FXCM (NYSE:FXCM) has been busily engaged in migrating clients to its new pricing model which the company considers offers greater transparency and overall reduction in transaction costs. One week ago, the implementation of the new pricing model was completed in the United States, offering to the existing clients of the broker using both the MetaTrader 4 and Trading Station platforms significantly tighter spreads.
Continuing with the global implementation of the new pricing method and the company’s intention to maintain a no dealing desk (NDD) business, FXCM has revealed the dates for the launch of the new terms for its Japanese clientele, with a press release having issued by the broker on October 9, 2014 on the subject, In keeping with common practice, the broker enables traders who wish to test the new terms earlier to apply and check out the service in advance. This offer has been available since last Thursday.
The new pricing terms and conditions for holders of MetaTrader 4 accounts reflect substantially lower spreads, as they will exclude commissions and any extra mark-ups. The average spread on USD/JPY, for example, drops from 1.1 pips to 0.1 pips, while the spread on EUR/USD falls from 2.4 pips to 0.2 pips. Commissions will apply, however such fees will not be a part of the spread, and instead will be displayed separately.
The overall result is an ability for clients to view the real spread which is being delivered from the live market. The largest reduction in spread weighs in at a 68.6% decrease for the GBP/JPY pair.
FXCM will begin providing raw spreads on its proprietary Trading Station platform in Japan starting from November 6, although those who wish to test the service can switch to the new terms earlier.
While the new model means lower transaction costs for FXCM’s global client base, it also has a number of advantages for certain groups of traders, including those whose daily trading activities include scalping.
The official announcement by FXCM can be viewed here.