forex brokers are also the most recommended or the top Forex brokers in the world. These Forex have shown themselves worthy in the following areas of Forex trading.

1. SAFETY OF CUSTOMERS

The very first criteria for classifying a forex broker as safe are in its ability to be able to keep the customer’s data and investment safe from scammers. In line with this, the safe Forex brokers are regulated by some bodies which see to the affairs of the Forex brokers. These bodies craft out rules and regulations guiding how the data made available to all Forex brokers can be kept safe from the ever prying eyes of the public. Some of the safe Forex brokers have installed a very strong firewall to guard against external infiltration.

2. USER FRIENDLY SOFTWARE

A safe Forex broker usually provides its clients with user friendly software and application which can assist them in carrying out their trade in a safe manner. These programs are provided with information which need to be kept private and the Forex brokers do all they can in their power to make sure these data are kept safe. Data such as log in details, bank details, residential address and many more are collected on daily basis by the Forex brokers.

3. DEPOSITS AND WITHDRAWALS

Log in details in terms of deposits and withdrawals needs to be kept secret by the safe Forex brokers. Any Forex broker who cannot keep your deposit data away from others should be avoided as a plague.

4. CUSTOMER CARE

The customer care should be able to receive the complaints of the customer and process it within few minutes to a few days of receiving the complaint. These complaints should be treated with utmost importance. When this is done, the customer will feel safe about the Forex broker’s services.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

Read our FBS Review and Learn More About this Award Winning Broker

In the world of Forex trading, there are so many options when it comes to picking a broker. However, if you find yourself picking the wrong one it can be a decision that weighs very heavy on your bank balance. A good place to start is by reading some Forex broker reviews, so you’re already on the right path because you’ve found your way here.There are a number of things to bear in mind when making your decision and you’ll find we cover most of them in our honest reviews. We are going to be looking at an award winning broker known as FBS, and after reading all the important details you’ll soon appreciate why they have received so many accolades.

  • $123Gifted for a start
  • Max Leverage:1:3000
  • Spread:1
  • Forex Licence:IFSC

A brief introduction to FBS

FBS introduced itself to the world of Forex trading in 2009, and now enjoys a presence in more than 120 countries with a customer base of more than 700,000 traders. And from the very beginning awards have been coming in left right and center. For example, in 2020 FBS received an award or Best mini Forex-broker; in 2020 it was named as the Fastest growing broker in Asia; in 2020 it received Best broker in Asia, and the awards were still coming in 2020. The activities of FBS are regulated by the International Financial Services Commission, and while this may not be the FCA, BaFin or CySEC it is still a trustworthy regulator. FBS is owned by FBS Markets Company that has offices in a number of Asian cities.

FBS has chosen MetaTrader 4 as its trading platform

A number of top Forex brokers choose MT4 for their trading platform, and it comes as no surprise that FBS has done the same. It performs equally well for all operating systems including Windows, MAC, Android, and iOS. There is no need for a download and automated trading is supported. It is one of the most functional trading platforms currently available and comes complete with a number of distinctive features. And for those of you who are keen to use the upgrade to this popular software, FBS now offer MetaTrader 5.

Five different account types to suit a range of different traders

FBS offer five different account types, each with their own special requirements and benefits. From traders who prefer to keep risks to a minimum right up to those who are ready to invest big and trade in large volume, all are catered for. Including those who much prefer to risk no money at all and get in some practice with virtual money.
Cent account

  • Minimum deposit $1
  • Floating spreads from 1 pip
  • No commission
  • Leverage up to 1000:1
  • Maximum of 50 open positions and pending orders

Micro account

  • Minimum deposit $5
  • Floating spreads from 3 pip
  • No commission
  • Leverage up to 3000:1
  • Maximum 100 open positions and pending orders

Standard account

  • Minimum deposit $100
  • Floating spread from 1 pip
  • No commission
  • Leverage up to 3000:1
  • Maximum 100 open positions and pending orders

Zero spread account

  • Minimum deposit $500
  • Floating spread from 0 pip
  • Commission from $20 per lot
  • Leverage up to 3000:1
  • Maximum 100 open positions and pending orders

Unlimited account

  • Minimum deposit $500
  • Floating spread from 0.2 pip
  • No commission
  • Leverage up to 500:1
  • No trading limits

All the above accounts have access to 3 currency pairs and 2 metals, and all support swap-free trading with the option of free funds insurance. In addition, there is the opportunity to become a VIP client if an account is funded with $10,000 and 50 lots are traded. VIP status entitles traders to priority processing of deposits and withdrawals, consultations with a personal account manager who speaks your mother tongue. VIP gifts and a certificate.
A number of payment methods are supported including Visa and Mastercard, Neteller, Skrill, WebMoney and a number of other local methods. Skrill and YuuPay are the only methods that incur additional charges and many payment methods are processed immediately.

FBS are celebrating the 2020 Olympics with some great giveaways

It seems that the 2020 Olympics are being seen as a great excuse to give away lots of prizes. For example:

  • Olympic giveaway with more than 300 unique gifts
  • Prize fund of $1000 for demo account traders who make the most virtual profit
  • Money prize for traders who send in a photo of them wearing their FBS t-shirt

And these are on top of the bonuses and promotions already being offered by FBS. There is a 100% deposit bonus, a $123 bonus, cashback, FBS lucky T-shirt, and the gift of an iPhone 5s Plus.

Educational material is limited but it hasn’t been forgotten

There are the standard offerings of market analysis and calculators as well as an economic calendar, but there are no online tutorials, webinars, videos, or eBooks, However, if you can make it to one of the venues there are some real life seminars available to participate in. We happen to miss the usual fare of training material, and many beginners are sure to be disappointed.
Customer service is more than adequate with an FBS representative available on several international numbers, but mostly these seem to be in Asia. There is also an email support address, as well as a live chat option. Although the live chat option is only available in English.
FBS is a reputable broker that has received numerous awards, although these are mostly for its endeavors in Asia. Customer feedback is very positive so they must be doing something right. One thing, however, that makes them unique is their ‘breakeven trading’ insurance scheme. We haven’t come across anyone else allowing traders to insure deposits, which if lost during trading FBS guarantee to pay you back. If you like the sound of this or any other of their features you can try them out risk-free by opening a demo account.

Company FBS Markets Inc.
Website https://fbs.com/
Headquarters Belize
Established 2009
Languages English, Spanish, Lithuanian, Portuguese, Russian, Arabic, Bengali, Chinese, Bahasa Indonesia, Japanese, Korean, Bahasa Malaysia, Thai, Urdu, Vietnamese, Tamil, Lao, Burmese.
Deposit Methods RegularPay, Visa/Mastercard, NETELLER, Skrill, Webmoney, Perfectmoney, OKPAY, Wire Transfer, Yuu Collect, SahibExchange and Zaw Forex Service
  • Platform8/10
  • Bonus Offer9/10
  • Live Trading8/10

The average spread ratio is 1

Residents of Belize, the USA and Japan are not currently permitted to create a Forex account.

Free Forex Seminars & Workshops.

The quickest and easiest way to contact customer support is through live chat, which is available 24/5.

The remote Forex licences has been issued by the IFSC.

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