FOREX

Trade more than 100 FX pairs with low latency execution either on an ultra-tight raw spread account or real ECN account.

WHAT IS FOREX?

The foreign exchange, or forex market is a “place” where different currencies are exchanged and traded.

In the free market economy, each country’s currency is measured according to supply and demand factors. The need for people, governments and institutions to exchange currencies every day is the reason why the forex market is the largest and most liquid financial market in the world.

In fact, according to the Bank for International Settlements Triennial Central Bank Survey of foreign exchange and OTC derivative markets in 2016, trading in forex markets averaged $5.1 trillion per day in April 2016.

One of the main advantages of forex trading is that there is no need of a central market place and currency trading is conducted electronically “over-the-counter”. The market is open 24 hours a day, 5 days a week from the open in south-east Asia on Monday to the close in New York on Friday afternoon.

TRY A RISK-FREE EXPERIENCE

Open a demo account to gain market experience and try out new strategies without taking any financial risk.


TRADE CFDs ON THE FOREIGN EXCHANGE MARKET

We offer low competitive spreads and fast, efficient execution on more than 100 currency pairs including major, minor crosses, exotic and Nordic pairs.

With ALB, traders can capitalize on both rising and falling markets and have the opportunity to trade all the major FX pairs and more than 100 other currency pairs in a professional and safe environment, with low competitive spreads and an award-winning trading platform.

FOREX TRADING CONDITIONS

Check out the spreads, margin requirements and trading hours for some of the FX pairs we offer:

    MAJOR PAIRS     SPREADS* LEVERAGE TRADING HOURS PIP VALUE**
BASIC SILVER  GOLD    VIP   RETAIL (ESMA)   PRO  
EURUSD 1.5 1.1 0.9 0.7 1:30 1:100 Sun 23:05 – Fri 22:55 CET USD 10
GBPUSD 1.8 1.4 1.2 1 1:30 1:100 Sun 23:05 – Fri 22:55 CET USD 10
USDJPY 1.6 1.2 1 0.8 1:30 1:100 Sun 23:05 – Fri 22:55 CET JPY 100
USDCHF 1.9 1.5 1.3 1.1 1:30 1:100 Sun 23:05 – Fri 22:55 CET CHF 10
USDCAD 1.8 1.4 1.2 1 1:30 1:100 Sun 23:05 – Fri 22:55 CET CAD 10
AUDUSD 1.7 1.3 1.1 0.9 1:20 1:100 Sun 23:05 – Fri 22:55 CET USD 10
NZDUSD 1.8 1.4 1.2 1 1:20 1:100 Sun 23:05 – Fri 22:55 CET USD 10
XAUUSD 21 17 15 13 1:20 1:100 Mon 00:05 – Fri 22:59 CET USD 10
 MAJOR CROSSES  SPREADS* LEVERAGE TRADING HOURS PIP VALUE**
BASIC SILVER  GOLD    VIP   RETAIL (ESMA)   PRO  
EURGBP 1.8 1.4 1.2 1 1:30 1:100 Sun 23:05 – Fri 22:55 CET GBP 10
EURJPY 1.7 1.3 1.1 0.9 1:30 1:100 Sun 23:05 – Fri 22:55 CET JPY 100
EURCHF 2.1 1.7 1.4 1.1 1:30 1:100 Sun 23:05 – Fri 22:55 CET CHF 10
EURAUD 2.7 2.3 2 1.7 1:20 1:100 Sun 23:05 – Fri 22:55 CET AUD 10
EURCAD 2.8 2.4 2.1 1.8 1:30 1:100 Sun 23:05 – Fri 22:55 CET CAD 10
EURNZD 3.4 3 2.7 2.4 1:20 1:100 Sun 23:05 – Fri 22:55 CET NZD 10
AUDJPY 2 1.6 1.4 1.2 1:20 1:100 Sun 23:05 – Fri 22:55 CET JPY 100
GBPJPY 2.3 1.9 1.7 1.5 1:30 1:100 Sun 23:05 – Fri 22:55 CET JPY 100
CADJPY 2.2 1.8 1.6 1.4 1:30 1:100 Sun 23:05 – Fri 22:55 CET JPY 100
CHFJPY 2.6 2.2 2 1.8 1:30 1:100 Sun 23:05 – Fri 22:55 CET JPY 100
GBPAUD 3.4 3 2.7 2.4 1:20 1:100 Sun 23:05 – Fri 22:55 CET AUD 10
GBPCAD 3.4 3 2.7 2.4 1:30 1:100 Sun 23:05 – Fri 22:55 CET CAD 10
GBPCHF 2.6 2.2 1.9 1.6 1:30 1:100 Sun 23:05 – Fri 22:55 CET CHF 10
AUDCAD 2.7 2.3 2 1.7 1:20 1:100 Sun 23:05 – Fri 22:55 CET CAD 10
AUDCHF 2.3 1.9 1.6 1.3 1:20 1:100 Sun 23:05 – Fri 22:55 CET CHF 10
AUDNZD 2.9 2.5 2.2 1.9 1:20 1:100 Sun 23:05 – Fri 22:55 CET NZD 10
EXOTICS/NORDICS SPREADS* LEVERAGE TRADING HOURS PIP VALUE**
BASIC SILVER  GOLD    VIP   RETAIL (ESMA)   PRO  
USDTRY 13 9 7.5 6 1:20 1:100 Sun 23:05 – Fri 22:55 CET TRY 10
EURTRY 15 11 9.5 8 1:20 1:100 Sun 23:05 – Fri 22:55 CET TRY 10
GBPTRY 21 17 15.5 14 1:20 1:100 Sun 23:05 – Fri 22:55 CET TRY 10
USDNOK 52 48 44 40 1:20 1:100 Sun 23:05 – Fri 22:55 CET NOK 10
USDSEK 52 48 44 40 1:20 1:100 Sun 23:05 – Fri 22:55 CET SEK 10
USDDKK 40 36 32 28 1:20 1:20 Sun 23:30 – Fri 22:55 CET DKK 10
EURNOK 52 48 44 40 1:20 1:100 Sun 23:05 – Fri 22:55 CET NOK 10
EURSEK 52 48 44 40 1:20 1:100 Sun 23:05 – Fri 22:55 CET SEK 10
USDRUB 760 730 715 700 1:20 1:100 Mon 08:00 – Fri 19:00 CET RUB 10
USDZAR 160 130 115 100 1:20 1:100 Sun 23:05 – Fri 22:55 CET ZAR 10
USDMXN 56 48 44 40 1:20 1:100 Sun 23:05 – Fri 22:55 CET MXN 10
USDPLN 27 21 17 13 1:20 1:100 Sun 23:05 – Fri 22:55 CET PLN 10
PRECIOUS METALS SPREADS* LEVERAGE TRADING HOURS PIP VALUE**
BASIC SILVER  GOLD    VIP   RETAIL (ESMA)   PRO  
XAUEUR 30 26 24 22 1:20 1:100 Mon 00:05 – Fri 22:59 CET USD 10
GAUUSD 28 24 22 20 1:20 1:100 Mon 00:05 – Fri 22:59 CET USD 10
GAUEUR 28 24 22 20 1:20 1:100 Mon 00:05 – Fri 22:59 CET EUR 10
GAUTRY 116 106 98 90 1:20 1:100 Mon 00:05 – Fri 22:59 CET TRY 10
XAGUSD 240 200 160 120 1:10 1:100 Mon 00:05 – Fri 22:59 CET USD 25
XAGEUR 240 200 160 120 1:10 1:100 Mon 00:05 – Fri 22:59 CET EUR 5
GAGUSD 570 530 490 450 1:10 1:100 Mon 00:05 – Fri 22:59 CET USD 0.50
GAGEUR 570 530 490 450 1:10 1:100 Mon 00:05 – Fri 22:59 CET EUR 0.50

* Target spread. The underlying market spread may vary throughout the trading day, and depends on the market conditions. The platform spread thus may also vary.     ** Pip value indicated is based on a standard contract traded. Pip value may vary according to the size of the trade.

FOREX FAQ

Here are our answers to
your frequently asked questions about forex:

What is forex?
Foreign exchange, or forex, is the conversion of one country's currency into another. In a free economy, a country's currency is valued according to the laws of supply and demand. In other words, a currency's value can be pegged to another country's currency, such as the U.S. dollar, or even to a basket of currencies. A country's currency value may also be set by the country's government. However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation. The value of any particular currency is determined by market forces based on trade, investment, tourism and geo-political risk. Every time a tourist visits a country, for example, they must pay for goods and services using the currency of the host country. Therefore, a tourist must exchange the currency of his or her home country for the local currency. Currency exchange of this kind is one of the demand factors for a currency.
What is forex trading and how does it work?
The foreign exchange market is the "place" where currencies are traded. The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world with over $5 trillion volume per day.

One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.

The foreign exchange market (forex or FX for short) is one of the most exciting, fast-paced markets around. Until recently, forex trading in the currency market had been the domain of large financial institutions, corporations, central banks, hedge funds and extremely wealthy individuals. The emergence of the internet has changed all of this, and now it is possible for average investors to buy and sell currencies easily with the click of a mouse through online brokerage accounts.

Daily currency fluctuations are usually very small. Most currency pairs move less than one cent per day, representing a less than 1% change in the value of the currency. This makes foreign exchange one of the least volatile financial markets around. Therefore, many currency speculators rely on the availability of enormous leverage to increase the value of potential movements. Higher leverage can be extremely risky, but because of round-the-clock trading and deep liquidity, foreign exchange brokers have been able to make high leverage an industry standard in order to make the movements meaningful for currency traders.

How to trade forex?
There are two ways how the forex market can be traded. Its either through fundamental analysis or technical analysis.

Fundamental analysis involves assessing the economic well-being of a country, and by extension, the currency. It does not take into account currency price movements. Rather, fundamental forex traders will use data points to determine the strength of a particular currency.

A fundamental forex trader will analyze the country’s inflation, trade balance, gross domestic product, growth in jobs and even their central bank's benchmark interest rate.

Technical analysis involves pattern recognition on a price chart. Technical traders look for price patterns such as triangles, flags, and double bottoms. Based on the pattern, a trader will determine the entry and exit points. Unlike fundamental traders, a technical trader is not as concerned about why something is moving because the trends and patterns on the charts are their signals.

How to read forex charts?

Line Charts: A simple line chart draws a line from one closing price to the next closing price. When strung together with a line, we can see the general price movement of a currency pair over a period of time.

Bar Charts: A bar chart is a little more complex. It shows the opening and closing prices, as well as the highs and lows. The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid. The vertical bar itself indicates the currency pair’s trading range as a whole. The horizontal hash on the left side of the bar is the opening price, and the right-side horizontal hash is the closing price.

Candlestick Charts: Candlestick charts show the same price information as a bar chart, but in a prettier, graphic format. Candlestick bars still indicate the high-to-low range with a vertical line. However, in candlestick charting, the larger block (or body) in the middle indicates the range between the opening and closing prices. Traditionally, if the block in the middle is filled or colored in, then the currency pair closed lower than it opened. In the following example, the ‘filled color’ is black. For our ‘filled’ blocks, the top of the block is the opening price, and the bottom of the block is the closing price. If the closing price is higher than the opening price, then the block in the middle will be “white” or hollow or unfilled.

What time does the forex market open?
To effectively answer this question, it will depend on the individual’s time zone. Applying a time converter will give you the equivalent of the starting time for each session in your country or region and it will also provide a breakdown of how the forex sessions overlap. The session typically begins with the Sydney open which then overlaps with the Tokyo session. Afterwards the European session begins, which over laps with the New York session. A visual is provided below.

  • Sydney 5pm to 2am EST (10pm to 7am UTC)
  • Tokyo 7pm to 4am EST (12am to 9am UTC)
  • London 3am to 12 noon EST (8pm to 5pm UTC)
  • New York 8am to 5pm EST (1pm to 10pm UTC)

In our case, our time zone is CET, hence the forex market is open from Sunday 23:00pm until Friday 22:59CET.

How do institutions trade forex?
There are actually three ways that institutions, corporations and individuals trade forex: the spot market, the forwards market and the futures market. The forex trading in the spot market always has been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading and numerous forex brokers, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.
What is the spot market?
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, reflects a myriad of things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal". It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.
What are the forwards and futures markets?
Unlike the spot market, the forwards and futures markets do not trade actual currencies. Instead they deal in contracts that represent claims to a certain currency type, a specific price per unit and a future date for settlement.

In the forwards market, contracts are bought and sold OTC between two parties, who determine the terms of the agreement between themselves.

In the futures market, futures contracts are bought and sold based upon a standard size and settlement date on public commodities markets, such as the Chicago Mercantile Exchange. In the U.S., the National Futures Association regulates the futures market. Futures contracts have specific details, including the number of units being traded, delivery and settlement dates, and minimum price increments that cannot be customized. The exchange acts as a counterpart to the trader, providing clearance and settlement.

Both types of contracts are binding and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well.

Note that you'll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous, and all refer to the forex market.

What is leverage in forex?
Leverage is defined as the ratio of the amount of capital used in a transaction to the required margin. In other words, leverage gives you the ability to control much larger amounts in a trade with a relatively small deposit (your margin). For example, if the EUR/USD rate moves up 100 pips from 1.1200 to 1.1300 and you had invested $1000, you would have made $10 on that trade.

However, by using a leverage of 1:100, every $1 you invest is worth $100, so with your $1000 margin you can open a $100,000 deal. As a result, your $10 profit is magnified to $1000.

Another way to think about leverage is to think of it as a loan. If you have $1000 and take a ‘loan’ that equates to $100 for every one of your dollars, you have $100,000 to trade with. Once your trade has been concluded, you return the ‘loan’ amount and keep the resulting profit.

It's important to note that leverage is often considered a double-edged sword since large price swings on accounts with higher leverage increase their chances of experiencing losses especially when the account is not adequately capitalized and the individual or entity lacks a full understanding on the proper use of leverage. As a result, novice traders are encouraged to use minimal leverage whilst they increase their knowledge and experience but also as an exercise on how to make use of leverage properly which will translate into better risk management. The more seasoned professional can use leverage as a tool to accelerate their returns and grow their initial investment.

What are swaps in forex?
A currency swap, sometimes referred to as a cross-currency swap, involves the exchange of interest – and sometimes of principal – in one currency for the same in another currency. Interest payments are exchanged at fixed dates through the life of the contract. It is considered to be a foreign exchange transaction. In a currency swap, the parties agree in advance whether or not they will exchange the principal amounts of the two currencies at the beginning of the transaction. The two principal amounts create an implied exchange rate. For example, if a swap involves exchanging €10 million versus $12.5 million, that creates an implied EUR/USD exchange rate of 1.25. At maturity, the same two principal amounts must be exchanged, which creates exchange rate risk as the market may have moved far from 1.25 in the intervening years.
What is spread in forex?

Forex brokers quote two different prices for currency pairs: the bid and ask price. The “bid” is the price at which you can sell the base currency. The “ask” is the price at which you can buy the base currency. The difference between these two prices is known as the spread. The spread is how “no commission” brokers make their money. Instead of charging a separate fee for making a trade, the cost is built into the buy and sell price of the currency pair you want to trade. Therefore, a broker that doesn’t charge commission has typically built in the cost of initiating and closing the trade into the spread and this is the broker’s fee.

See all:
FAQ

Start trading now!

Start trading now!

Our CFDs are leveraged products which can carry a high level of risk to your capital and investing in them can result in losses that exceed your initial deposit. Investors do not own, or have any rights to, the underlying assets. These products may not be suitable for all investors. Please make sure that you fully understand the risks involved and seek independent advice if necessary.

FOLLOW ALB

BORUSSIA DORTMUND REGIONAL PARTNER IN ITALY

 
ALB LIMITED
48, SIR AUGUSTUS BARTOLO STREET
CASA ROMA, TA’ XBIEX XBX 1099, MALTA