PRODUCT
DISCLOSURE STATEMENT ("PDS")
Issuer: Forex Capital Trading Pty Ltd
ACN: 119 086 270
Address: Level 8, 499 St. Kilda Road, Melbourne, Victoria - 3004, Australia
License No: 306400
Issue Date: 13 June 2007 / Updated: 19 March 2010
Contents
1. Introduction
2. Products and Services Offered
3. Significant Benefits of our Online
Forex Trading Service
6. Entering into a Foreign Exchange
Transaction
7. Terminating a Foreign Exchange
Transaction
8. Reporting
10. Tax Implications
12. Privacy
The information in this PDS is
subject to change from time to time and is up to date as at the date stated on
the cover. Where new information is materially adverse information we will
either issue a new PDS or a supplementary PDS setting out the updated
information. Where the new information is not materially adverse information we
will not issue a new PDS or supplementary PDS to you, but you will be able to
find the updated information on our web site www.forexct.com.au or you can call
+61 3 9866 5332. If you ask us to, we will send you a paper copy of the new
information.
We do not and will not give you
personal financial product advice and this PDS does not constitute a
recommendation or opinion that the products referred to in this PDS are
appropriate to you.
The information in this PDS does
not take into account your personal objectives, financial situation and needs
and, unless you are familiar with foreign exchange dealings and products of
this type, the product may not be suitable for you. Before entering into
foreign exchange transactions referred to in this PDS you should give
consideration to your objectives, financial situation and needs and take all
reasonable steps to fully understand the possible outcomes of trades and
strategies that can be employed using the online forex trading platform You
should also be aware of the risks involved and be satisfied that trading in
foreign exchange via our on-line facilities is suitable for you in view of your
financial circumstances. We therefore recommend that you consult your investment
adviser or obtain other appropriate independent advice.
This PDS is not an offer or
invitation in relation to our products in any place in which, or to any person
to whom, it would not be lawful to make that offer or invitation.
The distribution of this PDS
outside
If you have any questions in
relation to this PDS, please do not hesitate to contact us.
Telephone:
+61 3 9866 5332
+61 3 9866 5368
Fax : +61 3 9866 7057
Mail : P.O Box
St. Kilda Road
E-mail : admin@forexct.com
Visit us :
Level
499 St. Kilda Road
1.1 Who is Forex Capital Trading
Forex Capital Trading
(“ForexCT”, “us”, or “we”) is a subsidiary of Forex Capital Trading Limited,
which is a company based in
ForexCT was founded by an
experienced mix of bankers, venture capitalists, internet experts and Forex
specialists. The catalysts for forming this company were the current prevalent
discrepancies between clients’ needs and the services offered by most
companies.
ForexCT’s mission is to provide
our customers with an online trading experience which is superior to any of our
competitors. ForexCT offers an opportunity to all traders from novice to
experienced to start trading within minutes of registering and with an amount
as low as $100.
ForexCT state of the art
platform is web based and does not require any software installation
requirements or firewall modifications.
1.2 Purpose of a Product
Disclosure Statement (PDS)
This PDS provides information
about Foreign Exchange (FX). This PDS aims to provide you with enough
information to help you decide whether our online forex trading platform will
meet your needs. It also helps you to compare this product with others you may
be considering.
The invitation to invest in
foreign exchange via our online forex trading platform is made in
This PDS is available on the
Internet at www.forexct.com.au Paper copies of this PDS will be sent by the
Issuer to any person on request free of charge. To obtain a paper copy, please
contact us.
1.3 Over the Counter
Products
The online forex trading
platform offers you the opportunity to enter into Over the Counter (“OTC”)
foreign exchange contracts with us using our 24 hours a day on-line facility.
1.4 What is Foreign
Exchange?
Foreign exchange is the exchange
of one currency for another at an agreed exchange rate. The exchange rate is
the price of one currency in terms of another currency such as the price of the
Australian dollar in terms of the US dollar. For example, if the current
exchange rate for the Australian dollar as against the US dollar is AUD/USD
0.7500, this means that one Australian dollar is equal to, or can be exchanged
for, 75 US cents.
Foreign exchange transactions
made via our online forex trading platform do not result in the physical
delivery of the relevant currency. When positions are opened, the amount
required to enter into the contract will be deducted from the Account balance.
When positions are closed your account will be either credited or debited
according to the profit or loss of the transaction.
1.5 Uses of Foreign Exchange
Commercial
activities for which foreign exchange may be useful include:
- importing, where the invoice
is quoted in foreign currencies
- exporting, where the invoice
is quoted in foreign currencies
- foreign currency borrowing
- foreign currency investing
- repatriation of overseas
profits or interest in foreign currencies back to
- other foreign currency
payments
1.6 How does our Online Trading Platform work?
We provide
an online trading platform, enabling you to enter into OTC foreign exchange
contracts. We provide direct access to currency rates via the internet.
To make a
trade using our online trading platform:
1. You first register with ForexCT by filling out the
registration form located at https://www.forexct.com.au/open_account.aspx
2. Once you are registered, you will be able to login to
your User Account using your Username and Password. This can be done by
clicking on “Login” on the Homepage.
3. Once logged in, a number of windows pop up in the
platform. In order to place a trade, you first select a currency pair from the
trade window. For example, you can choose the currency pair of EUR/USD.
4. Once you have selected a currency pair, you need to
select the amount you wish to invest in the intended foreign exchange contract.
The amounts you may choose range between $2,500 and $5,000,000.
5. Once you have chosen your currency pair you determine
which currency is going to be bought and which is going to be sold. The “Bid”
price is the price at which a party has offered to buy the currency and the
“Ask” price represents the quoted price at which a party has offered to sell a
currency. The difference between the Bid and Ask represents the “spread”.
6. Once the trade has been executed, the particulars of that
trade will show up in the “Portfolio” window of your account on our online
trading facility.
Please
note that you cannot allow any other person to access any of your accounts or
trade on your accounts on your behalf unless that other person has properly
completed a Authorised Person Form and submitted it to
us
1.7 How is the Foreign Exchange Rate Calculated?
We cannot
predict future exchange rates and our rate quotations on our website are not a
forecast of where we believe foreign exchange rates will be at a future date.
The decision to transact at a particular rate will always be your decision.
The
calculation of the price to be paid (or the payout to be received) for foreign
exchange contracts offered by us, at the time the contract is purchased or
sold, will be based on our best estimate of market prices and the expected
level of interest rates, implied volatilities and other market conditions
during the life of the contract and is based on a complex arithmetic
calculation.
1.8 The calculation will include a spread in our favour.
The
calculation of the price for foreign exchange transactions offered by ForexCT,
at the time the product is purchased or sold, will be based on our best
estimate of market prices and the expected level of interest rates, implied
volatilities and other market conditions during the life of the foreign
exchange transaction and is based on a complex arithmetic calculation.
The calculation of the price quoted will include a
spread in favour of ForexCT. The prices
offered to clients may differ from prices available in the primary or
underlying markets where foreign exchange contracts are traded. This is due to
the spread favouring ForexCT in the price calculation. ForexCT acts as a market
maker (and not a broker) and generates its income from the spreads that are
embedded in the currency rates which are quoted. The spread is the difference
between the rate at which we buy or sell foreign exchange products with our
hedging counterparties (where applicable) and the rate at which we buy and sell
foreign exchange products with our clients. Different spreads may also be
applied depending on the value of the transaction and the underlying prevailing
market conditions. This spread is factored into the prices quoted to clients
i.e. they are not an additional charge to the client.
For
example, we may be offered the following quote in the underlying market:
AUD:USD 0.7510:0.7512
We
may add our spread such that the quote offered to you is 0.7509:0.7513.
The quotes
we offer are subject to our right to make corrections in the event of
mis-priced or typographically incorrect data.
We do not
provide a market amongst or between clients for investment or speculation. Each
foreign exchange transaction you enter into is an individual agreement made
between us and you as a principal and is not transferable, negotiable or
assignable to any third party.
Trades that
are not completed or terminated prior to at 12.00AM Greenwich Mean Time (“GMT”)are
held overnight (“rolled over”) and will result in you paying or receiving
interest. This is known as rollover interest. Rollover refers to the interest
you may earn or be charged daily on your open positions.
Every currency pair has an interest rate associated with
it. Depending on the currency pair you trade, you will pay or earn interest at
the end of the trading day at 12.00AM GMT. To earn interest, you must buy a
currency with a higher interest rate than the one you are selling.
Take USD/JPY in Oct 2006 for example. At the time the US
dollar earned 5.25% and the Japanese Yen 0.25% interest. A trader that buys
this pair would make the differential of 5% (annualized) by simply holding the
position passed 12.00AM GMT time.
Interest rate refers to the cash rate, which is the
overnight money market interest rate.
ForexCT
will include a spread in its favour from rollover. This is because prices
offered to clients may differ considerably from prices offered to ForexCT in
the primary market. ForexCT operates as
a market maker not a broker. ForexCT
makes its earnings from the spreads that are built in to the currency
and interest rates.
2 PRODUCTS AND SERVICES OFFERED
2.1 Day Trading
The ForexCT
online platform allows you to carry out daily currency rate deals on all
currencies displayed on its system
Example:
Let’s
assume you are of the opinion that the AUD will rise against the USD in a 1
week time frame and were willing to risk US$ 1,000.
You could enter a day trade deal via the platform for A$
100,000. For this example we will assume that the default leverage is 1:200
(0.5%) and the total account equity is US$5000. You bought A$100,000
at an exchange rate of 0.8300. For this example, the per pip movement (each
“pip” or incremental price movement is 0.0001) is US$10. You only want to risk US$
1,000. Thus, you set your pre-determined
guaranteed stop loss amount at US$1000, which means that the stop loss price is
0.8200. This US$ 1,000 is the maximum amount you could lose, nothing
more. Let’s look at different outcomes when the deal ends at various exchange
rates:
1. Let’s assume that in one month’s time (lifespan of the
deal) the exchange rate is at 0.8150. In this case your deal would have been
closed at the pre-determined stop
loss price of 0.8200. The result is that you have lost US$
1,000 which was the amount you were willing to risk.
It is worth pointing out that without the pre-determined stop loss your losses
would have been far greater i.e. US$10 more for every one pip movement against
your chosen direction. In this example, the loss would be calculated as
follows:
0.8300 – 0.8150 equals 150 pips
150 pips * US$10 = US$1,500
Thus, if you did not have a stop loss, and the exchange
rate went down to 0.7800, your potential loss could be your entire account
equity i.e. 500 pips @ US$10 per pip which is US$5000. However, that is the maximum you could lose
in this scenario.
2. Let’s assume that in one month’s time the exchange rate
is at 0.8460. You would have made a profit of. US$ 1,600. As we mentioned
earlier, every one pip movement is US$10, thus 160 pip movement in your favour
would give you a profit of US$1600.
ForexCT is
a market maker and therefore receives access to the primary market. ForexCT has
multiple liquidity
providers, and it uses its best endeavours to ensure that the rates offered to
clients are inline with the underlying market.
A day trade
can therefore be terminated in one of the following events:
- You terminate it by providing
instructions to that effect.
- The stop loss you predefined
has been reached.
- The Transactions end date is
reached.
- A force majeure event or other
event which prevents the performance of the Transaction occurs.
- If the account equity reaches
zero dollars, all open trades are automatically closed by the system.
Although it
is referred to as a day trade the deal has a duration
of 1 month from its open date and time. Therefore the deal will
expire in 1 month time at exactly the same time of the day that it
was opened.
Potential loss
Your potential loss can be limited to the amount
deposited into your account with us if you:
·
choose to close
out your open positions at any time before the total loss is the same as the balance
in your account; or
·
do not pay
any additional amounts into your account following adverse market movements to
maintain the minimum required margin, in which case, once the value of the
equity in your account falls to zero, then ForexCT will close out your open
positions immediately and your loss will be limited to the amount which has
been deposited in your account.
However, if
you choose to top up the amount in your account by depositing additional funds
with us, then the risk of loss will be the initial amount deposited plus any
additional amount(s) deposited into the account. Accordingly, at all times the
potential loss is limited to the amount deposited into your account. We guarantee this to be the case on the basis
that we have implemented systems (within and, as additional
protection, outside the online trading platform) that will automatically close
out a position when the value of your account declines to zero. In the unlikely
event of a complete system failure (including our backup systems) then ForexCT
has implemented manual procedures which will ensure that any loss which may be
generated which is in excess of the amount deposited by you will be borne by
ForexCT and will not be passed on to you in any circumstances.
If you want
to limit the potential loss to less than the amount deposited into your account
with us, you can employ the use of guaranteed stop loss orders
at no cost. This means you can eliminate downside risk. If you use
a stop loss order we will guarantee that your position will be closed out if
the exchange rate reaches the level specified by you in advance by using a stop
loss order.
Margin Requirements
A margin is payable when you enter or open a transaction. This
amount represents collateral for your exposure under the transaction and covers
the risk to ForexCT. You must maintain margin in such amounts and in such forms
as we require in our sole discretion subject to the options available to you to
either top-up your account or close out any open positions. We refer you to
Section 4.7 for additional information with respect to the options available to
you. To enter into a day trade, the initial margin required to be held in your
account is between 0.25% to 2% of the face value of the transaction depending on
the contract size you choose. In our sole discretion we will determine the amount
of the margin required. The default leverage has been set to 0.5%; however,
ForexCT is able to change this for clients. Margin requirements are taken on a
per transaction basis. Once your margin leverage is set, the system will not be
able to open a position beyond those limits.
The full value of the initial margin is payable to ForexCT
immediately upon entering the transaction. This means that sufficient cleared
funds must be deposited in your account with us before you can trade.
Due to changing market conditions, the required margin
for a trade with the same currency pair and the same value may differ over a
period of time. This is commonly referred to as variation margin. The amount of
your margin requirements (being the initial margin and any adverse variation margin)
at any one time will be displayed in the open positions report made available
through the trading platform.
The variation margin is the unrealised profit or loss
on your open positions which is equal to the dollar value movement of your open
transactions calculated from the exchange rate at which you entered the transaction
compared against the current market value. We will not provide you with specific
notice of the variation margin. You must log into the trading platform
regularly when you have open positions to monitor the level of equity in your
account.
As described above, if you do not maintain the margin
requirements (top up the balance of your account) immediately by depositing the
amount of funds that is required to maintain the open position, some or all of
your positions will be closed out by us without further reference to you. If
you do not pay any additional amounts into your account
following adverse market movements to maintain the minimum required margin,
then as soon as the value of the equity in your account falls to zero, ForexCT
will close out your open positions immediately and your loss will be limited to
the amount in which has been deposited in your account
You are not
able to fund margin requirements with unrealized profits from one transaction.
You are only allowed to deal in and maintain positions on the basis of cleared
funds being provided for your margin obligations.
We have the
right to limit the size of your open positions under any appropriate
circumstances as determined by us. Generally, such limitation size of your open
positions will be dependent on the value of funds lodged in your account.
We also
have the right to refuse any request made by you to place an order to establish
a position at any time at our discretion without having to give a notice.
2.2 No physical delivery
There is no
physical delivery of currency as a result of a Transaction. Positions will
always be closed and your account(s) will be either credited or debited
according to the profit or loss of the Transaction. If a Transaction is held to
the nominated end date it is cash settled according to the closing price of the
relevant currency, as quoted by us, on that particular day.
3 SIGNIFICANT BENEFITS OF OUR ONLINE FOREX TRADING SERVICE
The
significant benefits of using foreign exchange offered by us via our website
are:
3.1 Provide cash flow certainty
By agreeing
a rate now for a time in the future you will determine the exact cost of that
currency, thereby giving certainty over your flow of funds. Any profit (or
loss) you make using the online forex trading platform would be offset against
the higher (or lower) price you physically have to pay for the foreign currency
at the future date.
3.2 Speculation
In addition
to using foreign exchange as a risk management tool, you can benefit by using
foreign exchange offered by us to speculate on changing exchange rate
movements. You may take a view of a particular market or the markets in general
and therefore invest in foreign exchange according to this belief.
3.3 Trade in small amounts
Our system enables you to make transactions in small
amounts. You can start using our on-line facility for transactions of at least
$2,500 contract size. When trading in a foreign exchange product offered by us
you may deposit the sum that suits you, or the amount which is in line with the
amount you are willing to risk.
There is a minimal withdrawal amount of $100.00 USD on
all accounts with us.
3.4 Access to the foreign exchange markets at any time
When using
our on-line facility you gain access to a system which is active and being
updated 24 hours a day. You can control your accounts and positions 24 hours a
day. However, we do impose a restriction against
trading in certain currency pairs for 2 minutes before and after a critical
news release. A critical news release is a release that would significantly
affect the currency price of that pair, as determined by us in our absolute
discretion. We will generally post a notice on our website when we implement a
restriction relating to a critical news release. During the period of the
restriction your ability to trade in those currency pairs will be disabled. If
for some reason the disabling of the currency pair(s) was not implemented and
we allowed you to trade through the restricted period, we retain the right to
revoke any trades in the relevant currency pairs that you made during the 2
minutes before and after the critical news release.
3.5 Making deposits with your credit card
Our on-line
facility allows you to deposit money for your transactions with your credit
card, allowing you to lodge your deposits at any time, regardless of banking
hours. We use the latest technologies to provide a security shield for your
credit card and privacy.
3.6 Real time streaming quotes
Our on-line
facility uses the latest highly sophisticated technologies in order to offer
you up-to-the-minute quotes. You may check your accounts and positions in real
time and you may do so 24 hours a day and make a trade based on real-time
information.
3.7 Full control over your account and positions
With us you
are able to control your costs and risks. We use the latest technologies in
order to ensure your stop loss orders are filled. We are committed to the
principle that you never lose more than you are prepared to lose.
3.8 No software download
Our on-line
facility does not require you to download proprietary software, enabling you to
start trading immediately.
3.9 Tailor-made conditions for frequent traders
The spreads
in our on-line facility assume transactions of small, up to medium amounts. If
you are a frequent user of our on-line facility and wish to trade with medium
up to large amounts, you can contact us by email or telephone to enable us to
provide you with tailor-made trading conditions.
Risks may
lead to unfavorable changes in the financial outcomes that you expect from use
of our on-line facility. Monitoring of any risks associated with the on-line
facility is your responsibility.
4.1 Market Risk
We expect
that foreign exchange transactions on our on-line facility will be used to
manage foreign currency cash flows in most cases. If you enter into a foreign
exchange transaction for a purpose other than the immediate exchange of a
foreign currency, you may be directly exposed to changes in the relevant
foreign exchange market. These changes may result in losses to you.
4.2 Market Volatility
Foreign exchange
currency markets are subject to many influences which may result in rapid
currency fluctuations and reflect unforeseen events or changes in conditions.
This results in market volatility. Foreign exchange markets are highly volatile
and are difficult to predict. Due to such volatility, no foreign exchange
transaction available via the online forex trading platform may be considered
as risk free.
Given the
potential levels of volatility in foreign exchange markets, it is recommended
that you closely monitor your transactions at all times.
You can
eliminate some downside risk by the use of stop loss orders. If you use a stop
loss order we will enter into a position opposite to your existing position if
the exchange rate reaches a level specified by you in advance.
4.3 Counterparty Risk
Given you
are dealing with us as a counterparty to every transaction, you will have an
exposure to us in relation to each transaction. In all cases, you are reliant
on our ability to meet our obligations to you under the terms of each
transaction. This is common to all
OTC products. This risk is described as
counterparty risk. You can assess ForexCT’s financial
ability to meet its counterparty obligations by reviewing its financial statements.
Should you wish to be provided with a copy of our most recent audited Balance Sheet
and Profit and Loss statement for your review then please request this information
directly from us and we will provide it free of charge.
We have been operating since
2006 and have an unblemished track record i.e. we have not been subject to any
disciplinary action by any regulatory body. We hold an Australian
Financial Services (“AFS”) Licence (AFS License no 306400).
In
addition, we may choose to limit our exposure to our clients by entering into
opposite transactions as principal in the wholesale market.
4.4 Market Information
We may in
the future make available to you a broad range of financial information
generated internally or obtained from agents, vendors or partners (“Third Party
Providers”). This includes, but is not limited to, financial market data,
quotes, news, analyst opinions and research reports, graphs or data (Market
Information”).
Market
Information provided by us by email or through our website is not intended as
advice and we do not endorse or approve the Market Information. We make it
available to you only as a service for your own convenience. We and any Third
Party Providers do not guarantee the accuracy, timeliness, completeness or
correct sequencing of the Market Information or warrant any results from your
use or reliance on the Market Information.
Market
Information may quickly become unreliable for various reasons including, for
example, changes in market conditions or economic circumstances. Neither us nor the Third Party Providers are obligated to update any
information or opinions contained in any Market Information and we may
discontinue offering Market Information at any time without notice.
4.5 Systems Risks
We rely on
technology to provide our on-line facility to you. A disruption to the facility
may mean you are unable to trade in foreign exchange when desired.
Alternatively, an existing Transaction may be aborted as a result of a
technology failure. An example of disruption includes the “crash” of the
computer systems used to operate the on-line facility.
If we
determine in our absolute discretion that you have entered into a transaction
that takes advantage of an internet connectivity delays or price feed errors
that have caused the prices displayed on our trading screen to not accurately
reflect market rates or we determine that transactions individually or together
reasonably appear to rely on price latency arbitrage opportunities, we may
revoke those transactions without further liability to you and we may make any
necessary or prudent corrections or adjustments to your account that we deem
necessary in our absolute discretion.
4.6 Use and Access to our Website
You are
responsible for providing and maintaining the means by which you access our
website. These may include, without limitation, a personal computer, modem and
telephone or other access system available to you.
While the
internet and the World Wide Web are generally reliable, technical problems or
other conditions may delay or prevent you from accessing our website. If you
are unable to access the internet and thus, our on-line facility, it may mean
you are unable to enter into foreign exchange transactions when desired and you
may suffer a loss as a result.
Furthermore,
in unforeseen and extreme situations, we reserve the right to suspend the
operation of our website and on-line facility or any part or sections of them.
In such an event, we may, at our sole discretion (with or without notice),
close out your open positions at prices we consider fair and reasonable.
We may
impose volume limits on client’s accounts, at our sole discretion.
4.7 Margin Risks
If your
losses from an open position are equal to the initial out lay of margin used to
fund your account (see section 2.1), then we will close out all of your positions.
We are not obliged to contact you or to give you notice before we close out
your positions.
Market
volatility or market losses that result in a decline in the market value of
your investments may require you to deposit more funds into your account with
us or close out your positions prior to
the total loss bringing your account to zero. The decision whether to top up
your account to maintain the required margin or close out your positions at
this point is your decision. However, if the funds in your account fall below
the required margin, we will immediately close out all of your positions
without reference or liability to you. For
example, you deposit $50,000 into your account. You open 5 trades and 4 of
those trades reach losses of $50,000. All your positions will be closed
out because the running losses for all open positions are equal to cash in your
account. You can avoid this closing out by topping up the margin in your
account (paying additional amounts into your account) in accordance with the
requirements that we would have already specified to you in this PDS or by
subsequent communication.
4.8 Co-mingling of client monies
Funds received
from clients and deposited with ForexCT are deposited into our client trust
account. This means that client funds deposited with us are held
in safe keeping and segregated from our own funds. Those funds are not
available to pay general creditors in the event of receivership or liquidation
by ForexCT. Monies lodged or deposited with us to meet margin requirements, are
not treated as funds belonging to ForexCT but are treated as funds belonging to
the client.
However, for money
deposited in our client trust accounts, you should be aware that individual
client accounts are not separated from each other and all clients’ funds are
co-mingled into the one client trust account.
Generally, you should also be aware that the client money provisions of
the Corporations Act 2001 may not insulate any individual client’s funds from a
default in a client trust account if such a default were to occur. Such a
default may arise from trading by any client or clients i.e. by a client
failing to pay for all losses incurred on their account.
However, in the case of ForexCT, no default by any client is likely to
occur on the basis that we have implemented systems and procedures whereby the potential loss for any one client is limited to the
amount deposited into their account with us (refer Section 2.1 under the
heading “Potential Loss” for additional detail as to how ForexCT guarantees
this). Thus, no client will be in a position where they incur a loss in excess
of the amount they have deposited with us and accordingly, no client can become
a debtor to ForexCT and default on the
payment of that debt. Although generally assets in the client trust account
belonging to non-defaulting clients are potentially at risk, even though they
did not cause the default, this is not the case with ForexCT.
5.1 Trust Account
Before you
can enter into a transaction of any contract size, you must have first
deposited the margin required for that contract or have that margin amount in
your account available prior to placing the trade
The funds
in your account will be held in a client trust account. Funds deposited in our
account are segregated from ForexCT’s money and held in a client trust account
in accordance with the Corporations Act 2001. The client relinquishes the right
to any interest on funds deposited with ForexCT. Individual client accounts are
not separated from each other but instead are pooled into the one client trust
account;
6 ENTERING INTO A FOREIGN EXCHANGE TRANSACTION
6.1 Engaging in a Transaction
In order to
use our on-line facility and engage in a Transaction you must do the following:
1. Read this Product Disclosure Statement and our Financial
Service Guide
2. Read, acknowledge and accept the Terms and Conditions
contained on our website at www.forexct.com.au
3. Set up an account with us in accordance with the steps
set out on our website at www.forexct.com.au
4. Commence entering into contracts with us using the
on-line trading platform.
6.2 Prohibition on Scalping
We prohibit the practice
referred to as “Scalping” on our trading platform. We consider scalping to have
occurred if a client opens a position and then closes that position within a 2
minutes timeframe. We consider this practice an illegal use of our facility and
reserve the right to revoke any transaction at your cost if we determine, in
our absolute discretion, that a transaction constituted scalping.
7 TERMINATING A FOREIGN EXCHANGE TRANSACTION
A foreign
exchange transaction may be terminated by agreement between you and us. A
transaction will also be terminated if:
- You terminate it by providing
instructions to that effect.
- The stop loss you predefined
has been reached.
- The Transactions end date is
reached.
- A force majeure event or other
event which prevents the performance of the Transaction occurs.
8.1 Notifications
You will automatically receive notification by pop-up
message when you execute the following actions:
- Opening a trade
- Closing a trade
- Changing the stop loss
- Changing the take-profit
- Depositing funds
- Withdrawing funds
- Placing an order
- Execution of the pre-defined
order
If you have
more than one foreign exchange transaction with the same end date and for the
same currencies, payments and receipts arising from the transactions may be
"net settled". This means that all settlements for those transactions
are combined to a single net payment between you and us.
Foreign
exchange transactions may have tax implications. These can be complex and are
invariably specific to your circumstances. Therefore, you should discuss any
taxation issues with your tax adviser before entering a transaction.
ForexCT has
an internal dispute resolution process in place with the aim to resolve any
complaints or concerns you may have, swiftly and fairly. Any complaints or
concerns should be directed to the complaints officer (by telephone, facsimile,
or letter) at the address and telephone/fax numbers provided in Section 1 of
this PDS or by email
to complaints@forexct.com
ForexCT
will firstly acknowledge receipt of written complaints within 5 business days,
and aim to resolve and respond to complaints within 30 business days of
receipt. We will investigate your complaint, and provide you with our decision,
and the reasons on which it is based, in writing.
Should you be dissatisfied with the outcome, you have the
right to lodge a complaint with the Financial Ombudsman Service Ltd (contact
details below), an approved external dispute resolution scheme, of which ForexCT
is a member. You may also make a complaint via the ASIC free call Infoline on
1300 300 630.
Financial Ombudsman Service Ltd
GPO
Toll free: 1300 78
08 08
Facsimile: +613
9613 6399
Website: www.fos.org.au
Email: info@fos.org.au
12.1 Collection of personal information
We collect
personal information (including customers' full names, addresses and contact
details) so that we may administer the online forex trading account and our
customer relationships and provide customers with the products and services
they request from us as well as information on the Forex CT Group's ("the
Group") products and services.
Where
necessary, we also collect information on individuals such as company directors
and officers (where the company is our customer), as well as customers' agents
and persons dealing with us on a "one-off" basis.
The law may
also require us to collect personal information, e.g. Commonwealth legislation
requires us to identify persons who open or operate accounts. We may take steps
to verify the information collected, e.g. a birth certificate provided as
identification may be verified with records held by the Registry of Births,
Deaths and Marriages to protect against impersonation, or we may verify with an
employer that employment and remuneration information provided in an
application for credit is accurate.
12.2 You must provide us with accurate and relevant
information
If you
provide us with incomplete or inaccurate information, we may not be able to
provide you with the products or services you are seeking. We rely on the
information you provide to us, by giving such information you warrant that the
information is true and correct. If information we received from you is not
true and correct then we reserve the right to restrict or suspend access to
your account or cancel any trades previously made by you.
12.3 Other disclosures
Personal
information may be disclosed to:
- Other members of the Group for
the purpose of providing services to you or for the purpose of providing
you with information about those services.
- brokers and agents who refer
your business to us
- any person acting on your
behalf, including your financial adviser, solicitor or accountant,
executor, administrator, trustee, guardian or attorney)
- other financial product
providers to which your investment might be transferred; and
- organisations, including
overseas organisations, to whom we outsource certain functions.
Personal
information may only be used by our agents, contractors and outsourced service
providers for the purposes set out in this PDS purposes.
We may also
disclose personal information to other financial institutions and organisations
at their request if you seek credit from them.
We may be
allowed or obliged to disclose information by law, e.g. under court orders or
statutory notices pursuant to taxation or social security laws.
By using
the online forex trading you confirm that you consent to the use and disclosure
of your personal information, as set out in this PDS.