FXCM targets smaller retail clients with Micro CFDs


The company aims to attract more CFD trading by launching micro-lots

One of the leading retail forex and CFD brokerages around, FXCM Inc. (NYSE:FXCM) has announced a new addition to its broad base of products. This time around it’s not a new list of assets but rather an improvement to the ones already offered – traders will now be able to trade micro-lots on CFDs, reducing the size of market exposure down to 1/10th of the underlying asset’s market value. This leads to better opportunities for risk management for smaller retail accounts and mitigates risks of overexposure to a single position.

Apart from the traditional benefits that lower leverage usage brings to customers with relatively small, mini-accounts, they now have the flexibility to trade more assets. According to FXCM’s CEO, Drew Niv, this is only the first step taken by the company to make its CFD offering more attractive to clients of the brokerage.

Smaller clients have expressed interest in CFDs, but have not been able to put up a sizeable amount of their account for margin collateral precisely because the amount of leverage needed to open a Dow Jones CFD position is hitting a customer’s overall exposure pretty hard. The minimum trade size was one unit, which totals to $1 of profit or loss for the customer on every tick. With the new offering in place the unit will stil remain one, however the pip cost is reduced by 1/10th which totals to 10 ¢.

The company is already offering a substantial list of Asian, Australian, European and US indices with no re-quoting and no commissions trading.

For the full press release visit FXCM’s website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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FXCM targets smaller retail clients with Micro CFDs

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