WHAT SUPPORTING DOCUMENTS DO I NEED TO PROVIDE IF I WANT TO BE YOUR CLIENT?
A color copy of valid passport or other official identification document issued by authorities (e.g. driver’s license, identity card, etc). The identification document must contain the client’s full name, an issue or expiry date, the client’s place and date of birth or tax identification number and the client’s signature.
A recent utility bill (e.g. electricity, gas, water, phone, oil, Internet and/or cable TV connection, bank account statement) dated within the last 6 months and confirming your registered address.
DO I NEED TO PROVIDE MY PROOF OF RESIDENCY?
Yes, you do. In order to start trading and to be able to make withdrawals from your account, your account has to be validated, therefore you must provide a recent utility bill (e.g. electricity, gas, water, phone, oil, Internet and/or cable TV connection) or bank account statement not older than 6 months and confirming your registered address.
WHY DO I NEED TO SUBMIT MY DOCUMENTS FOR ACCOUNT VALIDATION?
As a regulated company, we operate in accordance with a number of compliance-related issues and procedures imposed by our main regulatory authority, CySEC. These procedures involve the collection of adequate documentation from our clients with regards to KYC (Know Your Client), including the collection of a valid ID card and a recent (within 6 months) utility bill or bank account statement that confirms the address the client has registered with.
DO I NEED TO UPLOAD MY DOCUMENTS AGAIN IF I OPEN A NEW TRADING ACCOUNT AND MY FIRST ACCOUNT WAS ALREADY VALIDATED?
No, your new account will be validated automatically, as long as you will use the same personal /contact details as for your previous account.
CAN I UPDATE MY PERSONAL INFORMATION?
IS IT POSSIBLE TO LOSE MORE MONEY THAN I DEPOSITED?
No, you cannot lose more than the amount you deposited. Should the slippage of a certain currency pair cause a negative balance, it will be reset automatically with your next deposit.
IS MY MONEY SAFE?
Basel Capital Markets is operated by Leverate Financial Services Ltd, which ensures the safety of client funds and consumer protection under the Markets in Financial Instruments Directive (MiFID). Thus the measures that Basel Capital Markets undertakes are as follows:
Segregation of clients’ funds
Clients’ funds get transferred to the Company’s segregated client bank account. These funds are off balance sheet and cannot be used to pay creditors in the unlikely event of Company insolvency.
We maintain client and operational bank accounts with EU banking institutions of great repute.
Investor Compensation Fund (ICF)
The Investor Compensation Fund ensures that the Company pays compensation to all clients in the unlikely event of the Company becoming insolvent or having to suspend its services. The compensation amount will depend on the prevailing level of clients’ claims.
Supervision by the regulator
As a regulated financial services provider, we are obliged to meet strict financial requirements, including the monthly submission of financial reports to our main regulatory body, the Cyprus Securities and Exchange Commission (CySEC). We are thus required by law to maintain sufficient liquid capital in order to cover clients’ deposits, possible fluctuations in the Company’s currency positions, and any outstanding costs. Our regulator is informed by any deficiencies in a detailed audit submitted by an independent internal auditor every year.
WHAT SPREADS DO YOU OFFER?
We offer variable spreads that can be as low as 0 pip. We have no re-quoting: our clients are given directly the market price that our system receives.
WHAT LEVERAGE DO YOU OFFER?
We provide leverage from 2:1 up to 30:1. The leverage depends on the instrument traded.
WHAT IS MARGIN / MARGIN LEVEL / FREE MARGIN?
Margin is the required amount in the base currency of the trading account needed to open or maintain a position.
When trading forex, the Required/Used Margin for a specific position = Number of Lots * Contract size / Leverage. Here the result is originally calculated in the first currency of the traded pair, and then converted into the base currency of your trading account, which will be numerically displayed on your MT4, or any other trading platform.
The margin requirement for gold and silver is calculated like this: Lots * Contract Size * Market Price / Leverage. The result will be in USD, which will be converted into the base currency of your trading account (in case it is other than USD).
For CFDs, the required margin is Lots * Contract Size * Opening Price * Margin Percentage. The result will be in USD, which will be converted into the base currency of your trading account (in case it is other than USD).
Margin level is calculated with the formula Equity/Margin * 100%.
Free margin is your equity minus margin. It means the available funds that you use for opening new positions, or for maintaining existing positions.
HOW CAN I CALCULATE THE MARGIN?
Margin calculation formula for forex instruments is the following:
(Lots * contract size / leverage) where the result is always in the primary currency of the symbol.
For STANDARD accounts all forex instruments have a contract size of 100 000 units. For MICRO accounts all forex instruments have a contract size of 1 000 units.
For instance, if the base currency for your trading account is USD, your leverage is 1:500 and you are trading 1 lot EURUSD, the margin will be calculated like this:
(1 * 100 000/500) = 200 Euros
The Euro is the primary currency of the symbol EURUSD, and because your account is USD, the system automatically converts the 200 EUROS to USD at the actual rate.
WHAT IS THE MARGIN FORMULA FOR GOLD/SILVER?
The gold/silver margin formula is lots * contract size * market price/leverage.
WHAT IS THE MARGIN FOR CFDS?
The CFDs margin formula is Lots * Contract Size * Opening Price * Margin Percentage.
HOW DO YOU CALCULATE SWAPS IN CURRENCY PAIRS (IN FOREX) AND FOR GOLD/SILVER?
The swap formula for all forex instruments, including gold and silver, is the following:
lots * long or short positions * point size
Here is an example for EUR/USD:
Client base currency is USD
1 lot buy EUR/USD
Long = -3.68
Because it is a buy position, the system will take the swap rate for long position, which currently is -3.68
Point size = contract size of a symbol * minimum price fluctuation
EUR/USD point size = 100 000 * 0.00001 = 1
If we apply the given numbers in the formula, it will be 1 * (-3.68) * 1 = -3.68 USD.
So for 1 lot buy EUR/USD, if the position is left overnight, the swap calculation for the client will be -3.68 USD.
Here is an example for gold:
Client base currency is USD
1 lot buy gold
Long = -2.17
Because it is a buy position, the system will take the long points, which currently is -2.17.
Point size = contract size of a symbol * minimum price fluctuation
Gold point size = 100 * 0.01 = 1
If we apply the given numbers in the formula, it will be 1 * (-2.17) * 1 = -2.17 USD.
So for 1 lot buy gold, if the position is left overnight, the swap calculation for the client will be -2.17 USD.
Please note that if the base currency of the trading account is in EUR (like in the examples above), the swap calculation will be converted from USD to EUR. The result of the swap calculation is always the secondary currency in a symbol, and the system converts it to the base currency of the trading account.
The examples provided only serve as a guide and do not reflect the current charges
I OPENED 0.01 MICRO LOTS AND CLOSED A POSITION ON MY MICRO ACCOUNT, BUT I SEE NO PROFIT. WHY?
You can calculate your profits with the help of the following formula:
(Close price-open price)*Contract size*Lots
You have a MICRO account (contract size is 1000), and you opened 0.01 lots of EUR/USD.
Opening price =1.29887, closing price=1.29906
The calculation would be as follows:
(1.29906-1.29887)*1000*0.01= 0.0019 USD (the result is always in the second currency of the currency pair).
As you can see, 0.0019 USD is too small a profit to be visible on your platform, as the profit shows 2 decimals.
WHAT IS STOP LOSS?
Stop loss is an order for closing a previously opened position at a price less profitable for the client than the price at the time of placing the stop loss. Stop loss is a limit point that you set to your order. Once this limit point is reached, your order will be closed. Please note that you need to leave certain distances from the current market price when you set up stop/limit orders.
Using stop loss is useful if you want to minimize your losses when the market goes against you. Stop loss points are always set below the current ASK price on BUY, or above the current BID price on SELL.
Using stop loss is useful if you want to minimize your losses when the market goes against you. Stop loss points are always set below the current BID price on BUY, or above the current ASK price on SELL.
WHAT IS TAKE PROFIT?
Take profit is an order to close a previously opened position at a price more profitable for the client than the price at the time of placing the take profit. When the take profit is reached, the order will be closed. Please note that you need to leave certain distances from the current market price when you set up stop/limit orders.
Take Profit points are always set below the current ASK price on SELL, or above the current BID price on BUY.
HOW CAN I CALCULATE 1 PIP OF PROFIT OR LOSS?
Amount of Base Currency*Pips= Value in Quote Currency
Value of 1 pip in EUR/USD= 1 Lot (100 000 €)*0.0001= 10 USD
Value of 1 pip in USD/CHF= 1 Lot (100 000 $)*0.0001=10 CHF
Value of 1 pip in EUR/JPY=1 Lot (100 000 €)*0.01= 1000 JPY
WHAT IS THE MINIMUM LOT SIZE FOR MICRO AND FOR STANDARD ACCOUNTS?
The numbers below are per transaction, and you can open an unlimited amount.
1 lot = 100,000
Minimum trade volume = 0.01
Maximum trade volume = 50
Trading step = 0.01
1 Lot = 1,000
Minimum trade volume = 0.01
Maximum trade volume = 100
Trading step = 0.01
Please note that the minimum lot size for trading with CFDs is 1 lot.
DO YOU ALLOW HEDGING?
Yes, we do. You are free to hedge your positions on your trading account. Hedging takes place when you open a LONG and a SHORT position on the same instrument simultaneously. When you open a BUY and a SELL position on the same instrument and in the same lot size, the margin is 0.
However, when you open a BUY and a SELL position on a CFD of the same type and lot size, the margin is only needed once.
The margin of CFDs, when you are hedged, is always 50%.
WHAT IS LEVERAGE? HOW DOES IT WORK? WHY IS LESS MONEY REQUIRED FOR A HIGHER LEVERAGE AND IS THE RISK HIGHER?
Leverage is the multiplication of your balance. This allows you to open bigger trading positions since the margin required will be lowered according to the leverage you have chosen. Even though with leverage you can make a bigger profit, there is also a risk of having a bigger loss because the positions you open will be of higher volume (lot size).
Your trading capital is 10,000EUR
The leverage chosen is 100:1
For a STANDARD trading account this means 100*10,000 = 1,000,000EUR
On EURUSD long position opening at 13,055, position closing at 13,155
The difference is 0.0100 pips thus 1,000,000*0.0100 = 10,000USD this is the profit you mad
CAN I CHANGE MY LEVERAGE? IF YES, HOW?
No, you can’t change the leverage.
WHAT IS THE PROFIT CALCULATION FOR CFDS?
The profit calculation is as follows:
(Close Price-Open Price)*Lots*Contract Size
The lot size on every CFD differs.
WHERE ARE MY FUNDS KEPT?
All our clients’ funds are kept in segregated European accounts with tier 1 banking institutions.
DO YOU HAVE SLIPPAGE?
Slippages hardly ever occur if you trade with us. Sometimes, however, especially when important economic news is released, due to a sharp rise/fall in the market price, your order may be filled at a different rate than you requested.
At Basel Capital Markets, your orders are filled at the best available market price, which may be to your benefit.
HOW CAN I BE SURE THAT THE MONEY ON MY TRADING ACCOUNT IS SAFE?
The Republic of Cyprus is a European Union member state, which means that all investment companies licensed in Cyprus fully comply with the EU MiFID (Markets in Financial Instruments Directive) regulations that apply to all countries of the European Economic Zone. The main aim of this law is to increase competition in the investment sector and protect the interests of the investment company clients. According to the MiFID regulations, investment companies should also become members of the Investor’s Compensation Fund, which ensures that the client interests are protected in the case of company insolvency.
CAN I OPEN MORE THAN ONE TRADING ACCOUNT?
Yes, you can. It is preferable, however, to use the same personal details as for your other trading account(s).
WILL MY ACCOUNT GET ARCHIVED IF I HAVE ZERO BALANCE ON IT?
Trading accounts with zero balance get archived after a period of 90 calendar days. Kindly note that once a trading account got archived, it can’t be reopened. In case you only have an archived account and no active accounts to trade on, you need to register a new trading account.
DO YOU CLOSE MY OPEN POSITIONS AND PLACED ORDER IF I GO OFFLINE?
Open positions and pending orders stay in the system even if you log off from your trading platform. The same applies to all order types except trailing stops. Trailing stops become inactive when you close or log out of MetaTrader4. Expert advisors also become inactive when MetaTrader4 is closed or you are not logged in.
I CANNOT LOG IN TO MY ACCOUNT, BUT I NEED TO CLOSE AN OPEN POSITION. WHAT DO I DO?
You may close/open a position or place an order by telephone 24 hours a day. Simply contact our [email protected]. You will be asked for your platforms’ login for security reasons before your request is executed.
WHAT IS THE MAXIMUM AMOUNT THAT I CAN TRADE ONLINE?
Please refer to our trading terms webpage.
WHY ARE ROLLOVER RATES TRIPLED ON WEDNESDAYS?
When placing a trade in the spot forex market, the actual value date is two days forward, for instance, a deal done on Thursday is for value Monday, a deal done on Friday is for value Tuesday, and so on. On Wednesday, the rollover amount is tripled to compensate for the following weekend (during which time rollover is not charged because trading is stopped at weekends).
DO YOU PROVIDE LIVE FOREX TUTORIALS? HOW CAN I LEARN THE BASICS OF TRADING?
Every Basel Capital Markets client has their own Personal Account Manager, who does not only provide full technical support via live chat, email or by phone, but you can also schedule with him/her one-to-one training sessions to learn the basics of investing.
DO YOU ACCEPT US CLIENTS?
According to the recent Dodd-Frank Act passed by the US Congress, the CFTC (Commodity Futures Trading Commission) no longer allows us to let US residents open trading accounts with us. We apologize for the inconvenience.
WHAT IS ONE-CLICK TRADING? HOW CAN I ENABLE IT?
One-click trading allows you to open positions with just one click. When you want to close a position, however, one click does not work and you will need to close it manually.
To enable one-click trading on the left corner of your chart, you will find an arrow. By clicking that arrow you enable one-click trading and a window appears on the left corner of the chart.
CAN I CHANGE MY ACCOUNT TYPE?
CAN I CHANGE THE BASE CURRENCY OF MY ACCOUNT?
It is not possible to change the base currency of your existing trading account. However, you can open an additional account and choose the base currency of your preference for it.
DO YOU OFFER BINARY OPTION TRADING?
WHAT PAYMENT OPTIONS DO I HAVE TO DEPOSIT/WITHDRAW MONEY?
We offer a wide range of payment options for deposits/withdrawals: by multiple credit cards, multiple electronic payment methods, bank wire transfer, local bank transfer, and other payment methods.
As soon as you open a trading account, select a payment method of your preference on the Deposits/Withdrawal pages, and follow the instructions given.