Another Broker Lowering Spreads
In 2010 and 2011, the trend among forex brokers was to advertise a no dealing desk ECN products (or at
In 2010 and 2011, the trend among forex brokers was to advertise a no dealing desk ECN products (or at least say they were providing one). For 2012 though, spreads and executions are taking stage. Take a look at the home pages of Forex.com, Oanda, even FXCM now with its dealing desk offering, and GFT, and you will see either their low spreads or 99%+ execution rates being prominently displayed. The emphasis on spreads occurs as brokers are promoting that whether you use a market maker or ECN to get filled isn’t as important as the actual prices you receive.
On this note, FX Solutions US became the newest broker to lower its spreads. The US unit, part of City Index, announced added a twist to the low spreads by also adding a maximum spread cap to 28 of its forex pairs. For example, the EURUSD, whose spreads are as low as 0.8 pips is capped at 3.0 pips. The goal of the capped pricing is to offer low spreads even during times of volatility and economic announcements.
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FX Solutions LLC launches Capped Variable Pricing with Spreads from 0.8 pips
SADDLE RIVER, NJ – (November 19th, 2012) – FX Solutions LLC, a leading retail foreign exchange (forex) dealer and part of the City Index group of companies, today announced the launch of capped variable pricing for its U.S. customers.*
The new pricing is available on the MetaTrader4 (MT4) and GTS trading platforms across 28 forex pairs. Customers can trade on spreads as low as 0.8 pips on EUR/USD and 1 pip on GBP/USD, USD/JPY and AUD/USD.
The pricing aims to move in sync with the underlying market, potentially providing tighter spreads as liquidity improves. A ‘cap’ or ‘limit’ is placed on the spread with the intent of restricting it from widening more than the listed cap level.
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In the opinion of FX Solutions, the ‘cap’ provides advantages over other variable spread providers, whose spreads, without a ‘cap’, can widen excessively around economic events. Using Capped Variable Pricing, FX Solutions customers can trade more efficiently with potentially lower spreads.
Capped Variable Pricing is the latest addition to FX Solutions’ U.S. offering and follows the expansion of its market analysis and forex education capabilities with the recent appointment of Chief Technical Strategist, James Chen.
To find out more about FX Solutions, please visit www.fxsolutions.com.
About FX Solutions
FX Solutions is a leading foreign exchange broker with a focus on advanced trading technologies, transparency of trading and customer service. To learn more about FX Solutions, please visit www.fxsolutions.com.
Forex trading involves a substantial risk of loss and may not be suitable for all investors. FX Solutions is compensated through a portion of the bid/ask spread.
* While we strive to offer capped pricing (spreads) at all times, there may be occasions where a significant market or world event may force us to widen spreads beyond the caps without prior notice. The last time spreads were widened beyond set levels was February 2009. NZD/USD widened from 5 to 7 pips. Spreads vary based on market conditions, including volatility, liquidity and other factors. The minimum spreads referenced herein are intended to occur periodically in normal market conditions on select currency pairs. The spreads you experience throughout a day will differ.
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Which will be out of business first… FX Solutions or FXDD?
doubt both will be ‘out of business’ per-se: fxdd has large base in europe (malta) and major backing, city index is behind fx solutions. so worst come worst they may leave US, but not go out of business.
Went to visit their page and that’s right, they have lowered their spreads although under “normal” market conditions whatever that means to them, oh and they also do not promise anything, just a “cap” which amazingly is also variable, go figure! No but all in all it is true that competition lowers spreads, long time since FxSol had maintained their relatively high costs, it is still the same 3 pips for outside the US.
If I understand correctly, EAs created on the new MT4 compiler will be compatible with MT5.
I am sure some of our developer readers can provide greater clarity.
If I understand correctly, EAs created on the new MT4 compiler will be compatible with MT5.
I am sure some of our developer readers can provide greater clarity.
This is page we need to focus us:
http://forexmagnates.com/q3-2012-us-forex-traders-profitability-report-number-of-us-accounts-keeps-plummeting-citifx-pro-on-top/
As long as vols are low and clients are losing money it seems like the US brokers are comfortable with being aggressive with their pricing. Wonder what happens if vol returns? For the foreign based market makers, its no biggie as they just start requoting more often or add slippage. But, the FSA guys (who many of them have allready been caught and fined) will have more problems manipulating prices.
After more brokers are offering direct connection to LMAX, and of course traders are able to get account directly in LMAX such trend is “only way to survive” for brokers.
Those brokers are offering 0,1 – 0,4 pips spread on EUR/USD and 0,4 – 0,55 pips comission with really good execution and liquidity. Of course such offers are for retails but I cannot imagine now trader knowning market with about 100k EUR or less opening account in one of “old broker”
Marcin: who are the brokers with LMax connection? I only know about FXOpen and Armada Markets. Anyone else?