Questions & Misconceptions about Forex Trading

Get the facts about forex and CitiFX Pro.

• What is the difference between dealing with Banks versus Brokers in the Margin FX area?
• Why should dealing with Citi give me confidence that I will receive the benefit of fair dealing practices?
• I have heard that that there are benefits of dealing directly with Interbank Liquidity Providers instead of intermediaries, such as FX Brokers. What does this mean?
• What is the benefit of receiving FX research from Citi versus other FX Providers?
• How competitive are CitiFX Pro spot and swap spreads?
• How does CitiFX Pro’s technology platform compare with other leading providers of margin FX services?
• Do you have an interface for MT4? Can MT4 users access CitiFX Pro services?
• Is CitiFX Pro Mobile trading available on Blackberry and iPhone?
• I use real time Charting to make my decisions on FX trades. How advanced is CitiFX Pro’s chart offering?
• Is CitiFX Pro available to Commodity Trading Advisors (CTAs) and Introducing Brokers (IBs)?
• Do I need to have trading experience to sign up for CitiFX Pro?
• Will I have access to round-the-clock client service?
• I understand Emerging market currencies offer unique trading opportunities—does CitiFX Pro offer trading opportunities in these currencies?

Q: What is the difference between dealing with Banks versus Brokers in the Margin FX area?
A: Traditionally, the FX market has been served by banks—often large, international banks with legacies in FX trading. Recently, however, the Margin FX market (comprising of smaller clients—institutional and individual—that trade on a cash margin basis) has developed into a significant segment. Independent FX Brokers have played an important role in developing this market, mainly by adapting and implementing electronic trading technology and low-cost distribution methods. Dealing with a large, established international bank with a legacy in FX trading, however, can bring significant benefits to clients in the form of:

• Established Dealing Practices
• Counterparty Credit Risk
• Direct Liquidity
• High Quality Research
• Geographic Coverage

For more information please see Banks versus Brokers

Q: Why should dealing with Citi give me confidence that I will receive the benefit of fair dealing practices?
A: While technology, functionality and competitive pricing are critical, clients also want comfort that their provider is using fair dealing practices in handling their trades and orders. These practices can vary across providers. Banks are highly regulated financial institutions and must maintain sound practices in all aspects of their trading operations. As a U.S. bank regulated by the Federal Reserve and OCC, over many decades of FX trading with major institutions, corporations and governments, Citi has developed strong trading best practices and adherence to these principles is core to our business. CitiFX Pro extends these principles to its clients and aims to deliver fair and equitable pricing and order-handling practices to all clients. All clients are priced off the same pricing feed, which always reflects the underlying market (the only exception is in the unlikely event of technology dislocation), and every effort is made to bring accurate, unbiased pricing to clients at all times. Please note certain clients may receive reduced bid-ask spreads due to volume of trading.

For more information please see Our Core Dealing Principles

Q: I have heard that that there are benefits of dealing directly with Interbank Liquidity Providers instead of intermediaries, such as FX Brokers. What does this mean?
A: The interbank market forms the foundation of liquidity in the FX market. Most electronic pricing feeds use these rates as the benchmark to price their clients. Typically non-bank Retail FX Brokers receive liquidity from the major banks and pass them on to Margin FX clients. By using bank liquidity direct, clients effectively remove a layer of intermediation in this process.

Q: What is the benefit of receiving FX research from Citi versus other FX Providers?
A: Citi is one of the largest providers of FX services to clients the world over. It is also a major player in the global interbank markets. This gives it a unique perspective into the world of FX as well as the factors that influence currency movements. Citi’s FX Market Commentary team incorporates Flow Analysis from its major client-segments, Technical Analysis of FX and allied asset classes, intraday market events and a slew of other factors into its publications and updates.

Q: How competitive are CitiFX Pro spot and swap spreads?
A: CitiFX Pro surveys the bid/ask spreads offered by most major margin FX providers frequently and sets its spreads to ensure its pricing is always competitive. There are probably some providers that have tighter pricing, but we feel strongly that if you look at the overall value package delivered by CitiFX Pro, we provide unrivalled value to our clients. Our pledge to price competitively is a key component of our value proposition and if you feel our pricing in certain currencies is not competitive, please feel free to speak to us and we will certainly look into your concerns. It should be pointed out that there may be some providers that advertise tight pricing but often have several conditions attached or the pricing changes from the conditions advertised once the client enters a live dealing environment. It is important to realize that Citi focuses on bringing competitive pricing to all CitiFX Pro clients.

Q: How does CitiFX Pro’s technology platform compare with other leading providers of margin FX services?
A: CitiFX Pro offers its clients market-leading state-of-the-art technology to trade FX. It provides three platforms to clients—CitiFX Pro Desktop, CitiFX Pro Web and CitiFX Pro Mobile depending on your needs and preferences. Sophisticated users of the CitiFX Pro service can also use MetaTrader, a highly advanced yet easy-to-use programming device that can allow users to program their own algorithmic trading and back-testing systems.

Q: Do you have an interface for MT4? Can MT4 users access CitiFX Pro services?
A:Yes, CitiFX Pro is now available to MT4 users. MT4 users can benefit from access to highly competitive pricing and liquidity from Citi, a global leader in FX trading. CitiFX Pro is made available to MT4 users via Boston Technologies. Please call us at 1-888-591-2951 for more information.

Q: Is CitiFX Pro Mobile trading available on Blackberry and iPhone?
A:Yes, CitiFX Pro Mobile is available on both Blackberry and iPhone. Please click here for more information.

Q: I use real time Charting to make my decisions on FX trades. How advanced is CitiFX Pro’s chart offering?
A: CitiFX Pro provides users with a high-quality charting package free of cost. Expert Technical Analysts find our offering comprehensive and able to meet the demands of the most demanding user. The analysis is applied to chart-periods ranging from 1 minute to monthly time intervals. Users will find the historic database extremely comprehensive. The technical analysis includes over 50 different types of charting functions. Charts also display the user’s live positions (entry and exit points) as well as stoploss and limit orders. Users can amend order levels from the charts directly without having to go to the Orders section of the trading platform. Click here to learn more about charting.

Q: Is CitiFX Pro available to Commodity Trading Advisors (CTAs) and Introducing Brokers (IBs)?
A: Yes, CitiFX Pro welcomes CTAs and IBs. The platform has specific features that allow CTAs to allocate block trades and perform back office functions specialized for such users. Click here to learn more about CTA’s. For IBs, Citi has an Introducing Broker Program that allows IBs to market CitiFX Pro to appropriate individual and institutional clients. Click here to learn more about IBs.

Q: Do I need to have trading experience to sign up for CitiFX Pro?
A: Yes, CitiFX Pro has experience requirements to ensure that clients trade with a full understanding of the risks associated with leveraged FX transactions. Trading leveraged FX (or for that matter any asset class) creates significant risks of losses and it is appropriate that only experienced clients undertake these transactions. When you fill out your application form to open an account, you will be asked questions about your trading and investing experience which will be the basis for making an assessment about your suitability for trading on CitiFX Pro.

Q: Will I have access to round-the-clock client service?
A: CitiFX Pro is pleased to provide 24 hour client coverage. Our highly-trained client service staff is experienced in FX and with platform functionality. We pride ourselves on our service levels and welcome calls from our clients.

Q: I understand emerging market currencies offer unique trading opportunities—does CitiFX Pro offer trading opportunities in these currencies?
A: Yes, Citi has a global presence and our FX offering is also truly global. Emerging market currency pairs sometimes have low or limited correlation with the majors which offers opportunities to diversify your currency exposure. CitiFX Pro offers over 130 currency pairs to trade—this can provide an experienced trade with an advantage over other platforms with limited breadth of currencies on offer.