What is Appropriateness Test? How the Appropriateness Test can affect my leverage selection?
FXTM Brand does not provide services to residents of the USA, Mauritius, Japan (日本), Alberta, British Columbia, Quebec,
Saskatchewan, Haiti, Suriname, The Democratic Republic of Korea, Puerto Rico, and The Occupied Area of Cyprus. Find out more
in the Regulations section of their FAQs.
- What is the Appropriateness Test?
What is the Appropriateness Test?
The Appropriateness Assessment is a short questionnaire which will give FXTM an understanding of your experience in the financial markets and your knowledge of the risks involved.
The Assessment ensures that you are given access to the leverage, products and services you are most suited for.
The Appropriateness Assessment is necessary in order to open a trading account and to ensure that FXTM limits your exposure to risks through leverage.
1. Must I take the Appropriateness Test to open a Forex account?
Yes, it is included in the account opening procedure of FXTM, and all traders must answer certain questions of the Appropriateness Test.
The Appropriateness Test is conducted to ensure that FXTM limits your exposure to risks through leverage.
Don’t worry, you can open a Forex trading account with FXTM regardless of the result of the Appropriateness Test.
2. Can I retake the Appropriateness Test to increase my leverage?
You can retake the Appropriateness Test a few weeks after your previous attempt.
The number of Appropriateness Test you can take is technically unlimited.
If the leverage is limited on your live trading account, FXTM may allow you to increase the leverage according to the result of your next Appropriateness Test.
3. How leverage will be limited due to poor results of my Appropriateness Test?
The maximum leverage could be limited down to 1:25, due to the result of Appropriateness Test.
FXTM offers up to 1:2000 high leverage for traders with certain knowledge in certain jurisdictions.
Regardless of the leverage restriction up to 1:25, you can also set the leverage to 1:1 or 1:10 with FXTM.
4. How can I study for the Appropriateness Test?
FXTM provides a number of educational materials for free.
Register online for free with FXTM, and you will have access to FXTM’s educational materials such as Ebooks, Forex Trading Seminars, Forex Trading Webinars, Forex Glossary, Beginners Guide to Forex Trading, Forex Trading Strategies, Short Forex Educational Videos, Education Videos and Education Articles.