Breaking: DMM FX Australia Adopts "Ultra-Low Fixed Spreads" on All Trading Pairs

Online Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs broker, DMM FX Australia, has just announced it is moving to offer what the company calls "Ultra-Low Fixed Spreads" on all of its avilable 29 currency pairs, including the most popular ones in the 'Land down Under': AUD/USD, EUR/USD & USD/JPY.

The new offering isn't completely fixed as the name suggests, but actually DMM FX says its new low spreads are fixed over 99% of the time during normal trading hours but spreads may widen during volatile market conditions, such as news releases.

DMM FX CEO, Koji Miura, commented on his firm's recent trading incentive: ‘’DMM FX clients will experience our lowest fixed spreads ever, from 0.5 pips, on all pairs, even our majors are fixed. Along with ultra low fixed spreads, traders with DMM FX now have the choice of 200:1 and 600:1 leverage for additional trading options. We have also introduced Micro Lot trading for our clients. As Australia is preparing for the Melbourne Cup in November, DMM FX traders have already scored the trifecta. Our tightest fixed spreads deliver certainty, freedom to choose between leverage ratios and finally the option of trade size, however small or large.’’

The move by DMM FX can't avoid being seen as a reaction to FXCM's announcement made last week when it switched to a raw spreads model promising to lower trading costs by 50%. This raises the question: Did FXCM start a new price war between brokers in Australia and how low can profits go if brokers are forced to compete on spreads? Just as Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term is finally picking up it looks as if a new threat to earnings is emerging but the combination of the two factors will likely lead to new volume records.