FXCM Cuts Execution Times and Spreads in December
- The broker averaged an execution time of 17 milliseconds.
Retail broker FXCM released a set of trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term data this Thursday, which included Slippage Slippage In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price Read this Term times, execution speeds and average spreads for several currency pairs and financial instruments.
Slippage, as most of our readers will know, is the difference between the quoted price a trader sees and the price at which an order is executed by the broker. For traders, less slippage is more likely to lead to better trading results.
In the case of FXCM, 61.2 percent of client orders in December were made without any slippage. Another 27.3 percent of orders were made with positive slippage, meaning the price a client received was actually superior to the one they were quoted.
In terms of execution speed, things were better than they were back in September when FXCM reported an average execution time of 25 milliseconds. That’s because last month that figure was 17 milliseconds for the retail broker.
Cutting spreads
Turning to spreads, FXCM managed to tighten spreads in a couple of instruments when compared to those that the broker achieved in September.
For example, the average effective spread for BTC/USD traders in December was 30.3 pips. Looking back at September's results, the firm reported an average effective spread of 43.9 pips.
“2018 was another eventful year in the FX and CFD markets and I’m sure 2019 will be no different,” said FXCM CEO Brendan Callan. “Here at FXCM we launched our HTML 5 web platform, expanded our Algo trading offering and focused a great deal on execution quality and bringing down our spreads to be extremely competitive. In 2019 we are looking to take some big steps forward in improving the overall customer experience as we truly take your feedback and request into account.”
Retail broker FXCM released a set of trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term data this Thursday, which included Slippage Slippage In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price Read this Term times, execution speeds and average spreads for several currency pairs and financial instruments.
Slippage, as most of our readers will know, is the difference between the quoted price a trader sees and the price at which an order is executed by the broker. For traders, less slippage is more likely to lead to better trading results.
In the case of FXCM, 61.2 percent of client orders in December were made without any slippage. Another 27.3 percent of orders were made with positive slippage, meaning the price a client received was actually superior to the one they were quoted.
In terms of execution speed, things were better than they were back in September when FXCM reported an average execution time of 25 milliseconds. That’s because last month that figure was 17 milliseconds for the retail broker.
Cutting spreads
Turning to spreads, FXCM managed to tighten spreads in a couple of instruments when compared to those that the broker achieved in September.
For example, the average effective spread for BTC/USD traders in December was 30.3 pips. Looking back at September's results, the firm reported an average effective spread of 43.9 pips.
“2018 was another eventful year in the FX and CFD markets and I’m sure 2019 will be no different,” said FXCM CEO Brendan Callan. “Here at FXCM we launched our HTML 5 web platform, expanded our Algo trading offering and focused a great deal on execution quality and bringing down our spreads to be extremely competitive. In 2019 we are looking to take some big steps forward in improving the overall customer experience as we truly take your feedback and request into account.”