fxify, Author at FXIFY

Fed’s Final Rate Decision of 2024: Why It Matters

Posted on 16/12/202417/02/2025 by fxify

The Federal Reserve is gearing up for its last Federal Open Market Committee (FOMC) meeting of the year, set to take place on 18 December 2024.

At the heart of the discussion: the Fed Funds Rate, which influences borrowing costs, economic activity, and market sentiment worldwide.

With the Fed’s policy decisions shaping everything from mortgage rates to global currency markets, this meeting could signal how the economy will perform as we head into 2025. Will the Fed maintain its current course, opt for a rate cut, or deliver a surprise move?

Market Sentiment: The Numbers Speak

As of 16 December 2024, the CME FedWatch Tool, a key resource for market participants, shows the following probabilities:

97.1% probability of a 25 bps cut to 4.25%-4.50%.
2.9% probability of holding steady at 4.50%-4.75%.

Markets are anticipating a rate cut, but not everyone’s convinced. If the Fed defies expectations, brace for some serious market turbulence.

How the FedWatch Tool Works

The CME FedWatch Tool deciphers data from 30-Day Federal Funds futures to estimate the probability of rate changes. By analysing market pricing, it calculates the odds of potential outcomes, giving traders a real-time gauge of sentiment.

Why It Matters

When the FedWatch Tool points to a likely rate cut, stocks often rally as traders bet on cheaper borrowing costs. If a rate hike seems probable, investors may pull back, expecting tighter financial conditions-a classic case of “buy the rumor, sell the news.”

When Markets Get Shaken

Market turbulence hits when the Fed’s decision catches traders off guard. If a rate cut is expected but a hike happens instead, stocks can drop, and currencies may swing as investors rush to adjust. Volatility spikes—and so do opportunities for those ready to act.

Smart traders don’t just follow the FedWatch Tool -they plan for all possible outcomes. While understanding its signals is key, being prepared for surprises is what separates winners from the rest in a fast-moving market.

Current Interest Rates Comparison

Currency	Current Rate	Stance	Bias
USD	4.75%	Cautiously favoring rate cuts	Bearish USD
EUR	3.00%	Dovish, favoring cuts	Bearish EUR
GBP	4.75%	Dovish, recent rate cut	Bearish GBP
AUD	4.35%	Hawkish, holding rates steady	Bullish AUD
NZD	4.25%	Neutral, monitoring data	Neutral
JPY	0.10%	Hawkish, Favouring Hikes	Bullish JPY
CHF	0.50%	Neutral, stable rates	Neutral
CAD	3.25%	Dovish, potential rate cuts	Bearish CAD

What Are the Possible Outcomes?

Scenario 1: The Fed Holds Rates Steady

If the Fed chooses to keep rates at 4.50%-4.75%, it signals confidence that inflation is under control and further tightening isn’t necessary. This decision would align with the broader expectation of stability.

Market Implications:

Equities: Sectors like technology, which are sensitive to interest rates, could see a lift.
Bonds: Yields may stabilise, offering a predictable environment for fixed-income investors.
Currencies: The US dollar would likely hold its ground, with minimal volatility in major currency pairs.

Scenario 2: A 25-Basis-Point Rate Cut

A cut to 4.25%-4.50% would indicate concern over slowing economic growth or labour market softening. While lower rates typically support equities, they could also raise questions about the Fed’s outlook on economic resilience.

Market Implications:

Equities:
A rally in risk assets is possible, though uncertainty about the economic backdrop might temper gains.
Bonds:
Lower rates would likely push bond prices higher, benefiting fixed-income traders.
Currencies:
The US dollar could weaken, creating opportunities in cross-border trades.

Historical Market Reactions to Rate Changes

Understanding past market reactions to rate hikes and cuts can provide valuable context for traders navigating current market conditions.

This chart highlights how the DXY (USD) and S&P 500 reacted to Federal Reserve rate cuts and hikes in key periods. As shown:

2020 Cuts: The USD weakened within weeks after aggressive pandemic-driven rate cuts, while equities surged on stimulus expectations.
2022-2023 Hikes: The USD strengthened steadily as rate hikes rolled out, while equities faced immediate pressure amid tightening conditions and recession fears.
2024 Mixed Environment: Both markets saw modest moves due to uncertainty around the Fed’s policy path and mixed economic signals.

Traders should note that while end-of-year performance can offer a broad perspective, immediate market responses often occur within hours or days of policy announcements. These reactions are influenced by market expectations, the size of the rate adjustment, and the tone of the Fed’s forward guidance. Being aware of these dynamics helps traders adjust their strategies promptly and capitalise on potential volatility following rate decisions.

What Could Influence the Decision?

Although there’s less than a week remaining, the probabilities could potentially shift dramatically. Several factors are at play:

Economic Data Releases
Key reports, including inflation indicators (CPI, PPI) and employment figures, will provide clues about the Fed’s potential move.
Fed Communications
Remarks from Federal Reserve officials in speeches or interviews often offer subtle hints. Traders will be parsing every word for signals. Adding to the anticipation is the scheduled release of the Consumer Price Index (CPI) data on December 12. If inflation figures deviate from expectations, market sentiment could change rapidly, prompting traders to rethink rate hike probabilities and adjust their strategies accordingly.
Global Developments
Geopolitical events, fluctuations in oil prices, or unexpected slowdowns in international markets could also shape the Fed’s decision.

What’s Next?

The 18 December FOMC meeting is more than just a routine decision – it’s a potential turning point for monetary policy as we head into 2025. Whether the Fed holds steady, cuts rates, or surprises the markets, the ripple effects will be felt across asset classes.

Traders should remain vigilant, use tools like the CME FedWatch Tool to track sentiment, and stay prepared for potential volatility. The countdown has begun – are you ready for the Fed’s final word?

Latest Trading Updates and Exciting New Product Launches

Posted on 21/11/202413/02/2025 by fxify

It’s been an incredible year for FXIFY, and as we enter our 20th month of operation, we’ve got some exciting updates to share! From surpassing $27 million in payouts and serving over 180,000 users, to launching new programs and features, we’re proud of what we’ve accomplished.

But we’re not stopping here. Let’s dive into what’s new and what’s coming next.

FXIFY Futures: Coming Soon!

We’re thrilled to announce the upcoming launch of FXIFY Futures, our fully funded futures program.

With over 100,000 users already on our waitlist, stay tuned for our Open Beta Launch in the next few weeks – just in time for the holiday season!

If you haven’t yet signed up for early access, now’s the time to join: www.fxifyfutures.com.

Instant Funding: A Game-Changer for Traders

We’re also excited to introduce FXIFY’s Instant Funding program. Set to launch in December, this program lets confident traders skip the evaluation phase entirely and dive straight into a funded account.

Here’s What You Need to Know

Account sizes range from $1,000 to $50,000.
50:1 leverage on FX, 20:1 leverage on commodities, 15:1 on indices, and 2:1 on crypto.
Up to 80% profit split.
No evaluation phase, but with stricter rules, including a max trailing total drawdown of 8%.

This is our most challenging offering to date, but it’s also the fastest way to get funded and grow your trading career. With Instant Funding, you skip the waiting, avoid the risk of failing evaluations, and jumpstart to trading with our capital.

Account Size	$1,000	$2,500	$5,000	$10,000	$25,000	$50,000
Max Drawdown	8% Trailing
Leverage	Up to 50:1
Performance Split	Up to 80%
Fee	$69	$119	$229	$449	$899	$1749

Updated Rules for 2-Phase Evaluations

Effective November 24th, 5 pm EST, we’re updating our 2-Phase Challenge from a static drawdown to a trailing drawdown.

While trailing drawdowns are not universally loved, they are becoming the industry standard, particularly for Futures and Instant Funding.

Here’s why we’re making this shift:

Standardisation Across Programs: As we expand into Futures and Instant Funding, we wanted to better align and standardize our programs and offerings. Trailing drawdowns are the industry standard across Funded Futures, Instant Funding, and 1-Phase challenges, so we are updating our 2-Phase challenges to match. This ensures consistency and clarity for our traders.
Time Management: While most traders follow FXIFY’s rules, we’ve noticed the majority who break our T&Cs purposefully, do so in our 2-Phase Challenges. Monitoring this takes away valuable time and resources that could be better spent on our traders, developing new products such as Instant Funding and Futures, and providing an overall better experience and service for everyone.
Future Industry Trends: As the prop trading industry evolves, we expect other firms to follow suit. Our proactive update keeps us ahead of the curve.

In an industry where hidden rules and sudden changes have become all too common, FXIFY is committed to being more transparent than ever. Instead of behind-the-scenes adjustments, we openly communicate updates and align with industry standards to ensure a better experience for our traders.

Once Again, We Thank You for Trusting Us as Your #1 Prop Firm

We wish you all the best as you enter the holiday season and New Year, and we’re more excited than ever! With FXIFY Futures, Instant Funding, and the updated 2-Phase Challenge, it’s never been a better time to join our growing community of traders.

Ready to take your trading career to the next level?

FXIFY’s Prohibited Strategies

Posted on 06/11/202406/11/2024 by fxify

To become an FXIFY Funded customer, you must pass one of our evaluation challenges. When engaging in your trading challenge it is important that you use legitimate and well managed strategies. There are some strategies that FXIFY prohibits when trading on a challenge or a funded account. If you use these strategies on an FXIFY account, you run the risk of losing your account and being terminated from trading with FXIFY. Please see below for more information on the strategies:

High Frequency Trading

High-Frequency Trading (HFT) refers to the use of advanced computer algorithms and high-speed telecommunications networks to execute large numbers of trades in fractions of a second.

HFT is prohibited by FXIFY as it leads to market manipulation, unfair advantages, and can cause instability in the market. Any customer found to be engaging in HFT is breaching the FXIFY’s Terms and Conditions and therefore will lose the ability to trade on our platform.

All customers are expected to use our platform fairly and honestly and to comply with all laws, regulations, and the FXIFY’s Terms and Conditions.

Reverse Hedging

What is Reverse Hedging?

Reverse hedging refers to a trading strategy where a customer places offsetting positions across accounts within the same firm to minimise or negate risks. This practice is used to exploit the rules or limitations of FXIFY’s Terms and conditions by artificially reducing exposure to market risk.

Example of Reverse Hedging:

A customer opens a long position on one account and simultaneously opens a short position of equal size on a second account. This neutralises market exposure but artificially keeps both accounts active without risk, violating the firm’s guidelines for genuine trading practices.

Group Hedging

What is Group Hedging?

Group hedging occurs when multiple customers collaborate to place offsetting trades in different accounts within the same firm, with the goal of minimising overall risk while still appearing to actively trade. This tactic is often used to circumvent the FXIFY’s risk management rules by spreading risk across multiple accounts within a coordinated group.

Example of Group Hedging:

Two or more customers collaborate by placing opposing trades in different accounts, one customer opens a long position while the other opens a short position of the same size. This strategy neutralises market risk across the group but allows each customer to present themselves as engaging in legitimate trading, violating the firm’s risk management and fairness guidelines.

Account management

At FXIFY, all trading activity must be done by the individual that has registered with FXIFY. Having someone else trade for you, or doing someone else’s trading on their behalf is account management. FXIFY is looking for real customers with real strategies. Account management is strictly prohibited at FXIFY. We do not allow “pass your challenge” services or other similar services. This approach often bypasses FXIFY’s Terms and conditions, which require that each customer manages only their own account and trades independently.

Example of Account Management:

A customer secretly manages multiple accounts under different names, executing trades on behalf of other individuals. By doing this, the customer hides their true performance and risks, while attempting to game the firm’s system by spreading risk or testing multiple strategies simultaneously, which violates the firm’s one-account-per-customer rule.

Latency Arbitrage

What is Latency Arbitrage?

Latency arbitrage involves exploiting the delay (or “Latency”) between price updates from different data sources or trading platforms. Customers using EA’s for this method take advantage of faster data feeds to place trades on our platform where prices have not yet been updated, profiting from the price difference before our platform catches up.

Why is Latency Arbitrage Prohibited?

Unfair Advantage: Latency arbitrage takes advantage of the time lag between data feeds, giving customers an unfair edge over the platform and other users. In a simulated trading environment, this distorts trading performance and does not reflect true market conditions.

Distorted Results: The profit generated from latency arbitrage is artificial, based solely on exploiting technological gaps rather than legitimate trading strategies. This undermines the integrity of the evaluation process for FXIFY, where FXIFY aims to assess a customer’s skills in real market conditions.

Use of a Delayed Data Feed: The use of a delayed data feed in day trading refers to the practice of using a data feed that has a delay or lag in the delivery of market data, such as stock prices or trading volumes, giving an unfair advantage to the customer over other customers who are required to use real-time market data.

Trading on Delayed Charts: Trading on delayed charts refers to the practice of using charts or other graphical representations of market data that have a delay or lag in their updates.

Order book spamming

Order book spamming is a tactic some customers use in financial markets where they flood the order book with a large number of fake buy or sell orders. These orders are usually placed far away from the current market price and aren’t intended to be executed. The goal is to create the illusion of high demand or supply, which can mislead other customers into making decisions based on this false information.

Herd trading

Herd trading is the concept of many people trading in the same direction at the same time. This can be considered close to collusion between users and is prohibited by FXIFY. All trading activities must be conducted solely by the individual account holder, without influence or coordination from third parties or groups. Herd trading often involves customers blindly placing trades with no thought or strategy, simply because that is what others do. There is no risk management or strategy behind this so FXIFY isn’t looking for those kinds of customers. This also includes when customers use the same EA from the same company, this would lead to multiple customers collaborating at the same time.

Collusion Between Users

Collusion between users is a serious infraction of FXIFY’s policy. Strategies like Herd Trading and Account management fall under collusion between users. If users intentionally open multiple accounts and place trades in the same direction, at the same time, on the same asset, this can be considered market manipulation and collusion between users.

Poor Money Management

Customers who frequently encounter margin calls due to inadequate funds or risky positions may indicate a lack of risk management, posing a threat to their accounts and potentially the firm’s stability.

Improper Risk Management

Gambling behaviour

This type of strategy often relies on emotions driving decisions rather than reason. This can range from chasing continuous wins or losses, impulsive trading, or even addictive behaviour. YOLO strategies, which involve taking high-risk positions in hopes of extreme rewards, are particularly dangerous. These approaches often neglect sound risk management and are more driven by the thrill of potential gains than long-term profitability. Such strategies can lead to significant losses and undermine the sustainability of one’s trading performance. For the integrity of our customers and the sustainability of our programs, we don’t condone these types of strategies, these types of behaviours are prohibited on our platform.

Behavioural patterns

Behavioural patterns are not necessarily prohibited by FXIFY but can be an indication of a prohibited strategy being used. For example, trading during non-liquid market hours with the intention of exploiting liquidity shortages, or continuously trading around news.

Exploiting bugs and glitches

Exploiting any bugs and or glitches on any trading platform is prohibited by FXIFY and will result in your account being terminated. This includes but is not limited to, bugs and glitches relating to the FXIFY site, any of the trading platforms and brokerage feeds. This also includes arbitrage trading.

High leverage news trading

What is High Leverage News Trading?

HLNT: High leverage news trading involves placing large, leveraged positions just before or during major economic news releases to capitalise on sudden, volatile price movements. Customers use the increased leverage to maximise profits from the sharp swings in the market that occur immediately after a news announcement. HLNT is essentially betting on coin flips and is no different from regular gambling.

FXIFY allows HLNT within limits. It must be clear to FXIFY that proper risk management tactics are being used when engaging with HLNT. As mentioned, if it appears the customers is gambling with no thought, this could result in the account with FXIFY being terminated.

Statistical Arbitrage

What is Statistical Arbitrage?

Statistical Arbitrage is when a customer deploys a large number of high-risk trades while aiming for one significant win to cover losses from failed challenge accounts. The customer relies on statistical models to predict that one or more trades will generate a significant profit, offsetting any previous losses incurred. However, deploying a large number of high risk trades over multiple accounts in this manner is not considered a long-term, profitable, or sustainable approach. This practice is in direct conflict with our values and terms and conditions. At FXIFY, we reserve the right to discontinue cooperation with clients who intentionally open multiple accounts and engage in these strategies, hoping for favourable market movements.

FXIFY holds the right to enforce strict consequences in the event of policy violation:
FXIFY reserves the right to terminate agreements immediately in the event of any breach by the customer .
Profits generated from prohibited trading practices will be void.
All passed Evaluations are subject to review, and customers found guilty of policy ignorance or abuse will not advance to the Qualified phase.

These descriptions should be read in conjunction to clause 5.4 of the Term and Conditions of FIXIFY any customer which will be found to engage in Forbidden Trading Practices puts their account(s) at immediate risk of, by way of termination of all services provided by FIXIFY to the customer and subsequently closing the account(s).

These answers were prepared in order for FXIFY to enhance our commitment to ensuring that trading activities within our platform adhere to best standards and responsible trading practices.

If you have any further questions, please contact support@fxify.com.

FXIFY™ Trading Rule Updates: What You Need to Know

Posted on 28/10/202428/10/2024 by fxify

What’s New at FXIFY™

As of October 25, 2024, FXIFY has surpassed 170,000 traders and distributed over $24 million in payouts!

This rapid growth reflects our commitment to transparency and our dedicated trader community. We’ve made some key updates to our rules and features to keep up with industry standards and provide the best trading experience possible.

Performance Split Upgrade

One of the biggest changes is our upgraded performance split.

We’ve increased the standard performance split from 75% to 80%, allowing traders to keep a larger share of their trading gains. This is the new standard for all our accounts, ensuring you get more out of your trades.

The 90% Performance Split add-on remains available at checkout for traders who want even more.

Launching the 5K Challenge Account

We’re excited to introduce our new 5K Challenge Account – our smallest and most affordable account yet.

This new option provides traders with a low barrier to entry, giving them a perfect opportunity to start their funded journey. Whether you’re a beginner looking for a foot in the door or an experienced trader seeking flexibility, this account is designed to meet your needs.

The 5K Challenge Account opens the door to more traders than ever before, allowing them to prove their skills and scale up their trading capital.

Industry Standard Adjustments

As part of our continuous growth, we’ve aligned our rules with industry standards to ensure a fair and transparent environment for our traders.

While we won’t get into every fine detail here, we encourage you to visit our programs page or homepage for more information on the small changes to our challenges and other program-specific details on our One Phase, Two Phase, and Three Phase Challenges.

By staying competitive and responsive to trader feedback, FXIFY continues to offer one of the most trader-friendly environments in the prop trading space.

Prove. Trade. Get Funded at FXIFY™

At FXIFY™, we believe in providing traders with the capital and tools they need to succeed. Now, our challenge accounts range from $5K all the way up to $400K in trading capital once you pass the evaluation. Plus, with performance splits now starting at 80% and reaching 90%, you’re more in control of your trading journey.

Start your trading journey with FXIFY today!

Key differences in Forex and Stock Trading: Which is better?

Posted on 26/02/202428/10/2024 by fxify

Forex and stocks are two globally popular markets for trading and investing. Both markets have the potential for high returns but differ in many ways. This article will guide you in choosing the right market for you based on your goals and lifestyle needs.

An Overview of Forex Trading

Forex, also known as foreign exchange, is a worldwide market for currency trading. Currencies increase in value due to a country’s economic conditions and bank policies, leading to price changes. Forex traders capitalise on these moments of volatility to trade the price differences.

The forex market operates with currency pairs, such as USDJPY (US Dollar / Japanese Yen), where the value of the first currency is determined using the second currency’s value.

The exchange rate of forex pairs is always changing. So while today, the price of a forex pair may be one thing, tomorrow it could be something else – either higher or lower.

An Overview of Stock Trading

Stock trading isn’t just about trading; it’s also an investment in a company’s future. Many investors use stocks as a long-term investment, predicting a company’s stock price rise.

Stock exchanges serve as massive marketplaces where buyers and sellers interact. Notable ones include the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE), which offer a regulated and transparent platform for stock trading. However, with the introduction of CFDs, some brokers now offer stock CFDs for trading. This means you aren’t buying a stock share, but purely betting on its price movement.

If you purchase an actual stock share, some companies may pay you dividends based on their earnings. While many traders opt to buy shares to build a long-term investment portfolio, others trade stock CFDs to earn from betting on a stock’s price rise or fall.

Forex vs Stocks: Comparison Table

Here’s a quick overview of how trading forex differs from trading stocks.

Factors	Forex	Stock
How do traders commonly approach them?	Intraday to swing trading	Day trading to long-term investing
Asset Type	CFDs (Contract-For-Difference)	CFDs (Contract-For-Difference) or Stock Shares
Starting Capital	More affordable starting capital	Typically a higher starting capital
Leverage	Typically higher leverage	Typically lower leverage
Market Size	7.5 Trillion dollars traded daily	200 Billion dollars traded daily
Slippage	Low slippage due to a larger daily traded volume	Higher slippage due to lesser daily traded volume
Risks	Fewer diversification options and smaller market movements	Susceptible to increased volatility, slippage, and a higher risk of unforeseen events impacting prices.
Benefits	Easier access for retail clients with low startup capital and open 24-hour, 5 days a week.	Great for holding long-term positions with more diversification options and the potential to earn dividends.

For a more in-depth explanation, keep reading to learn the specific advantages and disadvantages of trading each market. We advise you to do so before deciding which market to focus on!

The Advantages of Forex Trading

Less Slippage

Forex trading offers a vast market size, with around $7.5 trillion exchanged daily. This gigantic flow of transactions ensures you can buy and sell currencies quickly, at close to your desired prices. The more buyers and sellers there are, the more likely someone will be willing to match your offer.

More Convenient Trading Hours

Forex markets are available for trade 24 hours a day, 5 days a week, so you can conveniently trade at any time during the business week.

Lower Starting Capital

Most forex brokers offer higher leverage on forex pairs, for example, up to 500:1 leverage or more. This allows traders to open position sizes of $500 in value, yet only risk $1. As a result, many traders can hold large buying or selling power in trading forex CFDs, more so than if they were trading stock CFDs (average of 20:1 leverage).

Potential Risks in Forex Trading

As with any trading market, forex comes with a set of risks. One of them involves high leverage, as most brokers offer extremely high leverage for trading forex pairs. Though it means a higher potential for big returns, it also multiplies the risk you are taking with your capital!

However, when you trade with an FXIFY-funded account, you are not risking any of your trading capital. Instead, you’ll only pay for an evaluation fee to showcase your trading skills and become a funded trader. Prop trading firms like FXIFY empower you with the ability to trade with substantial sums and earn up to a 90% performance split on trading gains. It’s a great alternative gateway into the financial markets.

Advantages of Stock Trading

Earning through Dividends

Stock trading is an attractive investment avenue as you can not only hold and sell a stock share for gains but also earn through dividends that companies share with you.

Suitable for Long-Term Trades

Additionally, stocks often have the potential for long-term growth, allowing your investments to appreciate over time. Imagine for a second that you invested in APPL back in 2020. You would be up by 45% if you held it until 2023!

More Diversification Options Compared to Forex

The stock market is exposed to many sectors and industries, making it more effective than forex in building a diversified investment portfolio. A diversified portfolio spreads risk and helps you avoid a heavy hit by a single economic event.

Potential Risks in Stock Trading

In stock trading, you are exposed to higher volatility risks, which can shift prices sharply. Though this is a market opportunity, it also means more unpredictability. Additionally, company-specific risks, like financial performance, management issues, and scandals, can affect stock prices.

The key is to diversify your stock holdings and spread risk, as you won’t be betting your fortune all on one asset. Understanding this aspect of stock trading is important to becoming consistently profitable.

So, which is Better: Forex or Stock Trading?

Forex trading is an excellent option for traders who want to actively engage in intraday and swing trading, providing higher leverage and requiring lower starting capital. While stocks can also present short-term and day trading opportunities with thousands of stocks available in the market, they are primarily viewed as long-term investments. Your choice between the two directly reflects your trading style, risk tolerance, and investment goals.

At FXIFY, our prop traders can access hundreds of symbols* to trade, including Forex, Stocks, Indices, Metals, Commodities, and more with their funded accounts. We offer Raw Spreads starting from 0.0 on major FX pairs and Gold, true market execution, and some of the best trading conditions in the industry.

Become a Forex Funded Trader With FXIFY

Tailor your program to your approach and choose between One Phase, Two Phase, and Three Phase evaluation programs. Prove your skills, pass, and get funded up to $400,000 in forex trading capital with a chance to earn up to 90% in Performance Split* and your first payout on demand*.

*All trading symbols offered at FXIFY are traded as CFDs
*90% Performance Split offered as an add-on for an additional fee and available during checkout
*First payout available after 24 hours of placing the first trade in your funded account