 |
Licence No.
LICENCE NO:
246566
ISSUER: EASY FOREX PTY LIMITED
ISSUE DATE: 1 MAY 2008
The information and any general advice in this PDS do not take into
account your personal objectives, financial situation and needs.
Before trading in the products referred to in this PDS you should
read this PDS and be satisfied that any trading you undertake in
relation to those products is appropriate in view of your
objectives, financial situation and needs as well as considering the
risks associated with dealing in those products. You should read all
sections of this PDS before making a decision to acquire the
financial products described herein.
We recommend that you consult your financial adviser or obtain other
independent advice before trading in the products referred to in
this PDS. Easy Forex does not and will not give you personal
financial product advice and this PDS does not constitute a
recommendation or opinion that the products referred to in this PDS
are appropriate to you.
 |
|
|
1. Introduction
Under the Corporations Act 2001, a retail client must
receive a Product Disclosure Statement ("PDS") from a financial
services licensee before acquiring a financial product. The PDS is
the document that sets out the significant features of a financial
product, including its risks, benefits and costs. The purpose of
this PDS is to provide you with sufficient information to make an
informed decision in relation to the acquisition of our financial
products. This document is our PDS for derivatives and foreign
exchange products. This PDS is available on the Internet at www.easy-forex.com.au.
Paper copies of this PDS will be sent by the
Issuer to any person on request and free of charge. To obtain a
paper copy free of charge, please contact us through the contact
details given in section 20 of this PDS.
Jurisdiction and Selling Restrictions: This PDS is not an offer or
invitation in relation to the products in any place in which, or to
any person to whom, it would not be lawful to make that offer or
invitation. The distribution of this PDS outside Australia may be
restricted by the laws of places where it is distributed and therefore
persons into whose possession this document comes should
seek advice on and observe those restrictions. Failure to comply
with relevant restrictions may violate those laws.
This PDS seeks to explain to you about our products in a clear,
concise and effective manner. Given that foreign exchange is a
complex area of the financial markets, you are referred to the Dictionary
on our website at www.easy-forex.com.au to assist your
greater understanding. When we use the terms 'Easy Forex', 'we',
'us' or 'our' in this PDS the reference is to Easy Forex Pty. Ltd,
ACN 107 184 510; AFS Licence 246 566 the issuer of the foreign
exchange products. When we use the term "you" we mean you as
the user of our products When we refer to "client" we mean you
or another user of Easy Forex products as applicable.
This PDS is an important document and provides you with key
information about our foreign exchange products.
Before trading in the products referred to in this PDS you should
give consideration to your objectives, financial situation and
needs. We recommend that you take all reasonable steps to fully
understand the possible outcomes of trades and strategies in relation
to utilising the Easy Forex trading platform. You should
also be aware of the risks involved and be satisfied that trading
in our products is suitable for you in view of your financial circumstances.
If you have any questions in relation to this PDS, please do not
hesitate to contact us through the contact details given in section
20 of this PDS.
|
|
|
3. Who is Easy Forex?
Easy Forex provides an online trading platform, enabling
clients to trade in derivatives and in foreign exchange rates
over the internet. Easy Forex provides clients with direct access to
our system to enable them to buy and sell currency rates.
Easy Forex forms part of the Easy Forex Group which currently
operates in Europe, USA and Asia Pacific. The Easy Forex Group
was founded by a group of bankers, forex and internet experts
and offers traders direct access to the global currency markets.
|
|
|
4. What Products does this PDS cover?
This is a PDS for foreign exchange products provided by
Easy Forex. These are Over the Counter ("OTC") products.
Foreign exchange is essentially about exchanging one currency
for another at an agreed rate. The exchange rate is the price of
one currency in terms of another currency such as the price of
the Australian dollar in terms of the US dollar. For example, if the
current exchange rate for the Australian dollar as against the US
dollar is AUD/USD 0.7500, this means that one Australian dollar
is equal to, or can be exchanged for, 75 US cents.
Easy Forex products do not result in the physical delivery of the
currency but are cash adjusted or closed by the client taking an
offsetting opposite position i.e. there is not a physical exchange
of one currency for another. Positions will always be closed and
the client's account will be either credited or debited according
to the profit or loss of the trade. Should a transaction be held to
expiry [i.e. the nominated forward date] then it is cash settled
according to the closing price of that currency, as quoted by Easy Forex, on that particular day.
Our foreign exchange products are as follows:
Day-Trading:
A Day-Trading transaction is a currency exchange deal which
renews automatically every night at 22:00 (GMT time) starting
the day the deal is made and until it ends. The deal ends in one
of the following events:
(i) Termination initiated by you.
(ii) The Day-Trading rate has reached the stop loss or take profit
rate you predefined.
(iii) The deal end date.
Forward Contracts:
A forward contract is an agreement to buy or sell a specified
amount of a commodity or financial instrument at a fixed price
some time in the future.
A forward contract offered by Easy Forex is a currency rate deal
where the settlement date is later than two working days after the date of entering the transaction (under the Corporations Act
2001, these products are classified as 'derivatives').
Each transaction agreed and entered into with a client will be entered
into as principal. Easy Forex will be making a market in its
products as it will regularly state the price at which it is prepared
to deal with the client as principal.
When trading Easy Forex products you should be aware of the
risks and benefits (as set out in this PDS). Examples of how the
Easy Forex day trading and forward contracts can be traded are
provided in Section 7 of this PDS. The examples provided in Section
7 of this PDS are only provided for illustrative purposes and
use figures which attempt to demonstrate how the relevant Easy
Forex products work. Those figures do not necessarily reflect Easy
Forex's or your personal circumstances and do not restrict in any
manner the way in which Easy Forex may exercise its powers or
discretions. Those examples do not constitute general or personal
financial product advice to any person reading this PDS.
|
|
|
5. Purpose of Easy Forex Products
Foreign exchange exposures may arise from a number
of different activities.
A person going on a holiday to another country has the risk that
if that country's currency appreciates against their own, their trip
will be more expensive.
An exporter who sells its product priced in foreign currency has
the risk that if the value of that foreign currency falls then the
revenues in the exporter's home currency will be lower.
An importer who buys goods priced in foreign currency has the
risk that the foreign currency will appreciate thereby making the
cost, in local currency terms, greater than expected.
In each of the above examples, the person or the company is
exposed to currency risk.
Currency risk is the risk that arises from international travelling
or business which may be adversely affected by fluctuations in
exchange rates. Easy Forex offers its clients the facility to buy or
sell foreign exchange products to manage this risk.
This enables clients to protect themselves against adverse currency
swings, yet secure enhanced exchange rates when offered,
thereby protecting the profit margin made by the corporate during
the business transaction relating to the foreign currency trade
or protecting the cost of the client's international holiday in the
case of the traveller.
Easy Forex products may also be used by the speculator. A client
may take a view of a particular market or the markets in general
and therefore invest in our products according to this belief in
anticipation of making a profit.
|
|
|
6. How is the Foreign Exchange Rate
Calculated?
Easy Forex cannot predict future exchange rates and
our rate quotations are not a forecast of where we believe foreign
exchange rate will be at a future date. The decision to transact at
a particular rate will always be the client's decision.
The calculation of the price to be paid (or the payout to be received)
for foreign exchange products offered by Easy Forex, at
the time the contract is purchased or sold, will be based on Easy
Forex's best estimate of market prices and the expected level of
interest rates.
The calculation will include a spread in favour of Easy Forex. The
contract prices (or the payout amounts) offered to clients hedging,
trading or speculating on market prices may differ substantially from prices available in the primary or underlying markets
where contracts are traded. This is due to the spread favouring
Easy Forex in the price calculation. Easy Forex acts as a market
maker and not a broker and makes its earnings from the spreads
that are embedded in the currency rates. Different spreads are
used depending on the value of the transaction. Easy Forex earns
its income from the business spread or margin that we apply to
our foreign exchange products. This is the difference between the
rate at which we buy and sell the financial instruments, and will
depend on factors such as the size of the trade and prevailing
market rates. This spread is incorporated into the rates quoted to
you and is not an additional charge or fee payable by you. Different
spreads are used depending on the value of the transaction.
Contract payouts shall be determined by Easy Forex by reference
to the daily values reported on our website relevant to the inter
bank trading data received by us for foreign exchange quotes,
subject to Easy Forex having the right to make corrections to
such data in the event of mis-priced or typographically incorrect
data.
Easy Forex does not provide a market amongst or between clients
for investments or speculations. Each product purchased (or sold)
by a client is an individual agreement made between that client
and Easy Forex as a principal and is not transferable, negotiable
or assignable to or with any third party.
|
|
|
7. How are the Easy Forex Products Traded?
Easy Forex provides an online trading platform, enabling
clients to trade in our products. Clients are provided direct
access to currency rates over the internet.
As stated in section 4 above, the foreign exchange products offered
by Easy Forex are Day Trading and Forward Contracts. Let's look at some examples.
Day Trading:
The Day-Trading zone on the Easy Forex online trading
platform allows you to perform daily currency rate deals on all
major currencies such as AUD/USD and EUR/USD, cross currencies
such as EUR/JPY and GBP/AUD and traditional mediums of
exchange, notably GOLD (XAU/USD) and SILVER (XAG/USD). The
deals renews automatically, every night at 22:00 (GMT time), until
the deal ends as specified on each deal.
Let's assume that you believe that the AUD should go up compared
with the USD. You want to buy USD50,000 worth of AUD and are
willing to risk AUD1,000. You could purchase a Day Trading deal
as follows; Buy AUD and Sell USD at an exchange rate of .7618
USD per AUD. By selecting the AUD1,000 as the amount you are
willing to risk, automatically, a stop loss order is generated at a
rate of .7504. This AUD1,000 is the maximum amount you could
lose, nothing more. At the exchange rate of .7618 USD50,000
equals AUD65,634.02, at the automatic stop loss exchange of
.7504, USD50,000 equals AUD66,631.13, which is slightly within
the maximum at risk AUD1,000. Remember we are looking for the
AUD to appreciate against the USD.
Let's examine what happens when the deal ends, at various exchange rates:
(i) The exchange rate is .7440. In this case, the deal
has been terminated at your pre-defined stop loss
of .7504. You have lost AUD1,000, the amount you
were willing to risk. It is worth noting that without
the stop loss your losses at this rate would be
AUD1480.07 which is the difference between
USD50,000 converted at .7618 (AUD65,634.02)
and USD50,000 converted at .7440 (AUD67,114.09).
(ii) The exchange rate is .7610. In this case, you lose only AUD69. This amount is the difference between
USD50,000 converted at .7618 (AUD 65,634.02) and
USD50,000 converted at .7610 (AUD 65,703.02).
(iii) The exchange rate is .7750. You have made a profit
of AUD1,117.90. This amount is the difference between
USD 50,000 converted at .7618 (AUD 65,634.02)
and USD 50,000 converted at .7750 (AUD 64,516.12).
Forward Contract:
Forward foreign exchange contracts are generally used
by importers, exporters and investors who seek to lock in exchange
rates for a future date in order to hedge their foreign currency
cash flows. However, it is not only hedgers who can benefit from
forward contracts. Any person may purchase a forward contract, if
he / she is prepared to take a risk for the possibility of making a
profit or incurring a loss.
The forward contract trading zone on the Easy Forex online trading
platform allows a client to perform future currency rate deals.
If the client does not close the deal, it will exist until its pre-set
date of maturity, or until the stop loss, take profit or limit price
reaches the pre-determined rate, whichever comes first.
Let's assume that you are in the Import-Export business and are
uncertain and concerned about future fluctuations in currency
exchange rates and you have contracted to purchase inventory for
the price of USD100,000 payable in 60 days time.
At Easy Forex you can lock in a specific future exchange rate, in
order to avoid the unknown impacts arising from exchange rate
fluctuations. For example, you are worried about increase of the
USD compared to the Australian dollar.
You want to ensure the rate for a purchase of USD100,000 in a
later date, say 60 days from today (you may actually select a date
that can be any business day up to three months from today's
date). You could purchase a forward contract, buying USD100,000
and selling Australian Dollars, dated 60 days from today at USD
0.75 per Australian dollar.
First of all, you enter into a forward contract and have ensured
the exchange rate of 0.75 for the date 60 days from today. Nothing
can change that. Let's assume you have entered a pre-defined
stop loss order at say, 0.80. Let's examine what happens when the
deal ends, at various exchange rates:
(i) The exchange rate sometime during
the pre-set period of 60 days, reached 0.80. In this case, the deal
has been terminated at your pre-defined stop loss rate of 0.80. You
have lost AUD8,333.33, the amount you were willing to risk. This
amount is the difference between USD100,000 converted at 0.75
(AUD133,333.33) and USD100,000 converted at 0.80 (AUD125,000.00).
(ii) The exchange rate at the specified date is 0.78. In this
case, you lose only AUD5,128.21 This amount is the difference
between USD100,000 converted at 0.75 (AUD133.333.33) and USD100,000
converted at 0.78 (AUD128,205.12).
(iii) The exchange rate at the specified date is 0.72. You
have made a profit of AUD5,555.55. This amount is the difference
between USD100,000 converted at 0.75 (AUD133.333.33) and USD100,000
converted at 0.72 (AUD138,888.88).
In the examples above, if this was a hedging transaction, the loss
(or profit) on the forward contract would be offset against the
lower (or higher) price you physically had to pay for the equipment
based on the exchange rate in 60 days time.
|
|
|
8. Margin Obligations
Forward contacts will be subject to
margin obligations. Initial margin means the initial deposit (an up
front payment) of funds required by Easy Forex to cover the risk to
Easy Forex and as security for the client's obligations.
Furthermore, additional margin (also known as variation margin) may
be payable in the event of adverse market movements to keep the
position open.
Positions are monitored by Easy Forex on a mark to market basis to
account for any market movements. If the value of the position moves
against you then you will be required to "top up" the initial margin
and, if so, you will be subject to a margin call i.e. to pay
additional margin (automatically from your Easy Forex account).
Initial margin obligations will be as follows:
In the case of forward contracts, the initial margin immediately
payable is between 2% - 5 % of the face value of the contract.
You must be in a position to fund such requirements at all times
or your position may be closed out by Easy Forex when the mark
to market value of your account reaches zero.
It is also important to note that margin calls will be made on a
per transaction basis i.e. should you have several open positions,
then additional or variation margins (margin calls) are performed
on each exposed position and not netted across the group of open
transactions. In other words, the unrealised profits of one transaction
can not be used to offset the unrealised losses of another
transaction.
You will only be allowed to deal in and maintain positions on the
basis of cleared funds being provided for your margin obligations.
Margin calls can be made by Easy Forex at any time and you are
responsible for ensuring that they are met.
Easy Forex has the right to limit the size of your open positions,
whether on a net or gross basis under any appropriate circumstances
as determined by Easy Forex. Easy Forex also has the right
to refuse any request made by you to place an order to establish
a position at any time at Easy Forex's discretion without having to
give you notice.
|
|
|
9. Costs of Foreign Exchange Products
Easy Forex do not charge fees or commissions for you
to enter into our foreign exchange products. Easy Forex acts as a
market maker, and makes its earnings from the spreads that are
embedded in the currency rates.
As discussed in section 8 of this PDS, where you enter a forward
contract you will be required to pay initial margin and may be
required to pay additional margin in the event of adverse market
movements against your position. Such payments are not costs
but are cleared funds required by Easy Forex to cover our risk and
as security for the client's obligations.
The margin amounts are payable into the Easy Forex client trust
account and are held, used and withdrawn in accordance with the
Corporations Act 2001 requirements and our agreed Terms and
Conditions. All interest that may accrue on the client trust account
is kept by Easy Forex.
You will be charged a renewal fee with respect to Day Trading
transactions. As long as the deal is open, it is charged a renewal
fee of $1USD to 2USD per 10,000USD deal face value, depending
on the total volume of trade every night at 22:00 (GMT time).
|
|
|
10. Terms and Conditions
The Easy Forex Terms and Conditions govern the contractual
relationship between Easy Forex and the client. These
must be acknowledged and accepted via our website before you
can trade with us. The Terms and Conditions set out the basis on
which future transactions will take place and the obligations of
both Easy Forex and the client when accessing and trading on the
trading platform. However, entering into the Terms and Conditions
does not itself constitute a trade or in any way oblige you
to enter into future transactions. This is always your decision.
Easy Forex may in its discretion amend or vary the Terms and
Conditions or withdraw in whole or in part any account provided
by Easy Forex to you.
Easy Forex products are offered solely on the basis of the information
and representations contained in this PDS, and any supplementary
PDS, the Easy Forex Terms and Conditions as amended
from time to time, the Financial Services Guide (FSG) and any
supplementary FSG and no other information or representation
however provided and conveyed to you.
|
|
|
11. How do your Orders get Executed and
Confirmed?
You must follow the following steps to
effect orders w ith Easy Forex:
|
1. |
Read this Product Disclosure Statement and the
Financial Services Guide; |
|
2. |
Read, acknowledge and accept the Terms and
Conditions contained on the website at
www.easy-forex.com.au
|
|
3. |
Set up an account with Easy Forex in accordance with
the steps contained on the website at
www.easy-forex.com.au |
|
4. |
Based on the quotations, you will enter into a contract
with Easy Forex using the online trading platform; |
|
5. |
You will receive an electronic confirmation from
Easy Forex (which gives details of the transaction); |
|
6. |
You can access details of your account any time online. |
By going through the steps you acknowledge to
Easy Forex that you:
|
|
Are aware that investing in Easy Forex products carries
a high level of risk and due to the potential volatility
and fluctuations in foreign exchange markets you could
sustain a total loss of the amount that you deposit with
Easy Forex to establish or maintain a contract or sustain
significant losses;
|
|
|
Have given consideration to your objectives, financial
situation and needs and the significant risks of loss
which together are with the prospects of profit associated
with dealing in foreign exchange products offered
by Easy Forex and have formed the opinion that dealing
in those products is suitable for your purposes;
|
|
|
Received a recommendation from Easy Forex to consult
your financial advisor or obtain other independent
advice before trading in the products referred to in this
PDS;
|
|
|
Have obtained appropriate and sufficient advice
concerning the terms of this PDS, the Terms and
Conditions and the FSG;
|
|
|
Have consented to Easy Forex collecting,
maintaining, using and disclosing personal
information about you and provided by you for
another person as described in Section 16 and;
|
|
|
Have received or downloaded this PDS, the Company
Terms and Conditions and the FSG and read and
have understood them.
|
|
|
|
12. Significant Benefits of the Easy
Forex Products
Foreign exchange products such as
forward contracts provide an important risk management tool for
those who manage foreign currency exposures. The significant
benefits of using foreign exchange products offered by Easy Forex
products as a risk management tool are to protect your exchange rate
and provide cash flow certainty. Other benefits of using Easy Forex
apply equally for a client as a risk management tool or for the
client who is a trader or speculator and these are described below.
Protect an Exchange Rate:
Easy Forex provides an online trading platform, enabling clients to
trade in derivatives and foreign exchange rates over the internet.
This facility provides clients with direct access to our system to
enable them to buy and sell currency rates to protect themselves
against adverse market swings.
Easy Forex also offers clients a way of managing volatility by using
stop loss orders that enable clients to protect themselves against
adverse market swings yet secure enhanced market rates when offered.
Clients can eliminate downside risk by the use of stop loss orders
if the exchange rate reaches a particular level. In addition,
clients may also use limit orders which allow clients the
opportunity to benefit from favourable upside market movements.
Provide cash flow certainty:
By agreeing to a rate now for a time in the future you will
determine the exact cost of that currency, thereby giving certainty
over the flow of funds. Any profit (or loss) you make using the Easy
Forex product would be offset against the higher (or lower) price
you physically have to pay for the foreign currency. In addition to
using foreign exchange products as a risk management tool, clients
can benefit by using foreign exchange products offered by Easy Forex
to speculate on changing exchange rate movements. You may take a
view of a particular market or the markets in general and therefore
invest in our products according to this belief in anticipation of
making a profit.
The significant benefits of using foreign exchange products offered
by Easy Forex as a trader or a speculator (and for the client
seeking to use the Easy Forex product as a risk management tool) are
as follows:
Trade in small amounts:
The Easy Forex system enables you to make transactions in small
amounts. You can start using Easy Forex even with a deposit margin
as little as $25USD. When trading in a foreign exchange product
offered by Easy Forex you may deposit the sum that suits you, or the
amount which is in line with the amount you are willing to risk.
With Easy Forex you are in full control of your funds.
Access to the foreign exchange markets at any time
When using Easy Forex you gain access to a highly advanced and
multi-leveled system which is active and being updated 24 hours a
day. You can control your accounts and positions 24 hours a day.
Making deposits with your credit card
Easy Forex is the only foreign exchange product platform which
allows you to deposit margins on line with your credit card. That
means you are able to lodge your deposits at any time, regardless of
banking hours. Easy Forex cares about protecting your privacy as
well as your security, and does so in a professional and serious
way. We use the latest technologies and regulations in order to
provide security shield for your credit card and privacy. Please
read our Terms and Conditions.
Competitive spreads, no commissions
With Easy Forex you do not pay commissions for the trades you enter.
Easy Forex acts as a market maker, not as a broker, and makes its
earnings from the spreads that are embedded in the currency rates.
In the "Day trading" zone you may roll over your positions and then
you pay a renewal fee. Please see our Terms and Conditions.
Real time streaming quotes
The Easy Forex high-edge system uses the latest highly sophisticated
technologies in order to offer you up-to-the-minute quotes. You may
check your accounts and positions in real time and you may do so 24
hours a day and make a trade based on real-time information. Easy
Forex believes it is highly important for you to be able to control
your funds whenever you wish and base your deals on real-time
information.
Full control over your account and positions
With Easy Forex you are able to control your costs and risks. At
Easy Forex we believe your financial activities should be under your
full control. Easy Forex uses the latest technologies in order to
ensure your stop loss orders are filled. Easy Forex is committed to
the principle that you never lose more than what you are prepared to
lose. Please see our Terms and Conditions.
Moreover, Easy Forex will watch the market fluctuations for you.
When you open a limit order Day Trading deal, you set your preferred
exchange rate for a Day Trading deal and Easy Forex shall watch and
monitor the occurrence of such opportunity for you. When and if the
market rate reaches the rate you defined, Easy Forex shall
automatically perform the Day Trading deal for you. Similarly, if
you have an open position but are not currently accessing the
trading platform, you can Take Profit at your preferred exchange
rate. Easy Forex shall watch and monitor the occurrence of such an
opportunity for you. When and if the market rate reaches the rate
you defined, Easy Forex shall automatically close out your open
position for you to realise a profit.
No software download
The Easy Forex trading platform enables users to start trading
immediately. Unlike other online trading platforms, Easy Forex
eliminates the need to download proprietary software.
Tailor-made conditions for frequent traders
The spreads in our trading platform assume deals of small, up to
medium amounts. If you are a frequent user of the Easy Forex
platform and wish to trade with medium up to large amounts, please
do not hesitate to contact us by mail or telephone to enable us to
provide you with tailor-made trading conditions.
|
|
|
13. Significant Risks Explained
You should be aware that trading in the
foreign exchange products offered by Easy Forex involves risks. It
is important that you carefully consider whether trading our
products is appropriate for you in light of your investment
objectives, financial situation and needs.
The following is a description of the significant risks associated
with trading foreign exchange products offered by Easy Forex:
Derivatives Risks Generally
The risk of loss in trading in derivatives contracts can be
substantial. You should carefully consider whether our products are
appropriate for you in light of your personal and financial
circumstances. In deciding whether or not you will become involved
in trading derivatives, you should be aware of the following
matters:
|
(a) |
You could sustain a total loss of the amount that you
deposit with Easy Forex to establish or maintain a
contract.
|
|
(b) |
If the derivatives market moves against your position,
you will be required to immediately deposit additional
funds as additional margin in order to maintain your
position. Those additional funds may be substantial.
If you fail to provide those additional funds Easy Forex
will close your positions when the mark to market
value of your positions reach zero. |
|
(c) |
Under certain market conditions, it could become
difficult or impossible for you to manage the risk of
open positions by entering into opposite positions in
another contract or close existing positions. |
|
(d) |
Under certain market conditions the prices of contracts
may not maintain their usual relationship with the
underlying foreign currency market. |
|
(e) |
The foreign exchange products offered by Easy Forex
involve risk. However, the placing of contingent orders
such as a stop loss order will limit your loss.
A stop-loss order shall be executed either at the exact
exchange rate declared by the client or at the exact
amount of loss, in dollar terms, declared by the client. A
transaction of this nature shall be executed as soon as
the distinctive ("indicative") exchange rate is found on
the financial information systems which, including Easy
Forex's spread, is either identical to the order given by
the client, or indicates an identical amount of loss, in
dollar terms, declared by the client.
|
|
(f) |
A "spread" position (i.e. the holding of a bought
contract for one specified date and a sold contract
for another specified date) is not necessarily less
risky than a simple "long" (i.e. bought) or "short"
(i.e. sold) position. Furthermore a "spread" may be
larger at the time you close out the position than it
was at the time you opened it.
|
|
(g) |
The high degree of leverage that is obtainable in
trading the foreign exchange products offered by
Easy Forex because of the small margin requirements
can work against you as well as for you.
The use of leverage can lead to large losses as
well as large gains. The impact of leverage is that even
a slight fluctuation in the market could mean
substantial gains when these fluctuations are in your
favour, but that could also mean considerable losses
if the fluctuations are to your detriment. Trading in the
foreign exchange products offered by Easy Forex
may result in the total loss of the amount you
deposited with Easy Forex. |
Market Volatility
Foreign exchange currency markets are subject to many influences
which may result in rapid currency fluctuations and reflect
unforeseen events or changes in conditions with the inevitable
consequence being market volatility.
Given the potential levels of volatility in the foreign exchange
markets, it is therefore recommended that you closely monitor your
positions with Easy Forex at all times. Foreign exchange currency
markets are highly volatile and are very difficult to predict. Due
to such volatility, in addition to the spread that Easy Forex adds
to all calculations and quotes (as described in section 6 of this
PDS), no product offered by Easy Forex may be considered as a safe
trade.
However, Easy Forex offers clients a way of managing volatility by
working orders. Clients can eliminate some downside risk by the use
of stop loss orders where Easy Forex will enter into an opposite
position to your existing position with you if the exchange rate
reaches a particular level. In addition, clients may also use limit
orders which allow clients the opportunity to benefit from
favourable upside market movements.
You should be aware that if you acquire a foreign exchange product
offered by Easy Forex for trading or speculative purposes (that is
where you do not have a currency risk you need to protect yourself
from), you will be fully exposed to movements in price between the
currencies.
The risk of loss will be increased where you borrow to acquire the
product as the total loss which may be incurred will be the loss on
the foreign exchange product together with the amount you borrowed.
Counterparty Risk
Given you are dealing with Easy Forex as counterparty to every
transaction, you will have an exposure to us in relation to each
transaction. This is common to all OTC financial market products.
You are reliant on Easy Forex's ability to meet its counterparty
obligations to you to settle the relevant contract. Easy Forex may
choose to limit this exposure by entering into opposite transactions
as principal in the wholesale market in relation to its exposures
with clients. In addition, Easy Forex must comply with the financial
requirements imposed under its AFS Licence.
Opportunity Cost
Once you have locked in your exchange rate you will not be able to
take advantage of subsequent favourable exchange rate movements
should that occur, in relation to your existing contract. On the
other hand, you will be protected from any future adverse movements.
Market Information
Easy Forex may make available to you through one or more of its
services, a broad range of financial information that is generated
internally or obtained from agents, vendors or partners ("Third
Party Providers"). This includes, but is not limited to, financial
market data, quotes, news, analyst opinions and research reports,
graphs or data ("Market Information").
Market Information provided by us by email or through our website is
not intended as advice. Easy Forex does not endorse or approve the
Market Information and we make it available to you only as a service
for your own convenience. Easy Forex and its Third Party Providers
do not guarantee the accuracy, timeliness, completeness or correct
sequencing of the Market Information or warrant any results from
your use or reliance on the Market Information.
Market Information may quickly become unreliable for various reasons
including, for example, changes in market conditions or economic
circumstances. Neither Easy Forex nor the Third Party Providers are
obligated to update any information or opinions contained in any
Market Information and we may discontinue offering Market
Information at any time without notice.
Systems Risks
Easy Forex relies on a number of technology solutions to provide
you with an efficient trading platform. In this regard Easy Forex
relies on the Easy Forex Group to ensure the systems are updated and
maintained. The Easy Forex Group has been operating the trading
platform since 2001 and it totally conversant with the needs of
clients.
A disruption to the Easy Forex trading platform may mean you are
unable to trade in a foreign exchange product offered by Easy Forex
when desired and you may suffer a loss as a result. An example of
disruption include the "crash" of our computer based trading system.
.
Use and Access to the Website
You shall be responsible for providing and maintaining the means by
which to access the Easy Forex website, which may include without
limitation a personal computer, modem and telephone or other access
line.
While the internet and the World Wide Web are generally reliable,
technical problems or other conditions may delay or prevent you from
accessing the Easy Forex website. If you are unable to access the
internet and thus, the Easy Forex trading platform, it will mean you
are unable to trade in a foreign exchange product offered by Easy
Forex when desired and you may suffer a loss as a result.
Furthermore, in unforeseen and extreme situations, Easy Forex
reserves the right to suspend the operation of our website or any
part or sections of it. In such an event, Easy Forex may, at its
sole discretion (with or without notice), close out your open
contracts at prices it considers fair and reasonable at such a time.
Easy Forex may impose volume limits on client accounts, at its sole
discretion.
Clients' Monies
Funds deposited with Easy Forex are deposited into our client trust
account. The client waives the right to any interest on funds
deposited with us. Money is invested in accordance with the
Corporations Act 2001.
For money deposited in our client trust account, the client is
required to acknowledge as part of our Terms and Conditions that:
|
|
Individual client accounts are not separated from each
other;
|
|
|
All clients' funds are co-mingled into the one trust
acount;
|
|
|
The client money provisions may not insulate any individual
client's funds from a default in our client trust
account. Such a default may arise from any clients'
trading; and |
|
|
Assets in the client trust account belonging to non-defaulting
clients are potentially at risk, even though they
did not cause the default. |
|
|
Easy Forex is entitled to withdraw, deduct or apply any
amounts payable to Easy Forex under the Terms of this
PDS or the Terms and Conditions or the FGS or the Corporations
Act 2001. |
Risk Capital
In cases where you are speculating, we suggest that you do not risk
more capital than you can afford to lose. A good general rule is
never to speculate with money which, if lost, would alter your
standard of living.
Superannuation Funds
It should be noted that complying superannuation funds are subject
to numerous guidelines and restrictions in relation to their
investment activities, which are contained in the Superannuation
Industry Supervision Act 1993. The regulations made under that Act
and circulars issued by past and present regulators of
superannuation funds including the Insurance and Superannuation
Commission, the Australian Prudential Supervisory Authority and the
Australian Taxation Office.
Without being exhaustive some of the issues that should be
considered by Trustees of complying Superannuation Funds include:
|
|
Prohibitions on borrowing and charging
assets and whether dealing in Easy Forex foreign exchange products
would breach those borrowing and charging prohibitions; |
|
|
The purpose of dealing in Easy Forex
foreign exchange products in the context of a complying
superannuation funds whole investment strategy as well as the
fiduciary duties and other obligations owed by Trustees of those
funds; |
|
|
The necessity for Trustees of complying
Superannuation Funds to be familiar with the risk involved in
dealing in Easy Forex foreign exchange products and the need to have
in place adequate risk management procedures to manage the risks
associated in dealing in those products; |
|
|
The consequences of including adverse
taxation consequences if a super-annuation fund fails to meet the
requirements for it to continue to hold complying status. |
Other
Changes in taxation and other laws, government, fiscal,
monetary and regulatory policies may have a material adverse
effect on your dealings in the foreign exchange products
offered by Easy Forex.
|
|
|
14. What do I do if I have a Complaint?
Easy Forex has internal and external
dispute resolution procedures to resolve complaints from clients. A
copy of these procedures may be obtained by contacting us and
requesting a copy or via our website.
If you have a complaint about the financial services provided to
you, please take the following steps:
1. Contact Easy Forex to inform us about your complaint. You may
do this by telephone, facsimile, email or letter per details given
by section 20. We will investigate your complaint promptly. We will
try to resolve your complaint quickly and fairly.
2. If you are dissatisfied with the outcome of our
investigation, you have the right to complain to the Financial
Ombodsman Service, Ph: 1300 78 08 08 Fax: (03) 9613 6399 Web:
www.fos.org.au Email: info@
fos.org.au Mail: GPO Box 3, Melbourne, Victoria 3001
3. You can contact the Australian Securities and Investments
Commission (ASIC) on 1300 300 630. This is a Freecall Infoline. This
is another alternative that you may use to make a complaint and
obtain information about your rights.
|
|
|
15. Taxation Implications
Trading in foreign exchange products offered by Easy
Forex has the potential for generating substantial profits and
the potential for generating substantial losses. The tax implications
of such profits or losses may be significant depending on
the personal circumstances of the individual client. Easy Forex
does not provide tax advice and we recommend you seek your
own professional tax advice and the impact any profits or losses
generated from futures trading may have on your overall tax position.
Particularly as the taxation treatment will depend on your
individual circumstances.
Changes in taxation laws including changes in rulings, guidelines,
determinations and rules as implemented or interpreted by
the Australian Taxation Office from time to time can effect your
tax position including the categorisation of transactions involving
Easy Forex foreign exchange products. Your overall taxation
position may also be effected by your residency status for Australian
Taxation Law purposes.
There are also ongoing reforms that concern the taxation of financial
arrangements which could affect your own overall tax
position and in respect of which you will also need to obtain
professional tax advice..
|
|
|
16. Privacy
By affecting orders with Easy Forex you will be providing
Easy Forex with your personal information. Easy Forex will
also maintain records of all transactions and activities with respect
to your dealings concerning Easy Forex foreign exchange
products including margin calls made and Easy Forex will also
gather information about products and services provided to you.
Your personal information will be treated strictly in accordance
with National Privacy Principles in the Privacy Act.
You can access the personal information that Easy Forex holds
about you, subject to some exceptions allowed by law. Easy Forex
will give you reasons if it denies access.
Easy Forex may also record telephone conversations between you
and persons working for Easy Forex. Such recordings or transcripts
from such recordings may be used to resolve any dispute
between you and Easy Forex and may also be destroyed at Easy
Forex's discretion.
Easy Forex will also collect and hold information about you when
you use the Easy Forex website or Easy Forex's online trading platform
for transactions or dealings with Easy Forex or to access
your account. Easy Forex reserves the right to use cookies on its
website to collect statistical information or to allow you access to
your account online.
The personal information requested or obtained from or about
you is required by Easy Forex to enable it to provide you with
Easy Forex foreign exchange products enabling you to undertake
transactions with Easy Forex, providing you with information concerning
Easy Forex foreign exchange products and ensuring you
meet your margin obligations and other requirements concerning
transactions with Easy Forex.
That information is collected in compliance with the Corporations
Act 2001, the Privacy Act, Australian Taxation Law and other laws
and regulations.
Easy Forex may also be required to provide your personal information
to ASIC, the Australian Taxation Office, and other regulatory
and government bodies from time to time in Australia and
overseas.
Easy Forex may also disclose your personal information to:
|
|
FOS, courts, arbitrators and other dispute resolution
bodies;
|
|
|
Anyone you have authorised including persons acting
on your behalf such as your financial advisor, broker,
solicitor or accountant. |
Easy Forex may use your personal information for:
|
|
Marketing Easy Forex products and services to you:
and
|
|
|
Developing an understanding of the products and
services you may be interested in obtaining from
Easy Forex. |
If you do not provide Easy Forex with all the information Easy
Forex needs, Easy Forex may be unable to provide you with Easy
Forex products or allow you to set up an account with Easy Forex
or provide you with any other services.
If you have concerns about the completeness or accuracy of the
information we have about you or would like to access or amend
your information simply contact Easy Forex. Any changes concerning
personal information that Easy Forex holds about you
should be notified promptly to Easy Forex.
|
|
|
17. Anti Money Laundering and Terrorist
Financing
You acknowledge that Easy Forex is subject to Anti
Money Laundering laws in Australia and in other countries.
Money Laundering includes any dealing with the proceeds of, or
assets used in criminal activity (wherever committed) and any
dealing with funds or assets of, or the provision of finance to, any
person or entity involved or suspected of involvement in terrorism
or any terrorist act which may prohibit Easy Forex from entering
or concluding transactions involving certain persons or entities.
You agree that Easy Forex may, and will incur no liability from any
action it takes to comply with such laws or regulations.
You agree that Easy Forex may delay, block or refuse to make a
payment if Easy Forex believes on reasonable grounds that making
the payment may breach any law in Australia or any other
country and Easy Forex will incur no liability to you if Easy Forex
does so.
You agree to provide all information to Easy Forex which Easy Forex
reasonably requires to comply with any law in Australia or any
other country. You agree that Easy Forex may disclose information
which you provide to Easy Forex where required by any law in
Australia or any other country.
You declare and undertake to Easy Forex that the payment of
monies in accordance with your instructions by Easy Forex will
not breach any law in Australia or in any other country.
|
|
|
20 How to Contact us
Telephone:
Melbourne
Sydney |
Call us on 1300 303 908 or
(03) 9820 2711
(02) 9238 0260. |
|
Mail or Fax: |
Write to us
at L2, 437 St Kilda Road, Melbourne, VIC 3004 or
send us a fax to (03) 9820 8890.
|
|
Email: |
Send us an email to
pacific@easy-forex.com
|
|
In person: |
Visit our offices in
Melbourne at L2, 437 St Kilda Road,
Melbourne, VIC or in Sydney at
Suite 1302, L13, 109 Pitt Street, Sydney, NSW. |
|
|
forex™
