FXM Incorporated (NYSE:FXCM) which is a principal provider of foreign exchange related services and trading bolstered its spread betting and contracts for difference (CFDs) offers by limiting the tradable size to as much as 1/10th of its present value. FXCM patrons will now be able to trade in much smaller amounts which would allow for more available margins at lower transaction expenditures and for more flexibility in their trading routines of commodities and stock indices.
One of the first brokers to provide micro trade sizes is FXCM which brought wider trading possibilities at a much lower and cost-efficient cost to traders. More so, the same will be working this year to make CFDs and Spread Betting offerings more diverse and more competitive as one of its policy developments for this fiscal year. Moreover, it is among the first brokers to provide micro trade sizes which is a great opportunity for trading at a cost efficient cost.
How does FXCM work?
To better illustrate how FXCM’s micro trade size offers actually work in benefiting clients, below are good examples:
1. Opening a UK100 position before
Before, the usual minimum trade size was 1, which equates to a £1 profit/loss for each price tick. FXCM normally would require a £60 margin deposit for each of the lot that were being traded on a GBP-denominated account which is actuality the margin rates greatly vary for accounts in other currencies.
2. Opening a UK 100 position after
Presently, the minimum trade size still remains to be 1 but the pip cost is significantly reduced by more than 1/10th, the profit/loss for each price tick is estimated at £0.100 with the required margin is at £6 GBP respectively.
With the FXCM, traders and investors alike can have full access to well over a dozen stock indices which freely allows trade in the European, Asian, Australian and U.S. markets, Moreover, FXCM provides no re-quoting on all index products which would allow traders fast and efficient trade execution, competitive pricing, hedging capacity with no commissions and a wide-ranging suite for educational services.