F.A.Q (FREQUENTLY ASKED QUESTIONS)

UMOFX provides superior consulting services for Forex market, located in Auckland, New Zealand. Established since in 2010, UMOFX is a principal broker offering a wide range of financial instruments to many institutional and private investors on the international market. With our experience, UMOFX has proved to be a reliable and credible broker globally.

Forex is a global Foreign Exchange market that allows everyone to trade currencies online. Forex and 'FX' are shortened terms used for 'foreign exchange'. Foreign exchange or 'currency trading' is the exchange of money from different countries. The value of one country's currency is constantly changing against the value of another country's currency. Forex traders make money through buying and selling currencies on the foreign exchange market. For example, trade the Euro against the US dollar. Forex and related markets is the largest and most liquid financial market in the world, where the average trade consists of trillions per day.

Yes, we advise all our clients that foreign exchange trading does involve substantial amount of risk. With UMOFX you cannot lose more than your 'margin', the money you are prepared to risk plus the daily rolling fee if you have entered a Day Trade transaction. Profits are unlimited but you can never lose more than what you initially risked. However, risk only what you can afford. Before you join you need to read our Disclaimer and Terms and Conditions.

Everyone has an opportunity to trade Forex professionally. It all depends on how patient and motivated you are.

The profit opportunities in Forex are unlimited. Sometimes you can make up to 100% from your initial deposit and more. In average, professional traders make from 5% to 10% stable income on the monthly basis.

The currency trading is always done in pairs: EUR/USD, USD/JPY, etc. when one currency rate is going down, the other one is going up. You can earn money on both increase and decrease of the rate. The principle is to buy cheap and sell expensive or on the contrary: sell for a high price and buy when the price goes down.

In order to start trading Forex you have to open a trading account and have an access to the Forex trading platform with all necessary trading tools. If you didn't trade before, we recommend you to start from our demo accounts where you can trade virtual money with live rates.

Previous experience is not required. Experience can be gained by using UMOFX Demo account. As a next step, UMOFX gives clients the opportunity to open a Micro trading account where they may trade under real-time prices and market conditions with the minimum investment.

Day Trading deals are usually opened and closed on the same day. It is possible for a day trading deal to last longer than one day. When this happens, the deal is automatically renewed at 22:00 GMT each night until the deal closes. Day trading is becoming more popular now that more people use the Internet

UMOFX has four account types with different margin levels and spreads involved.

  1. Demo Account
    This account is advisable for beginners who are totally new to the Forex market. The objective of this trial account is for beginners to get used to both MT4 trading system and the live Forex market as a whole. Getting virtue cash to trade is a vital step to raise beginners into a veteran Forex trader.
  2. Micro Account
    Appropriate for traders who wants to start with small deposits, as low as $1 USD and trade volume as low as 0.01 lot per position. Traders can enjoy up to 500:1 leverage offer. This account type is mainly 1% the value of Standard Accounts, which means that transaction of 1 micro lot is $1000 USD. But it can only accept initial or total deposit limit up to $10,000 USD. However, if the deposit is above, it will be automatically changed to Standard Accoun
  3. Standard Account
    Reflects the real world of Forex trading and is strongly recommended for professional merchants. Its leverage offer is up to 500:1, each minimum transaction should be 1 standard lot equivalent to $10,000 USD. It also provides online trading education materials, trading tools and economic calendar, and Forex news to assist traders to succeed in their trading performance. In all, the account offers the absolute trading area for traders to fully utilize their trading aptitudes and tactics that results to successful trading.
  4. SECN Account
    Here, clients trade similar to mini account. The only special feature of this account is spread free, which means no spread will be charged on every trades but an amount of commission will be induced to the transaction depends on the lot size, profit and currency pair traded. For frequent traders tailor-made accounts are also available. You can speak to your UMOFX Account Service Manager to help you decide which account is best for you.

UMOFX offers all major currency pairs for trading, including exotic currencies, Gold and Silver also. The most popular are EUR/USD, AUD/USD, USD/JPY, USD/CHF, USD/CAD, GBP/USD, NZD/USD For further detail see our currency table that we offer to trade on our website.

A lot is the standard unit size of a transaction.
Depending on the financial instrument traded, the lot size is determined; i.e. a standard lot traded at UMOFX, for Forex trading, usually consists of a contract size of 100,000 (units of the base currency).
The contract size is then proportionate as per the lot indication - standard or micro lot. As a result, a standard contract size of the GBPUSD is 100,000 GBP and the micro lot consists of 10,000 GBP accordingly. For details on all instruments traded at UMOFX, please refer to the Contract Specifications document of each account type.

Spread is the difference between the Bid and Ask prices.
When trading any financial instrument, you are offered two prices; the Bid price and Ask price. The Bid price is the selling price and the Ask price refers to the price offered for buying. The difference between the Bid and Ask is called Spread and varies for each financial instrument traded. An advantage of trading currency pairs at UMOFX is the low spreads offered, which is as low as 2-3 pips on majors.

Margin is a guarantee for holding an open position. The amount is blocked from the client's trading account when opening a new position and returned (unblocked) to the client's trading account once the position is closed or hedged. Leverage is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. UMOFX offers trading with as low as 0.2% margin or 1:500 leverage. A client can either buy or sell a Standard contract (1 standard lot) worth US$ 100,000 by using only US$ 200 as a margin (leverage 1:500). In the same way, a client may buy or sell portion of a Standard contract, a Mini contract (1 mini lot) worth US$ 10,000 with a margin requirement of US$ 10 only (leverage 1:100). Each client is required to monitor the margin requirement of his/her trading account. For example, for opening majority of financial instruments, for 2 standard lots, the trading account must have at least US$ 2,000 available for trading. This applies when the equity/margin ratio is 100% (leverage 1:100). In case of an adverse market move, when the available margin in the account falls below US$ 2,000, the trading account will be under the 100% required margin and will be on Margin Call.

Margin call is a demand for additional funds from the client to bring the equity of the trading account to a required minimum level and to prevent the trading account from a possible adverse movement in price of the financial instrument, at the market. Equity to margin should not fall under 30% for major financial instruments on weekdays and should not fall under 50% on weekends for the majority of financial instruments traded with UMOFX (leverage 1:500).

'long' position or 'going long' is a market position where the client buys a financial instrument with the intent to sell it at a later stage, at a higher price. A "short" position or 'going short' is a market position where the client sells a financial instrument with the intent to buy it at a later stage, at a lower price.

A Limit Oder is where you nominate a rate at which you want to open a deal. When and if this rate occurs in the market, your 'reserved' deal is automatically opened. Once the deal is opened it is treated like a Day Trade with the details appearing in My Account. UMOFX does not charge for this service. This saves you watching the market every minute to see whether the rate you want happens

A market conducted directly between dealers and principals via a telephone and computer network rather than a regulated exchange trading floor. OTC trading with UMOFX means that you trade currencies with the aim to earn a profit, though you can lose as well. You don't actually take delivery of these currencies.

International currency prices are highly volatile and very difficult to predict. Due to such volatility, there is no system that can assure you that transactions on the foreign currency market should result in great benefits to you

UMOFX deals are dependent on the FX market, which is dynamic and changes all the time. The fluctuations in the market, in currency rates, and in other parameters, affect our fully automated pricing engine. This is why rates and premiums may change all the time. For your convenience, we developed the Currency Rates Table which displays market data in real time and can give you an indication as to whether the rates are going up or down. When the rates in the bar are green it means they went up since the last update, when they are red it means they went down since the last update.

There are many online platforms available to trade with. Go to our website to see what the UMOFX platform offers. Some key points to look for in the platform you choose:

  1. level of personal service and support - live chat
  2. trading tools offered including charts, outlooks, news, financial calendars
  3. user friendly platform - can you do everything online or do you need to download software
  4. how quickly you can start trading
  5. easy deposit methods - e.g. e-wallets such as Liberty Reserve, Paypal, Moneybookers, Local Deposite, Debit/Credit Card and Bank Wire Transfer.
  6. 24 hour access to your account
  7. leverage offered
  8. tailor-made accounts and spreads
  9. real-time exchange rates
  10. no hidden costs - commissions on deposits or withdrawals
  11. no maintenance margins
  12. cost of renewal/rolling fees for Day Trades
  13. fixed rates and stop loss limits
  14. security and safety of the site and your information
  15. Genuine company with real people in real offices around the world.

Deals are executed within seconds up to few minutes depending on the financial instrument in question. However, one of the major advantages of our trading platform is the Instant Execution on Forex currency pairs and Spot Precious Metals.

A Daily Statement is sent to each client stating all activity on each trading accounts. Clients may also check the status of their accounts directly through the Meta Trader 4 or through Mobile Platform.

Yes, UMOFX offers trading accounts which adhere to the Islamic law (Sharia) or we call it Swap Free Account. With Islamic trading accounts, when traders extend their Day-Trading deals to the next day, no rolling fee is charged. Accordingly, the maximum duration offered for Day-Trading deals is limited (usually 1 week but it can also be shorter or longer depending on the currency pair traded).

For all spot positions which are held open overnight, i.e. not closed before 12:00 midnight (New Zealand Local Time). Rollover / Swaps are either added or charged on each position depending on the financial instrument and whether you are buying or selling. Rollover charges apply on Forex currency pairs and Spot Precious Metals. However you could apply for Swap Free account during registration.

In the Trade section on the website you can deposit money with your Debit/Credit Card, Cashu, Fasapay, Liberty reserve, Money bookers, PerfectMoney, Local Deposit or with Bank Wire Transfer.

When you register with UMOFX you are required to fax, or scan and email, your passport or ID card; a bill or statement (e.g. telephone bill, bank statement) showing your residential address; and both sides of your credit card. We do this to ensure the safety and validity of your account.

You will find withdrawal instruction in you Trader Cabinet when you login at the website. To withdraw money you must have supplied the required documentation and get Verified status. A withdrawal to a bank account where initial deposits have been performed by credit cards will be executed back to credit card or to bank account at company's discretion and policies and with regard to Anti Money Laundering (AML) regulations.

No. The online deals section of our website connects directly to our central FX system, and shows the latest rates and premiums based on real time FX quotes

Please send an e-mail to account@umofx.com with details of the problem. We endeavor to respond to such e-mails within 24 hours.

Yes. We use the internationally accepted security system SSL to encrypt all credit card payments over the web. This is automatic, and you will receive instant notification if your browser does not support this.

UMOFX is tested using a range of browsers and operating systems. Some older browsers, however, do not support the full range of functions required. We recommend using Firefox, Google Chrome or above. Upgrading to the latest browser can mean enhancing your surfing experience and improving your online security.

If you would like to put a hyperlink through to the UMOFX website on your own site maybe you can apply to be our affiliate partner, please send an e-mail to partner@umofx.com.

With UMOFX you can increase your level of participation in the Forex market. Some of the programs below are not offered in all world regions.

  1. Affiliate Agent.
  2. Introducing Broker.

To close your account, please email to our account department, account@umofx.com

The cost of foreign exchange trading is determined by the difference between the buy rates and the sell rates of the currencies ( spread ). The spread is one off our income and not cheating traders to lost on their trading as we are at the same level of market maker.

No, at UMOFX we are transparent with all our charges but maybe only when you using some of e-wallet service. Please do find out with you e-wallet service for any extra charges on deposite and withdrawals.

UMOFX does not charge a maintenance margin.

Regardless of the funding method you choose, the name of the person transferring funds must always match the name of the client’s trading account at UMOFX. UMOFX does not accept funds for any trading account by a third party, as per Anti-Money Laundering regulations

You just need to login into your trader cabinet and open a new trading account at inside.

Meta Trader's Multi Terminal allows you to manage multiple terminals simultaneously. However, in Meta Trader 4 only one account can be logged in at a time thus it is impossible to manage several accounts simultaneously. We will provide the facilities of Multi Terminal soon

Yes, you can have multiple accounts but your deposit will only appear as US Dollar.

No, we will not. You can have a functioning live account with a zero account balance.

Yes. It is possible to log in into your live and/or trading account from any computer that has MetaTrader 4 platform downloaded. You can even be logged in from different computers simultaneously. Please be careful with your login and password.

To restore trader account password, please contact Live Client Service Team or email to account@umofx.com with below details provided:

  1. Trading account number
  2. Full name as registered
  3. Email address as registered
  4. And maybe other thing our representative may need to verify

Please login into your trader cabinet where you can change your password. For security purposes, we recommend you to change your password once per month

Client information is important for us. If you supply inaccurate information then your account may be deleted. We will never disclose your contact details to any third parties, but will use your details to let you know of any important changes that may affect your account.

Demo account is virtual account that ideal place for beginner to learning the basics of Forex. Demo account conditions are similar to real account: order execution technology, quotes, working with orders - everything like on a real account.

Demo account password can't be recovery. If you saved an internal mail with your demo account registration data you can find your password there. Otherwise, you will have to open a new demo account.

Demo account is not allowed to change the leverage in Umofx®. In this case, you will have to open a new demo account.

It is impossible to deposit a demo account. You can open aUmofx® Live Account to make real trading.

Our Demo spreads are fixed and same with real account, if you require the minimum and typical spreads for Mini and Standard account, please refer to our website.

Our trading platform server time zone is GMT +0. All trades, pending orders and historical data will always be shown as GMT +0. The time you see in the Market Watch window is the time of the latest quote.

No, the time zone of our servers is always GMT +0. In this time zone we avoid having small candlesticks on Sundays which allows the running of technical analysis and back testing to be smooth and straight forward.

Order execution is guaranteed under normal market conditions but not guaranteed under abnormal market conditions. Under abnormal market conditions or when the order level falls within the price gap on the market opening, the order is executed at the quote which is presented in the quotes flow during the process of order execution. Buy stop, sell stop or stop loss is executed at the level less profitable for the customer; buy limit, sell limit or take profit is executed at the level more profitable for the customer.No, the time zone of our servers is always GMT +0. In this time zone we avoid having small candlesticks on Sundays which allows the running of technical analysis and back testing to be smooth and straight forward.

Hedging is allowed

Not at all, Umofx® is highly geared for active trading. Please refer to our Client Agreement in respect of order execution and spreads under abnormal market conditions. You shall consider the risk of trading in the high volatility market.

Yes, you can. Please note that trailing stops become inactive when you log out of MetaTrader.

No, trailing stops are maintained locally on your machine and therefore requires that your MetaTrader 4 platform remain on and connected to the internet. If you disconnect the MetaTrader 4 platform from the system, any open trailing stops will be converted to a hard stop or limit.

Limits and stops must be set at least 10 pips away from the prevailing market price.

No, we won't, open positions and pending orders stay in the system even if you log off from your trading platform. The same situation apply to all orders types except trailing stops. Trailing Stops become inactive when you close or log out of MetaTrader. Expert Advisors also become inactive when MetaTrader is closed or you are not logged in.

Yes, you can. This is called 'matched' or 'hedged positions' - long and short positions of the same transaction size opened in the same instrument. The margin required to open and maintain such positions is zero of the usual initial margin per transaction.

Funds received Credit Card is normally credited within 3 working days of receipt. Deposits made using your Credit card beyond the core business hours of 9.00am - 5.00pm New Zealand time may not be credited until the next 3 to 7 working day. Funds received during the day by a Bank Wire will be credited 3 to 7 working days, although we strive to credit as many as possible on the day of receipt. For more information, please refer to deposit and withdrawal Section. This is depend on country and bank service to make transaction to.

Yes, you can. However at the moment of payment, your free margin must exceed the amount specified in the withdrawal instruction including all payment charges. Free margin is calculated as equity less necessary margin (required to maintain an open position). If you do not have sufficient free margin in your trading account we will not carry out the withdrawal request until you close the open positions in your account.

UMOFX offer trading account for USD. You can deposit money with us in USD, GBP and EUR. If you transfer funding in GBP to your account, the GBP you have sent us will be converted into US Dollars by UMOFX at the prevailing inter-bank price at the time.

Yes, you can close all your positions and disable your portfolio instantly. You are in complete control of your account at all times

No. You may trade from any computer with an Internet connection.

No. We do not accept trades via email. You may place a trade online.

Information about all trade operations performed is stored in the "Account History" tab. The entire history is displayed as a table with the following fields. If you don't see account history in your terminal, please do the following:

  1. Check your PC system date and time.
  2. Right-click the account history tab and select "All history". This way you can also see the history for any period

This is a buy and sell price on the quotes you see, when you open or close an order. The difference between the two prices is called the Spread. All the charts in trade terminal are shown at "Bid" price. You can set up your terminal to show Ask price as well. To do so, press F8 on the chart window and in "Common" tab put a tick "Show Ask Line". Upon "Buy" order opening, the open price is "Ask" and the closing one is "Bid". Upon "Sell" order opening, the open price is "Bid" and the closing one is "Ask". A stop loss order was hit, while there was no such price on chart. It often happens with beginners in "Sell" positions. It happens because the trader doesn't take spread into consideration. Upon "Sell" order opening, the open price is "Bid" and the same price is shown on the chart. "Sell" order close price is "Ask", i.e. "Bid" price + spread. You can set up your terminal to show "Ask" price as well. To do so, press F8 on the chart window and in "Common" tab put a tick "Show Ask Line".

A «Stop-loss» is an order, which can be put either upon opening the position, or after it is already opened. The goal of this order is to minimize loss, i.e. after the price reaches the set value, your position will be automatically closed with a fixed loss. Or with a profit if you set your S/L into zero value. A «Take-profit» is basically the same order, but working in a reverse way, i.e. after the price reaches the set value, your position will be automatically closed with a fixed profit. For instance: as you open a long position (long means buy), you open a buy position up at Ask price, and close it at Bid price. In this case you can set "Stop-loss" under Bid price and "Take-profit" over Ask price. Subsequently, as you open a short position (short means sell), you open a sell position up at Bid price, and close it at Ask price. In this case you can set "Stop-loss" over Ask price and "Take-profit" under Bid price. Now let's assume you want to Buy 1 lot GBP/USD. You open a new order, request the current quote, select the required currency pair, enter the volume in lots, set the S/L and T/P (if needed) and press "Buy". You have bought at Ask price 1.2453, which means Bid at that time was 1.2450 (spread is 3 points). A "Stop-loss" order can be set under 1.2450. If you set it at 1.2400, it means that if the Bid price reaches 1.2400 your order will be automatically closed with a 53 points loss. A "Take profit" order can be set over 1.2453. If you set it at 1.2500, it means that if the Bid price reaches 1.2500 your order will be automatically closed with a 47 point profit.

These are orders which will be opened when the price reaches the value set in the orders. A Buy/Sell Limit is executed only when the market price is (or is better) than the price set in the order. Buy Limit is usually placed under the current market price and Sell Limit is placed above the current market price. Buy/Sell Stop is executed only when the market price is (or is worse) than the price set in the order. Buy Stop is usually placed above the current market price, and Sell Stop is placed under the current market price.

For all currency pairs the order price must differ from the current market price (Bid or Ask, depending on the order direction) for at least a size of spread. You cannot place any pending order closer to the current market price.

This is because the position prolongation is performed through short Roll-over or Swap (Tom/Spot) operations. Roll-over consists of 2 controversial positions with the same sum, but different dates (Tom - tomorrow, Spot - the second working day) and slightly different rates. Roll-over is an artificial closure of a position and a simultaneous opening of the similar position on the next date, taking into account the difference in the percent rates of the two currencies.Depending on the position direction (buy or sell), the client gets (or pays) some sum for the position roll-over (it usually ranges from a tenth of a point to several points). When a position is rolled over from Wednesday to Thursday, the sum is triple. Why does the customer have to pay for a position roll-over? Because upon position opening he received a credit in a currency he sells, and must pay interest. At the same time he put the purchased currency to a deposit and gets some interest for it too. The bank rates for these currencies differ, therefore a gap appears, which is considered during the position roll-over. If a customer sold a currency with a higher bank rate - he will pay for the roll-over. And if he purchased a currency with a higher bank rate, broker will pay him for the roll-over. Usually it is all calculated automatically.

The Company has a right to close customer's positions without notifying him, in case equity is less than 30% of the required margin (for opened positions). If several positions are opened, the company can close one or several of them, starting from the one, generating the largest loss. The trade account condition is controlled by the server, which closes all positions automatically, if margin level reaches 30% (or less) for Micro/Standard account. This situation is called "Stop Out". It is performed by the current market price.

Obviously there were not enough funds on your account to keep the position opened. As soon as the margin level reaches below "Stop Out", the server automatically closes all the positions. This event is also recorded in log files with a comment "stop out". If several positions are opened, the first one to close will be the position with the highest floating loss.

Support level is a level lower than the current market price from which the trend, supposedly, can turn upwards. Resistance level is a level higher than the current market price from which the trend, supposedly, can turn downwards.

n general, long-term positions are those, which are supposed to last several months or even years. Mid-term orders are those, the goals of which should be attained in the nearest 1-3 weeks. Such wording of the terms is spread within banks and investment funds, and is also used by market analytics in their prognoses. There is another scale between traders. Orders within 1 day are called "Intraday", orders lasting several days are called "short-term", mid-term - for a week or 2, long-term - for a month and more. This scale is, of course, unofficial, and is spread within self-traders.

F9 - new order, Ctrl + L - show volume on charts, Ctrl + N - show navigator window, Ctrl + O - open properties, Ctrl + T - open/close terminal window, Ctrl + Y - show period dividers on chart.

There is a user guide in the terminal itself. Press F1 to open userguide. You can also download it from the developer's website at http://www.metatrader4.com/traders .The developer's forum is located here: http://www.metatrader4.com/forum

Go to market watch press right-click on any tool select "Show all symbols".

Yes. To install a new expert you need to copy it to C:\Program Files\Meta Trader\Experts and restart the terminal. After that you will see your expert in the Navigator window.

You can find from here: http://codebase.mql4.com

If the "New order" button is inactive, it means you logged into your account under Investor password. Re-login to your account under trader's password. It allows complete account management; only under it you can open, close or edit positions. It is also used during funds deposit/withdrawal and for account verification. Investor password is for a view-only access.

If "Sell" and "Buy" buttons are inactive, it means you have a wrong volume selected. For "Mini Account" minimal volume is 0.01 lot and maximal is 100 lot. For "Standard Account" minimal volume is 0.1 lot and maximal is 500 lot.

This can happen due to the following reasons:

  1. You enter an incorrect password
  2. You didn't log in to your account for a long time and it was deleted or blocked. Please contact to account@umofx.com to unblock account.

Few Possible reasons is maybe you have no internet connection sometime Port 443 is blocked in your network due to your firewall is blocking port 443 and you may try add Metatrader as an exception from your computer firewall.

This message appears when a trade operation has failed (e.g. when you try to open a new order, when the previous one is not yet processed), due to server connection failure. To erase the query queue it is necessary to reboot your terminal.

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