Will there be Fidelity Bond Insurance?
Yes. We have secured fidelity bond coverage protecting the assets of our clients and Hotspot FXr against acts of fraud or dishonesty by any officer, employee or manager of Hotspot FXr.
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Are there commissions?
All transactions (trades) are charged an account brokerage fee (commission) based upon the USD value of the trade.
All trades of $100,000 or less are charged a commission of $3.00
All trades greater than $100,000 are charged a commission of $3.00 per $100,000, prorated.
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What leverage is given?
Standard leverage is 2% (50 to 1).
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Will interest be earned on my account?
Generally client accounts
earn interest. Interest will be paid not only on free balances, but also on
balances devoted to meet margin requirements. It should be noted that interest
payments can be expected to vary with market conditions. Further, balances that
fall below our minimum balance requirement of $20,000 will not earn interest
until they are brought above that level.
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Is Hotspot regulated by the CFTC?
Our company is a member of the National Futures Association (NFA) and is fully regulated as a Futures Commission Merchant (FCM) by the Commodity Futures Trading Commission (CFTC).
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How much money is required to open a margin account?
Our minimum initial deposit size is $7,500.
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How do I open a live trading account?
From the website, Click on the following tabs: open account, live account application, type of account. Complete on-line
Application, download all applicable forms, make a copy of your driver's license or passport, fax all paperwork to Hotspot FXR, LLC. 201-748-3167 or e-mail to: efx@hotpsotfx.com.
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When are clients informed about margin calls/cuts and what are
the margin requirements?
When an account falls to 75% of the required margin, if there are no stop loss
orders in place which ensure the account positions being closed at 50% of
margin utilization, clients are notified, either electronically or verbally to
call Hotspot FXr. When the client is contacted and spoken with,
they are informed:
1. that they must input stop-loss order(s) to prevent their margin requirement from going
below 50%.
2. that they can reduce position(s) to insure that the account does not go below 50% of
required margin.
3. Hotspot FXr Inc will input order(s) or go into the market and close all the position(s)
once the account required margin falls below 50 % (if the client has not cut the
positions, reduced the positions or input orders which ensures that their margin
requirement will not go below 50%.) Additionally, if the client cannot be reached or
markets move so quickly that the clients positions are under-margined by an amount
in excess of 50%, then Hotspot FXr will go into the market and close all
the position(s) and cancel all orders.
4. that they can notify Hotspot FXr that they are wiring sufficient funds to
bring the margin requirement above 100%. At Hotspot FXr's sole discretion, Hotspot FXr may wait to receive the funds by 5 PM EST before applying the above order/margin cut procedure.
Margin cuts (position closings) are made when an account falls to 50% of margin utilization.
Market conditions will determine the closed position rate as market movements, volatility
and action may result in the account positions being cut below 50% of the
available margin.
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