FAQs

FAQs

Our FAQs explain account opening, platform features, and trading risks. This information is educational and does not constitute investment advice.

Is trading CFDs considered safe? FAQ toggle icon

CFDs are complex and high-risk products due to their speculative nature and leverage.

Is CFD trading legal in my region? FAQ toggle icon

We are a UK-domiciled financial institution and have clients worldwide. However, due to certain legal and regulatory restrictions, some residents may not be permitted to open an account. Please contact support for details.

How can I use CFDs to diversify my portfolio? FAQ toggle icon

CFDs can be used to trade multiple asset classes such as FX, commodities, treasuries, shares, and indices. They also allow leverage and short positions for hedging and diversification purposes.

What does short selling mean in CFD trading? FAQ toggle icon

Speculating for the price to fall on a given market.

Which assets are available for trading as CFDs? FAQ toggle icon

With a CFD you can trade the following asset classes: FX, Indices, Commodities, Equities, treasuries and cryptocurrencies. Please note Crypto is not available to retail clients.

What does “underlying asset” refer to in CFDs? FAQ toggle icon

The underlying asset refers to the product you are trading, such as Brent crude oil or physical gold.

Do you provide margin-free hedging options? FAQ toggle icon

This is dependent on the classification of your account. Retail traders in accordance with regulation cannot have margin offsets.

What are spreads in CFD trading? FAQ toggle icon

The spread is the difference between the buy and sell price. It’s a built-in cost you pay when opening a CFD trade.

What is a pip in CFD trading? FAQ toggle icon

A pip is the tradable point in CFD trading. This means your position size correlates to the pip value you change, e.g., one standard lot of FTSE equals £10 per pip movement. If the market moves 5 pips, this is a profit or loss of £50.

What are the main risks of trading CFDs? FAQ toggle icon

CFDs expose you to market risk, leverage risk, counterparty risk, volatility and gapping, margin call risk, and liquidity risk. Because CFDs are leveraged products, losses can exceed your initial deposit.

Do I own the underlying asset when trading CFDs? FAQ toggle icon

No, you do not own the underlying asset when trading a CFD.

How do I make a profit or incur a loss on a CFD? FAQ toggle icon

Your profit or loss is based on the difference between the price you open and the price you close your CFD position. If the market moves in your favour, you shall profit; if it moves against you, you lose. Any additional costs, such as financing charges, swap rates, or currency conversion effects, are also subtracted from your overall profit or loss on the position.

What exactly is a CFD? FAQ toggle icon

A Contract for Difference (CFD) is a derivative that allows you to speculate on the rise and fall in the price of an underlying market such as shares, FX, commodities, or indices, without taking ownership of the actual asset.

Do CFDs have an expiration date? FAQ toggle icon

CFDs are good till cancelled, meaning they roll over nightly until the trade is closed. They do not have an expiry date unless otherwise stated, which can be the case with CFD futures and CFD forwards.

What is the difference between CFDs and futures? FAQ toggle icon

CFDs are traded over-the-counter with your broker, have no expiry date, offer flexible position sizes, but can become more expensive over time because of overnight financing costs.

Futures are traded on an exchange, are fully standardised in size and expiry, must be closed or rolled over when the expiry date arrives, usually have lower long-term costs, but are less flexible and often require more capital.

How can I use CFDs for hedging purposes? FAQ toggle icon

You can use CFDs to hedge your other holdings by opening a short position with a CFD on the same asset you already own. If the market drops, the gain on the CFD can help offset the loss on your holding.

How can I start trading CFDs? FAQ toggle icon

You can start trading in CFDs by submitting an application for a trading account. Once your application is approved, you can trade the product(s) of your choice by searching for them on the platform and executing trades via our web, desktop, or mobile platforms.

What does CFD stand for? FAQ toggle icon

CFD stands for ‘Contract for difference’. It is a financial derivative that allows you to speculate on the rise and fall of an underlying market, such as shares, indices, commodities, or forex, without taking ownership of that asset.

Can beginners use MT5 for trading? FAQ toggle icon

Yes, you can trade on MT5 whether you are a beginner or an advanced trader, provided you meet the appropriateness requirements when applying for an account.

Is MT5 available on mobile? FAQ toggle icon

Yes, you can download MT5 as an app for iOS or Android.

How do I log in to my MT5 trading account? FAQ toggle icon

You will receive your login account number and password by email, and you can select our company from the list of servers when logging in.

Can I trade forex, stocks, and crypto on MT5? FAQ toggle icon

Yes, depending on your client classification, MT5 supports a wide range of asset classes across our CFD and Spread Betting products. Note crypto CFD and spreadbet products are not available to retail clients in the UK.

How do I create a demo account on MT5? FAQ toggle icon

Please contact our support team at support.uk@lunaro.com, and we will be happy to set one up for you.

What is the difference between MT4 and MT5? FAQ toggle icon

MT4 was designed mainly for Forex traders, offering simplicity, reliability, and strong support for automated trading (Expert Advisors). MT5 is its more advanced successor, built for multi-asset trading across Forex, stocks, commodities, indices, and futures. MT5 provides additional charting options, faster back testing, depth of market, an integrated economic calendar, and support for both hedging and netting.

Is MT5 free to use? FAQ toggle icon

Yes, we do not charge a platform fee; however, trading may involve costs such as spreads, commissions, or other fees charged by your broker.

How do I download and install MT5? FAQ toggle icon

Once your account is opened, we will provide you with the download link for the desktop platform. You can access the web platform through the link we supply, and for mobile trading, you can download MT5 from the Android or iOS app stores.

What is MT5 (MetaTrader 5)? FAQ toggle icon

MetaTrader 5 (MT5) is a multi-asset electronic trading platform used for trading financial markets such as forex, indices, commodities, stocks, and cryptocurrencies. Developed by MetaQuotes, it is the successor to MetaTrader 4 (MT4) and is widely used by brokers and retail traders worldwide. Please note that Crypto is not available to retail clients.

Can a beginner start trading indices? FAQ toggle icon

Yes, beginners can trade indices. We provide educational materials and support. Always trade with money you can afford to lose.

What are indices in trading? FAQ toggle icon

Indices trading involves speculating on stock market index price movements rather than individual stocks.

Is it advisable to use leverage when trading indices? FAQ toggle icon

Leverage is a personal choice. It reduces required capital but increases risk. Always trade responsibly.

Are indices suitable as an investment option for beginners? FAQ toggle icon

Indices provide broad market exposure. We offer education and support, but you should only trade with risk capital.

What main factors drive the movement of stock market indices? FAQ toggle icon

Economic data, corporate earnings, interest rates, geopolitical events, market sentiment and supply-demand dynamics.

How does trading indices differ from trading individual stocks? FAQ toggle icon

Indices represent a collective of stocks, giving a broader market view instead of focusing on one company.

Which stock market indices are the most popular for trading? FAQ toggle icon

S&P 500, Dow, NASDAQ, FTSE 100, DAX, CAC 40, Hang Seng and Nikkei 225.

What are the steps to start trading indices? FAQ toggle icon

Submit an application for a trading account. Once approved, search for indices on the platform and execute trades via web, desktop or mobile.

Which are the top 5 indices that traders follow? FAQ toggle icon

S&P 500, Dow Jones Industrial Average, NASDAQ, FTSE 100, DAX 40.

How are indices defined in trading? FAQ toggle icon

An index is a collection of shares representing a market or sector. Trading indices gives exposure to a full market segment without buying individual shares.

Am I allowed to exit or sell index futures before expiry? FAQ toggle icon

Yes, you can close a position before expiry.

Are index futures considered a type of derivative? FAQ toggle icon

Yes, index futures are considered a type of derivative.

In what ways can stock index futures be used to hedge risk? FAQ toggle icon

If the index closely correlates with your underlying assets, you can use it to hedge other holdings and manage downside risk.

Is it possible to earn profits from index trading? FAQ toggle icon

Yes. If your trade moves in your favour and gains exceed associated costs, it will result in a profit.

What does indices trading involve? FAQ toggle icon

Indices trading is the trading of indexes, which are grouped-together stocks for sectors or entire stock exchanges. We offer the ability to trade Indices via CFD or spreadbetting.

What exactly are commodities, and how can I trade them? FAQ toggle icon

Commodities are physical goods like oil, gold, wheat, and copper that are traded on exchanges or OTC. You can trade them on our offering using financial derivatives called CFDs and spread bets via our web, desktop or mobile platform.

How can beginners start trading commodities? FAQ toggle icon

Submit an application to open a trading account. Once approved, trade via CFD or Spread bet.

Which commodity is traded most frequently? FAQ toggle icon

Crude oil is the most frequently traded commodity due to its importance and liquidity.

Can you provide an example of a commodity trade? FAQ toggle icon

If gold is $3,500 and you go long 0.1 lots ($10 per point), and price rises 75 points, your profit would be $750.

How does commodity trading function? FAQ toggle icon

We offer commodities via CFDs or Spreadbets. These OTC derivatives use leverage and roll daily.

What is the current size of global gold reserves? FAQ toggle icon

Approximately 36,000 metric tons, according to the World Gold Council.

How can I test a new commodity trading strategy? FAQ toggle icon

We offer demo accounts and access to historical prices so you can test strategies without risking real money.

Should I buy commodity stocks directly or trade CFDs? FAQ toggle icon

This depends on whether you want exposure to the commodity itself or companies related to commodities.

What is the cost of investing in CFD commodities? FAQ toggle icon

Our charges are built into the spread. For spot commodities, an overnight financing fee applies.

Who typically invests in commodities? FAQ toggle icon

Individuals with experience, new traders, and businesses in commodity industries such as jewellery, mining, food production, and oil refining.

What are the three main categories of commodities? FAQ toggle icon

Metals, energies, and agriculture.

How does trading commodities work? FAQ toggle icon

Commodities are physical goods like oil, gold, wheat, and copper that are traded on exchanges or OTC. You can trade them using our offering via CFDs or spreadbets on our web, desktop, or mobile platforms.

When can I trade metals? FAQ toggle icon

Metals can be traded during their usual market trading hours; these can vary depending on the exact metal you are looking to trade.

How do I open a live trading account? FAQ toggle icon

On our website, you will see the “Open an Account” button. Clicking this will take you directly to our online application page, which should only take a few minutes to complete. Once your application is approved, you can then trade our offerings via CFDs or Spread Betting.

How is the pricing of precious metals determined? FAQ toggle icon

We price our precious metals from a source of liquidity providers. We then make a mark up on the spread as our fee.

Which precious metal CFDs are offered? FAQ toggle icon

Lunaro offers CFDs and Spreadbets on both Gold and Silver.

Who is eligible to trade Forex? FAQ toggle icon

All individuals above 18 years of age can apply for an account. Provided that they pass the application process successfully of a brokerage firm, they can trade with it. Through the online application process, we assess the appropriateness of each client in accordance with regulatory requirements.

What exactly are commodities, and how can I trade them? FAQ toggle icon

Commodities are physical goods like oil, gold, wheat, and copper that are traded on exchanges or OTC. You can trade them on our offering using financial derivatives called CFDs and spread bets via our web, desktop or mobile platform.

Where can I find your full Terms and Conditions? FAQ toggle icon

Our full Terms and Conditions, risk disclosure statement, and privacy policy are available on our website. We encourage all clients to review these documents before opening an account or executing trades.

How are affiliate commissions paid? FAQ toggle icon

Payments are made according to the program’s terms and conditions and are subject to compliance review.

Who can participate in the affiliate program? FAQ toggle icon

Our affiliate program is open only to Professional Clients in accordance with FSRA rules. All participants must undergo eligibility checks under our approved affiliate policy. Terms and Conditions apply.

How can I join the affiliate program? FAQ toggle icon

You can apply to join our affiliate program through our online portal. The program is available only to Professional Clients, in accordance with FSRA rules. Approval is subject to eligibility checks and compliance with FSRA requirements for introducing clients. Terms and Conditions apply.

Do you offer trading signals or trade recommendations? FAQ toggle icon

No. We do not offer signals, recommendations, or advisory services.

Do you provide educational materials? FAQ toggle icon

Yes. We offer general educational resources such as platform guides, platform walkthroughs, and market- related information.

Do you offer tutorials for beginners? FAQ toggle icon

Yes, we offer educational materials and demo accounts to help clients understand trading. These resources are for learning only and do not imply that trading leveraged products is suitable for you.

Where can I learn how to use the trading platforms? FAQ toggle icon

We provide platform guides and user manuals, and clients may access platform-specific tutorials from platform vendors.

Can I apply to upgrade to Professional Client status? FAQ toggle icon

Yes. Eligibility depends on FSRA criteria, including experience, financial strength, and trading history. Supporting documents are required.

What is the difference between Retail and Professional clients? FAQ toggle icon

We classify clients as Retail or Professional in accordance with FSRA rules. Retail clients receive the highest level of protection, while Professional clients may not receive certain safeguards.

Do you provide investment advice? FAQ toggle icon

No. We do not provide investment or trading advice. All trading decisions must be made independently.

How does leverage affect my trades? FAQ toggle icon

Leverage allows you to control a larger position with a smaller deposit, which can magnify both gains and losses. A small market movement may result in substantial losses.

Are leveraged products suitable for everyone? FAQ toggle icon

No. Trading leveraged products such as CFDs and FX carries significant risk and may not be suitable for all investors. You should trade only if you fully understand the risks and can afford potential losses exceeding your deposits.

Is my data protected? FAQ toggle icon

Yes. We follow ADGM-compliant data protection standards and maintain security measures to safeguard client information.

Who regulates Lunaro Markets? FAQ toggle icon

Lunaro Capital Limited is authorised and regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) as a Category 2 Licensed Firm. Our regulated activities include Arranging Custody, Arranging Deals in Investments, and Dealing in Investments as Agent and Principal.

How are client funds held? FAQ toggle icon

Retail client money and ETD funds are held in segregated (non–title transfer) accounts in line with FSRA client asset rules.

How are client funds held? FAQ toggle icon

Retail client money and ETD funds are held in segregated (non–title transfer) accounts in line with FSRA client asset rules.

Do you offer demo accounts? FAQ toggle icon

Yes, demo accounts are available for testing the platform environment before trading live.

Can I use third-party tools or plugins? FAQ toggle icon

Compatibility depends on the platform. Certain approved third-party tools may be supported.

Are mobile trading options available? FAQ toggle icon

Yes. Mobile applications may be available depending on the platform selected.

Which platforms do you support? FAQ toggle icon

We offer access to established platforms such as MetaTrader 5 for CFDs, Trading Technologies (TT), Rithmic, and CQG for ETDs.

What features are available on the platform? FAQ toggle icon

Our platform offers live charts and market data for analysis. These features support informed decisions but do not reduce the risk of loss in leveraged trading.

Can I withdraw to third-party accounts? FAQ toggle icon

No. For security and regulatory compliance, withdrawals can only be made to accounts in your own name.

Are there withdrawal fees? FAQ toggle icon

We do not charge withdrawal fees. Your bank or provider may apply their own charges. Withdrawals are processed after verification and may take 1–3 business days.

What deposit methods are supported? FAQ toggle icon

Deposits are accepted via bank transfer, card, or approved e-wallets after account verification. Processing times and provider fees may apply.

What documents are required to open an individual account? FAQ toggle icon

A valid passport, proof of address, and any additional information required under client onboarding rules.

Can I open more than one account? FAQ toggle icon

Clients may request additional accounts once their initial account has been verified. Approval is subject to compliance review and FSRA record-keeping requirements.

Do you offer accounts for both individuals and companies? FAQ toggle icon

Yes. We offer both individual and corporate trading accounts. All applicants must complete full KYC and onboarding checks in line with FSRA requirements. Corporate accounts must provide additional verification such as company registration documents and authorised signatory identification.

How long does verification take? FAQ toggle icon

Verification typically takes between 1–2 business days once all documents are submitted correctly.

How do I open a trading account? FAQ toggle icon

You can apply for a trading account by completing KYC verification and providing required documents. Account approval is subject to eligibility and FSRA onboarding criteria.