HotSpot FOREX Trading Platform

HotSpot FOREX

Frequently Asked Questions

What is the Hotspot FX Trading Platform?
The Hotspot FX Trading Platform is a system that enables users to trade in real time, and allows you to place live bids and offers. All buy and sell requests are executed in the order in which they are received, without regard to your identity or size of your order.

Is the price on the screen a true live price?
Yes. All the prices are firm tradable prices and can be executed instantly.

Is the Hotspot FX trading platform completely anonymous?
Yes. The Hotspot FX trading platform provides you with complete anonymity.

Can I see the depth of the market (like on the NASDAQ Level II screens)?
Yes. All outstanding buy and sell requests will be displayed in a visual format. The depth of the market gives you an indication of the true supply and demand for a currency while maintaining complete anonymity.

Can I place a bid and an offer in the market at the same time?
Yes. You can input as many bids and offers as their margin requirement allows. You will have the ability to be market makers, and you will have the option of placing their bids/offers inside or outside the existing price.

Will margin-buying power be updated live?
Yes. As your open position size and your P&L changes, your margin account balance will reflect your increased/decreased purchasing power. This update takes place live on the Hotspot FX system.

How quickly are deals transacted?
Instantaneously.

What are the minimum system requirements?
We recommend a minimum configuration of a 266 MHz CPU, 128MB RAM, 50 MB free hard disk space and a 56 K modem. Display settings should be set for 1024 by 768 pixels.

What amounts can be traded?
Amounts are denominated in millions but can be traded in increments of 100,000 of the base currency.

What is the minimum trade size?
Our minimum trade size is 100,000 units of the base currency.

How are trades executed and confirmed?
Trades are executed instantly. A confirmation panel appears on your screen. All deals are recorded in your deal log.

What currencies are available to trade?
All the major currencies.

How are positions carried from one day to the next?
Hotspot FX will automatically roll open positions on a daily basis. Rollover interest rate adjustments will be credited or debited directly to your account daily.

What are the trading hours?
The Trade Desk will be open 24 hours a day from Sunday 6:00 PM EST in New York until Friday 4:30 PM EST in New York. Please visit contact us for more details.

Is trading with Hotspot FX secure?
Yes. Hotspot FX uses sophisticated encryption and authentication protocols to ensure your security and privacy. When your account is approved, you will be issued a USER ID and a Password. This information will be required to trade. Trade Desk phone lines are tape recorded.

Will Hotspot FX issue account statements?
Yes. You will be able to access daily, monthly and YTD historical trade data, as well as P/L history. These can be downloaded and printed at any time. Please visit the account login section of our site to access your account information.

Can I deal with a salesperson on the phone?
Yes. Please contact us for more information.

Is there a demo trading platform?
Yes. Prior to downloading the HotSpot platform, you will need to request a demo and obtain a User Id and Password from vCap FX. Please complete a Demo Request Form if you would to demo HotSpot.

Once you have obtained a User ID and Password, you can download the Hotspot FX platform. The demo-trading platform is functionally similar to the live-trading platform. The demo-trading platform is a time delayed automatic price fed system. Amounts and rates will differ from the live-trading platform. There is no order system on the demo-trading platform.

We strongly encourage all of our clients to practice on the demo-trading platform before using the live- trading platform.

May I leave orders?
Orders may be placed via our electronic orders system or on the phone with the Trade Desk. Please visit contact us for more details.

Who is the counterparty to my transaction?
Hotspot FX is the counterparty to all transactions.

If I take a cross currency position, can I split the position?
Yes. The split function is available in the Open Positions box located on the trading platforms. To access this feature, highlight the cross position, type in the amount, and click send.

Will there be Fidelity Bond Insurance?
Yes. HotSpot provides secured fidelity bond coverage protecting your assets and Hotspot FX against acts of fraud or dishonesty by any officer, employee or manager of Hotspot FX.

Are there commissions?
Yes. Transactions (trades) are charged a commission per 100,000 units transacted.

What leverage is given?
2% (50 to 1) on account balances to $99,999
3% (33 to 1) on account balances above $100,000

Will interest be earned on my account?
Yes. You can expect to earn interest daily and paid monthly according to the following grid:

$20,000-$49,9990.75%
$50,000-$149,9991.00%
$150,000-$499,9991.25%
$500,000-$2,999,9991.50%
$3,000,000-$9,999,9991.75%
$10,000,000 and over2.00%

You are paid interest on the full balance of your account. 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 the minimum balance requirement of $20,000 will not earn interest until they are brought above that level.

Is Hotspot regulated by the CFTC?
Yes. HotSpot 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).

How much money is required to open a margin account?
The minimum initial deposit size is $7,500.

How do I open a live trading account?
If you would like to open a HotSpot FOREX account, please visit our open account section.

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, HotSpot will notify you, either electronically or verbally. 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 FX 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 FX will go into the market and close all the position(s).

4. that they can notify Hotspot FX Inc. that they are wiring sufficient funds to bring the margin requirement above 100%. Hotspot FX Inc. must receive the funds by 5 PM EST, or the above order/margin cut procedure will apply.

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.

Overview

Hotspot FX, Inc. operates two leading spot FX marketplaces (Hotspot FXi LLC and Hotspot FXr LLC) for institutional and retail market participants where buyers and sellers worldwide can trade foreign exchange directly and anonymously with each other, gain price improvement for their trades and lower their overall trading costs. Both marketplaces provide anonymous, instantaneous, direct access trading on live, executable, streaming prices supplied by leading foreign exchange banks and financial institutions.

What separates HotSpot from other FOREX Platforms and FOREX Portals:

  • Instant Trade Execution. HotSpot facilitates client trading on live prices supplied by bank market makers and other clients;

  • Comprehensive market depth display. See all bids and offers for every currency pair traded on the platform, and

  • Professional order execution via interbank protocol. HotSpot does NOT compete against client orders, take or carry positions. HotSpot FXr LLC is the credit counterparty to all transactions on the retail platform.

Hotspot FX Inc. is headquartered in Jersey City, New Jersey, a suburb of New York City, Chicago, Boston, London, Beijing and Singapore. Hotspot FX Inc. is a member of the National Futures Association (NFA) and is registered as a Futures Commission Merchant with the Commodity Futures Trading Commission (CFTC)- NFA #0351580.

Safety of Funds

Hotspot FXr LLC's client funds are held at a major money center bank. In addition, Hotspot FXr has secured a Fidelity 14 Bond.

The fidelity portion of the bond is the most important feature. It covers loss caused by dishonest or fraudulent acts committed by employees. The dishonest or fraudulent acts must be committed with the manifest intent to (a) cause the insured to sustain loss and (b) to obtain improper financial benefit for the employee. The bond extends to include loss caused by dishonest employees engaged in trading activity.

Another feature of the fidelity bond is the 'Computer Systems Insuring Agreement', which covers loss resulting from the introduction of false data or programs into a computer system used by the insured. Since the fidelity portion of the bond covers dishonest acts by employees, this portion of the bond is directed toward acts of non-employees (hackers) who may gain access to the system. Coverage would include inappropriate wire transfer.

The 'Forgery or Alteration Agreement' covers loss resulting from forgery of a signature or alteration involving most types of negotiable instruments. Also, losses resulting from written instructions directed towards the insured that have been altered, or bear a false signature, are covered.

Features & Benefits

Hotspot is one of the first liquid, client-to-client and bank-to-client secure ECN foreign exchange trading platform which allows clients to trade spot foreign exchange. Clients can also access a wide range of products including: charting and live news feeds. Clients will be able to trade, enter orders, and monitor positions on-line, 24 hours-a-day. The HotSpot platform allows for instantaneous direct execution, while it maintains complete anonymity.

HotSpot FOREX

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  • Transparent, level playing field
  • All participants see bids/offers and quantities in the market (ECN Based Platform)
  • Direct access trading on multi-bank pricing
  • Bid/offer capability inside, at, or outside the current spread
  • Order execution following Professional Interbank Protocol
  • Real-time risk management position and margin updates
  • Comprehensive client activity reporting
  • No dealer conflict of interest, HotSpot does not compete against client orders, take or carry positions
  • Professional trade/execution staff to facilitate your needs
  • Highly competitive interbank liquidity and spreads
  • All prices are live, no re-quotes
  • Instantaneous price execution
  • Real-time, multibank market data
  • Earn interest on trading positions, account balances (where applicable)

Dealer Market Model

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Electronic Marketplace

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The Hotspot platform allows market participants to "earn a spread" by giving them the ability to directly input bids and offers into the platform, to deal on actual live prices and to see the full depth of the market. Transactions are immediate - requiring only two keystrokes. The savings in time and hidden commissions are significant, while the strategic advantages involved in "seeing" the market can greatly enhance profits.

Download

IMPORTANT: Prior to downloading the HotSpot platform, you will need to request a demo and obtain a User ID and Password from vCap FX. Please complete a Demo Request Form if you would to demo HotSpot.

Once you have obtained a User ID and Password from vCap FX, we will provide you with step-by-step instructions on how to download your HotSpot product.

Download HotSpot Download HotSpot

Support

IMPORTANT Please DO NOT contact Platform Support for sales related information. For any account opening information please contact Sales.

vCap FX Support: + 1 512 377 9842
support@hotspotfx.com
support@vcap.com

Demo platform access is available 24 hours a day.
The Demo is shut down daily from 4:30 to 5:00 PM EST for night cycle.
The streaming demo auto price feed is available Sunday 6 PM EST through Friday at 5 PM EST and is delayed by 1 second.

System Requirements

  • 266 MHz CPU
  • 128MB RAM
  • 50 MB free hard disk space
    • 56 K modem
  • Display settings should be set for 1024 by 768 pixels.

HotSpot User's Guide HotSpot User's Guide