The NYC:FXCM, which is the leading online provider of foreign exchange trading recently announced that its U.S. subsidiary FOREX Capital Markets LLC (“FXCM US”) has established the new retail FX pricing model.
FXCM U.S. platforms will be displaying raw spreads and succeeding mark-ups previously consisting of spreads that will be excluded as a commission. Moreover, as part of this introduction, FXCM also trimmed down client trading costs.
As part of FXCM’s commitment to its clientele, it is imperative to take pricing and broking service to a whole new level by bringing greater opportunities to its clients.
The FXCM is scheduled to display raw spreads from one of the 15 different liquidity providers streaming prices into the FXCM with no deals with the desk execution system. On average, the trading cost was reduced on the top 14 currency pairs by nearly half .
The new pricing model will allow traders to easily scalp the market while at the same time increase execution benefits to halt orders. Furthermore, clients will now be able to continue to be benefited from the prohibition on re-quotes.
With the U.S. being the fifth region to commence in migrating new clients to this transparent pricing model, the same also raised the open account minimum from $50 to $2,000. Other selected jurisdictions started offering a similar commission based structure by raising their accounts as well.
These tight raw FX spreads are ideal for positioning the trading execution across the board. The pricing model is reflective of the FXCM’s core business principals, providing direct access to quotes from multiple liquidity providers with no additional mark-up and maintaining low commissions which is very popular with clients.
FXCM approves in sustaining a no re-quote policy. Circumstances primarily present based on order, market conditions and trading pattern where individuals may not possibly even receive execution at the requested rate.
Orders are to be executed at the next available rate within the range of the trader’s parameters subject of course to market conditions. The primary difference between the requested rate and the concluding execution price may be more or less of an advantage based on the market activity and availability of the said liquidity.
Disclosure pertaining to forward-looking statements
In addition to historical information, this release actually involves forward-looking statements within the provisions of Section 27A of Securities Act of 1933 and Section 21of the Securities Exchange Act of 1934 which is reflective of FXCM Inc.’s view with respect to its operations and financial performance for the future. These forward-looking statements can be readily be identified by the use of words that incite a reasonable person to comprehend positive meaning of the word “outlook”.
Moreover, such forward-looking statements are still subject to a multitude of various risks and uncertainties. Accordingly, there are or will be several vital factors that could cause actual outcomes to differ materially from the ones previously identifies.
FXCM Inc. believes that these factors does not preclude the limitations to evolving a legal and regulatory requirements of the FX industry which can be summarily be described as risk factors in the annual report form 10-k and other SEC filings.
Finally, all these factors should generally not be construed as extensive and should be better appreciated in conjunction with other cautionary statements that are included in the said presentation in the SEC filings. Furthermore, FXCM Inc. will be undertaking no obligation to publicly modernise any forward-looking statement, whether as a result of new information or future developments apart from what is provided for by law.