Discussion of Forex Trading and Currency Trading

Any restrictions on the number of forex trades I make in a given period?

Hi, I would like to know if there is any limit on the number of forex trades we can make in a day? in a week? or in a month?
For example, day trading requires you to deposit $25K with your broker before you are allowed to day trade but my forex broker doesn’t seem to set any limit on the number of trades I can make in a day and I have just assumed that since there is no limit set by the broker I can make any number of trades in a day, anywhere from 1 to 1000 or more.

However, I just noticed on my broker’s website that there is a special account that requires $25K deposit with the broker and it is referred to as "Active Traders’ Account". This make me wonder if I am breaking any rules/laws unknowingly.

Thanks for any inputs.

Most Commented Posts

This entry was posted on Sunday, November 29th, 2009 at 11:57 am and is filed under forex trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

« Should each U.S. State have its own currency?
If night currency is not met when is the latest time passengers can be carried? »
 

 

6 Responses to “Any restrictions on the number of forex trades I make in a given period?”

  1. TMI Says:
    November 29th, 2009 at 11:57 am

    Call the broker or account rep and ask them. They will not mind if they are worth 5 cents.

  2. imya Says:
    November 29th, 2009 at 11:57 am

    There is no restrictions at forex trading. Forex trading has no rules. You have to make rules for yourself if you want to be a successful trader. Please visit: http://www.imyatrader.com/a-disciplined-trader.html/
    God bless you.

  3. The Geek Says:
    November 29th, 2009 at 11:57 am

    Hi there,

    while there are usually no restrictions on the number of forex trades you can make, the best person to answer this is indeed your broker.

    However there are other restrictions in forex that you may want to read up on.

    For example, in the US, you may not hedge against your forex position. ( opening a position in the opposite direction of your current position )

    If you are new to forex, you can read my forex newbie blog.

    All the best

  4. SS Fin Says:
    November 29th, 2009 at 11:57 am

    No, there are usually no restrictions on the number of trades. But there might be restrictions on hedging & scalping.

    Scalping is when you enter-and-exit many trades very quickly (like within a few minutes or seconds).

    I have seen some brokers restrict withdrawal of earnings if they feel that a trader is a scalper. Check that out in advance.

  5. Melvin Says:
    November 29th, 2009 at 11:57 am

    try to visit this site..maybe it could help you..

    http://www.currency-trading-tutorial.net/

  6. Jason Rogers Says:
    November 29th, 2009 at 11:57 am

    There is no limit on the number of trades you can make in the forex market in a given period. The only thing that would limit you is the amount of funds you have available in your account.

    Some brokers have incentive programs based on account balance or trading volume. The Active Trader program you mentioned which sounds like FXCM Active Trader is available for traders with balances of at least $25,000 or more that meet a minimum trading volume requirement. It is setup to reward traders to trade at least 10 million in notional volume per month with lower transaction costs. So the spread+commission cost is designed to be lower than the regular trading account.

    You are not breaking any rules/laws unknowingly.

Leave a Reply