Q: Are you a regulated brokerage?

A: As a financial institution, NovaForex Inc. reports to the Canadian anti-money laundering organization, FinTrac. NovaForex Inc. is a forex broker based in Ottawa, Canada. There is no forex licensing in Canada, and we are not required to obtain a security license if no Canadian clients are solicited or accepted for opening of trading accounts.

Q: What is your NFA registration number as an FCM?

A: We are not an FCM. The FCM (Futures Commission Merchant) licensing applies only to American brokers, while we are a Canadian company. Since we do not solicit to or accept American clients, we are not registered with the NFA;

Q: Why don't you accept US clients?

A: In order to accept American residents, we must open an office in the USA and register with US authorities. Since we don't plan to do this, we do not accept American residents.

Q: Why don't you accept Canadian clients?

A: There is no forex licensing in Canada, and we are not required to obtain a security license if no Canadian clients are solicited or accepted for opening of trading accounts.

Q: How long does it take to deposit funds?

A: As soon as funds are deposited to our bank account, we credit your deposit to your trading account. For international wire transfers, it usually takes 2-3 business days before funds are delivered to our bank account.

Q: How long does it take to process requests for withdrawal?

A: 1-2 business days, from the moment of receiving the customer's order, to the actual remittance by our Bank;

Q: What fees, charges, interests, or commissions should I expect?

A: Fees:
* No commission (unless you are an aggressive scalper for whom such commission could be setup, at our sole decision).
* No inactivity fees.
* No rollovers for mini accounts.
* Rollover interest only for professional accounts.
* For withdrawal fees, please see our Deposit and Withdrawal page.

Q: Are your spreads fixed?

A: You can find information about our spreads by clicking here. Spreads are normally fixed, but can be widened during abnormal market conditions by 2-5 pips on average, depending on the spreads available at that moment in our clearinghouses. There are no specific limitations or conditions on spread widening, and in most cases it does not depend on us, but rather on the general situation on the market.

Q: What is your MINIMUM pip distance for all types of conditional orders?

A: All conditional orders (entry, stop, limit) are subject to the following rule:
* If spread is less than 5 pips: distance between any conditional order and market price must be 10 pips or greater.
* If spread is 5 pips or greter: distance must be at least equal to double the spread.

Q: What is the maximum permitted order size for a single position?

A: For mini accounts: the maximum amount of lots is 20 mini lots (200 micro lots).

Q: What is the maximum open trade numbers/volume per period?

More than one order per minute would be difficult to fill, but it also depends on the strategy a client is using, so there are no specific rules for this.

Q: What are your policies on SCALPING?

A: Unless otherwise specified, aggressive methodical scalping is prohibited. Scalping is defined as a trading style where most of your trades take less than 3-8 pips of profit, or are kept open for less than 8 minutes. AGGRESSIVE scalping is defined as scalping which also features frequent (usually more often than every 10-15 minutes) opening and/or modification and/or closing of positions/orders. Non-aggressive scalping is conditionally allowed for Micro-Cents accounts. These rules apply to all trades regardless of the market situation.

Q: Which price (BID or ASK) is used to draw the chart bars and for trading?

A:Be aware of the following universal rule which helps you to find the correct price of your order on the chart:
* All charts on the SmarTrader platform are ALWAYS built using the BID price only!
* All BUY orders are executed at the ASK price and closed by the BID price;
* All SELL orders are executed at the BID price and closed by the ASK price.
If you want to also see the ASK price: right click on the chart -> Properties -> Select:Current Price Line -> checked Ask Line checkbox
In this case you will see an second price line, indicating the ASK price. Please note that historical data, including bar data (high/low/open/close) will still use BID prices.

Q: Do your clients experience Slippage?

A: Very rarely.

Q: Do your clients experience unauthorized disarming of conditional orders?

A: Never.

Q: Do your clients experience unauthorized execution of orders or introduction of positions?

A: Never.

Q: Do your clients experience incessant platform freezing?

A: Has never happened yet, and we make sure our platform is stable and reliable throughout the market hours.

Q: Do your clients experience re-quotes?

A: Re-quotes occur when the market price has changed before our servers received an order. You cannot receive a fill for a price which does not exist on the market. Prices move simultaneously for all traders, so each trader is trading on the same prices. In any case, most accounts use automatic execution, and re-quoting happens very rarely.

Q: Do your clients experience delays in execution?

A: Orders are executed automatically, within 0.2-2 seconds. One possible factor is the latency of getting your order through to our servers, and getting a response back, confirming that your order has been executed or that the price has changed. This depends on internet traffic, your own connection speed, and your Internet provider's latency in connecting to our servers, and so on.

Q: Do your clients experience "Stop Hunting"?

A: Never.