Questions about RCM

Who is RCM?

RCM is the leading True ECN forex broker in Australia. The company was founded in 2007 with the vision of providing fair and transparent forex trading to active traders. RCM is dedicated to bring retail investors and traders in Australia and abroad solutions previously only available to professionals and large global investment banks. For additional information about RCM please visit the About Us page.

Who owns RCM?

RCM is a privately owned Australian based company with headquarters in Sydney.RCM management team is comprised of individuals with over 20 years experience in derivate products. RCM founders were instrumental in the success of Australia’s largest CFD and Forex provider.

Is RCM Regulated?

RCM is a privately owned Australian based company with headquarters in Sydney.RCM management team is comprised of individuals with over 20 years experience in derivate products. RCM founders were instrumental in the success of Australia’s largest CFD and Forex provider.

Where is my money held?

RCM holds client money in Segregated Client Trust Accounts at Westpac Banking Corporation and National Australia Bank (NAB). Both banks are AA rated Australian banks.

Questions about Trading with RCM

What is the difference between a Standard and True ECN account?

RCM has two MetaTrader 4 account types, a standard account and our market leader, True ECN account. RCM does not charge a commission on standard accounts but instead marks up the spread by 1 pip above the Inter-bank rate received from our liquidity providers. RCM True ECN account shows the raw inter-bank spread received from our liquidity providers, on this account we commission of $7 per standard lot round turn.

What is the minimum amount needed to open a trading account?

RCM allows clients to open a MetaTrader4 Standard or True ECN account with as little as USD $200 or currency equivalent. Our cTrader account requires a minimum deposit of $200 USD or currency equivalent

What leverage does RCM offer?

RCM offer flexible leverage options ranging from 1:1 to 1:500. You can change the leverage on your trading account by completing our change of leverage request form.

Can I have multiple trading accounts with RCM?

RCM allows you to open multiple trading accounts. In order to open an additional trading account you must complete the additional account request form available on our website.

What time does RCM open and close its prices?

The opening and closing times of RCM prices are:

Opening time: 00:01 MetaTrader 4 Server Time(Monday)

Closing time: 23:57 MetaTrader 4 Server Time( Friday)

What time does RCM Rollover occur?

RCM rollover occurs at 00:00 MetaTrader 4 Server Time.

What is RCM GMT Offset?

To align the daily chart chart candles with New York close (5pm ET) RCM server time and charts are GMT + 2 or GMT + 3 when daylight savings is in effect.

The table below outlines the dates on which the server time is changed to reflect daylight savings each year.

Year                             DST Commencement Date                         DST Ending Date

2016                            13th March                                                          6th November

2017                            12th March                                                          5thNovember

Daylight saving time begins at 2 am on the second Sunday in March and ends at 2 am on the first Sunday in November.

What are the trading hours of Gold and Silver?

The trading hours for Gold and Silver (XAUUSD and XAGUSD) are:

• Opening time: 01:00 MetaTrader 4 Server Time
• Closing time: 23:57 MetaTrader 4 Server Time

Does RCM offer any Education?

RCM offers extensive on-line education, in addition we regularly conduct educational webinars on a variety of topics. Webinar dates and times are published on our website.

How many currency pairs does RCM offer?

RCM offers 60 currency pairs and 4 metals.

How many CFDs does RCM offer?

RCM offers 13 index CFDs in addition to Brent and WTI.

How do I deposit money into my trading account?

RCM offers clients a number of deposit methods including:

• Bank / Wire Transfer

• Credit Card

• Skrill

• Webmoney

• Neteller

Our funding page provides further information about each of the 8 funding methods we offer.

How long does it take for funds to appear in my live account?

Credit card, Skrill and Webmoney deposits are usually applied within 30 minutes. Domestic wire transfers and Bpay deposits are processed overnight. International wire transfers can take up to 3-4 days.

How do I withdraw money from my trading account?

In order to withdraw funds from your trading account you are required to submit the withdrawal request form available on our website. Withdrawals received before 03:00 GMT (14:00 AEST) are processed on the day the form is received.

Can I withdraw more than my initial deposit by credit card?

Yes, you are able to withdraw more than your initial deposit will be paid back to your credit card however you must provide your full credit card number to our accounts department in order for us to do so.

How do I open a live trading account with RCM?

Opening an account is simple. Click on the Open a Live Account link and complete your application form.

Once your on-line application form has been approved by our accounts team you will be emailed your trading account login details and password.

What documents do I have to provide RCM to open a live trading account?

Under the Australian Anti-Money Laundering and Counter Terrorism Financing Act 2006 RCM is required to verify your identity client before opening they open a trading account.

Identification must be provided in the form of photo ID and proof of address to verify your identity.

Photo ID

• Must be clear and visible

• Must be issued by a government agency

• Name, Signature and Expiry Date must be clear

Proof of Address

• Must not be older than 3 months

• Must show the same name and address as your account application

Our anti-money laundering policy contains further information regarding our identification requirements.

Do I earn interest on funds deposited into my live trading account?

No, RCM does not pay interest on account balances.

Does RCM accept US Clients?

RCM does not accept US clients. US CTFC regulation prevents US clients from trading with brokers outside the US. RCM complies with International and Australian regulations.

Is Scalping and Hedging allowed?

We encourage scalping and hedging. Our spreads and trading conditions are the preferred choice of many day traders and scalpers globally.

If I am experiencing problems trading can I place an order over the phone?

RCM support is available 24 hours a day, 5 days a week. If you are experiencing problems placing trades you can place an order over the phone. Please note we will only be able to edit of close existing trades only, you will not be able to open new positions.

If I stop trading will I be charged an inactivity fee?

No you will not be charged any account inactivity fees.

Are Demo Accounts the same as Live Accounts?

Both Demo and Live accounts have the same price feed, however it is not possible to replicate a real trading environment on a Demo account due to technical limitations. Trades placed on demo accounts are not passed into the real market and therefore their execution will not directly comparable to trades placed on a Live account. Demo trading accounts are designed to allow traders to become familiar with the trading platform itself and will never be able to provide an identical trading experience to a Live account.

Questions about the Forex Market

What is Forex?

Forex or the “Foreign Exchange market”, is the largest financial market in the world, with a daily average turnover of approximately US$3 trillion. Forex trading is the simultaneous buying of one currency and selling of another. The price of currencies is floating and dependent on supply and demand. Foreign Exchange is always traded in pairs, for example EUR/USD or AUD/USD.

How do I make money trading Forex?

Making money trading forex involves buying lower and selling higher or selling higher and buying back lower, using leverage means that you are able to deposit a smaller amount of money to achieve the same buying power as you would have if your bought and sold the currencies outright.

In this example Mary deposits $5,000 into her forex trading account and nominates the leverage on her account to be 1:100. As a result of leverage Marys buying power on her $5,000 deposit becomes $500,000. Mary decides to BUY 0.1 lots of the AUD/USD par at a price of 0.99802, 3 days later the price of the AUD/USD is 1.04069 and Mary decides to close her position. Marys profit is calculated as (1.04069 – 0.99802) 426 pips. As Mary opened a position of 0.1 lots Mary made a profit of $426 or $1 per pip.

Of course should the AUD/USD moved against Mary below the opening price of her trade to a level of 0.97802 Mary would have incurred a loss on the trade of (0.99802 – 0.95542) 426 pips. As Marys positions size was 0.1 lots Mary would have incurred a loss of $426 or $1 per pip.

Is the Forex Market a fair market?

Forex is said to be one of the fairest and most transparent markets on earth this is mainly because of the large amount of market participants and sheer size and number of transactions. There is not one single country or bank that can completely control the direction of a currency.

Where is the Forex Market located?

There is no one central location of the Forex Market, unlike the stock and futures markets Forex is not traded on an exchange but it is traded on an Over-the-Counter (OTC) basis with no central exchange between Banks, Governments, hedge funds and private investors. The forex market is open 24 hours a day 5 day per week.

Who are the main participants in the Forex Market?

The main participants in the Forex Market are Central Banks, Commercial Banks and Investment Banks, however in recent years since the advent of the internet accessibility to the Forex Markets has increased which has resulted in an increase in the number of participants. These day’s participants also include large multinational corporations, money manager, registered dealers, money brokers and private investors.

When does the Forex Market open and close?

The Forex Market is a 24 hour market, Forex trading commences in Wellington, New Zealand and moves around the globe as business days begin in each financial centre. The major global financial centres where most forex trading takes place are Tokyo, London and New York. The forex market opens on Sunday at 10:00pm (GMT) and closes on Friday at 10:00pm (GMT).

What are the most popular Forex pairs?

The most liquid currency pairs are those from countries with politically stable governments and well respected central banks. The most popular currency pairs those that are paired with the US Dollar these are nicknamed the ‘majors’ and account for around 85% of transactions. The most commonly traded pairs are the EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and USD/CAD.

What makes exchange rates move?

There are a variety of fundamental and technical aspects that can cause an exchange rate to move. The most notable influences include interest rates, inflation and political stability. Sometimes governments will buy or sell a currency in an effort to influence its value with the view of having a broader effect on the country’s economy. This is known as Central Bank intervention and can have a significant impact on the value of a currency. Given the size and diversity of participants there is not one single factor that can influence the forex market for any significant length of time.

How do I manage risk when trading Forex?

There are a variety of risk management strategies that forex traders can use. The most common form of risk management is the use of stop loss and limit orders. Stop loss orders can be set within the MetaTrader 4 platform and are often used force the closure of a position at a predetermined price in order to limit any potential loss. Limit order work in much the same way as Stop loss orders however they allow a restriction to be placed on the maximum price paid.

What is the best trading strategy to use when trading Forex?

Forex Traders use a variety of trading strategies based on technical and fundamental analysis. These days technical trading is becoming increasingly popular traders are using a variety of technical indicators such as trend lines, support and resistance levels and numerous other methods to identify short to medium term trading opportunities. Some traders choose to use fundamental analysis which revolves around interpreting economic information including news, government reports and sometimes even rumour. Often it is however elements outside of technical and fundamental analysis that have the most dramatic effect on currency prices, this includes events such as Central Bank intervention, interest rate changes, political change or even war.

Is trading the forex market expensive?

No, trading forex has never been cheaper and more accessible. Traders can now trade on institutional grade pricing with a deposit of as little as $200 and leverage of up to 500:1. It is however important to remember that although trading on leverage can maximise profits it can also amplify losses.

Understanding MetaTrader 4 problems

Why can I not see all the currency pairs and CFDs?

If you cannot see all of the instruments in the market watch screen simply right click in the market watch area and select ‘show all’.

My MetaTrader 4 platform shows the message ‘Trade Context is Busy’ what does this mean?

‘Trade Context is Busy’ is a common MetaTrader 4 error, the error occurs because MetaTrader 4 cannot process multiple requests at the same time, to fix this error simply close and open your MetaTrader 4 trading platform again. Please read our MetaTrader 4 error code guide for which outlines common MetaTrader 4 error messages.

I want to change the time on my charts, can I do this?

The chart time on MetaTrader 4 reflects the server time, this time cannot be changed. There are however some indicators and expert advisors which can assist with this.

Where can I find information about the swap rates?

Swap rates can be found within the MetaTrader 4 platform, simply go to the market watch and right click on an instrument and select symbols. A new window will then open, here you select the currency pair and click on the properties button and the swap rates will be displayed.

Why do my swap rates triple for positions held over roll-over on a Wednesday?

If you hold open a position over Wednesday night the amount added or subtracted to your account as a result of the swap rate charged is three times the usual amount. Triple swap rates are charged in the roll-over period on Wednesday night to account for the settlement of trades over the weekend where no swap rates are charged due to the market being closed.

Why can I not log into my demo account?

RCM demo accounts do not expire however if you forget your username or password you can open a new demo account from within the MetaTrader 4 terminal. To open a new demo account from within the MetaTrader 4 trading platform you will need to click on ‘file’ then ‘open an account’ from here you can register for another demo account without having to download the platform again.

Why do I get the message ‘invalid account’?

The ‘invalid account’ error occurs when your username or password is incorrect. This can also occur if you have selected the wrong server address. Please check your account details and try again.

Why can’t I place a stop loss or take profit order along with my trade?

When you nominate for your order to execute at market you will not be able to attach a pending order. You can however add a stop loss or take profit order to your open position from the trade terminal within MetaTrader 4.

Why is my Expert Advisor (EA) not taking any trades?

In order for Expert Advisors to function on MetaTrader 4 you must click on the expert advisors button in your trade terminal to enable this feature.

Questions about Trading Forex Online

What does spread mean?

In forex the spread is the difference between the BID and the ASK price. In order to ‘go long’ you would submit a BUY order and trade on the ASK price, if you intent to ‘go short’ you would submit a SELL order and trade on the BID price.

What are the fees, commissions for trading with RCM?

RCM has two account types, a standard account and our market leading True ECN account. RCM does not charge a commission on standard accounts but rather marks up the spread by 1 pip above the interbank rate received from our liquidity providers. RCM True ECN account shows the raw interbank spread received from our liquidity providers, on this account we commission of $7 per standard lot round turn.

What is the minimum lot size that I can trade?

RCM supports the trading of Micro lots. A micro lot in MetaTrader 4 is represented as 0.01 which is equivalent to 1000 units of the base currency.

How do I place trades over the internet?

Trading over the internet on the world’s most popular trading platform MetaTrader 4 is easy. Once you have downloaded and installed the trading platform simply login and double click on an instrument in the market watch screen. In the order ticket that appears enter your desired trading volume then click on ‘buy market’ or ‘sell market’ a market execution order will then be processed. The MetaTrader 4 platform will automatically fill your order providing there are sufficient funds in your trading account. Your open position will appear in the trading terminal and the profit / loss and margin will be calculated in real time according to price movement.

What does margin mean and how is this calculated?

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account. If you do not have sufficient free equity available you will be unable to open a position on the trading platform. The free margin amount shown in the trading platform is the amount you have available to use should you wish to open additional positions.

Margin is calculated using the following formulae:

Margin required = (current market price x Volume) / Account leverage

In practice this would be calculated as follows:
If open a position of 0.1 (10000) in EUR/USD at the current market price of 1.35645 and your account has a leverage of 1:400 you would calculated the margin required as follows:

(1.35645 x 10000) / 400 = $33.91

In this example the margin on this position would be $33.91, therefore in order to open a positions of this size you would require at least $33.91 in free margin in your trading account.

Can I set pending orders in the MetaTrader 4?

MetaTrader 4 allows pending orders to be set. Pending orders are stored on the trade server and are executed when the conditions set are met.

Does MetaTrader 4 have trailing stop orders?

MetaTrader 4 allows trailing stop orders to be set from within the trade terminal.

What happens if I have no free margin left in my account?

If you have no free margin your positions will be stopped out, in certain circumstances your account balance can become negative should the loss on the positions stopped out exceed your account balance.

What is RCM margin call level?

RCM margin call level is 100% this means that you will receive a margin call when your Equity is 100% of the margin required on your open positions. Equity is calculated as (Balance + Open Profit/Loss).

What is RCM margin stop out level?

RCM margin stop out level is 50% this means that if your Free Margin falls below 50% then your positions will be automatically closed. MetaTrader 4 will automatically close in order of the largest loosing position to the smallest.

The margin stop out level is calculated using the following formula.

Margin level = equity / used margin x 100%

= margin level %

Worked example

The margin on a $10,000 USD (equity) trading account with 1 standard lot open position on USD/JPY and 100 times leverage would be calculated as follows:

= 10,000 / 1,000 x 100%

= 1000% margin level

If the position moves against you and your equity fell to $5,000 the calculation would be:

= 5,000 / 1,000 x 100%

= 500% margin level

If the position moved against you even further and the equity fell to $499 the position would be stopped out as the margin level would have  fallen below 100%.

= 499 / 1,000 x 100%

= 49.9% margin level

What is cTrader Smart Stop Out

The Smart Stop Out logic in cTrader has been designed to provide maximum protection to trader’s accounts. This logic will replace cTrader’s Fair Stop Out logic because it provides significant benefits for users by using a much more advanced algorithm.

If Margin Level, falls below Smart Stop Out Level then positions will start being closed partially until Margin Level reaches above Smart Stop Out. The logic of Smart Stop Out will only close what is absolutely necessary from the largest position in order to safely restore Margin Level and protect the position itself, the position entry point and the trading account for as long as possible.

What does the deal confirmation window mean?

The deal confirmation screen displays a summary of the order that you have placed including the order number, quantity (volume) and price the order was filled at. The date and time the order was placed is displayed in the trade window.

How do I generate account statements?

You can generate account statements from within the trading terminal by selecting the history tab. Right clicking within the history area will open a new tab from here you will be able to select the time period of the statement that you wish to generate. Right clicking again with provide you with the option to save the report to disk or in HTML format for viewing in a web browser.

How do I see my account balance in MetaTrader 4?

MetaTrader 4 has a real time position keeping feature where you are able to see your account balance, Equity, Margin and Free Margin in real time in addition to the profit or loss on any open positions. This is information can be found in within the trade tab inside the terminal section of the platform. Your account history can be found under the history tab in the same area.

How can I open a demo account?

To open a MetaTrader 4 demo account you will need to follow these steps:

• Download and install the MetaTrader 4 trading platform;
• Open the trading platform on your PC;
• Select ‘file’ in the menu item then ‘open an account’;
• Complete the registration form and select ‘Next’;
• Select the ‘Finish’ button.

Does my demo account ever expire?

RCM MetaTrader 4 demo accounts do not have an expiry date.

What does it mean to have a ‘long’ or ‘short’ position?

A ‘long’ position is much the same as entering into a BUY transaction, conversely a ‘short’ position is much the same as entering into a SELL transaction.

By way of example if you BUY 1 standard lot or 100,000 units of EUR against USD you are entering into a ‘long’ position. If on the other hand you sell 1 standard lot of 100,000 units of AUD against USD you are entering into a ‘short’ position.

Is there a minimum number of trades I need to place each month?

There are no limits to the number of trades that you must place each month.

Is there a limit to the number of open positions that I can have open at any one time?

There is a limit of 200 orders, open or pending, on your account at any one time. Once you reach 200 orders you will not be able to place any more trades.

Does RCM offer deposit bonuses?

RCM is an ECN broker and does not offer any deposit bonuses.

Can I loose more than my initial deposit when trading forex?

Both our MetaTrader 4 and cTrader platforms are set to automatically close your positions when your margin requirement reaches 100% (stop out level). This process is automated and is not a guarantee that your account will not enter into a negative equity situation. We recommend that you always maintain a balance in your account over and about your required margin. If the stop level is reached a market order is triggered to close your open positions at the next available price in the market.

Events such as markets gapping over the weekend or on major holidays where liquidity is thin can increase the chance of your positions being stopped out and a negative equity situation occurring  We advise that you use stop loss orders to limit your risk and you monitor the margin level in your account regularly. You will be responsible for any negative balance in your trading account.

How long can I keep my positions open for?

You can keep your positions open for an indefinite period of time.

Can I log into multiple accounts from the same computer?

Yes, as long as you have an instance of MetaTrader 4 installed for each login.

Can I log into my account simultaneously on separate computers?

Yes, it is possible to log into your MetaTrader 4 account with the same username and password at the same time on separate computers.

Can I use the MetaTrader 4 trading platform on an Apple Mac?

Yes, you are able to use the MetaTrader 4 trading platform on an Apple Mac, however you must install parallel operating systems.

What is RCM policy regarding slippage?

Slippage is an inherent part of financial markets. Whether you are trading Stocks, Futures, Commodities or Forex you will be subject to slippage. When you place a market order you are requesting your order to be filled at the currency market price however if the market has moved between the time you place your order and the time it has been filled your order may be filled at a different price. Slippage can increase when markets become volatile such as over new periods, you should keep this in mind when trading outside of normal market conditions.

Stop Loss orders when triggered enter the market as market orders, therefore their is no guarantee that your order will be filled at the price you place your stop loss.

How do the charts on MetaTrader 4 work?

The charts on MetaTrader 4 reflect the “Bid” price only, the “Ask” price is not shown on the charts. You can however draw an “Ask” line on the charts by clicking on the chart and selecting ‘show ask line’, this will result in an estimation of the “Ask” price which is based entirely on the spread. You should bear this in mind when conducting any historical analysis using the charts available in MetaTrader 4.

Where are your trading servers located?

RCM has server located in the Equinix NY4 data centre, New York.

Details regarding our live Metatrader 4 servers are outlined below:

True ECN Server Primary

IP Address:

Hostname: live01.rigelforex.com

Location: Equinix NY4, New York, USA (11 miles from Wall Street)

True ECN Server Secondary

IP Address:

Hostname: live02.rigelforex.com

Location: Equinix NY4, New York, USA (11 miles from Wall Street)

Details regarding our demo Metatrader 4 server are outlined below:

True ECN Demo Server

IP Address:

Hostname: demo.rigelforex.com

Location: Boston, USA

Our cTrader servers in the NY4 data center operate on a cloud based system with the IP address changing dynamically. It is technically not possible to ping our cTrader server to check latency.

How do I test the latency from my computer to the MetaTrader 4 trade server?

The latency from your computer to RCM trade servers can be tested by conducting a ping test.

The instructions below explain how a ping test can be conducted

Step 1 : On your computer go to the start menu and type “CMD” in the “search programs and files” feild.

Step 2 : Type in the word “ping” followed by a blank space and the IP address of the server you wish to ping.

Step 3 : The bottom line on the resulting output will show in milliseconds the minimum, maximum and average time it too to send and receive data from your computer to the server.

Questions about trading CFDs Online

What time does the CFD market open?

CFDs opening times reflect the market hours of the underlying instrument over which the CFD is based. Please refer to RCM CFD product specification sheet which details the opening hours of each CFD contract.

What are the fees, commission for trading CFDs with RCM?

RCM does not charge any additional fees or commission for CFD trading.

What are the margin rates of the CFDs at RCM?

The margin rates of each CFD contract vary and are dependent on the CFD contract traded. Typically the margin rates will vary from 0.5 – 1%, please refer to RCM CFD product specification sheet for details relating to the margin requirement for each CFD contract.

Do CFD contracts have a minimum trade size?

CFDs do have minimum trade size. The minimum trade size is 1 CFD contract.

How are RCM CFD prices calculated?

Forex CFD prices are calculated based on the price of underlying instrument with an adjustment made for fair value. Fair value is equal to the spot price after taking into account compound interest and dividends.

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