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Screenshot of a breaking news alert e-mail from Q2 2017
Just weeks after LeapRate reported that retail FX giant FXCM Inc. (NYSE:FXCM) was taking steps to move toward a solely agency business model, the firm has today announced that its US subsidiary Forex Capital Markets LLC (“FXCM US”) has introduced a new retail FX pricing model. FXCM US platforms will now display raw spreads and mark-ups previously included in the spread will be separately displayed as a commission*. As part of this introduction, FXCM also reduced client trading costs.
“We are excited to offer raw spreads with no mark-ups on all currency pairs as it will provide clients with a superior and transparent Forex trading experience,” said Drew Niv, CEO of FXCM Inc. “As part of FXCM’s commitment to its clients, we are taking pricing and broker service transparency to a new level and bringing greater opportunities to clients.”
The FXCM platforms will now display raw spreads from one of its 15 different liquidity providers streaming prices into the FXCM no dealing desk execution system. “On average we reduced trading cost on the top 14 currency pairs by 50%,” added Mr. Niv.
FXCM’s new pricing model allows traders to easily scalp the market, while providing increased execution benefits to stop and limit orders. Furthermore, FXCM clients will continue to benefit from no re-quotes**, fast, efficient and transparent execution, with no restrictions, along with a comprehensive suite of educational services through DailyFX.com
The US is the fifth region to begin migrating new and existing clients to this transparent pricing model. The US entity has also raised the open account minimum from $50 to $2,000. Other select targeted jurisdictions began offering a similar commission structure and raised their account minimums as well.
“These super tight raw FX spreads will be ideal for scalping and can help improve trading execution across the board. We believe that this pricing model reflects FXCM’s core business principals, offering direct access to quotes from multiple liquidity providers with no mark-up and transparent low commissions that we believe will be very popular with customers,” concluded Mr. Niv.