When creating a Signal Provider on the FXTRADING.com platform for Social Trading, the system only supports US Dollar (USD) as the currency type. This article explains the reasoning behind this design decision and related operational details.
Overview
Investment Wallet Mechanism
Our platform has introduced the concept of an "Investment Wallet," which is a dedicated wallet for Social Trading. All Investors need to transfer funds into their Investment Wallet before subscribing to Signal Providers.
Investment Wallet Features
Investment Wallets are denominated exclusively in USD
All Social Trading-related transactions and fees are settled through the Investment Wallet
This design simplifies the complexity of cross-currency transactions
Why Only USD?
1. Unified Pricing Standard
Using a single currency (USD) as the pricing standard ensures that performance data for all Signal Providers on the platform is comparable, avoiding data distortion caused by exchange rate fluctuations.
2. Simplified Fee Calculation
The calculation of Performance Fees and other charges requires precise profit and loss data. Using a unified currency avoids calculation errors arising from currency conversion, ensuring accurate and fair fee calculations.
3. Avoiding Exchange Rate Risk
Using a single currency eliminates the exchange-rate risk that Investors might face when using multiple currencies, providing a more stable trading experience.
Differences Between Signal Provider (Social Trading) and Other Account Types
Important Note: Signal Provider (Social Trading) is the only product on our platform that supports USD exclusively. In comparison:
Standard Trading Accounts: Our five standard account types (such as Standard, Raw, etc.) support 8 different currencies
Funds Management : Also supports all 8 currency types
This means that only Investors using Social Trading need to pay special attention to the USD usage restriction.
Operational Instructions When Creating Signal Provider
Since USD is the only supported currency for creating Signal Providers for Social Trading:
The system defaults to USD as the currency type
Signal Provider applicants do not need to select a currency type during the creation process
All related profit/loss and fee calculations are denominated in USD
Important Notes
Before using the Social Trading feature, please ensure you have sufficient USD funds in your Investment Wallet
If you need to convert other currencies to USD, you can use the platform's currency exchange function
All Signal Provider performance data, rankings, and fee calculations are based on USD
If you wish to trade in other currencies, you can choose our standard account types or Funds Management services
For account-specific help, sign in to the Client Portal, open Service Hub from the left navigation menu, select Create Ticket, and choose the category and issue that best match your request.