Another Broker Lowering Spreads
by
Ron Finberg
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.
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 MetaTrader 4 (MT4) MetaTrader 4 (MT4) MetaTrader 4 (MT4) functions as a comprehensive platform for trading foreign exchange (FX), analyzing financial markets, and using expert advisors. Despite the emergence and adoption of the newer MT5 variant, MT4 has remained the dominant and de-facto platform utilized by brokers since its release by MetaQuotes Software since 2005.MT4 is widely used in the online retail foreign exchange space by traders. The software is licensed to FXbrokers who provide the software to their clients and consists MetaTrader 4 (MT4) functions as a comprehensive platform for trading foreign exchange (FX), analyzing financial markets, and using expert advisors. Despite the emergence and adoption of the newer MT5 variant, MT4 has remained the dominant and de-facto platform utilized by brokers since its release by MetaQuotes Software since 2005.MT4 is widely used in the online retail foreign exchange space by traders. The software is licensed to FXbrokers who provide the software to their clients and consists Read this Term) 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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term improves. A 'cap' or 'limit' is placed on the spread with the intent of restricting it from widening more than the listed cap level. 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.
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.
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 MetaTrader 4 (MT4) MetaTrader 4 (MT4) MetaTrader 4 (MT4) functions as a comprehensive platform for trading foreign exchange (FX), analyzing financial markets, and using expert advisors. Despite the emergence and adoption of the newer MT5 variant, MT4 has remained the dominant and de-facto platform utilized by brokers since its release by MetaQuotes Software since 2005.MT4 is widely used in the online retail foreign exchange space by traders. The software is licensed to FXbrokers who provide the software to their clients and consists MetaTrader 4 (MT4) functions as a comprehensive platform for trading foreign exchange (FX), analyzing financial markets, and using expert advisors. Despite the emergence and adoption of the newer MT5 variant, MT4 has remained the dominant and de-facto platform utilized by brokers since its release by MetaQuotes Software since 2005.MT4 is widely used in the online retail foreign exchange space by traders. The software is licensed to FXbrokers who provide the software to their clients and consists Read this Term) 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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term improves. A 'cap' or 'limit' is placed on the spread with the intent of restricting it from widening more than the listed cap level. 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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