| FAQs |
| CURRENCY TRADING BASICS |
 What is Spot FX trading? |
Forex or FX trading is the trading of one currency against another. It is the simultaneous buying of one currency and the selling of another currency. Currencies are historically quoted in pairs and are always quoted in buy and sell prices. The difference between the buy and sell price is the spread.
The order in which currencies are quoted is predetermined and designated by the International Standardization Organization in Geneva, Switzerland. Take USD/JPY, the USD is the base currency and the JPY is the counter currency.
Major currencies include:
EUR = Euro
GBP = Great Britain Pound
USD = United States Dollar
JPY = Japanese Yen
CHF = Swiss Franc (Confederation Helvetica – the Roman name for Switzerland)
CAD = Canadian Dollar
AUD = Australian Dollar
NZD = New Zealand Dollar
Major currency pairs include:
| AUD/USD |
| EUR/USD |
| GBP/USD |
| NZD/USD |
| USD/CAD |
| USD/CHF |
| USD/HKD |
| USD/JPY |
| USD/SGD |
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| What are the benefits or advantages of trading the FX market? |
The benefits or advantages of trading the FX market are:
24-hour market
The market is a 24 hours market where trading starts when Asia open up and transitions smoothly from market to market across the globe and from one trading day to the next, whereas in other types of markets including stock and futures, trading is limited to market opening hours.
Liquidity>
The Spot FX market is the world’s largest, most dynamic and most liquid market with a daily trading volume of over USD3.2 trillion. This is because currency exchange is a required mechanism to facilitate world commerce. Stock and futures markets, on the other hand, can only be traded during market opening hours.
Greater Leverage
Trading FX provides a higher leverage compared to traditional stock trading. Unlike stocks, traders are not required to put up the full value of the position Traders are able to control larger positions with smaller amounts of capital. Effectively, this allows you to trade the same size positions you might take with a stockbroker, while leaving you with more available capital to trade more instruments. The DBSVefx trading platform offers clients leverage of 1:20. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains.
Commission Free
There is no commission/brokerage fee, no clearing fee and no exchange fee. With the buy and sell prices, what you see is what you get. All you need to pay is the spread, which is the difference between the buying and selling prices. |
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| What is the value date of FX currency pairs? |
| FX currency pairs are valued SPOT, 2 business days from the trade date (T+2) with the exception of USD/CAD, which has 1-day settlement because US and Canada are within the same time zone. |
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| What is Rollover? |
| Rollover is an overnight swap whereby the settlement of a deal is rolled forward to another value date. The act of rollover is necessary to prevent the making and taking of delivery of the currencies when trading speculatively. In spot FX trading, trades must be settled in two business days. For example, if a trader sells 100,000 USD on Monday, he must deliver the 100,000 USD on Wednesday, unless the position is rolled over. |
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| How do I calculate Rollovers? |
In margin FX trading, you are always buying one currency and selling the other, hence, you are earning interest on one currency and paying on the other. The exact amount you are paying or
receiving is determined by the interest rate differential; i.e., the difference between the two rates.
DBS Vickers computes Rollover interest based on Swap points.
If a client bought a currency with a higher interest rate and sold a currency with a lower interest rate, he would end up collecting swap points. On the other hand, if the client were to do the reverse, then he would end up paying swap points.
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Example: Calculation of a Positive Rollover
Client bought 100,000 AUD and sold SGD (i.e. long 100,000 AUD/SGD currency pair)
If Interest rate for AUD (Australian Dollar) = 7%
and Interest rate for SGD (Singapore Dollar) = 1%
Therefore, the Interest rate differential = (7% - 1%) = 6%
If the Closing price for AUD/SGD = 1.3180
The swap points or swap amount credit he will receive will be:
1.3180 x (6% / 365 days) x 100,000 = SGD21.67 per day of rollover
(HKD, GBP and SGD calculation is based on 365 days whereas that for the other currencies is based on 360 days. |
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| What is the DBSVefx Rollover Policy? |
| The DBSVefx platform will automatically roll all open positions each day at 5PM New York time and the computation of Rollover Interest is based on Swap Points. |
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| How do I earn the rollover? |
| You will earn rollover interest when you long the higher-yielding currency or short the lower-yielding currency. |
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| What are pips? |
Pips is the terminology used for Percentage-In-Points. These are the smallest digits in the currency pair. For example, if the EUR/USD was to move from 1.2502 to 1.2503, that is an increase of 1 pip. The smallest increment by which the currency moves is usually .0001 or .01%.
The pip values are usually calculated in USD. |
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| How do I calculate pip value? |
To Illustrate:
Step 1
EUR/USD = 0.9910
This translates to 1 EURO = USD 0.9910
Step 2
The Lot size = 10,000 units of the base currency i.e. 10,000 EURO
If 1 EURO = 0.9910 USD, then 10,000 EURO = 9,910 USD (0.9910 x 10,000)
Step 3
If the exchange rate for EUR/USD goes up from 0.9910 to 0.9911 (which is a 1 pip move),
The value of the contract changes from USD 9910 to USD 9911 that is an increase of USD 1
Hence, an upward movement of 1-pip increases the contract value by USD 1
Therefore, 1 pip equals USD 1.
Note: Pip value where the USD is the counter currency will always be fixed at USD 10 or USD 1 depending on the contract size traded i.e., 100,000 or 10,000 units of the currency respectively. |
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| What is a Spread? |
| A Spread is the difference between the bid and ask price of a currency pair. |
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| How competitive are the DBSVefx spreads? |
| DBSVefx offers a 3 to 5 pip spread on most majors and ensures that it maintains competitive rates. Clients can benefit most from trading the SGD crosses with which DBSVefx seeks to offer one of the most competitive spreads in the market. |
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| Why is DBSVefx offering a 1:20 (20 times) leverage against market practice of up to 1:400 (400 times) leverage? |
| As a regulated entity, DBS Vickers adheres to rules governing leveraged product trading. Leverage is a double-edge sword; not only can it magnify profits, it can also magnify losses. The degree of leverage determines the level of risk you will be exposed to. Higher risk is associated with a higher degree of leverage, likewise, a lower degree of leverage offers a lower risk exposure. |
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| What are the risks involved in trading Spot FX? |
Any trading transactions involving leveraged FX on margin carry a certain degree of risk and may not be suitable for all investors. The high degree of leverage may work for or against you. The possibility exists that you could sustain a loss of some or all of your initial investment, therefore, you are advised against investing money that you cannot afford to lose. One should consider their risk appetite, level of experience and trading objectives before deciding to trade in foreign exchange.
Certain risk-reducing orders or strategies such as placing of stop loss or stop limit orders can be implemented to help the trader manage his trades. |
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| Is FX trading regulated? |
The Spot FX market is an over-the-counter (OTC) market. There is no central exchange and clearing house where orders are matched.
In the US, FX trading is regulated by the NFA (National Futures Association) that polices the trading practices of the market players. The NFA regulation provides financial standards and oversights to ensure that clients’ funds are kept segregated from a firm’s capital and that the clients’ funds are used solely for the clients’ trading activity. |
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| What exchange is the Spot FX traded on? |
| The Spot FX market is an over-the-counter (OTC) market where there is neither a central exchange nor a clearing house where orders are matched and should not be confused with the trading FX in the Futures market. Currency Futures are traded on CME (Chicago Mercantile Exchange), Euronext.liffe and Tokyo Financial Exchange. |
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| How is DBS Vickers regulated? Are my funds safe with DBS Vickers? |
| DBS Vickers Securities (Singapore) Pte Ltd (company registration no.198600294G) Ltd is a holder of the Capital Markets Services licence for Dealing in Securities, Trading in Futures and Leveraged Foreign Exchange Trading under the Securities and Futures Act (SFA). We are subject to the regulatory requirements set by the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) which includes submitting annual audited accounts and keeping customers' assets segregated. In addition, DBS Vickers also exercises integrity, fair dealing and care so that customers can rest assured that they have the best execution on their orders. |
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TRADING WITH DBSVefx  |
| What is the DBSVefx advantage? Why should I trade with DBSVefx? |
Trading with DBSVefx comes with key advantages and these are the reasons why clients choose DBSVefx over other FX trading platforms.
a) DBS Vickers is the securities arm of DBS Bank and is subject to strict corporate governance being a regulated entity of the MAS (Monetary Authority of Singapore) and SGX (Singapore Exchange).
b) DBSVefx facilitates multi-currency deposits and withdrawals.
c) DBSVefx offers clients one of the tightest spreads for SGD crosses and competitive rates on major currency pairs.
d) DBSVefx offers a compelling, user friendly and multi-language default client user station that integrates key trading components, all on a single user interface.
e) Committed to helping our clients get the most out of their trading experience, the DBSVefx trading platform is backed by our 24 x 5 customer, technical and dealing support via phone, email and Live Chat.
f) DBSVefx pays interest on the cash balance of each distinct currency type maintained by a client which is the equivalent of SGD25,000 and above. |
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| What are the commission charges for trading with DBSVefx? |
| The spread has already incorporated what you need to pay and so there is no separate commission for trading on DBSVefx. |
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| Can I access my DBSVefx trading platform when I’m travelling? |
Yes, DBSVefx is a web-based trading system and as long as you have access to the Internet, DBSVefx gives you the flexibility to trade anytime, anywhere.
In the event you are travelling and do not have access to the Internet, you can always call the DBSVefx Dealing Hotline +65 6398 6099 to execute your trades (call-in charges apply). |
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| Is my DBSVefx Account information available real-time? |
| Yes, your P&L on open positions are reflected real-time except for your online account statement, which is updated once a day. |
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| Will my profits and losses be automatically converted to a specific base currency? |
| No. Your trading account is a multi-currency account wherein you can deposit, withdraw and maintain your cash balances in 10 currencies, namely USD, EUR, JPY, GBP, CHF, AUD, CAD, NZD, HKD and SGD. Your trading profits and losses are settled in the counter currency (E.g, the profit/loss of a EUR/JPY contact will be cash settled in JPY) and remain in that currency until we receive instructions from you to carry out a conversion.
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| How many currency pairs does DBSVefx offer? |
There are 27 currency pairs and spot gold on this platform.
| Majors: |
Crosses: |
| 1) AUD/USD |
1) AUD/JPY |
| 2) EUR/USD |
2) AUD/NZD |
| 3) GBP/USD |
3) AUD/SGD |
| 4) NZD/USD |
4) CAD/JPY |
| 5) USD/CAD |
5) CAD/SGD |
| 6) USD/CHF |
6) CHF/SGD |
| 7) USD/HKD |
7) EUR/AUD |
| 8) USD/JPY |
8) EUR/CAD |
| 9) USD/SGD |
9) EUR/CHF |
| 10) XAU/USD |
10) EUR/GBP |
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11) EUR/JPY |
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12) EUR/NZD |
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13) EUR/SGD |
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14) GBP/JPY |
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15) GBP/SGD |
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16) JPY/SGD |
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17) NZD/JPY |
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18) NZD/SGD |
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| What are the trading resources available on DBSVefx to help me with my trading? |
| DBSVefx is designed with the novice to intermediate traders in mind who require the necessary resources and tools to help them trade the FX market with a single user interface. On the DBSVefx default client user interface, you will have access to our free charting software which offers a comprehensive list of indicators and trend lines, Economic Calendar, real-time MNI (Market News International) news in English and Chinese. |
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| Are there any seminars to guide me through FX trading with DBSVefx? |
| As part of the educational and resource support efforts by DBS Vickers, we will be running periodic seminars which will be conducted by professional FX traders. Please bookmark this link to check on seminar schedules. |
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| Do you have a User Guide for the DBSVefx trading platform? |
| Yes, the DBSVefx User Guide is available online. Please click here to download a copy. |
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| What safety features does DBSVefx provide against hacker invasion? |
The DBSVefx trading architecture is built upon a data protection system that is composed of several layers: servers, data encryption, identification and verification.
DBSVefx Servers are protected by layers of firewall and a Verisign SSL with an encryption of 128 bit.
DBSVefx user identification is via the Single Sign On (SSO) core identification that is an advanced and secured identification system. The information sent by DBSVefx users is parked in a secured code signature system for securing and verifying passing information. |
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| What are the risks of online trading? |
| Transactions over the Internet may be subject to certain risks including interruption, transmission blackout, delayed transmission due to Internet traffic or incorrect data transmission due to the nature of the Internet. During trading hours, your electronic orders are sent directly or executed through the Internet. Erroneous input may result in unwanted trades. We advise you to check your orders carefully before submitting them. |
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| I would like to drop by your office to understand more about DBSVefx. Who should I look for? |
| You may call our Relationship Officers at +65 6327 9559 to arrange for an appointment. |
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| What kind of customer support does DBSV have? |
For account-related enquiries (available Monday to Friday from 8:30 am to 6 pm Singapore Time), you may call our Customer Service Officer at +65 6327 9559 or email to cs@dbsvickers.com.
For general enquiries (available 24 hours a day from Monday 7 am to Saturday 6 am Singapore Time), you may call our Hotline at +65 6327 9559 or email to efx@dbsvickers.com.
For technical enquiries (available 24 hours a day from Monday 7 am to Saturday 6 am Singapore Time), you may call our Technical Support at +65 6398 7221 or email to techsupport@dbsvickers.com.
For call-in trades (available 24 hours a day from Monday 6 am to Saturday 6 am Singapore Time), you may call our Dealing Desk at +65 6398 6099. |
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| ACCOUNT OPENING |
| How do I apply for the DBSVefx Account? Where can I go to apply for the DBSVefx Account? |
New DBSVefx Account
Applying for a DBSVefx Account is easy and convenient. First, download and complete the Application Form that is available online. Ensure that you have read and understood the General Trading Agreement, DBS Vickers Customer Online Terms and Conditions before signing. Attach the necessary supporting documents to the Application Form and submit to Derivatives Customer Service via e-mail, fax or regular mail.
Existing DBSV Derivatives Clients
If you are already an existing client of DBSV Derivatives, the process is a lot easier. All you need to do is to complete Application for Trading on DBSVefx and submit the completed and signed copy to Derivatives Customer Service for processing. Applications may be submitted via e-mail, fax or regular mail. Please read the DBS Vickers Customer Online Terms and Conditions document thoroughly before signing.
For application sent via e-mail or fax, you will still be required to post r deliver in person, the original application and the certified true copies of supporting documents to us.
Where to send your documents:
a) Fax : +65 6538 9057
b) E-mail : cs@dbsvickers.com
c) Mail or In Person : DBS Vickers Securities (Singapore) Pte Ltd
Attn: Customer Service, Derivatives Department
12 Marina Boulevard #10-01
Marina Bay Financial Centre Tower 3
Singapore 018982
Alternatively, if you are a Singapore resident, you may visit our DBS Vickers office to speak with our Relationship Officer who will be most happy to assist you with your account opening queries. |
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| How long does it take to apply for the DBSVefx Account? |
| Your application will be processed within 3 business days if submitted before 12pm of a business day, provided all documents received are complete and in order. Our Customer Service Officer will contact you once your application has been approved. |
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| What should I expect once my application has been approved? |
| Once your application has been approved, our Customer Service Officer will contact you and you will be receiving an email on funding instructions. Your User ID and a PIN mailer containing your Password will be separately sent to you via post. Once the account is funded, your DBSVefx Account will be activated and you can commence trading. |
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| What are the age and deposits requirements to open a DBSVefx account? |
| For both Individual and Joint Accounts, applicants must be at least 21 years old and a minimum deposit of SGD 5,000 or equivalent in foreign currency is required. |
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| If I have an existing Securities account with DBS Vickers, do I have to resubmit my information and document proof to apply for the DBSVefx Account? |
| Yes, you need to send us the completed and signed Application Form together with the required supporting documents. Please click here to open a DBSVefx account. |
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| MARGIN REQUIREMENT AND MARGIN CALL |
| What is the margin requirement for trading with DBSVefx? |
A 4% to 7% margin requirement (depending on the margin requirement of the currency involved) applies in accordance with the exchange leveraged product trading rules.
*Margin requirements are subject to changes from time to time, with or without prior notice.
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| What happens when I fail to meet margin requirement? |
Once the equity falls below the maintenance margin level, notification will be issued to clients to top up monies to return the equity to the Initial Margin level. The margin call notification will be sent via SMS and/or email to the registered mobile phone number and email address.
DBS Vickers Securities (Singapore) Pte Ltd reserves the right to liquidate clients position(s) on the occurrence of either the total equity falling and triggering the cut level, or Margin Call is not met by T+3, whichever occurs first. |
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| What is a margin call? |
Margins are technically performance deposits put up by clients to show their commitment to fulfilling the trades they have entered into. Margin calls are issued when a client’s equity falls to or below the amount of margin required to maintain his or her open positions.
DBS Vickers Securities (Singapore) Pte Ltd reserves the right to liquidate clients position(s) on the occurrence of either the total equity falling and triggering the cut level, or Margin Call is not met by T+3, whichever occurs first. |
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| Can I use my spouse’s contact details for any margin call notification? |
| Yes, you will need to provide the contact numbers and email addresses of your spouse on the DBSV Derivatives Trading Account Application Form. For an existing account, you will need to send us an original written request to include any additional contact details. |
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| CUSTOMER REQUESTS |
| What are the currencies accepted for fund deposits? |
We accept the following currencies for Fund deposits:
USD, EUR, JPY, GBP, CHF, AUD, CAD, NZD, HKD, SGD. |
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| How do I fund my account? |
| There are various methods to fund your account. Please click here for detailed instructions. |
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| Can any third party fund my DBSVefx Account? |
| Yes, we do accept third party deposits. However, in compliance to the Anti-Money Laundering Act, the management reserves to right to investigate and reject any third-party transaction. |
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| How soon will the funds I have deposited to my DBSVefx Account be cleared? |
| Depending on the mode of deposit, your funds will normally be cleared within 3 business days. |
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| How will I be notified if my funds did not clear successfully (e.g. cheque returned, something went wrong for the telegraphic transfer, etc)? |
| Our Customer Service Officer will contact you if and when the bank encounters any issue with the transaction. |
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| Will I be paid interest on funds maintained in my DBSVefx Account? |
| Yes, we offer our clients the benefit of earning interest on cash balances of each distinct currency type maintained by them that is the equivalent of SGD 25,000 and above. |
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| How should I go about withdrawing funds from my account? |
To withdraw funds, simply complete and sign a Fund Withdrawal Request Form.
Funds may be withdrawn via cheques (denominated in SGD), telegraphic transfers (bank charges apply except for SGD –denominated funds for credit to DBS or POSB accounts).
For security purposes, our Customer Service Officer will contact you for phone verification on your withdrawal request. |
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| Can I withdraw funds in any currency? |
Yes, you may withdraw funds in the following currencies:
USD, EUR, JPY, GBP, CHF, AUD, CAD, NZD, HKD, SGD. |
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| Do I need to maintain a minimum amount of fund to keep my account active? |
Yes, a minimum amount of SGD 500 or equivalent in foreign currency is required to
keep your DBSVefx Account active.
Your account will be deactivated if you have withdrawn all the available funds in your
account. To re-activate your account, you are required to top up your account to a
minimum of SGD 500 or equivalent in foreign currency. |
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| What is the Net Open Position limit? |
| The Net Open Position limit is your trading limit. |
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| What will be my Net Open Position limit on DBSVefx? |
| Your Net Open Position limit on DBSVefx is set based on the amount of equity maintained in your account. By default, it is set based on the amount of funds you initially deposited when you first opened the account. |
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| What is the ticket size limit for trading on DBSVefx? |
| Ticket size limit on DBSVefx is set at a minimum of 10,000 units for a currency pair except for the JPY/ SGD currency pair that is set at a minimum of 1,000,000 units of JPY. Your limits are determined by the amount of funds placed in the account. |
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| How can I request for an increase in my Net Open Position limit? |
Should you maintain a higher amount of equity in your account and wish to increase your NOP limit, you may contact our Customer Service Officers to facilitate the request through the following channels:
1 Phone : +65 6327 9559
2 Fax : +65 6538 9057
3 Email : cs@dbsvickers.com
4 Mail : Attn: Customer Service, Derivatives Department
DBS Vickers Securities (Singapore) Pte Ltd
12 Marina Boulevard #10-01
Marina Bay Financial Centre Tower 3
Singapore 018982
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| ACCOUNT STATEMENT |
| Will I receive any hard copy account statement for my trades executed through DBSVefx trading platform? |
| No. Account statements are accessible to clients directly on the trading platform and are archived for up to 3 months. However, clients may request for hardcopy account statements on an ad-hoc basis. |
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| How is my Roll-over Interest computed and based on how many days per year? |
Rollover interest receivable/ payable is based on Swap points and Swap point is calculated based on the interest differential between a currency pair.
If a client bought a currency with a higher interest rate and sold a currency with a lower interest rate, he would end up collecting swap point. On the other hand, if the client were to do the reverse, then he would end up paying swap point.
Example: Calculation of a Positive Rollover
Client bought 100,000 AUD and sold SGD (i.e. long 100,000 AUD/SGD currency pair)
If Interest rate for AUD (Australian Dollar) = 7%
and Interest rate for SGD (Singapore Dollar) = 1%
Therefore, the Interest rate differential = (7% - 1%) = 6%
If the Closing price for AUD/SGD = 1.3180
The swap points or swap amount credit he will receive will be:
1.3180 x ( 6% / 365 days ) x 100,000 = SGD21.67 per day of rollover
(HKD, GBP and SGD calculation is based on 365 days whereas that for the other currencies is based on 360 days) |
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| Is the daily and monthly account statement electronic or hardcopy? |
The daily and monthly account statements are provided in PDF format and are accessible through the ‘Statements’ Tab on the DBSVefx online trading platform.
Daily account statements are available online for every trading day in the last one month while monthly account statements are available online for the last 3 months.
Clients can either save a copy or print out a hardcopy of the account statements for their own safekeeping. |
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