Frequently asked questions

To provide a better trading experience, PomeloFx listed below the questions commonly asked by traders to help you to understand more about Pomelo Limited.

General Information

Pomelo Limited Licensed with Vanuatu Financial Services Commission (VFSC), VFSC:700234

Our global head office is at 1st Floor, iCount Building, Kumul Highway, Vanuatu.

We’re a privately-owned company. The owners and management team each have over 10 years’ experience working in the financial markets.

Client funds are held in a segregated AAA-rated bank accounts.
Our liquidity comes from 16 global banks, all competing for your order – making for lighting-fast matching and competitive pricing at all times.
  • The minimum deposit to open a STANDARD account with us is $100.
  • The minimum deposit to open a RAW Spread account with us is $100
  • The minimum deposit to open an ISLAMIC account with us is $100.

Forex Market

Our tight variable spreads range from an extremely competitive from 0.5 pips to 2 pips, depending on your account type, the currency pair and market conditions.

The foreign exchange market is the world’s largest financial market, with an average daily trading volume of US$5.3 trillion. Forex trading involves the buying of a currency and the selling of another at the same time. This means FX trading always involves currency pairs. For example, if you have US dollars (USD) and you need Japanese Yen (JPY), you have to sell the US dollars to be able to buy the Yen.
The rate of exchange between different currencies are constantly fluctuating mainly due to the supply and demand between buyers and sellers.
The forex market may also be affected by high-impact events such as central bank decisions and by the release of economic data from different countries.
Like trading any other financial instruments, people can make money in forex trading if the currency they buy appreciate in price against the currency they sold.
Trading forex through an FX trading platform provider or broker is usually done on margin. This means that you can open an account and enter an FX trade using a small percentage of your trading capital. The FX broker provides the leverage for traders to trade a bigger amount using a small portion of their money.
The important thing to remember about leverage is that it can magnify profits as well as losses. It is recommended that traders use a low level of leverage particularly if they are only starting out in forex trading.
We provide different levels of leverage for different types of traders. Using our trading platform, you can set the leverage level that you want for your FX trades.

The Forex market can be considered one of the fairest and most transparent markets in the world. There are no centralised exchanges (unlike stock exchanges), nor banks or any country that can control the whole FX market. At the same time, the large number of market participants and massive volume of trades that are being transacted on a daily basis means no single institution can manipulate the currency prices.

Traditionally the main participants are the central banks, commercial banks and investment banks. However, in recent years, the impact of internet trading has allowed many more and diverse participants to enter the forex market. Foreign exchange participants now include large financial institutions, fund managers, registered dealers, currency brokers and private investors.

The most liquid currencies generally come from countries with stable domestic politics and well-respected central banks. These currencies are traded most frequently and are known as the major currency pairs. In the foreign exchange market these major currency pairs account for around 85% of the trading volume. These include EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD and USD/CAD.

Trading FX with an FX trading platform provider like PomeloFX is usually done on margin. This means investors can start trading on the foreign exchange market with as little as $100.
We provide different levels of leverage for different types of traders. Using our trading platform, you can set the leverage level that you want for your FX trades.
The important thing to remember about leverage is that it can magnify profits as well as losses. It is recommended that traders use a low level of leverage particularly if they are only starting out in forex trading.
 
There are many risk management strategies and tools that you can use in FX trading.
Two of the most commonly used are the stop loss order and using effective leverage. Stop losses can be directly set in the MT4 platform, allowing traders to determine their risk appetite to avoid excessive losses.
Leverage refers to the ratio of position size and funds in your account. If the total trading capital is $10,000 and the trading position is $100,000, the effective leverage is 1: 10.
In some cases, many inexperienced traders tend to set their leverage at very high ratios, which can expose them to potentially large losses.
By reducing the effective leverage (and keeping it to a low level) traders can introduce a level of risk management and control in their trading.
 

We offer very competitive spreads across Forex, Metals, Energies and Indices. 

There are no commission charges for our STANDARD accounts, and as low as $8 for our RAW Spread account.

We use the STP trade execution model where all trades are priced directly from our liquidity providers. Trades are executed at the best bid best offer available prices.Traders are free to use any legal strategies on our platform.

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