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Trading Forex without Margin

Discussion in 'Beginners Bootcamp' started by Umlah, Dec 10, 2010.

  1. Umlah

    Umlah Recruit

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    Hi there,

    I need some help to get up and running for trading forex in small amounts but WITHOUT MARGIN.

    What I mean is that I'd like to trade small amounts of FX, spot, settling in cash and holding the currency.

    The old fashioned way but just in small lot sizes.

    IS THIS POSSIBLE?

    If so can you please provide some links, brokers, information and help me get started.

    Many thanks.
     
  2. daveindubai

    daveindubai Recruit

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    The short answer is no.

    You need a broker in some form to access the market. They do not work for free and you either pay a margin or a commission - this is unavoidable - no such thing as a free lunch (or trade).

    Check the broker reviews for reputable brokers - I have used Windsor Brokers for about 6 months and they have been excellent. FPA sorry if this is considered an ad - happy to remove this immediately if I have done the wrong thing by recommending my broker?

    Best of luck with your trading.

    David
     
  3. Pharaoh

    Pharaoh Colonel

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    Not quite a full no, but a maybe with a lot of qualifiers.

    You can trade money at the bank, but the spreads will be very painful. You can trade with friends who travel internationally. Some will be very happy to sell you their leftover foreign currency for the current rate instead of losing more to bank fees. You can also hang out near the moneychangers at the airport and offer better exchange rates, at least until security comes along and throws you out.

    Another option is to open an account with a forex broker, but not use the available leverage in the account. If you've got $10k in the account, don't open trades with lot sizes totaling more than $10k.

    Some forex brokers do permit settling the trade for cash instead of closing the position. These are rare, but do exist. You would want one that's local to you to make this work.
     
  4. Umlah

    Umlah Recruit

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    Thank you both for your replies. Particularly Pharaoh's that gave me a chuckle.
     

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